RECORD STORE TALES #1169: Discontinuing the Tapes

In 1995, the writing was on the wall.  After struggling for years as a new CD/tape store, the boss discovered a goldmine:  selling used CDs.  The story has been told a dozen times or more, but the short version is this.  In early 1994, the boss brought a small tray of used CDs into the store, priced them, and they sold out immediately.  I think the discs came from his own collection with a few from his brother.  He realized that he could buy used CDs from the public for a few bucks, and then flip them for double or triple the price.  The hunger days ended soon after.

Profit margins on new CDs and tapes was slim.  After you factor in shipping, overhead, paying the part-timers, and an expensive magnetic security system, the boss was left with little for himself, if nothing at all.  He could not survive like that forever.  With used CDs, he could control his own costs.  This was something rare in retail.  Costs are usually determined by your supplier.  You could negotiate for better rates, but it was nothing compared to used CDs.  We could pay five or six bucks for a CD, and sell it for ten or twelve bucks.

You know what happened next.  Expansion!  Waterloo opened, followed by a second store in Kitchener.  These stores had 90% used stock, with a small chart for new releases.  They didn’t carry cassette tapes, at all.  While this surprised me, it was a smart move.  We were ahead of the curve by not carrying cassettes in those stores.   We didn’t even carry used tapes.  For one, it was harder to check them for quality compared to CDs.  For second, it simplified things greatly by only focusing on discs.  One product, one display system, one storage system.  You could take the disc out of the case, hide it behind the counter, and put the empty case on the shelf.  The security system was replaced in this simple way.

Eventually the original Stanley Park Mall store had to close.  Rent in malls is higher than that in plazas.  It was the only store that still carried a full selection of new CDs and tapes.  It closed at the end of 1995, right after Christmas.  And we weren’t allowed to tell people we were closing.  Technically, it was a move.  A new location had been procured in Cambridge.  It too was to follow the 90% used model.  Although we called it a move for the purpose of good optics, the reality was that one store closed and another very different store opened in another city.  The manager was the same, and they took the unsold stock and sold it as used, but it was a new store.

Closing Stanley Park put us in an awkward position.  In 1995, we lived in what was essentially a two format world:  CDs first and foremost, with cassettes still strong, but dying off bit by bit every year.  More and more releases were coming out on CD only.  Vinyl?  In 1994, only Pearl Jam had a mainstream vinyl release.  We carried Vitalogy on vinyl.  It was beautiful.  The boss opened a copy to look at it.  He ended up selling that one to his brother.  But what about that awkward position?  Here we were, going into the Christmas season and selling gift certificates to a small but significant number of people who still only had cassettes players.  We were selling gift certificates to people who were not going to be able to redeem them for cassettes except for a small window:  the six days following Christmas.  Many of those people had been customers for five years, since we opened.

“If someone complains about it, tell them to talk to me, I’ll take care of it.”  The boss was not the kind of person who relished giving people their money back, but I am sure he handled those cases as best he could.  We did special order cassettes for customers for a short period of time in some of these cases; they were isolated cases.  We had some cassettes returned in the new year as well, which had to be dealt with.

I do remember some angry customers.  “Where am I gonna buy my tapes now?” asked one guy who was unhappy, to say the least, that we were closing up, moving to a new location, and ceasing cassettes completely.  I suggested the HMV store at the other mall, but even they were noticeably cutting back.

For me, it was interesting to have lived through these changes in formats.  As a fan, I watched vinyl decline in importance to the point where nobody in highschool bought records anymore.  That was 1986.  Then I lived through the advent of CD, and its eventual replacement of the cassette.  I was working in the front lines at the Beat Goes On when Napster came along, and I saw shelf space once reserved for CDs now showcasing bobbleheads.

I wouldn’t trade it for the world.  All apologies to the inconvenienced!