I'm right there with blair_rock...my studio is $50 per hr-factor in that I play most of the instruments, including vocals (all separate tracks and takes, of course) and I hire a drummer at $40 per song. My first CD consisted of 8 songs and weighed in production costs at about $3 grand.
I am not a wealthy man. I work a full time job, and sometimes add on a part timer just for a little extra cash. I have roughly 5 other sets of originals ready to record, but due to the cost, those songs will probably not see life until 2012 (by which time I will have another 7 or 8 sets ready to record).
Why am I telling you all this? It's the bottom line: You get what you pay for. Maybe you can pay $300-$400 to record your music, but I promise that you will not be satisfied by the result. There is no substitute for quality. While in Colorado, I worked in a studio that charged $20 per hr, and the completed product is something that I probably couldn't give away. The "engineer" actually erased tons of tracks (backing vocals, keyboard parts, etc.) because they were off-time. I can understand ONE track, but there was clearly something wrong with the guys software. He made no apologies (nevermind accepting any blame) and sent us on our way with a piece of sh!t recording that was useless.
Anytime you work with a studio, check 'em out. Put on the rubber glove and give them a good reaming. Anyone with legitimate credentials will stand up to the test. Never settle for less. I'd rather have one song that sounds great and cost me $400, than have a pile of songs that were cheap and I'm ashamed to play for anyone.
LET GO OF ME, SPIRIT OF CRAIG MAXIM!!!! Sorry, guys, I'll quit ranting now....(sorry Craig!)
