The adage “All that glitters isn’t gold” is still good advice for those easily fooled by appearances. But it also describes the most popular music medium today: the compact disc, which happens to be silver.
Besides being far and away the format leader in music sales, easily outdistancing the cassette and nearly extinct vinyl LP, it is now driving a relatively new concept in retailing as consumers recycle their music at a growing number of used CD stores.
The concept is simple: Since CDs are far more durable than records, they can be exchanged for cash or traded for other CDs. And in addition, an effective symbiotic relationship between retailer and consumer results: Consumers can spend as much as 40 percent less on the cost of a used disc compared with a new one, and, in many cases retailers can realize more than a 50 percent profit.
The first local used CD store may have made its debut more than 10 years ago in Oak Park.
“I’m quite sure I was the first CD-only store around,” said Chris Miller, owner of Chicago Digital. “I believe we were one of the real pioneers.”
Miller said that in the early days his store bought almost everything that was brought in as a used CD.
“I figured if the record was pressed on a disc, it must be something good,” Miller said. “About four years later, I had to stop doing that.”
Miller said the main reason customers want to trade CDs is record clubs.
Debbie Walski, manager of three suburban CD Warehouse stores (there are 120 nationwide), agrees that record club members are most likely to frequent her stores seeking trades or cash.
“People sometimes have duplicates of a disc, or they bought a new CD for one song they liked, taped it, and decided the rest of the disc wasn’t worth it,” Walski said.
Trade-in and pricing structures for used CD stores are fairly consistent. You’ll find that most stores offer from $3 to $4 for a used disc and from $5 to $8 for an import or a premium CD.
Clearly, a return of $4 for a used Gin Blossoms disc that cost $11.99 on sale is better than getting $7 for a Mobile Fidelity Gold Disc pressing of Santana’s “Abraxas” that sold for $25 to $30 new.
But without exception, the buying of used discs, regardless of the retailer, depends upon a fluctuating series of conditions.
“We get people bringing in Green Day and Spin Doctors’ CDs every day,” says Bill Hale, owner of In A Groove, a Wheaton-based retailer in used LPs and CDs. “We had to stop taking them a while ago. The supply is just too great.”
Chicago Digital takes in as many as $800 worth of used CDs some days, but sales volume, according to Miller, is less than it used to be.
“Used CD sales make up about 25 percent of the business here,” Miller says, “but they make up about 50 percent of the profit.”
In an average week, Miller will take in around 300 discs and sell about 150. Obviously, this ratio can’t continue indefinitely. And his store is not alone.
“We try to balance buying with selling, and we have to watch the level of sales versus used discs we take in,” Walski said. “At times, it can become just a cash-flow problem if you’re buying too many used discs and not selling enough of your used or new stock.”
According to retailers, a broad spectrum of musical genres is offered for trade or cash.
Miller says “DJ only” copies of CDs appear, along with promotional discs, “ordinary pop” and occasionally some jazz and classical titles.
“Our jazz fans are very discriminating buyers,” he says. “They look to save money, and will usually do a thorough job of regularly combing the bins at a used CD store.”
John Coakley, manager of Record Breakers in Hoffman Estates, says there’s a six-month cycle of current hits and the next wave of trades.
“People like to clean out their collections and will bring in things if they haven’t listened to them in a while,” Coakley said. “Plus, anything that’s hot on the charts now will be back here sold as used in six months.”
Classic rock, best exemplified by the Beatles, Rolling Stones, The Who, etc., sells fast but doesn’t usually appear in large quantities.
“We’ll sell a Beatles or Led Zeppelin disc right away if we get one,” Hale said. “But people don’t trade that stuff. They bought it and heard it on LP 30 years ago, and when they bought it on disc, they knew what they were getting. People hold on to that music.”
The advent of new technology in CD mastering promises a whole new wave of trade-ins, especially in classic rock. The 20-bit mastering used today on reissues of discs that were first available 10 years ago will no doubt bring audiophiles into used CD stores to trade or cash in their old discs in order to buy the upgrades.
“I’m not sure the average guy can hear the difference or cares,” Hale said. “If someone can get a classic rock title he wants for less, that’s all that matters.”
If you want to make the most of your used CD shopping experience, start by trading discs instead of using the retailer as a pawn shop.
“Probably everyone in the business offers $3 to $4 in cash but a dollar more per CD in credit,” Miller said. “You really get more for your money if you trade discs.”
Next, shop often, and look for bargains.
“Sometimes, a customer who works for a radio station will come in with a box of 400 discs,” Coakley said. “We don’t want to check in all those discs against our stock, so we’ll buy ’em for 50 cents a piece and sell ’em for 99 cents each.”
Overstock at CD Warehouse, according to Walski, is soon to handled by what the store chain is calling “super pricing.”
“We’ll look at titles than haven’t moved for a while and drop the price down to $5.99 to move it out,” Walski said.
Chicago Digital does the same thing.
“We have some titles we’ll sell for $1 to $2,” Miller said. “Often these are great discs; it’s just that they weren’t heard by anybody. At that price, the risk is low.”
Besides great price and vast selections, all retailers have a common message: Don’t be afraid to buy used discs.
“CDs aren’t like records that were scratched or warped,” Miller said. “In fact, we can even remove scratches now on a CD, as long as the disc isn’t perforated.”
“All dealers guarantee against any defects,” Walski says. “Also, don’t be discouraged if a store doesn’t buy everything you try to sell or trade. Hold onto it and try again in a few weeks. And remember, there’s no tax on trade discs you buy.”
“We sell new and used discs, and if we get a new release back in as used, I try to sell that if someone brings a new copy to the desk,” Coakley said. “The customer saves money, and we don’t have to restock the new one. But I’d advise people to hold on to their music once they’ve bought it. That’s the best value of all.”
