Feb 23 2006
Mom and Pop Stores
Today in my class over at Musicians Institute I talked about distribution and retail. One of the things we discussed was how Mom and Pop stores are sadly being crushed by the mega-music retailers like Best Buy. However, as a teacher, I made clear both sides of the argument.
Stores like Best Buy bring in massive quantities of product, allowing them to (theoretically) pass that on to the customer. They also practice the “Loss-Leader” concept – pricing something super low to get you in the store, then have you buy something else. Or, at minimum, create loyalty that when you are ready to buy something else (like a refrigerator) you will go back. Add to that the amazing promotional stance they hold with record labels, and you have a near unstoppable retail machine. And, the consumer gets the benefit through super cheap CDs.
Unfortunately this is sometimes at the cost of the independent record stores that cannot afford to price CDs so low. What seems to be a saving grace for smaller stores is specialization – offering a deep assortment of music in one or two specialized genres. Punk record stores have done it forever – selling music you can’t get elsewhere, or if you can get it elsewhere, adding a level of personal service and atmosphere that build up a loyal fan base.
So, I hope some of the cooler mom and pop stores out there take a hint and specialize. It’s real hard to compete in the retail world; especially if you don’t offer any incentive for people to shop with you…
As someone who lives on independent music, and has grown up on the indie record store, it is a sad statistic that independent retail is struggling. In the five years or so that I have been coming to CA, I have witnessed five independent record stores within a small area close.
With ‘alternative’ music being more ‘popular’ than ever and indie labels like Victory pretty much operating as majors, i.e. having the power to advertise and put out multi platinum albums, smaller labels, indie stores and independent music will ultimately struggle.
On the business side however, I see the loss leader concept as the only way the likes of Best Buy and Target i.e. the ‘brick and mortar’, can compete with the evergrowing machine of online retail giants such as Amazon.
It may be a bonus for some, that places like Best Buy, Target etc. are selling CD’s for as low as $6.99 sometimes, but I feel the selection is most definately geared towards the mainstream music fan.
The experience of going to an independent record store with posters on the walls, vinyl selection, rare singles etc. is what being a music fan is all about, it is how I learned and got excited about bands and music. As independent music fans, with the technology that is available to us now, we have to do our best to keep the indie stores alive.
The independent v the corporate is debatable in every industry not just music.