The Price We Pay

Has vinyl become more expensive? Join me on this exciting journey through price fluctuations, supply constraints, and the perpetual wonders of crate-digging!

You don’t have to venture too far into the vinyl community to hear the new mantra:

Records are so expensive these days!

While many collectors will have, hopefully, already discovered the joys of bargain bins, the notion that you now have to sell a kidney to buy a record is as persistent as the static on some vinyl anniversary box sets.

Photo by Alice Kotlyarenko on Unsplash

I am not a numbers kind of guy. But one thing I like about numbers is that they don’t lie.

So what would you say if I told you that, in the late 70s, vinyl was —when adjusted for inflation— as expensive as it is now?

That’s right: in 1978, the average price of a vinyl record in the US was, in today’s money, roughly $30. This is in line with the current price of a standard new release.

On this side of the pond, the situation is similar. While the evidence is mostly anecdotal, it seems the average price of a vinyl record in the UK in 1972 was equivalent to today’s £25 (roughly $32).

So what’s happening? Have prices not increased that much? Is it all just an illusion?

I’d love to give you a straightforward answer. But, as with most things in life, the reality is a bit more complex.

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Fluctuations over the years

While current vinyl prices are similar to those in the 1970s, there have been huge fluctuations over the years.

Source: Billboard / RIAA

Prices fell rapidly in the late ‘80s and early ‘90s as cassettes and CD’s took over.

There was an uptick in vinyl prices in the mid to late ‘90s due to the scarcity of the format which, coupled with high demand from aficionados, heavily strained the supply/demand dynamics.

As for the steady price increase since 2007, I have three magic words for you: Record Store Day. OK, add two more and make it five: Vinyl Revival.

The (im)balance between the popularity and availability of the format has always had a direct impact on price.

But that’s not the end of the story…

Lockdowns, inflation and supply constraints

Anyone who’s been in this game for more than five years will have noticed significant price increases since lockdown.

I guess this is what happens when you shut down entire economies, print money like there’s no tomorrow, and force millions of people to stay at home.

Many got into vinyl or rekindled their passion whilst stuck at home and unable to travel.

Photo by Avi Naim on Unsplash

To meet heightened demand, the logical step would have been to increase capacity. And yet, what happened was the exact opposite.

In the UK alone, the number of people who are economically inactive (i.e. of working age but neither in work nor looking for a job) is 9.4m, one million more than before the first lockdown. In other words, 25% of the working age population in Britain is economically inactive.

In the US, the picture is even grimmer: in May 2024, the inactive labour force amounted to approximately 100.6m people. That’s a whopping 48% of the working age population in America.

Estimates and methodologies may differ, but it doesn’t take a genius or a mathematician to realise the enormity of the challenge at hand. There are simply not enough people working, especially in such a niche industry like vinyl, which has been growing steadily after spending two decades in oblivion.

When you add geopolitical tensions, fluctuations in the price of oil, and soaring shipping prices to the mix, the situation is quite clearly unsustainable.

Now and then

What’s crazy about vinyl prices reaching levels last seen in the late ‘70s is that the vinyl market is much smaller now.

Sure, records are enjoying a renaissance, but sales are nowhere near their heyday.

Source: RIAA / Statista

There’s obviously less demand now as streaming takes the lion’s share. What’s pushing vinyl prices up the most is this explosive cocktail of challenges on the supply side, from inflation through labour shortages to the dearth of specialised skills and machinery.

Plus, new releases are, on average, considerably longer than they were 45 years ago, which means more vinyl material and higher production costs.

All these factors combined make some consumers feel increasingly priced out of the vinyl market, particularly when wages haven’t done a great job at keeping up with inflation.

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Final thoughts

While an increase in production capacity would be extremely welcome, it’s unrealistic to expect improvements overnight.

As frustrating as this might be for some, let’s not forget that music lovers have a lot more choice nowadays.

You can stream entire albums multiple times before you decide whether to invest in a vinyl copy. No such privilege existed 50, 40 or even 30 years ago.

This is also a double-edged sword: there’s an expectation, on a more or less subconscious level, that music should be cheap and readily available at the click of a button.

With vinyl, in contrast, it’s all about the chase. Finding gems when you least expect it.

Photo by Clem Onojeghuo on Unsplash

No disrespect to anyone, but grabbing a reissue for $35 from the first available stall is not crate-digging.

Crate-digging is getting your hands dirty while rummaging the bargains bin at your local store, or browsing the entire website of your trusted online seller until your eyes dry out.

Crate-digging is finding an old, neglected and forgotten gem, dusting it off, and yielding to the irresistible power of that timeless, unmistakable sound.

Finding pleasure in the chase takes time and effort. Ironically, this is the best part of the price we pay.

Thanks for reading/listening. Happy spinning!