I recent years, quite many times engaging into discussions how should be releases priced? It is interesting how different ideas or situations people have. How people relate to selling items or making them. Also background and age seems to effect. Background in ways, that it may have sort of ideological leaning.
Guys, who come from old style underground DIY, like myself, sort of grew into idea that you will lose money. That was the default. No situation where all failed, but even when all things went like "planned", you'd lose money. Perhaps mostly that money itself wasn't even agenda on table in any way. It was more about communication and cumulation of other people's creations and experiencing them. Even if all money was thrown away so to say, in return, you had something else. Experience and collection that grew with you over the years. Many early trades becoming sought after collectible of those who were not there at the time.
When you have more professional goal, such as running label. It may demand at least minimum level of sustainability. You'd need to know how much to make back, that you can sustain the label going on. Or how much you need to feed in. This sets a lot of labels apart. Some care about just getting stuff out there. Losses or not, no matter. Some prefer that label sustains itself, and is not just endless black hole. Some hope that label even cumulated income, that it is actually profitable.
Last option is interesting, since back in the day, I didn't know almost any labels who would operate them as "official business". Paying taxes and all that. Now this seems very common in underground. Perhaps simply due trouble you may get if getting caught. In Finland, depending of income, all sorts of taxes and tax-like obligations (pension etc), it can be up to 50% that they tax you. Comparing guy selling tape for 4.. 5.. 6 euro.. and next guy asking 8,9, 10.. and it is possible the latter one makes less money, simply due all things connected to official business. As a buyer, I doubt one really think why it is so, and it comes down to "so we are asked 12 euro for C-20 now...? pfff" Which to me, seems legit question, and also regardless of all explanations why pricing is what it is, it doesn't change fact that people may be turned away.
I see often arguments that price needs to cover the costs and trouble releases have. Dubbing tapes, folding j-cards,.. a lot of work. That manufacturing is higher than CD, so why tape should cost less. Now that it cost about same as making bigger edition bulk LP, maybe tape should cost 20 euro to make it worth of time and investment? hah.. I see point and realism, but just don't seem to have that mentality. So, there are no 20 euro tapes on my labels.
Question of topic being mainly, how you'd personally price items? What do you really consider, if anything? Most prices are sort of given by standards. You know what something generally costs, so you ask the same. But if you do consider pricing, what it is?
Manufacturing costs?
Time spend on it (dubbing, packaging..)?
If its not your own stuff, but as a label, you hope to give also artist more than bare minimum, so there are other costs than immediate manufacturing?
Or thinking what price you can recoup the costs?
Or thinking what price the actual profit is enough to keep going? That you can either afford running label (whatever level).
Price as means of arranging distribution? (as example: have significant difference between wholesale and retail price, so dealers actually WANT to sell your stuff)
Price as means of demanding "devotion"? (as example: Only people who REALLY want it, buy it. Not hoarders. Or people who appreciate the amount of labor you put into item. Sort of mutual respect and those who demand your time to be free, ain't the customers)
etc etc.... there are a lot of things you can consider.
For me personally, especially these days, it doesn't really matter so much. I have had almost same prices always. Notch up occasionally just to keep up with rising costs.
I have had guys who sell tapes for 10 euro asking how I can sell tapes for 7 euro incl. all taxes. Well... I just do it and not care if "profit" is 0 or 1 euro. Sometimes even loss. Of course, intent of label or distro is not to create loss, but I am absolutely not afraid of it either. Many times it brings something positive along it.
My two main "calculations" are how many copies I need to sell of album to break even. If it seems doable, that generally is fine. I don't release things for sake of money, but because I feel they should be out there and deserve to be out there, and like them myself, so money making comes so far behind in priorities that pricing tends to be always the same. Regardless how much album item cost to make. It is very very rare occasion that packaging, size of pressing or such things are taken into serious consideration and price increased.
CD is easy. Zine and tape is confusing. LP is challenging. It is curious what people think in terms of pricing when they put out stuff.
