Les Jones: Retailers Boycotting the Rolling Stones

November 04, 2003

E-commerce > Retailers Boycotting the Rolling Stones

Just like in the '60s, some record stores are boycotting the Rolling Stones. Link. This time the boycott isn't for the band's questionable lyrics or behavior, though. This time it's for their questionable treatment of record stores.

The Stones have a new four DVD set, "4 Flicks." The DVD will only be sold at Best Buy retail stores. Other record chains and independent record stores are upset about being locked out of the Stones latest release.

In Albany, New York, Trans World Entertainment executive VP Fred Fox says his chain will pull Stones catalog from its 940 units, trimming the 72 titles that Trans World stocks to about five albums and returning the product.
"If the Rolling Stones elect to market their new product exclusively with someone because they are more important to them," Fox says, "I would have to step back and question why I would offer the slower-turning, older catalog pieces when I am not afforded the opportunity to sell the newer pieces, which are in higher demand."

I'm on the side of the record stores. If the Stones and their label want to give all of their new business to Best Buy, then let Best Buy stock their back catalog. Manufacturers will arrange sweetheart deals like this with their largest resellers unless the channel whips them back in line.

Posted by lesjones

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Comments

Mick Jagger is the business brains behind the Rolling Stones, and he has been the smartest guy in rock music for many years when it comes to making money at it. So, it is a mistake to assume lightly that this is any kind of mistake. I wonder what proportion of in-store sales are made of the Stone's back-catalog, anyway? And what proportion of their income derives from sales out of their back catolog? Maybe the Stones figure (as I do) that the day of music being sold on round pieces of plastic is coming to an end. In other words, get a great deal from Best Buy on the new product, suck it up if you lose the dying dinosaurs, like mall record stores, and get ready to sell all your stuff over the internet, whether by mail or directly as downloads. It will be interesting to see how this plays out.

Posted by: Lexington Green at November 10, 2003

As a reseller (networking equipment, not records) my stance is that the manufacturer should keep the playing field level. Everyone in the sales channel should have access to the same merchandise and discounts, within reason. For instance, you may have to keep a certain number of salespeople or engineers trained in order to reach a certain discount level, or you may have to keep minimum stocking levels. I can live with rules like that.

The idea is that if all resellers have the same product and the same wholesale price, they have to compete on service. Everyone wins that way. The manufacturer keeps their resellers, the customer gets better service, and the resellers can make a profit.

If one or two big resellers get exclusive products or higher discounts than everyone else, all bets are off. I can't compete with another reseller who sells the product for less than I pay for it, or who has a product I can't get. If I can't resolve that situation, I'll drop the product line and pick up something else, and my customers will never see it from me.

Posted by: Les Jones at November 10, 2003

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