merlin:

Cut-outs

(for the benefit of you…young people)

When LPs were the primary medium for distribution or recording, manufacturers would physically 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. A special section of a record store devoted to such items was known as the cut-out bin or bargain bin.