wˌɛn ˌɛlpˈiːz wɜː ðə pɹˈaɪmɚɹi mˈiːdiəm fɚðə kəmˈɜːʃəl dˌɪstɹɪbjˈuːʃən ʌv sˈaʊnd ɹᵻkˈoːɹdɪŋz, mˌænjuːfˈæktʃɚɹɚz wʊd kˈʌt ðə kˈɔːɹnɚ, pˈʌntʃ ɐ hˈoʊl, ɔːɹ ˈæd ɐ nˈɑːtʃ tə ðə spˈaɪn ʌvðə dʒˈækɪt ʌv ʌnsˈoʊld ɹˈɛkɚdz ɹᵻtˈɜːnd fɹʌm ɹˈiːteɪlɚz; ðˈiːz "kˈʌtˈaʊts" mˌaɪt ðˈɛn biː ɹˌiːsˈoʊld tə ɹᵻkˈoːɹd ɹˈiːteɪlɚz ɔːɹ ˈʌðɚ sˈeɪlz ˈaʊtlɛts fɔːɹ sˈeɪl æɾə dɪskˈaʊntᵻd pɹˈaɪs.
When LPs were the primary medium for the commercial distribution of sound recordings, manufacturers would cut the corner, punch a hole, or add a notch to the spine of the jacket of unsold records returned from retailers; these "cut-outs" might then be re-sold to record retailers or other sales outlets for sale at a discounted price.