Latest / Small Business Success with Fexingo: Local Companies, Main Street Stories, and Community Commerce / How a Local Camera Store Beat Amazon with a Film Processing Club
Transcript
- Lucas: So you've probably seen the headlines — film photography is making a comeback among people under thirty-five. Fujifilm doubled production of its Instax film a few years ago, and Kodak brought back Ektachrome after a decade off the market. Luna: I've definitely noticed. A friend of mine in her twenties just bought a used Canon AE-1 off eBay. She told me the entire process — loading the film, waiting for prints — feels more intentional than digital. Lucas: Right. And that trend has been a lifeline for independent camera stores that were getting crushed by Amazon and big-box electronics retailers. Today I want to talk about one store in Portland, Oregon — it's called Pro Photo Supply — and how they built a film processing subscription that turned a declining category into their biggest revenue driver. Luna: I love this. Film processing is exactly the kind of service that's hard to replicate online. You can't mail your film to Amazon and get prints back same-day. Lucas: Exactly. And Pro Photo Supply realised that early. They've been around since 1977, family-owned, right on Northwest 18th Avenue. By 2015, digital was eating their lunch. Their film processing volume had dropped something like 80 percent from its peak. But instead of doubling down on digital cameras, they noticed something — the people who were still shooting film were passionate about it, and a new generation was starting to pick it up. Luna: So they didn't just wait for customers to come in. They created a reason to come in regularly. Lucas: Exactly. In 2017 they launched something called the Film Processing Club. It's a membership — you pay 25 dollars a month, and you get free processing for up to five rolls of 35 millimeter or 120 film. You also get a 10 percent discount on film stock and accessories, and once a month they host a photo walk where members explore a different Portland neighbourhood together. Luna: That's smart. The subscription gives the store predictable revenue, and the photo walk builds community. How many members did they sign up in the first year? Lucas: About 150. Modest start. But they didn't push it hard — they just put a small sign at the counter and mentioned it when customers dropped off film. The real growth came through word of mouth and Instagram. Members would post their photo walk shots with a store hashtag, and people started asking how to join. Luna: So the community itself became the marketing. That's a classic local business moat — the big chains can't replicate the feeling of a group of strangers walking around with film cameras. Lucas: Right. By the end of 2019 they had about 800 members. Then the pandemic hit, and something interesting happened. People were stuck at home, looking for offline hobbies. Film photography — which is inherently slow and solitary — became a perfect pandemic activity. Pro Photo Supply pivoted their photo walks to small outdoor groups and kept the membership growing. Luna: Did they raise the price? Twenty-five dollars a month feels low for five rolls of processing. A single roll of 36 exposures costs what, ten to fifteen bucks to develop and scan at most labs? Lucas: Yeah, the economics actually work in their favour because the marginal cost of processing is low once you have the equipment — chemicals, labour, and paper. The average member shoots maybe two or three rolls per month, so the store is effectively getting a 25-dollar commitment for about 30 dollars worth of services. The profit margin on the film they sell at a 10 percent discount is still healthy, and the membership fee itself is mostly pure margin after the cost of goods. Luna: So the subscription acts as a loss leader that drives film sales and repeat foot traffic. And every time a member comes in to pick up prints, they might buy a new camera strap or a filter. Lucas: Exactly. The store owner told a local business journal that members spend about twice as much per visit as non-members. That's the halo effect. By 2023, the club had over 2,000 members, and film processing was 60 percent of the store's total revenue. They actually had to expand their lab and hire two more technicians. Luna: That's remarkable for a category that was declared dead ten years ago. It really shows how a local business can thrive by leaning into what it does best — hands-on service, community, expertise — instead of trying to compete on price and convenience. Lucas: And this is exactly the kind of story that we love to feature on this show — because it's not about some high-tech pivot or venture capital. It's about understanding your customers deeply and creating a reason for them to keep coming back. Luna: Speaking of keeping things going — these episodes take real work to research and produce, and they stay free because listeners like you chip in. If these conversations have moved your work forward in some small way, a couple of dollars a month is genuinely what keeps them coming. You can find the show at buy me a coffee dot com slash fexingo. Lucas: Yeah, it's a small gesture that makes a huge difference for us. And we really appreciate everyone who's already contributed. Luna: Back to Pro Photo Supply — what's the biggest lesson other local retailers can take from their approach? Lucas: I think it's that a subscription doesn't have to be digital. Most people hear 'subscription' and think software or streaming. But a physical subscription — a membership that gives you a tangible benefit and a sense of belonging — can be even stickier. Pro Photo Supply's churn rate is under 5 percent per year. That's unheard of in most subscription businesses. Luna: And it's not dependent on a platform. They own the customer relationship directly. No algorithm change can take that away. Lucas: Right. The other thing is that they didn't try to be everything to everyone. They could have tried to compete with Best Buy on digital cameras or with Amazon on accessories. Instead, they went deep on a niche that was too small for the big players to care about. And that niche turned out to be bigger than anyone expected. Luna: What about the photo walks? Is that replicable for, say, a bookstore or a plant shop? Lucas: Absolutely. Any store that can create a regular shared experience — a book club, a plant swap, a stitching circle — is building community. The key is that it has to be consistent and it has to be free or included in the membership. Pro Photo Supply's walks are free for members and 10 dollars for non-members. That creates a gentle incentive to join. Luna: So the walk itself is a marketing tool. Non-members come, have a great time, see the camaraderie, and then sign up. Lucas: Exactly. And it's low-cost to run — you just need one staff member to lead the group. They pick a neighbourhood, share some history, stop at a few scenic spots. It's basically a guided tour with cameras. The members love it, and it generates a ton of social media content. Luna: I also love that they kept the old-school counter experience. You can still drop off film, chat with the staff about exposure settings, and come back later to flip through prints. That human touch is something Amazon can't touch. Lucas: And that's the final lesson — don't abandon your core competency in pursuit of the new. Pro Photo Supply never stopped being a camera store. They just added a service layer that made their core offering more valuable. The film processing club didn't replace their retail business; it amplified it. Luna: Alright, I'm inspired. I think I'm going to dig out my old Minolta and see if it still works. Lucas: Do it. And if you're in Portland, you know where to take the film. For the rest of us, the lesson is the same: find the thing you can do better than anyone else in your community, build a membership around it, and watch the word of mouth do the rest. Luna: Thanks for listening, everyone. We'll be back next week with another story from Main Street.