- May 3, 2023
Competitive Pricing
Pricing is a very tricky strategy that studios tend to use nowdays.
Some of them just show off with ridicously high prices. Others aim for the lowest prices award. The rest factors in their knowledge and gear to come up with their numbers in between. In an oversaturated market like ours especially in the age of AI tools taking over pricing is a real headache for most engineers.
Calculating with energy expenses that just recently elevated to unforeseen levels justifys on it’s own the rise of prices. While from the artist’s viewpoint the same happens so they will have less money to spend on services. In the meantime streaming and other platforms haven’t raised their payouts for them and the icing on the cake is the inflation that hits everybody.
Now what?
Well we know a few studios who sold their analog gear and shrink back to a home studio stage with an Apollo Twin and a laptop, heck some of them even moved to another country to escape the raising taxes and prices of big cities. This is not a bad thing at all, freedom and mobility can be an advantage, and they can still rent out a big studio for a more demanding project or recording.
Another approach we saw was to fall forward and investing in by buying these used gear from closed down studios or even the studios. These guys plan to catch a lot of clients by their tempting studio quality. The biggest ones that are not in the danger zone are simply in the game of dominating the market. At the end every plan comes to one classical move: corner the market and raise the prices. Basic economics. There is only one problem with this: there is always some one who tries the same.
