A Singapore composer offered to create some music clips for my mobile apps. She quote a price of $750 for the music clips for one app (and it is restricted to only that app), and said that it will be for my exclusive use. This was too costly for me - and I do not need exclusive rights - but she was not prepared to reduce the price.
Later, I found a source in the Internet where I could get the suitable music clip for $10 and it is not restricted to one app. I need to pay a total of $50 for several music clips to be used for all of my apps. I decided to use the music clips from this source.
I introduced the Internet website to the music composer, so that she can upload her music clips and sell them at a lower price on a non-exclusive basis to the world market. I hope that she can make a business by offering a competitive price to her customers.
Note: Our businesses are now used to charging exorbitant prices that they are out of touch with the world market! I do not blame these businesses, because they have to incur high operating costs in Singapore, but this type of business model is bad for Singapore.
Later, I found a source in the Internet where I could get the suitable music clip for $10 and it is not restricted to one app. I need to pay a total of $50 for several music clips to be used for all of my apps. I decided to use the music clips from this source.
I introduced the Internet website to the music composer, so that she can upload her music clips and sell them at a lower price on a non-exclusive basis to the world market. I hope that she can make a business by offering a competitive price to her customers.
Note: Our businesses are now used to charging exorbitant prices that they are out of touch with the world market! I do not blame these businesses, because they have to incur high operating costs in Singapore, but this type of business model is bad for Singapore.
Music composition is a creative process, and creativity is a rare commodity. Pricing therefore falls into the realm of infinite possibilities. The archetypal "starving" artist must progress to the "struggling" artist stage through hard work and appreciative patrons before hitting the big time as a "successful" artist. One school of thought on pricing believes in charging as high as the market will bear because no one can put a price on creativity, and to sell cheap is to sell one’s work short.
ReplyDeleteHowever in today’s hitech environment, artists are using technology to rake in big bucks through selling high volume at low unit prices, as in the music website you found. Even the omnipotent record companies must lower their sights and sell at 99 cents per song instead of $20-$30 per album through iTunes.
The composer that I talked to is not a well known composer, but someone who is starting this business. She has to adopt a suitable business model, in order to give a start to the business.
ReplyDeleteIt is not appropriate to offer high price music clips on an exclusive basis and restrict it to one app. This is a lose-lose proposition.
I hope that this observation will benefit other young people wanting to start a business.
But? But? But?
ReplyDeleteSurely Singaporeans have a lower cost base because of our subsidized HDB housing?
Our cost competitive government payrolls?
ROFL (Rolling on floor laughing)