CD Club FAQ v4.17
Bradley P. Von Haden
Archive-name: music/cd-club-faq
Posting-Frequency: every two weeks
Last-modified: 15 September 1997
Version: 4.17
Breaking News
While not exactly 'breaking news', the CD Club Web Server has
moved to 'http://www.cd-clubs.com' from the 'hirschhorn' site.
This site has among other things the catalogs for BMG, CH and CDHQ
which is quite helpful considering how busy (read slow) the BMG
and CH sites are. Another 'new' feature is the Meta Club FAQ
which was written by none other than the maintainer of this FAQ.
The Meta Club FAQ is a cd club FAQ in a true question/answer
format. It contains most but not all of the information in this
FAQ. Check it out.
The CD Club FAQ has three sections (I, II, and III) and an Appendix.
It is posted about every two weeks to rec.music.misc and
rec.music.collecting.cd. The current text version can be found by ftp
at 'ftp.primenet.com' in 'users/b/bpvh'. A HTML version of the FAQ
can be found at 'http://www.blooberry.com/cdfaq'.
In general, this FAQ is about how to get the best value for your
dollar from a membership in any of the three major US/Canadian audio
CD Clubs: BMG Music Service (BMG), Columbia House Music Club (CH) and
CD / Headquarters (CDHQ) (US only). This FAQ is not sanctioned in
anyway by these clubs. BMG and CH have official FAQs which can be
found at their respective WWW sites.
Let me introduce myself. My name is Brad von Haden and I can be
reached via email at bp...@primenet.com. I have been a member of a BMG
club since the mid-80's (currently a member of both the popular and
Classical divisions), a member of Columbia House since 1993, and a
member of CDHQ since March 1996. My only affiliation with the clubs
is as a member.
This FAQ was originally maintained by Carl Ponder. Much of the
information contained in the FAQ was compiled by him. So, from here
on out in the FAQ, when there is a personal pronoun, it means either
Carl or myself.
If you have any information (new, corrections, or whatever) or
questions pertaining to the FAQ, please contact me. If you have
information or questions relating to the operation of the sites (HTML
conversion, online catalogs, etc) please contact the site maintainers.
Sincerely,
Brad von Haden
p.s. Special thanks to Malcolm Humes, James Fowell, Glenn Lea,
Troy Biles, Bob Neidorff, Jerry Dallal, Victor Ortega, Benn
Tannenbaum, Bob Retelle, Bruno Fernandes, and all the
dedicated readers of "rec.music.cd" who have provided me
with so much invaluable information.
p.p.s. My thanks, especially to Carl Ponder, the original
maintainer, for all his hard work, and to all those
mentioned by Carl, plus Scott Clark, H.W. Neff and Dave
Datta, and Hugh Chou, Jason Hirschhorn, Rob McIntyre, Mark
Ramsey, Michael Santos, Martin Stern, Eric Stauffer, Brian
Wilson and Yi-Shin Wu.
* * * *
+ a '+' signifies a change from the previous version (which was 4.16).
+I. Join, Fulfill, Quit, Repeat
*******************************
+A. Deciding to Join
To find out whether BMG, CH, or CDHQ offer artists and titles that
appeal to you in quantities sufficient to fulfill the membership
requirements:
- check the online catalogs:
BMG Music Service:
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/
CH Music Club:
official : www: http://www.columbiahouse.com/
unofficial: www: http://www.cd-clubs.com/
CDHQ / CD Headquarters:
official : none
unofficial: www: http://www.cd-clubs.com
BMG Classical Music Service:
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com
unofficial: ftp: ftp://ftp.gmd.de/ in
music/cd-catalogs/bmg-classical-collection.gz
- check magazines and newspapers for club advertisements
- check a friend's club bulletin/catalog
- call, write, or email (Sect II) the club for a catalog:
+B. Joining
Best Current Offers:
BMG : '12 CDs for the price of 1 CD, nothing more to buy,
ever'.
CH : '12 CDs for the price of 1 CD, with nothing more to buy
ever!'. This offer has recently been advertised only
is select locales in certain media (i.e. certain city,
certain newspaper). CH's basic offer is '12 CDs for 1
cent, plus $1.49 fee, buy 6 more CDs to fulfill'.
CDHQ: '12 CDs for the price of 1 CD, no obligation to buy
more'
All three clubs reserve the rights to reject a prospective member
and to cancel an offer without notice.
The initial shipment of CDs usually takes 3-6 weeks. Once a
member, orders usually take 2-4 weeks. An order I placed via CH's
WWW site arrived within 10 days.
+C. Fulfilling
To fulfill the membership purchase requirement, purchase the
required number of CDs in the allotted time. Single CDs that
count toward the membership purchase requirement are priced over
$12.98 for CH and CDHQ and over $14.98 for BMG. While most
multiple-CD sets that contain X CDs count as X CDs toward the
membership purchase requirement, some do not. Those that count
differently are marked accordingly in the club's catalogs/flyers.
Other than paying the bills and fulfilling the membership purchase
requirements within the stated time period, a club member's main
responsibility is to cancel the automatic selection of the month
in a timely fashion assuming he/she does not wish to receive it.
This can be done by returning the monthly selection cards or by
contacting the club's customer service center by telephone, email,
or www site. (section III. J)
If you receive a CD that is either received in error (unwanted
monthly selection or wrong CD shipped by the club) or flawed (CD
or packaging) contact the club's Customer Service Department and
ask for a return label. If the CD's shipping package has yet to
be opened, just write "Refused - Return to Sender" on the outside
of the package and give to the US Postal Service.
D. Quitting
Once the membership requirements have been fulfilled, contact the
club's Customer Service Dept (be sure to include your account
number) or just write PLEASE CANCEL MY MEMBERSHIP on a monthly
selection card. Prior to the club cancelling your membership, you
might receive another monthly selection card. Ignore it. The
club will probably send notification when it has processed the
cancellation.
+E. Repeat
BMG has implementated a one membership, per person, per year
restriction.
+II. Customer Service Information
*********************************
A. BMG Music Club
Mail : BMG Music Service
Customer Correspondence
PO Box 1958
Indianapolis, IN 46291-0010
BMG Classical Music Service
Customer Correspondence
PO Box 91119
Indianapolis, IN 46291-0050
Phone: (800) 722-2892 or (317) 692-9200
M-F: 8 AM - 6 PM ET
(317) 542-6090 (FAX)
Email: c...@bmgdirect.com
70007...@compuserve.com (out of service soon)
WWW : http://www.bmgmusicservice.com/
B. Columbia House Music Club
Mail : Columbia House Music Club
1400 North Fruitridge Avenue
Terre Haute, IN 47811-1130
Phone: (800) 457-0500 or (812)242-7500
M-F : 5 AM - 8 PM ET
SAT : 6 AM - 2 PM ET
Email: customer...@columbiahouse.com
70007...@compuserve.com
WWW : http://www.columbiahouse.com/
C. CDHQ / CD Headquarters
Mail : CDHQ
Attention: Customer Service
3109 Canterbuty Court - Dept T.
Bloomington, IN 47404-7004
Phone: (800) 242-7096
D. Reasons to contact Customer Service
- Cancel Selection of the Month.
- Order CD(s). (This can be faster than sending in the card.)
- Check on the status of an order.
- Check on the availability of a CD or an Artist.
- Order a catalog
BMG: 'Music Central'
BMG Classical: 'Encore: The Collector's Guide'
CH: 'The Guide'
CDHQ: 'Warehouse Directory'
- Request an application
- Questions or Problems.
- Request that you be removed from Mailing Lists going to outside
companies. (This reduces the amount of junk mail you would
receive because you joined the club.)
- Request to be placed on the "positive option" plan. (section
III. J.)
- Cancel membership
Note: When writing to a club's customer service center by US Mail
or email, club members should include their name, complete US
Mail address, and club account number.
III. More Indepth Information
******************************
+Questions Answer Sections
========= ------ --------
Can I rejoin the club if I quit? yes. A.[1]
Are the CD club disks as good as the store ones? open. E,F,G
Can I order from back issues of the catalogs? yes. D
Can I use numbers from catalogs to order from ads? yes. D
Should I use the half-price coupons? no. A.[1]
Which club is better? depends. A.[2]
Can I order Boxed sets through the introductory offer? depends A.[6]
Why do the clubs charge Sales Tax? see below. I
How do I stop getting these cards every month? see below. J
What if they send me a CD that I don't want? return it. J
What do I do with a defective disc? return it. J
Do they have Beatles or Pink Floyd? not really. D
Where did all this junk mail suddenly come from? surprise! H
+How are the Canadian and US CD Clubs different? see below. App
A. Getting the most CD's for your $$$
======================================
+By following these rules, the club CDs will cost on average $4-$8.
Only the "bad" cutout bins at retail stores can beat this price. The
clubs catalogs' contain strictly domestic CDs (except for BMG
Classical) made mostly by more popular groups like U2 etc., or CDs
that they couldn't sell, like "Best of Slim Whitman":
+[1] The Golden Rule: Join, Fulfill, Quit, Repeat. Do *not* use their
so-called "special member deals", like buy-one-at-half-price.
Want more CD's? Quit and rejoin!
BMG has implemented a one membership per person per year
restriction. Quitting and rejoining BMG will now take a little
more effort. As the restriction is per person, per year, each
person at an address should be able to have one membership per
year. One suggestion: while a member, use the 'join a friend'
offer to sign someone else up at the same address. The current
member, after fulfilling the membership, quits and uses the
'friend's' membership. Repeat.
Please keep in mind the new BMG policy when reading the next two
paragraphs.
The stated policy of BMG, CH, and CDHQ is that they reserve the
right to refuse any application. I have been a member of BMG and
CH many times and recently became a member of CDHQ for the first
time. As the clubs usually offer new memberships to members who
have quit or allow past members to rejoin on their own, the clubs'
policy evidently is to allow former members in good standing to
join, fulfill, quit (repeat) at will.
After quitting, the club might ask you to rejoin by mail and/or by
phone. Be forewarned: the offers to return may not be the best
offers then available from the clubs.
[2] Wait for a 'buy 1, get 2 free' offer or even a 'buy 1, get 3 free'
offer (BMG only) to fulfill the membership agreement. This should
happen within the first three months of membership.
+[3] The best new membership deals come out around the New Year. BMG
has advertised offers of 12-for-1, 10-for-1/2, or even
10-for-a-penny, as opposed to their usual 8-for-1 offer. CH has
had 12-for-1 or 10-for-1/2 offers. (Note: 'X-for-Y' offers means
you get a total of 'X' CDs for the price of 'Y' CDs. There is no
obligation to buy more CDs at regular price than the 'Y' number.)
+These offers will cost an average of $4 or so, for the CD's,
taxes, shipping and handling, and even the stamps. The "normal"
CH offer of 18-for-the-price-of-six will cost more like $7 or $8
per CD.
+When considering a membership in BMG, another option is to join
as a friend of a current club member. BMG's standard 'join a
friend' offer is '11 CDs for the price of 1 CD' for the joining
member and 4 'free' CDs for the existing member, or 15 CDs for the
price of 1 CD. This is a good deal for the joining member if the
existing member is willing to 'give' at least two of the 'free'
CDs to the joining member. BMG's best 'join a friend' offer is
'12 CDs for the price of 1 CD' to the joining member and 5 'free'
CDs to the existing members; 17 CDs for the price of 1 CD (flyer
nn/58/O).
The CH version of this option is not recommended as it contains
the standard CH membership agreement which requires the joining
member to purchase 5 or 6 CDs at regular price.
+[4] The prices of the CD's are not all the same. For the introductory
membership order, use the more expensive CDs as the "free"
selections and the less expensive CDs as "fulfillment" selections.
Keep in mind that CDs that fulfill the membership purchase
requirements are priced over $12.98 for CH and CDHQ and over
$14.98 for BMG.
[5] Apparently you can sign up your spouse, roommates, boyfriend or
girlfriend, etc., even if you live at the same address. It's
handy to split memberships if you already have *almost* everything
you want.
BMG allows up to five memberships under different names per
address.
+[6] Getting good deals on double-CD's and multiple-CD boxed sets is
possible if attention is paid to detail. CH and CDHQ only allow
*some* double-cd's as "free" selections. Sets with "N" CD's do
not always count as "N" for fulfilling your obligation. As they
are inconsistent with this, it would be best to contact the club's
Customer Service for verification. Keep a record of the name of
the representative.
BMG allows you to order most multiple-CD sets in the introductory,
buy-1-get-X-free, 60% off, etc. offers. Several readers have
mentioned that the searchable catalog at BMG's web site has most
multiple-CD sets marked as "unavailable as free selection". In
contrast, the printed paper catalogs have almost every multiple-CD
set of 5 CDs and less unmarked (available as free or bonus
selections). My advice: follow the more generous printed catalogs
markings and join/order via US Mail.
In the introductory offer, just put the number of the N-CD set in
one of the entries, and leave (N-1) of the entries blank so it
adds up to the correct number of total individual CDs (not
titles).
In non-introductory offers, multiple CD sets are treated similarly
to single CDs: the free or discounted CD sets must be of equal or
lesser value than the purchased CD set. For example, in the 'buy
1 CD, get unlimited CDs at 80% off' offer, the most expensive CD
or CD set in the order will be designated by the club as the
"bought" selection and charged at full price regardless of the
selection's position on the order card.
In a recent 'buy 1 CD at half-price, get unlimited CDs at 80% off'
offer from BMG (flyer nn/66/O), boxed sets were only 66% off.
+B. Membership Costs
====================
1. New Membership Offers
BMG 12-for-1 offer, using a 'buy 1, get 2 free' offer to
fulfill
# of CD Shipping 6.25 % Sub-
CDs Price & Handling IL Tax Total
==== ===== ========== ====== =====
1-6 FREE 14.04 0.88 14.92
7-9 15.99 7.17 1.45 24.61
10-14 FREE 12.45 0.78 13.23
---- ----- ---- -----
15.99 33.66 3.11 52.76
===== ===== ==== -----
Stamps (3) 0.96
-----
53.72
=====
Number of CDs = 14
Total Cost = $53.72
Cost per CD = $3.84
CH 11 CDs for 1-cent, buy 6 more to fulfill
# of CD Shipping 6.25 % Sub-
CDs Price & Handling IL Tax Total
==== ===== ========== ====== =====
enrollment fee 1.50
1-11 Free 26.29 1.64 27.93
12-13# 6.95 4.78 0.73 12.46
14-19* 95.94 14.34 6.89 117.17
------ ----- ---- ------
102.89 45.41 9.26 159.06
====== ===== ==== ------
Stamps (7) 2.24
------
161.30
======
Number of CDs = 19
Total Cost = $161.30
Cost per CD = $8.49
CDHQ 12-for-1 offer, using a 'buy 1, get 2 free' offer to
fulfill
# of CD Shipping 6.25 % Sub-
CDs Price & Handling IL Tax Total
==== ===== ========== ====== =====
1-7 Free 15.33 0.96 16.29
8-10 15.98 6.57 1.41 23.96
11-14 Free 9.56 0.60 10.16
------ ----- ---- -----
15.98 31.46 2.97 50.41
====== ===== ==== ------
Stamps (3) 0.96
------
51.37
======
Number of CDs = 14
Total Cost = $51.37
Cost per CD = $3.67
* - ordered one at a time; cumulative totals shown
2. Shipping & Handling (Single CD Selections per order):
BMG:
First CD : $2.49
Second CD : 2.39
All others: 2.29 each
CH:
Each CD : $2.39
CDHQ:
Each CD : $2.39
+C. Available Deals (unconfirmed)
=================================
Deals vary throughout the year. Some are only available for a limited
time or through exotic sources. The ads can even vary between
different printings of the same edition of the same magazine. If you
read the fine print, some will forgo shipping charges. Here are some
of the offers that you will find reported. The list is by no means
exhaustive:
BMG:
12-for-1 (Rolling Stone, 20 Feb 97)
11-for-1 (Rolling Stone, 02 Oct 97; web site)
10-for-1 (Rolling Stone, 15 May 97)
Missing Application Address:
BMG Music Service
P.O. Box 91001
Indianapolis, IN 46291-0002
Columbia House:
12-for-1 (???)
11-for-1 (Parade (*) 05 Jan 1997) [x=1130]
10-for-1 (Rolling Stone, 02 May 96) [x=1129]
11-for-free + $1.49 fee, buy 6 more (web site)
11-for-1-cent + $1.49 fee, buy 6 more
(Rolling Stone, 10 Jul 97) [x=1130]
* Parade is a newspaper weekend supplement
Missing Application Address:
Columbia House
1400 North Fruitridge Avenue
Terre Haute, IN 47811-xxxx
(for xxxx, see [x=nnnn] above)
CD / Headquarters
12-for-1 (Rolling Stone, 21 Aug 97)
11-for-1 (Rolling Stone, 08 Aug 96)
10-for-1 (Rolling Stone, 15 May 97)
12-for-1-cent plus $1.50 fee, buy 6 more
(Rolling Stone, 18 Sep 97)
Missing Application Address:
CDHQ
3109 Canterbury Court
Bloomington, IN 47404
Note: an X-for-Y offer such as 11-for-1, means the member
will receive 11 CDs in total and the membership only
requires the purchase of one CD at full price.
In the advertisements with most offers, there is an address to write
to if the reply card is missing. If it is a particularly good offer,
it might be worthwhile to write a letter to the listed address stating
that the reply card is missing (even if it isn't) and requesting a
copy of the reply card. In the letter, include the name of the offer,
the source of the ad and a return address. You could try contacting
the club's customer service center for a copy of the offer but this
does not always succeed.
Another option is to save the original reply card and only mail in a
copy. BMG will usually accept a photocopy (or print out of a 'gif'
file). If rejected, all that has been lost is the price of a stamp
and a few weeks. CH is less accommodating in this regard. CH no
longer accepts printed GIF images. Also, if the offer explicitly
states copies will not be accepted, do not send in a copy.
+D. Inventory Listings
======================
There are many sources for the selection numbers of the CD titles
carried by the clubs. These include advertisements, monthly flyers,
annual catalogs, and the customer service centers. The problem with
the ads, flyers and catalogs is that they are not comprehensive. The
problem with the customer service center is, while it is the
definitive source, it is inconvenient to have to call them all the
time.
Thankfully, there are online catalogs. BMG and CH have official WWW
sites with searchable catalogs including almost all club CDs.
BMG Music Service:
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/
CH Music Club:
official : www: http://www.columbiahouse.com/
unofficial: www: http://www.cd-clubs.com/
CDHQ / CD Headquarters:
official : none
unofficial: www: http://www.cd-clubs.com/
BMG Classical Music Service:
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/
unofficial: ftp: ftp://ftp.gmd.de/ in
music/cd-catalogs/bmg-classical-collection.gz
Selection numbers are generally good indefinitely. CD's *do* drop out
of inventory occasionally, although it is more common for a club to
list a title and then have the contract to carry that title fall
through.
Selection numbers from most any source (advertisement, monthly flyer,
catalog, etc) can be used when ordering CDs from the clubs. BMG's 5,
6 and 7 digit selection numbers are interchangeable. To convert a 7
digit selection number to 5 digits, lop off the first and last number.
To convert a 7 to a 6, lop off the last number. To convert a 6 to a
5, lop off the first number. Here's an example:
Eric Clapton's "Cream of Clapton"
Seven digit code (from current listing) : 1082411
Six digit code (from main print catalog) : 108241
Five digit code (from magazine advert) : 08241
CH's and CDHQ's selection numbers are identical. The only difference
is in format (CH: 123456 CDHQ: 12.3456). Note: CDHQ's catalog is
based on the CH catalog, but CDHQ only carries about one-half of the
CH catalog.
The artists and titles in the clubs are dependent on the contracts
between the clubs and the record labels and on the contracts between
the record labels and the artists. If a label has a contract with a
club, most of that label's new artist contracts will include a clause
allowing the label to license the artist's work to the club.
If successful, and unhappy with the "club clause" of its contract, an
artist can renegotiate its contract with its label to either restrict
(certain albums not available or longer time between street and club
release) the artists offerings in the clubs or eliminate the artists
offerings in the clubs all together.
E. The Quality Debate
======================
There is an ongoing debate as to whether CDs purchased through the
clubs are of as high a quality as those purchased in stores. Both BMG
and Columbia House (SONY/Time Warner) sell CDs on the commercial
market, so presumably many of their CDs will be of commercial-grade.
Both BMG and Columbia House press many of their CDs under license.
Here are three possible reasons why the club's CD *might* end up
sounding worse:
[1] They may be pressing too many CDs from the same master, which
could conceivably raise the error-rate past the
error-correcting capability of the coding scheme. Records
purchased from the old RCA club sounded pretty bad for a
similar reason.
[2] They may be mastering the CDs at double or quad speed. This
could lead to increased on-disc jitter.
+[3] The CDs may contain physical anomalies. The anomalies could
effect the servo load, which could effect the power supply,
which could cause jitter and thus cause a sonic difference.
Note: this problem could pertain to different pressings of
retail CDs as well.
In the Fall of 1994, a company did a test comparing CDs purchased at
retail stores versus CDs purchased through the clubs. The conclusion
was posted to the rec.audio family of newsgroups. And the results:
there were no differences in the binary dumps. The test was done on a
very small sample of CD titles.
While there is no hard evidence that the clubs are providing sonically
inferior CDs, some people do claim to be able to hear a difference
between club and retail CDs.
There are several other "quality" issues.
[1] Re-masters/re-releases. While these will show up in stores
immediately, it may take sometime to show up in the clubs.
The time lag allows the club to sell out its inventory of the
old versions.
[2] Older/lesser quality binary masters. It is possible that the
clubs do not get the BEST version of the album, or are
unwilling to buy the newer version.
[3] "Mastered down" artwork. In a small number of cases, club CDs
have suffered from omitted liner notes, a poorer quality image
on the booklet, or foldout posters shrunk down to the size of
the normal booklet. Also note that index marks have been left
off a small number of BMG club CDs.
F. CD Club "Re-Mastering" Statements
=====================================
H.W. Neff and Dave Datta received this information from BMG and
Columbia House and was current in 1991. It is included in this FAQ
without permission from the clubs but with permission from Mr. Neff.
Messrs. Neff and Datta had permission from the clubs to include the
information in their FAQ. Mr. Neff, after reading this FAQ supplied
me with the following information:
Several times the question has been raised about the
remastering of material by CD clubs. A written query was
made. Posted here, with permission, is the bulk of each
response:
BMG Music Club:
THE COMPACT DISC CLUB MANUFACTURES SELECTIONS UNDER
RIGID SPECIFICATIONS AND WARRANTS THAT PRODUCTS ARE
FREE FROM DEFECTS. SELECTIONS ARE REPRODUCED ACCORDING
TO AGREEMENTS WITH THE ARTISTS. MOST SELECTIONS ARE
THE SAME AS THAT SOLD IN STORES. IF THERE IS A CHANGE
MADE IN THE MASTER COPY, THIS IS DONE ONLY BY
AGREEMENT WITH THE ARTIST.
CBS Music Club:
In reply to your question about the mastering of CD's,
Columbia House takes the material as it comes to us
from the licensor and we duplicate it in the
manufacturing plants of Digital Audio Disc Corporation
in Terre Haute or, in some cases, at the Warner
Communications duplicating facilities in Pennsylvania.
We do not ourselves re-master any product nor do we
attempt -- or in fact are permitted - to make any
changes in the master.
G. Resale Value
================
BMG blocks out the bar code on most every CD they sell and instead
prints the words "Mfd. for BMG Direct Marketing, Inc. under license",
and they print the CD's selection number on the back, the booklet, and
the CD itself. This is pretty conspicuous. I have found BMG disks in
the used bins at pawnshops and have known that I could order them new
from BMG at a lower price than they were asking. Some used-CD stores
refuse to accept BMG disks.
CH adds either the letters 'CRC' (Columbia Record Club) or the
statement 'Manufactured by Columbia House Under License'.
Penny Lane Records, Tapes and Compact Discs of Los Angeles, CA, has
instituted a club CD purchase program. Penny Lane will pay $6.00 per
factory sealed club CD on its in-house top 50 chart. Please be
advised that the CD Clubs are considering legal action against Penny
Lane.
H. Ethical Issues
==================
+Since I've received some criticism, I felt I should add this section.
Following the "standard" algorithm of becoming a preferred member of
the CD clubs, you will be buying CDs at an average price of $8-$17
with the disadvantages of limited choices, long turnaround time, and
their occasional screw-ups. Unless you quit and rejoin the club to
take advantage of the new member offer, you might be better off buying
from a local discounter or mail order house.
I believe that the cost of manufacturing a high-volume music CD is
about $2, *including* manufacturing and copyrights. CD's are
expensive because people are willing to pay more money for the higher
quality.
The "super" deals are posted as a way to attract new customers.
Here's a quote from BMG's vice president, Oren Testa:
"We make this offer simply because experience has shown that
it is a sound, economical way to acquire new friends for the
BMG Music Service. Many of our members continue with us for
three, five, even ten years. We make a fair profit while you
keep on saving." (Victor Ortega)
I believe that the clubs still cover their costs under all these
deals, with the *possible* exception of BMG's 10-for-one-cent, where
they may *still* be making it all back with their inflated "shipping
charges". Here are a few points to keep in mind:
[1] Pay your bills.
[2] *Always* read the fine print before you join, while you're in,
and as you quit.
[3] Track your costs. You will be able to buy more efficiently as
you understand where to put the money.
[4] Cancel the automatic monthly selection if you do not want to
receive it.
The clubs also seem to make money by selling addresses to various junk
mail lists. They call this a "benefit", giving you the opportunity to
order all sorts of neat stuff. If you send them a note (including your
membership number) asking to be taken off of the junk mail lists, they
will do so.
Several readers of this FAQ have asked about the payment of royalties
to artists from club sales:
A fairly standard provision in agreements with American
artists is that they receive one-half their usual royalty rate
on sales through clubs and that no royalties are payable on
bonus or free records distributed by clubs.
- Shemel, Syndey. "This Business of Music". 1990. 61.
I. CD Clubs' Collecting Sales Tax
==================================
A company usually must collect sales tax on out-of-state orders if the
company has a "business presence" in that state. These collected
sales taxes are then remitted to the states. Bertelsmann Music Group,
owner of BMG Music Service, and Time Warner and SONY, co-owners of
Columbia House, have a "business presence" in almost every state and
so must collect sales taxes on orders.
Note: not all states that have sales taxes enforce the collection of
the sales taxes on purchases made from out-of-state companies. If you
are unsure about how your state handles collection of sales taxes by
out-of-state companies, contact your state's taxing authority.
While most states have a sales tax on GOODS (CDs), not all states have
a sales tax on SERVICES (shipping and handling).
If your state does not have a sales tax on services and a club
attempts to collect such sales taxes, do the following:
[1] Do not pay the portion of the bill relating to the sales
tax on services and include a note with your payment
stating why you are not paying that portion.
[2] Contact your state's taxing authority to report the club's
action.
To calculate the amount of sales tax related to services to not pay,
add up the shipping and handling charges, multiply by the appropriate
sales tax rate, and then subtract this amount from the total amount
owed.
J. The Monthly Selection
==========================
You will generally *not* want the selection-of-the-month. Sometimes it
is offered at a slight discount, but make sure that it fills your
obligation. If you do not want the selection-of-the-month, either
return the monthly selection card or contact the club's customer
service center and inform them you do not wish to receive this month's
selection. If contacting customer service by email, please include
your name, complete address, club account number and one of the
following: monthly selection's title, monthly selection's selection
number, or the monthly flyer's sale cycle identification code.
You may get a monthly selection that you didn't want -- you may have
been on vacation when the card was sent to you, or it got lost in the
mail. DO NOT OPEN IT. Mark it "return to sender" and send it back.
If you *have* opened it, contact the club and ask for a return
shipping label. (Do the same thing if you received a defective disc
-- they *will* replace it for you, at no charge). If you return too
many discs without cause, they may kick you out of the club.
If you *don't* want to worry about the monthly selection, tell them
that you want to change to a plan where they don't automatically
assume that you want it. This is called a "positive option" plan.
Before granting this, the clubs usually require the member to have
already fulfilled his/her membership obligation. If you follow the
"join-quit-repeat" algorithm, you will not be in the club long enough
to make this plan worthwhile.
+Appendix A. CD Clubs in Canada
I. COLUMBIA HOUSE MUSIC CLUB (Canada)
5900 Finch Avenue East
Scarborough, Ontario
M1B 5X7
Customer Service : (416) 299-8181 (10am to 4pm EST, Mon-Fri)
FAX : (416) 299-2745
Email : cm_custom...@columbiahousecanada.com
Online Catalog : http://www.columbiahousecanada.com
Add. Contact Info: 24h Automated Order Line (416) 299-3278
with customer service 8am-8pm EST with "0"
The CH Video Club 900 Order Line will take
orders from members who are in both clubs.
1-900-451-5006 ($1/call 8am-8pm EST, Mon-Fri)
A. Compiled by Rob McIntyre (ck580-freenet.carleton.ca)
-- Standard Deal
"11 CDs for a penny" : + $1.85 shipping/handling with optional first
purchases at 65% ($6.95) and 75% ($4.95) off regular club prices. All
items are taxed, GST and where applicable, PST.
-- Membership Agreement
Purchase of seven CDs (or five if the optional first purchases at
enrollment were taken) at regular club prices within three years,
regular club prices ranging from $15.98 (older selections and eps) to
$19.98 (newer selections). Most CDs are $18.98.
-- Breakdown (without taxes)
Cost of first cds inc. s&h & optional 1st purchases --- $ 13.95 -
Cost of mandatory five cd purchase at $18.98 per CD --- 94.90 -
Cost of shipping and handling for mandatory CDs --- 11.45 -
-------------------------------------------------------- -------- -
Total $ 120.30 -
Divided by number of CDs obtained d 18 -
-------------------------------------------------------- -------- -
Per CD price $ 6.68 -
-- Additional Discounts
New members are immediately registered at "Savings Level 1". At this
level, the member, with the purchase of a regular priced CD, may
purchase a single CD, of equal or lesser value, at half price.
Once the membership agreement has been fulfilled, the member is
promoted to "savings level 2", in which a member, with the purchase of
a regular priced CD, may purchase a single CD of equal or lesser value
for $7.99.
After the second regular priced CD purchase at this level, the member
is promoted to "savings level 3". At this level, the member, with the
purchase of a regular priced CD, may purchase a single CD, of equal or
lesser value, for $5.99.
There are also special discounts and specials for members that use
their web site. Details can be found at their official web site.
-- Shipping and handling
(subject to change)
Single CD selections - $2.29
Double CD selections - $2.99
Boxed set selections - $2.99
Video selections - $3.59 ($2.50 for second and subsequent video(s)
-- Returns
CH accepts returns only if a member had less than ten days to make
their decision about the Selection of the Month/Special Selection, or
an error was made in shipping, or the selection is faulty or was
damaged in shipping, or the member had sent the selection card on time
but CH received it too late to stop shipment or the member has
completed his or her agreement and has cancelled his or her membership
too late for the company to have stopped shipment.
Selections must be returned within 30 days with explanation. CH
reserves the right to cancel anyone's membership if they decide the
member has "an excessive number of returns".
-- Cancelation of Membership and Positive Response Program
CH only accepts requests for these after a member has fulfilled the
membership agreement. Written requests only.
--
II.BMG MUSIC SERVICE (Canada)
Box 6030
Mississauga, Ontario
L5A 4H9
Customer Service : (905) 568-1581 (8am-5pm EST, Mon-Fri)
FAX : (905) 712-2553
Email : getm...@bmgdirect.com
Online Catalog : http://www.bmgmusicservice.com/canada/
Add. Contact Info: Customer Service is open for special five day
express (credit card) orders until 10pm EST,
Mondays to Fridays.
A. Compiled by Rob McIntyre (ck580-freenet.carleton.ca) with
additional information from The Webslinger
(thetota...@premiumproducts.com)
-- Standard Deal
"9 CDs for the price of 1" and on occasion "10 CDs for the price of
1" and on very special occasions, "11 CDs for the price of 1".
-- Membership Agreement
In order to receive a certain number of cds for the price of 1, one must
choose four to six cds at once, depending on the offer, paying only
for shipping and handling for these selections, then purchase one cd at
regular club prices ($15.98 and up, most selection being $19.98) plus
shipping and handling within one year, redeeming a certificate found in
the first shipment entitling a member to the remaining four cds at
shipping and handling. The total is taxed ; GST and where applicable
PST.
-- Breakdown (without taxes)
Cost of first five CDs (10 for 1 offer / s&h) --- $ 11.55 -
Cost of mandatory purchase at $18.98 per CD --- 18.99 -
Cost of shipping and handling for mandatory CD --- 2.31 -
Cost of shipping and handling for remaining 4 CDs --- 9.24 -
-------------------------------------------------------- -------- -
Total $ 42.09 -
Divided by number of CDs obtained d 10 -
-------------------------------------------------------- -------- -
Per CD price $ 4.21 -
-- Additional Discounts
Plenty of discounts, some of which don't require members to purchase a
regular priced selection before taking advantage of these discounts.
-- Additional Discounts : Bonus Bucks
(Information removed due to program expiry in December 1996)
-- Shipping and handling
(subject to change)
$2.31 per selection ; $3.31 per double cd or multiple cd boxed set. An
additional $2.99 is added per order for five day express (credit card)
orders.
-- Returns
Bmg Music Service
Box 6050
Mississauga, Ontario
L5A 4J1
Returns are only accepted when they are sent to the above address, were
sent within ten days of receipt, and contain an explanation for the
return.
-- Cancelation of Membership
A member may cancel his or her membership after completing their
agreement with BMG by requesting a cancelation in writing.
-- Positive Response Program
The BMG Music Service only accepts requests for this program after a
member has fulfilled the membership agreement. Written requests are
recommended.
-- Additional Information
Online Catalogs - Canadian members can use some of the selection numbers
listed at the official american site provided that the selection is also
distributed in Canada (Not all selections distributed in the U.S will be
available to Canadian members and visa versa).
--
* * * *
This document may be freely redistributed in its entirety, or in part
if it includes an attribution containing the title, "CD Club FAQ",
the version number or version date, and the maintainers name (Brad
von Haden). No part of it may be sold for profit or incorporated in
a commercial document without the permission of the copyright holder.
Permission is expressly granted for complete electronic copies to be
made available as an archive or mirror service on the condition that
the copy be kept up to date.
This document is provided as is without any express or implied
warranties. While some effort has been taken to ensure the accuracy
of the information contained in this article, the maintainer assumes
no responsibility for errors or omissions, or for damages resulting
from use of the information contained herein.
* * * *
**** Maintainer of the CD CLUB FAQ ****
**** bp...@primenet.com ****
**** Posted by an Apple IIgs using a Proterm 3.1 File Macro ****