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Drop The Price! How New Pricing Strategies Can Benefit You

March 13, 2012 Industry Trends No Comments

PegasvsLately, some indie labels have been changing their selling strategy. They want fans to have their music, sometimes even for free. But why not drop the price and let them purchase a release for just €2.99? Young labels with young audiences (and not a lot of cash to spend) are now asking that exact question. Is this a low cost strategy with a high level of awareness?

Last week Pegasvs‘ brand new release was available for €2.99, an irresistible price that encouraged listeners to explore new music and promptly buy it. As a result of this move, Pegasvs garnered great feedback and succeeded in placing their self-titled debut at #4 on iTunes Spain’s Top 10 in their first few days on sale. Since, the album has moved within the iTunes Top Chart position and remains there still!

In addition, the band’s decision led to several reviews in the music press making the release even more noticeable. Buyers were commenting that “at that price, even I, who had not heard anything from them before, purchased the album. Great initiative. And I don’t regret it; it looks like a great album!” Other remarks included: “It is great music at an awesome price!” and “What’s €2.99 from your pocket? A coffee? It’s better to buy music at a price that low.”

While the move is a bit controversial, as some artists might claim their music is worth more than such a cheap price, in this case it was a successful creative pricing strategy. More and more, other labels are also dropping down the price of their catalogue, pricing old releases at €4.99 or €5.99. The belief is that applying pricing strategy leads to increased sales as well as income.

This philosophy is certainly relevant to the times in which we are living. Is it better to sell cheaper and sell more?? Why not try it? We are on sale!! Open up your mind to new possibilities for pricing of your music. Thinking out of your comfort zone can be rewarding on the long-term, and it’s win-win for fans and record labels alike.

In a nutshell: Sell cheaper = Sell more = More awareness = Happier fans!

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