Music Distribution

A distributor is a company that serves as an intermediary between manufacturers and retailers. Distributors are able to buy in bulk from manufacturers, and then make smaller quantities available to retailers. In this way, retailers do not need to buy entire pallets (for example), but can instead purchase smaller quantities ("Distributor," 2009).

A retailer sells goods directly to consumers; specialty retailers sell a particular type of good ("Specialty Retailer," 2009). Target is an example of a mass-merchandise retailer; Guitar Center is an example of a specialty retailer.

Net profit, or net income, is the difference between total revenue and total costs plus total expenses. Total costs include all costs associated with producing the good, while total expenses include general and administrative expenses, among other items. Companies need to maintain positive net profits to remain in business ("Net Income," 2009).

NAMM is the National Association of Music Merchants founded in 1901 and now boasting more tha

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Category: Economics - M