[net.games.trivia] Cut-outs

marcos@sdchema.UUCP (David A. Pearlman) (01/14/86)

In article <1003@ihlpa.UUCP>, ibyf@ihlpa.UUCP (Scott) writes:
> Thanks to all you who responded about the cut-outs.  
> for anyone interested, the replies were as vaired as the cards
> in a poker game.  
> 
> here are some.
> 	out of print records.

This is true. The records most frequently found in cut-out stacks are
those which are out of print.

> 	old (not selling well) records

Partially right. Records which are not selling well (generally a certain
number of copies per time interval) are often cut-out. These may be
old or new albums, and after the cut-outs are sold off may or may not
be retained in the manufactuer's catalogue.

> 	damaged records (not true I'm led to believe from the other respons)

While defectives crop-up in the cut-out bins, this is very *rare*. When
manufactuers have defective records (from returns or those noted in spot
inspections of new albums), they are generally destroyed. Occasionally
they'll find their way out the 'back door' to an unscrupulous used record
store. But they are never legitamately sold off as cut-outs (at least not
by any major label).

Sometimes searching the garbage bins of the record labels can be a
very rewarding experience (so I've been told). Getting to them is another
question entirely...


*SOME MORE REASONS FOR CUT-OUTS:*

Occasionally a label having financial difficulty will sell off its
inventory through the cut-out channels. Such has been the case with
such labels as Mushroom (hence the large number of early Heart L.P.
cutouts) and Buddah (which resulted in cut-outs of Genesis, Captain
Beefheart, Lovin' Spoonful, and other well-known (?) groups). When
cut-outs reach the market for this reason, they may not actually
have any of the standard cut-out markings (see below). This is
because it's not necessary: there's no one to return the recordings
to anyway. It is also not unknown for a label in precarious shape to
press up a large number of its best selling albums just to sell them
through schlock channels.

Albums also find their way to the cut-out bins as a result of litigation.
One of the most amazing examples of this occurred a few years ago.
The Electric Light Orchestra recorded for Jet Records, which was then
distributed by United Artists Records. Well, United Artists was sold
which Jet claimed gave them the right to change distributor. So Jet
went with CBS for distribution. United Artists filed suit, claiming
the move to be unlawful, and at the same time dumped their entire inventory
of ELO albums on the cut-out market. This was when "Out of the Blue"
was still a current hit album, and just as the CBS distributed hit
single "Mr. Blue Sky" was rocketing up the charts! So "Out of the Blue"
could be had as a cut-out *while it was still high on the charts*.

Another famous litigation casulty is the Beatles' "Let It Be", which
was dumped en masse on the cut-out market when the Beatles fell out
with Allen Klein.
> 	
> As to why they have the cut-outs
> 	to prevent the record retailers from returning them for $$$

This is the reason cut-outs have slightly defaced covers. The marking
can be a notched corner, a slit in the side, a bb-hole in the corner
(not very common any more), a larger hole in one corner, or...
Records so defaced cannot be returned by retailers to the manufacturer.
This is important since sometimes the same album will be available both
as a cut-out and as a full price selection.

> 	to move the merchandise quicker. 

Well, the reason records are cut out is to move them more quickly. But
I doubt that defacing the cover has ever convinced anyone to purchase
a particular album.
> 

Record labels vary widely in their cut-out policies. Columbia tends
to be very conservative, as does Capital, which means you generally
won't find anything but old 'dead dogs' from these labels in the bins
(though their are occasional exceptions). Warner Brothers albums often
find their way to the cut-out bins, at least for a small time, even
hit albums (the Band's "Last Waltz" comes to mind, but their are many
more). Atlantic tends to be the worst (or best, depending on your perspective)
about cut-outs: almost everything they release finds its way--at least
in small quantities--to the cut-out circuit. One recent example is
the Rolling Stones' "Undercover" L.P., which was schlocked out only
a few months after its release. All the Genesis albums up through
"And Then There Were Three" have also been available as cut-outs,
as have many other solid catalogue albums. Polygram Records used
to be as bad as Atlantic, but they made a change in policy about 1980,
and now Polygram cut-outs are quite rare. Arista is another label with
very liberal cut-out policies.

The bottom line is: if you see an album you want in the cut-out stacks,
buy it. The only thing different about the record (or tape) itself is
the price (and the cover notch). One last note: cut-outs are in general
sold *very* cheaply by the labels to 'schlock' distributors, who
then re-distribute the albums to smaller vendors, who ultimately get
them to the stores where you shop. Depending on the path the resales
take, the cost of the cut-out to you can vary widely. In other words,
there is no list price for cut outs, and no standard wholesale price.
Shop around! You can save a lot of money by buying your cut-outs
at one of the "$1.00/disk" sales they have at places like K-Mart
or Target rather than at Tower records.

Hope this answers a few questions.

				  David ("Dr. DAP") Pearlman

"And all this science I don't understand...
 It's just my job five days a week" -- Elton John

wjh@bonnie.UUCP (Bill Hery) (01/15/86)

> The bottom line is: if you see an album you want in the cut-out stacks,
> buy it. 

But keep in mind that the artists get no royalties from cut outs, so if you
want to support the artists, at least buy one of their in print records too.