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A few weeks ago I blogged about an open letter to the community from Chloe Eudaly of Reading Frenzy. “A series of unfortunate events, both business and personal, have brought us to a critical juncture and we need your support to see us through,” Eudaly wrote.
Lots of readers wondered about the vagueness of Eudaly’s call for help, so we asked her what was really going on. We were unprepared for Chloe’s forthcomingness when she answered our query (in which she also responds directly to some Blog Town commenters)—you can read her entire response here. Excerpts:
(2) I started Reading Frenzy in 1994 with $4,000. That’s about $46,000 less than most people think you need to launch a small bookstore. It’s been a constant struggle to slowly grow the store and the cash flow has always been clunky. This leads to periods such as the one we’re in now—not enough money to buy enough inventory to sell to make enough money to pay off vendors in order to buy more inventory (repeat ad infinitum).(3) Reading Frenzy was thrust into a precarious financial position in 1999 when we lost our lease for about six months and only got it back after agreeing to a 50 percent rent increase that we have never been able to make up for. To give you an idea of the impact—we needed to increase sales by $9,000 per year to cover the additional rent, instead we began to accumulate debt.
above illustration by Aaron Renier
My question to Emily is - what does your business model do about the fact that overall demand for books seems to be declining? I mean, besides hectoring us to buy more books, that is...
You honestly view this as hectoring? Chloe has been open and honest with her struggles in keeping Reading Frenzy open and all you can say is why does she even bother still selling books and bullying us at that?
Yes, let's just all stop reading and patronizing local book stores. That's a great idea.
Look, every business has to find customers. I'm asking her, as a potential customer, why should I come to your store, versus, say Powells (another local bookstore)? What is your value proposition? Answering that question well will help keep her business open.
Don't blame me because the population at large is buying fewer books, or prefers to buy them from other stores. I'm just the messenger.
And why can't her landowner charge whatever rent he can (legally)? It's his property...he's entitled to seek a return on his investment.
And Jim, your comment is the definition of hectoring. You seem to advocate the "eat your spinach" business model. Not sure that's going to fly.
BTW, I wrote "Emily" above when I meant to write "Chloe." Sorry. But that was probably obvious.
What's more obvious is that you're just being a jerk, Morgan. You can justify it all you want, but you simply sound like an asshole.
Allow me to follow up on a comment from Chloe on the story: "This is absolutely a capital/cash flow problem — not a lack of purpose, vision, or customers."
Sorry, it IS a "lack of customers" problem. Or rather, a lack of customers that are willing to provide the cash to cover the expenses needed to run your business - rent, inventory, labor, utilities, etc. Every business faces these same problems - Reading Frenzy is not special.
If a person comes into the store and doesn't purchase anything, THEY ARE NOT A CUSTOMER. They might be a potential customer, they might be a supporter, they might be a sympathizer, but THEY ARE NOT A CUSTOMER.
Reading Frenzy needs a plan to convert more of those people into paying customers. I don't know what that plan is. But its going to have to be better than just writing to the Mercury about the problems you're dealing with.
I wish Reading Frenzy all the luck in the world. But as a potential customer, I need to know my needs will be satisfied more than, say, a trip to Powells.
Ryan,
Calling potential customers "assholes" - good strategy. When you're done name calling, try refuting what I said.
If increased overhead is the issue, then a move to the Eastside may be wise for RF. Chloes' great and I hope they stay in business.
Morgan, refutation of your fourth post is unnecessary. Self-absorbed, self-important twits like you can be just plain obnoxious and rarely make a 'good' customer.
xoxo
Why is Morgan an asshole for asking questions?
They are probably the same questions Reading Frenzy is asking themselves.
I don't know how familiar you are with Reading Frenzy, Morgan. Have you ever shopped there? They cater to a customer that Powell's does not. Their selection of zines, magazines and books are some that you simply won't find at Powell's.
It seems you are not their demo and that's fine. The people that are familiar find it to be invaluable and the amount of regional and national acclaim backs that up.
It is possible that extenuating circumstances have put them in a position that is hard to overcome even with a positive cash flow and strong customer base. Small businesses have a tough time when there's a bump in the road, and Chloe has experienced some major ones, and get buried in past debts that are hard to recover from.
Your stance of, "Sell me on why I should patronize your business." seems half-hearted at best and condescending at worst. There are numerous fans and patrons of RF and she is simply expressing that, if you value what we do here and want it to continue, then please do what you can to not forget us and swing on by. It is not a desperate plea but a reality of working in a fringe niche that requires real support to continue.
As for the decline in interest in reading... well, that's a debate for another time and place. The general apathy towards anything that is not spoon-fed and digested through tv or a high-speed connection is another crisis entirely. There is still a market for what RF does and always will be.
At the risk of engendering even further abuse for merely asking strategic questions, which, if Reading Frenzy wants to stay in business, they will need to answer in one way or the other...
"There is still a market for what RF does and always will be."
I would agree with that...the question is what is the size of that market? Does the size of that market cover the expenses necessary to operate the store in its current location? If not, should alternate locations be explored? The business owner has said, no, she is not willing to consider alternate locations. That limits her options, then. Is a physical location even necessary? Why not do a web-only operation? Why not offer some additional goods and services in addition to zines, which are more profitable, to subsidize the zines?
Whatever the case, she will need to think of creative options to survive. I may not be Reading Frenzy's target market (given the reaction here, I assume that if I even walked into the store I'd be called lots of names and told to leave immediately because my money was no good there), but I know that if you want to stay in business and not go into debt, you need to increase revenues and reduce expenses. It doesn't sound like their current strategy is working. I hope they figure it out.
Oh, and acclaim != sales. If acclaim = sales, the world would be a much better place. But it doesn't and it isn't.
As for the "decline in reading" (or at least non-web-based reading), I think its the central strategic question facing Reading Frenzy's business - it may close off other opportunities but it creates new ones.
Jim, if you think calling everyone "spoon-fed " is going to bring more revenue into Reading Frenzy's store, I think you'll be in for a rude awakening.
I never equated acclaim with sales. I was illustrating that Reading Frenzy is very well-known and respected on a local and national level. There are many who find what they do to be unique and vital. I understand that that does not mean sales will be bustling because of it.
So you disagree that disposable entertainment is a social problem that should be discussed? I also never said that calling everyone "spoon-fed" (did I actually call everyone that anyway? didn't think so) would bring more revenue into RF. You seem to be twisting my words to suit your argument.
Maybe you are just here to ask the "tough questions" and I suppose Chloe and the many RF supporters should be grateful for the light you cast on the situation. You may not have ever set foot in the store but it's clear you have the best interest in mind for them all.
Anyway... have a nice night.
Jim,
You can be sure that whatever goodwill Chloe might have built up for me has been destroyed by your name calling and antics. Good work.
dude... whatever. I never once called you a name. Your guilt trip is about as worrisome to me as a cloudy day.
morgan, get over yourself.
Chloe, It seems like you are a perfect candidate for a Live/Work space. Too bad this city is not more supportive of AFFORDABLE endeavors in that direction. I wish you the best and will do my part to keep RF going! see you this weekend! :)
This is simple. Go to Reading Frenzy. If they have something you want and you have the money for it, buy it. Repeat monthly.
Chloe has done a lot for Portland, but many people who have just moved here don't know about Reading Frenzy. So bring a friend (or more).
Morgan, seriously, get over yourself. Short of being Warren Buffet, your opinions don't hold much weight given you have no interest in the product nor have been into check the store out.
I went in a bought a few items yesterday. Love Reading Frenzy. Spread the word y'all. This whole RF saga is worth talking about.
Yesterday I managed to pick up a few very unique items: a small press Memoir about one mans journey through hustling himself at the age of 13 on up, a music magazine with amazing features that I've never seen before, a magazine of nude/odd/bizarre photos found and submitted with anecdotal stories attached...etc Just for a few examples!
Why doesn't Reading Frenzy let go of its crazy rent and move to a cheaper spot on the East Side.. Yeah yeah been there forever, + Powell's, plus the general Keep Portland Weird stuff etc..
Chloe baby you can't keep making these help calls, please move to a cheaper location..
Gain new customers, keep old ones, DIY menatility is not stuck in one spot, you gotta keep moving, try different things.
Also Morgan and Jim, you're both culeros.. haha, seriously..
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50 percent rent increase in 1999?
hmm.
that wouldn't have anything to do with the fact that that was right when the old weinhard's brewery was being transitioned into condos and the city was placing the area directly to the north of that into its development zone for high-priced residential complexes, would it?
and they say gentrification has no positives!