Dirt Cheep Music outlasted a half-dozen nearby music store competitors to celebrate its 25th anniversary this year. Time for a party. Or time to pass along the business to the next generation.
Indeed, owner John Rathbone plans to slowly yield control of the store to his son, Aaron, a Nashville music industry veteran.
Once there were eight Dirt Cheeps scattered around metro Atlanta, three owned by Rathbone, the others franchised. Rathbone knows small business, the perfect balance between new and used merchandise, and how to survive recessions while keeping customers coming back for more.
While customers cranked amps and plucked guitars last week at the Smyrna store, he spoke with the AJC.
Q: I've got to ask about the store's name.
A: It's a pretty cute story. In the mid-'70s, I was driving some two-lane highways in West Virginia when I saw, nailed to a tree, a sign that said, "Eggs for sale. Dirt Cheep." The guy was either ignorant or clever. That made me stop, and I said, "I'm going to use that some day." I was trying to find a name that would impart that idea that we're going to save you money. So that's how we came up with the name.
Q: Other than heavy business in pre-owned instruments and equipment, what separates you, in your mind, from other music stores, particularly the big guys like Guitar Center?
A: It's a focus on saving people money as opposed to making a sale. For instance, at most music stores in metro Atlanta, almost everybody is paid on commission. Everybody here is paid on salary, and they're told it's not about making sales. It's about providing information and savings.
Q: Give me an example.
A: If you buy this Marshall speaker new, it will cost you maybe $1,000. I can sell it used for $400. It works. It's clean. You'll buy it and be happy. We always advertise like that. "You got a clarinet in the closet? Turn it in, and get some cash."
Q: What do you sell?
A: About 50 percent instruments, 50 percent professional audio equipment: sound systems, equipment for bands, DJs, churches. We also do a lot of Web sales, eBay and installations for schools, churches and clubs.
Q: What's hot, instrument-wise?
A: Guitars. Violins are second. Parents somehow think it's way cooler playing a violin than playing the sax. Plus, Cobb County has a lot of string instrument programs in the schools.
Q: What, no mega-sales to rock stars?
A: I stress that we're not really suppliers to the stars. For our DJ business, we sell to the guy doing local parties, wedding receptions — working-class DJs. And we're selling to churches with 2,000 members or less who are upgrading their gear or getting new equipment. Those are friendly relationships you can count on.
Q: How's business?
A: In 2008, we had a double-digit sales increase over 2007. In 2009, our sales transactions are up — not as good as 2008, but through October our sales numbers are up 7 percent. We're selling to more customers than last year, but they're spending less than last year. We advertise a lot. We're on all the cable television channels. Our advertising budget is up more than last year too.
Q: So you'll be able to withstand the recession?
A: I'm no expert, but it seems to me the economy will be treading water for a while.
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