FOCUS ON BUSINESS - March 2005

It's all about service: How local businesses compete with Net

By Dominic Weilminster
Herald Staff Writer

Durango businesses can keep local customers loyal and the impact of online competitors minimal.

"It’s a matter of customer service and product knowledge," said Jim Rockelman, owner of Durango Music. "Being able to talk to someone face-to-face is something you just can’t get online."

Despite that, Rockelman acknowledged that online shopping has changed the look of his typical customer. An older-generation crowd interested in audio and video equipment for their homes now frequents Durango Music. Younger consumers more often look online.

"We saw the writing on the wall and dropped small portables and hand-held things. We didn’t want to compete on that basis," Rockelman said. "We now have evolved our focus to take on more complex a/v home-entertainment equipment."

Installation of technical products often requires the help of staff members – a hands-on service usually not available online, Rockelman said.

Similarly, Robert Stapleton, owner of Southwest Sound, hires staff members with varied knowledge of music so any customer can get recommendations in person. His store’s inventory also mimics the area’s musical tastes.

"It’s a personal touch. A lot of people like that," Stapleton said. "Unlike other retailers, I can gear the type of product here specifically to customers. I carry the hits and new releases, but the majority of my inventory is bluegrass and folk, first, and hip-hop second."

Across the national music industry, market share for record stores has dropped 20 percent in the last decade, according to a report compiled in 2004 by the Recording Industry Association of America. Locally, Stapleton estimated that record stores still hold the majority of the market.

"I’d say 70 percent here are still shopping in stores," he said. "And our success, I think, has to do with the nature of the community itself. People here just prefer to get things locally."

Maria’s Bookshop, operating in Durango for more than 20 years, has seen as much local support as any small business. Community support is the store’s lifeblood, particularly when facing competitors like Amazon.com.

"We just try to be as nice as possible to people. We want them to come back in," said Joe Foster, the bookstore’s manager. "We also do a lot of community events to stay on the local radar."

Online shopping has led employees at Maria’s Bookshop to pay extra attention to inventory to balance both popular and specialized books. The online influence has also led to an increased emphasis on special orders to expand the store’s limited inventory, including textbooks for students.

"We actually do a lot of business with college kids, and once they come in and see the selection and the wide range of employees we have, they usually come back," Foster said.

Residents and students favor Durango businesses over online conglomerates, Foster said.

"This community, more so than other communities, has a loyalty to local businesses," said Bobby Lieb, executive director of the Durango Chamber of Commerce. "The retailers may have fairly limited inventories, but they can compete because of their customer service and product knowledge."

Reach Staff Writer Dominic Weilminster at dominic@durangoherald.com.