| From the Where2sing.com forum: David. Absolutely.
One would think that a company like Capital buying in bulk would most likely be able to negotiate much better pricing from the larger distributors in the US and elsewhere than you or I. Sure they obviously have additional overheads in running their business, but as I said earlier the prices they charge in a lot of instances seem to be very top heavy.
I suppose it comes down to a simple business principle - you can run one of two ways - Either you sell a lesser amount of product at a higher margin, or attract a larger volume of sales by charging a cheaper price with a smaller margin.
I also often wonder about the costs of sponsorship. Capital sponsors many Karaoke contests around Australia. Maybe this is offset in tax deductions or within their advertising budget. But considering, (and as you believe you have confirmed), if Capital only have a small portion of the market share, are people who buy discs paying more so as to subsidise Capital's sponsorship of the competitions.
(Does that make sense)?
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