McFreedom

You've probably already seen this Wall Street Journal article about how Starbucks is helping local coffehouses, not putting them out of business as everyone feared. I remember reading some time ago in the Journal an editiorial which claimed that the bookstore situation in You've Got Mail (a large chain bookstore moves in next to a quaint children's bookstore) was based on real life events, but, unlike in the movie, the little bookstore thrived.

I think this is a classic example of how competition results in better service for the consumer. For smart small business people, it also results in better business for them, because they end up serving a core customer base more effectively and accurately. I read a story some years ago about a small-town office-supply store which was terrified of the new Office Max/Depot/Staples moving into town, and as a result began agressive marketing on their comittment to service, their generous return policy, their small-town roots, etc. End result was that they have more business because everyone in town knows they're there and likes them.

It's not small business, but a similar thing has happened with bookstores. I worked in a mall bookstore in 1989, as a clerk, a Waldenbooks. We had the same hours as the mall (10:00AM - 9:00PM, basically). Drinks were verbotten. If we felt you were hanging around too long and trying to read the stuff without buying it, we'd pester you until you bought it or left.

Not far from my house is another chain bookstore - a Barnes and Noble. Not too many years ago, people were predicting that Amazon was going to put them out of business, and I think B & N got scared of that, themselves. They realized that what they could provide that Amazon couldn't was a comfortable space to really browse and enjoy books. That rather than trying to rotate you through, they should try to make you hang out as long as possible.

So, contrast the B&N of today with the Waldenbooks of yesterday: Drinks? B&N has a Starbucks inside it. Reading in the store? B&N has chairs for you to sit in while you read. Hours? Open 'til 10:00 every weeknight and 11:00 on weekends.

Uh, waiter? I'll have some more competition, please.