When prices force you to move your business

Yesterday, I wrote about how technology is changing the textbook publishing business. Today, it is time to shine the spotlight on the an endangered species – the independent neighborhood record store.

Click here to read The New York Times’ article, “Record Stores Fight to Be Long-Playing,” by Ben Sisario. Here is a brief excerpt:

“The hole-in-the-wall specialty shops that have long made Lower Manhattan a destination for a particular kind of shopper have never made a great deal of money. But in recent years they have been hit hard by the usual music-industry woes — piracy, downloading — as well as rising real estate prices, leading to the sad but familiar scene of the emptied store with a note taped to the door.”

So, if you thought that it was difficult to compete against “Free!” – as in illegal downloading and file sharing – try to compete against 300% rent increases:

“Rent is up, and sales are down,” Malcolm Allen of Jammyland said as he sold a few Jamaican-made 45s to a customer last weekend. “Not a good combination.”

One strategy for survival is to diversify the range of merchandise that you offer for sale. Another is to sponsor more in-store community events – concerts, meet-the-artists, lessons, clinics, etc.

One such (nation-wide) event took place yesterday – April 19, 2008 was proclaimed “Record Store Day.” And an impressive roster of artists, record labels and community organizers joined forces to create fun events to give visibility to the value of the neighborhood record store.

I enjoyed reading some of the quotes on the site. Some are from artists like Peter Gabriel:

“I was introduced to lots of great music through my local record store. It was a place where people knew music and they knew me, and could make great suggestions and discoveries. Whether it is in the physical world or on-line, the value of a great and knowledgeable record store has not gone away”

Others are from the owners of independent record stores like Mike Manly From “Hot Dog Music” in Sacramento, CA:

“I just opened my store a couple weeks ago because I believe indie record stores are important – now more than ever. Music is personal to people and (given the option) most people prefer to buy it from a store that has a personality. Indie record stores care about the music and people are learning to appreciate that again. Buying music at the same place you get your dog food is a totally empty experience. Indie record stores fill you up.”

But the quotes that I love the best come from the actual record store customers like Mike Fortunato, a DJ in Boston, MA.

“As a long-time disc jockey in the Boston market, the independent record store was (and continues to be) a vital part of my existence since 1970. I have found very few retail experiences where the owner and/or staff (and usually the owner – almost by definition, these are hands-on entities) have such intimate and passionate knowledge of their product and of their customer’s needs.

A case in point:

In the 80’s, a local record distribution outlet named “Peter’s Records One Stop” (PROS) used to open up early on Saturday mornings for local Disc Jockeys. It was totally unadvertised, but the owner developed a solid loyal following in the mobile, nightclub, and FM communities that way. In 1987, I moved out of the area, and returned home in 1992. On a whim, I met a friend at PROS on a Saturday morning…and as soon as I walked in the door, the owner flagged me down and started waxing enthusiastically about a brand new CD which would be “perfect” for me – as if five years hadn’t elapsed since my last visit! And as it turns out, he was dead-on with his recommendation.

As the Internet has turned music buying into a singles-driven experience, independent record stores serve an important function in their ability to not only stock and sell albums, but to also be staffed by knowledgeable people who help keep the spirit of the music industry alive. That unique combination of entrepreneurial spirit fueled by genuine enthusiasm is a rarity in today’s world, and for all to whom the music speaks, should be valued as the treasure that it continues to be.”

Amen!

I firmly believe that the strongest asset in any business is the quality of their “people” – the staff members who are passionate about the products that they sell and equally as passionate abut the people that they serve – their customers.

Locations may change – they may have to when the rent becomes untenable. But don’t let your passion for what you do dim and die. That’s when your customers desert you.

An event like “Record Store Day” is helpful – it helps to build awareness of the value of independent, neighborhood record stores. But it is just that – an “event.” Cultivating and building the relationship between music lovers and music store operators is a process. And an understanding about what you both want.

Take a lesson from Joni Mitchell’s song, “Big Yellow Taxi:”

“Don’t it always seem to go
That you don’t know what you’ve got
Till it’s gone
They paved paradise
And put up a parking lot”