A Novel Idea, Constellation Books & Co-opetition

 was a good excuse to come into town this last weekend and hunt down another story for the blog. I came down and checked out all the cool local artisans, the music, the yard sales, the vendors, the street sales and the awesome weather. It was lovely. That said, I had books on the brain. What books? Wasn't sure. What did I find? Two compatible businesses and no communication.

Constellation Books

Constellation Books describes itself as "an independent general bookstore serving the local community. We feature author signings, book release parties, First Friday Wine Tastings, live music, special orders, and discounts for schools and book clubs. Our stock mix is mostly NEW books, with a small supplement of used books."

I found that right on its website. I can also find events, books I'm looking for and a blog.

Constellation has been all about community while still considering scale. Owner Lauretta Nagel is one person and she gets the most out of herself and her business in ways that create traffic and community support, which in turn creates more traffic. She gets the summer reading lists from the library, she signs up local musicians (like me, June 3rd! - that's also a disclosure for you guys) to play at her wine tastings, has reasonable hours, keeps local flyers and papers around, and even invites input from customers on what kind of books they are looking for. Her website is dynamic and searchable and her web-presence is focused (one commercial site, one blog, one person). She'll even order books for you through her store, online or in person. Those kinds of methods make sense for a book store that is mostly focused on selling new books. It takes a lot more effort to create each transaction than it does for a used book seller, since customers are being asked to part with more money per book.

A Novel Idea

Before I could even get from the festival to Constellation, imagine my delight and suprise when I noticed a sign hanging outside one of the shops that said A Novel Idea.

I walked in to wander around and I saw what the stores name had neatly described: a great idea for a main street book store. It was well laid out, the books were clearly carefully chosen and displayed for maximum customer friendliness, and the look was as simple as the idea. If you're going to sell used books, make it accessible, make it easy, and make it a nice experience. Maximize your space without crowding out your customers. Well done.

If anyone remembers our last used book store on main street, where Constellation is now, it was cluttered, there was nowhere to sit or walk, the books were packed in tight and stacked to the ceiling. Quantity had clearly won out over quality. It was rarely open and it didn't survive.

A Novel Idea is spacious, well-organized, easy on the eyes, has a lovely little porch, and a cool old-timey feel to it. I felt very comfortable browsing, especially knowing that I might actually be able to spend a couple dollars there without regret.

And that’s the trick that a small used book seller has to pull off. How do get more transactions per customer? Superstores like Walmart maximize their profits by presenting attractive prices to customers hoping that they’ll make up for how much they get per item with how many items they sell to each customer. A small used book seller than has to create a similar attraction but with much less space and a much smaller marketing budget.

I didn't have time, and haven't since found time, to do a proper interview of our new business neighbor - the owner,  - but I did have time to ask one very important question:

"Have you done any networking with Constellation Books or the Reisterstown Library?"

The answer:

"No."

As I checked out my books (some political philosophy type stuff and one on Native American women story tellers and leaders that was suggested to me, the perfect book to read after last weekends Pow Wow) I grabbed her card (a magnet) and told her I might include her in a story for my blog.

I packed the books in my car and wandered over to Constellation Books to ask Lauretta, Constellation Books owner, what the deal was. Answer:

"I couldn't find her phone number anywhere on the internet."

Why are these two extremely compatible businesses not chatting up a storm, or even talking?

Co-opetition

Networking is not what it used be. It does not have to mean joining every community association, it does not have to mean being involved in any politics or being in constant communication with your peers. It can simply be an extension of your business practice, a way to resourcefully utilize the tools available to keep your company on track to where you want it to go.

Rieva Lesonsky’s article for the SBA community blogs, Forget Competition it's Time for Co-opetition, defines Co-opetition as,

"the gentle art of cooperating with companies that might traditionally be considered your competition."

Lesonky's article has a few good ideas about where to start on making the most out of compatibility:

Choose the right partners. Co-opetition works best for businesses that are not head-to-head competitors, but are complementary or somehow related. For example, if you own a children's clothing boutique, you probably wouldn't want to try this tactic with another children's clothing store. Instead, you could partner with a children's toy store, children's book store, children's hair salon or 'mommy and me' gym. Yes, all of these businesses are competitive in one way, they're all competing for the parent's discretionary dollar. But they're complementary in others. Essentially, just because mom is buying toys this holiday season, doesn't mean she won't also be spending on new holiday outfits.

Think local. Co-opetition is typically used by brick-and-mortar businesses in the same vicinity. That's not to say it can't work online for e-commerce companies, but there's something inherently personal or 'face-to-face' about this mode of marketing. That's part of what makes it so effective.

A good place to get started with co-opetition is at your Chamber of Commerce or local business association. Bring up the concept to the other members and see what they think. Most people are willing to try just about any new marketing method these days, so chances are you'll get several willing participants.

Throw an event. Many small businesses implement co-opetition by hosting special events. For instance, every summer, all the restaurants on one street in my neighborhood host a monthly 'Stroll and Savor' night where each eatery sells samples of their cuisine outdoors for a dollar or two. At the same time, the retailers on the street have 'Sidewalk Sales' with discounted merchandise on racks or tables outside. In another part of town, local businesses host a 'First Friday' event. On the first Friday evening of every month, local musicians play outside businesses up and down the street. At other locations, local artists display their wares. This event attracts lots of hip, young parents who can't get out and socialize the way they used to, but enjoy pushing the stroller while looking at art and listening to live music.

A group event like this is a great way to attract new customers who might not otherwise try your business. This can work in a large area (an entire outdoor shopping center) or on a smaller scale (a strip center). The more businesses you get involved, the more customers the event can attract. Be sure to get any necessary permits ahead of time.

Start small. If the idea of organizing a big event sounds like a bit much, don't worry. Co-opetition can start as small as you want. For instance, if you own a pet products store, you could let a local dog groomer or dog-walker leave their brochures at your checkout counter. In return, ask them to give their customers coupons good for a discount at your store. The tactic can work for service businesses, too; for example, an attorney whose clients include lots of small businesses could have brochures from a tax preparation firm in his office. Or a fitness trainer might give clients discount coupons from a nutritionist, masseuse or physical therapist. You get the idea.

As I mentioned, co-opetition would work for e-commerce companies as well. You could include ad fliers or coupons from your partner business in the box when you ship a customer's order, or include links to their sites on your Web site.

The key to making co-opetition work is to be sure both parties do their share-in other words, if you're spreading someone else's marketing message to your customers, you need to be sure the other business is spreading yours, as well.

By exposing your brand to a whole bunch of new customers, co-opetition multiplies your marketing reach. And because prospects are getting information about your business from a trusted source (the other business that they already patronize), they're more likely to buy from you.

Get creative. Think creatively about what businesses might be good co-opetition partners for you-and what strategies you could use. Some other ideas:

• If you send out an e-mail newsletter, give your partner company some space in it and vice versa.
• Pitch yourself and your partner company/s to local radio shows. For instance, the fitness trainer, nutritionist, etc. I mentioned above could discuss staying fit during the holidays.
• Trade e-mail lists or customer lists. Set ground rules beforehand for how you will use these lists and make sure you aren't breaking any CAN-SPAM laws.
• Host contests with your partner companies.
• Join with your partner companies in sponsoring or volunteering at local charities.

Take it to the next level. If your local businesses really get into the idea of co-opetition, you may want to consider starting a buy-local campaign. A marketing campaign that encourages shoppers to buy local helps not only your business, but the community's tax base and local employment. One study showed that even during recessions, businesses in areas with buy-local campaigns had smaller sales declines than businesses in areas without those campaigns.

A good buy-local campaign educates consumers about the value of independent businesses; promotes shopping at these businesses through ads, coupons, shop-local weeks and similar marketing tools; and promotes local independent businesses in the media. The American Independent Business Alliance and the Business Alliance for Local Living Economies are two groups that can help you start a buy-local group. Their Web sites offer lots of advice on getting members, promoting the concept to consumers and market your buy-local campaign.