Local music stores joining together

A group of Northern California music stores created the Norcal Music Coalition to receive discounts which help to keep them competitive against national chains and online retailers.

This is an idea which could be extended to other small music-related ventures -- even to venue operations.

: "The coalition started in the 1990s, initially to fight off the big chains. The stores checked their customer mailing lists and found there was only a tiny fraction of overlap from store to store. That paved the way for joint buying and marketing plans.

'At first, we thought of each other as competitors, but we're really not,' said Rosemary Rodd, president of Leo's Pro Audio in Oakland. 'We talk together now and have a powerful marketing agreement.'

Most stores in the coalition are at least 10 or 15 miles apart and each has its own loyal following. ...

The coalition's 10 locations generate about $50 million in annual sales. That's formidable, but small compared with arch-rival Guitar Center, a major chain, whose 2006 sales rose 14 percent to $2 billion.

Since the coalition formed, store profit margins have improved, Welker said, which allows owners to keep prices lower and challenge Internet sales. The coalition also has a Web site (www.norcalmusiconline.com).

The group's biggest plus may be the marketing strength of the shiny catalog of new musical instruments and accessories the stores collaborate to produce, members say.

Before producing the catalog, 'Our small, independent voice felt like it was getting buried under the noise out there,' Jarvis said."