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Mothermix closes distribution deal with Cash Crusaders


28 March 2006 No Comment

Mothermix Distribution have closed an exclusive distribution agreement with Cash Crusaders, whereby the retailer will sell brand new CD’s for only R 59.95 in its 112 franchises country wide. The first titles are already available in stores. Mothermix Distribution, who are part of The Mothermix Group, which also includes Mothermix Records, the label of award winning Afrikaans rap group KALLITZ, have been campaigning for lower CD prices for quite some time…

Group CEO Alexander Gregori explains: “We believe CD’s are too expensive in SA, because their price is based on the exchange rate, instead of the inland buying power of our currency. Even international titles are manufactured in SA, sometimes for as little as R 3 per CD, including casing and cellophane wrapping, but they retail for over R 100. Independent market research, done both in SA and internationally, indicates that people would buy 3 – 5 times more CD’s at R 60 to R 70. This would instantly almost double turnover in the SA music industry.”

Based on the inland buying power of respective currencies, CD’s are currently about 700% more expensive in SA than in the USA, the UK or Europe.

Mothermix Distribution feels that another big challenge for the growth of especially the independent SA music industry, which contributes most new releases, is the availability of this music to the public, and the lack of funds for proper marketing.

Alexander Gregori: “The idea of the Cash Crusaders deal is to grow the number of retail outlets for SA music, and by adding 112 new stores, we are growing the market about 20%. Cash Crusaders also agreed to market the new CD’s as part of their R 18 million per annum print campaign, and this commitment by a retailer to invest in marketing SA music is unprecedented in our industry.”

The music, which is on sale at all Cash Crusaders from mid March is also played on their new instore radio station Cruse Radio.

Alexander Gregori adds: “It was a challenge to explain our ideas about pricing to record companies, but top labels came on board, including SA’s premier rock/punk label Authentic Music, with artists like Tweak and Cutting Jade, Universal and Mama Dance with Jerusha and KB, Unreleased Records with Cashless Society, and so on. We also have a large variety of top selling Afrikaans and Gospel titles, and people will be able to buy these CD’s for up to R 30 cheaper than anywhere else!”

Cash Crusaders CEO Brent Topat sums up the deal: “Cash Crusaders are moving more and more into selling value added new product. The facts and figures presented by Mothermix Distribution made sense, and we decided to give it a try. This can add an exciting new dimension to our fast growing franchise.”

The brand new CD’s will retail at all Cash Crusaders franchises country wide from mid March for only R 59.95, and will be displayed in a custom made CD rack to set them easily apart from the stores’ wide range of second hand CD’s.

All available CD’s are advertised in Cash Crusaders bi-monthly, six page A3 pamphlet, which is inserted in all major newspapers, as well as community newspapers, and has a print run of over 3 million copy per edition.

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