The same is true for your recording studio business. If the foundation is not rock solid, there is a risk that the entire business will collapse. Twenty years ago, the lack of competition and high barriers to entry into the recording studio business.
Generally an Inferior Product
were enough to ensure substantial profits for studio owners, even if the foundation wasn’t perfect. But much like the housing boom of the early 2000s, which flooded the market with poorly built homes designed for quick profit, the boom in home and project studios flooded the market with discount prices and generally an inferior product.
Many professional studios quickly moved to lower prices, and the professionals themselves competed directly with home studios. Although it seems ridiculous that Rolls Royce could be a direct competitor to Hyundai, that is exactly what happened in the recording industry. Studios built without a proper foundation were exposed and forced to compete on price alone.
The simultaneous collapse and fragmentation of the record industry caused further angst throughout the recording studio industry as shrinking label budgets dried up profits.
Equipment Repair
Ultimately, all of these changes caused hourly rates and project prices to drop to almost unsustainable levels. When you consider all the expenses of running a functioning studio - lease/rent/mortgage payments, electricity, insurance, security and equipment repair, to name a few - it becomes difficult to just break even at the “going rate.” For the studio owner trying to make a living, this is downright frustrating.
When that wasn’t true, I started buying thousands of dollars worth of new equipment that promised to make “that sound” possible. Soon I basically had my own recording studio, but it came at a price. I had spent thousands of dollars and spent a significant portion of my life trying to make a record that turned out decent.
Music Studio recording
I’m sure this story is very familiar to many Music Studio recording engineers and studio owners. Maybe that’s how you got your start in the recording studio business, too.
The second part of your foundation is the ability to effectively communicate what sets your business apart from all the other recording studios in your area. Although the word “marketing” may mean something different to everyone, here’s how I define marketing. Specifically, it’s communicating your offerings in a way that would make your potential clients feel foolish if they didn’t record at your studio.
This is where many big studios have failed. In the past, relationships with major record labels almost automatically brought high-paying jobs to the studio. There was no reason to market a recording studio.
At the time, the thought of it seemed almost absurd. But as the major record companies shrank, so did the studio business. Studios had no process to attract new customers. Bands and artists without labels had no money to pay high studio prices.
Starcity Studios Combined with the advent of home studios
Starcity Studios Combined with the advent of home studios, it became even more difficult to reach potential customers. Recording studios without a solid marketing base began to lower prices to attract new customers. As a result, profits plummeted and many studios were forced to go out of business.
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