Why cuts into vinyl covers?

The first time I came across this in Chicago, occurred right at the point in time where the record industry was breathing it last breath. All of the record retailers were heavily discounting almost all of their inventory to dispose of everything. I guess you could say it was like "the mark of Cain"
"Be gone you foul LP's and make way for tomorrows technology ". And look where we are now. Who would have thought it. 
I took advantage of all the LP's I could afford at the time, as long as the contents were untouched. I really didn't care about the album covers. Every once so often I go to used LP shows (so to speak). But surprisingly, I rarely see any punched or cut album covers. I guess the practice wasn't as wide spread as  some might think. I'm not certain what effect the "marks" might have on resale value. Frankly, I am only concerned about the content, and not the container. I don't think you will have to worry about any dealers punching holes in CD packaging, when they are finally on their way out. Just a thought

I never looked for hole punched records to find early pressings- I usually looked for white label promos or went by the matrices in the dead wax.

Right. White label promos were the first off the stamper. These went directly to record exec’s and producers. Hole-punched albums were also early releases, very different from a cut-out.
Sometimes on Ebay you may find a white label promo or a hole-punch album autographed by a recording artist. There are also promo copies with radio station library numbers written on the jackets. Imagine how worn out these copies are, they might be cool as a conversation piece but have little value.

"For promotional use only" branded records had nothing to do with being early stampers. These were sent to radio stations so the music director could preview the tracks. The ultimate goal was to put these albums or singles in the "Hot Box" for Heavy Rotation. Club DJ’s and significant record stores would also receive promos. The promotions reps from the labels had relationships with the various outlets that could influence airplay and sales.

Hi,
i believe any cuts or holes on covers are overstocks or returns. Nothing wrong with their quality but their value is dropped. Checking the matrixes is a good guide for value.

edcyn:

When you worked @ Tower did you know Jay (very long hair) who had a girlfriend named CiCi?

If so, he/they were neighbors for a number of years (great couple).

DeKay

dekay -- sorry but no.  I got to say, too, that Tower Records has always been a true revolving door when it comes to clerks & floor managers.  But did I mention that I met my wife while working at a Tower?  She's the cyn in edcyn.