Every good contractor knows that in order to build a quality home it all starts with a solid foundation. The land the home is built upon must be stable, the trenches for the footing must be deep enough, the concrete must be mixed properly and it must be poured in a timely fashion. If the foundation isn't built correctly, it leads to all sorts of problems ranging from cracks and leaks to crumbling and shifting that jeopardizes the integrity of the entire building.
The same holds true for your recording studio business. If the foundation isn't rock solid, the entire business risks crumbling to the ground. Twenty years ago, the lack of competition and a high barrier to entry into the recording studio business was enough to almost ensure substantial profits for the studio owner, even if the foundation was less than perfect. But much like the new housing boom in the early 2000's that flooded the market with poorly built homes made for quick profit, the home and project recording studio boom flooded the market with discount pricing and, in general, a subpar product. Many professional studios were quick to drop prices, and the professional itself competing directly with home studios. Although it seems ridiculous that Rolls Royce could be a direct competitor to Hyundai, that is exactly what has happened in the recording industry. Studios built without proper foundations were exposed and forced to compete on price alone.
The simultaneous collapse and fragmentation of the record industry sparked more fear throughout the recording studio industry, as shrinking label budgets dried up profits. In the end, all of these changes have caused hourly and project rates to erode to almost unsustainable levels. When you take into account all the expenses of a working studio-- lease/rent/mortgage payments, electric, insurance, security and equipment repair, just to name just a few-- charging the "going rate" makes it hard to just break even. For the studio owner trying to make a living, it's downright frustrating.
We could sit here and complain all day about local bands using Garage Band to record their songs, or the ad agency turning their broom closet into a recording booth, but it's not going to change. At least not in our favor. Recording gear will only continue to get better and cheaper. The low prices will only tempt more would-be clients into trying to record themselves. I know I fell for it. Back in the 90's, when my band decided it was time to make a record, the first thing I did was to go out and buy an ADAT and a Mackie 32x8. And, like anyone who begins to get serious about recording, I slaved many, many hours over that recording project trying to get it right. When it wasn't right, I began purchasing thousands of dollars of new gear that promised to unlock "that sound." Soon, I basically had my own recording studio, but at a cost. I had spent thousands of dollars and dedicated a substantial portion of my life to making a record that turned out decent. Not great. Just decent. It was something I was proud of because I did it myself, but it wasn't record label quality. Part of it was lack of engineering skills. Part of it was lack of production skills. I tried my best to cram as much learning as I could into this year-long recording project, but the truth was that these skills take many years to develop, and it was impossible condense so much into so little time.
I'm sure this story is very familiar to a lot of engineers and studio owners. It may even be how you got your start into the recording studio business. But no matter how easy and cheap it is to buy and set up some recording hardware or software, the difference between your first project and your most recent is probably mind blowing. There were many years, many teachers, many successes and many failures between those two points in time. But to your potential clients, toying with the idea of "saving some cash" and recording themselves, they don't know any better. They think it's easy. They don't know what they don't know. But it's up to you to show potential clients that you will actually be saving them a lot of money by paying you what you're worth.