This article will expand upon some of those points. This is an easier basis for calculating royalties since the SRP is more readily determined and so eliminates the need to calculate the wholesale price, which often as not varies considerably from customer to customer. The artist's royalty rate will of course vary depending upon the relative bargaining positions of the parties.
Deal making is, after all, about who wants who more.
If the label calculates royalties upon a wholesale basis, the rate is most often twice the retail rate, although this is not carved into stone either. More on this below. Under such a deal, it is the responsibility of the artist to pay the producer out of the all in deal. Unless the producer is the same person as the artist, this all in deal can be tricky for the artist to make since often third party producers wish to be paid from the first record sold after the artist recoups. In such an instance, it may be that the artist is not recouped because the artist has several albums with the label but the producer is entitled to the producer's royalties because the particular album on which the producer worked has recouped its recording costs.