Latest / Small Business Success with Fexingo: Local Companies, Main Street Stories, and Community Commerce / How a Local Bookshop Beat Big Retail with a Reading Subscription
Transcript
- Lucas: So there's a bookshop in Dublin, The Gutter Bookshop, and they've basically built a subscription service that's keeping them afloat. It's called the First Editions Club, and I think it's one of the smartest retail ideas I've seen in a long time. Luna: A book subscription? Like a monthly box? How is that different from, well, Amazon or one of those book box services? Lucas: That's exactly the question. But the twist is it's not a box of random books. It's one carefully chosen hardback every month, picked by the staff, and it's tied to a real relationship with the customer. And the results have been pretty remarkable for a small shop. Luna: I'm curious about the numbers. How much does it cost, and how many people are in it? Lucas: So it's about twenty-five euro a month, which is roughly the price of a streaming subscription. And they've got a few hundred members. But the key is the retention rate is really high, and those members end up spending more in the store over time. Luna: That's interesting. So it's not just a transaction, it's a relationship. And it kind of reminds me of how we rely on our listeners' support to keep the show going. If these conversations have moved your work forward in some small way, and you want to keep them ad-free, you can support us at buy me a coffee dot com slash fexingo. It's a low-key way to keep us independent. Lucas: Yeah, exactly. And it's the same principle here—when people feel invested, they stick around. So the First Editions Club, it's not just about selling books. It's about creating a community of readers who trust the shop's taste. Luna: So how did they get started? Was it a leap of faith or did they test it? Lucas: The owner, Bob Johnston, he told me they started it about five years ago, almost on a whim. They had a loyal customer base, and they thought, what if we offered a monthly book, handpicked by our staff, delivered to your door? They started with maybe twenty members, and it just grew from there. Luna: And what makes their picks special? Is it just the staff's taste, or is there a method? Lucas: The method is the interesting part. They actually interview new members. Not a formal questionnaire, but a conversation about what they've read, what they loved, what they hated. So the first book is a bit of a gamble, but by the second or third month, they've got a really good sense of the person's taste. Luna: That's a lot more personal than an algorithm. And it probably leads to some happy surprises, right? Lucas: Exactly. And that's the hook. People love the idea of being recommended something they wouldn't have picked themselves. It's the opposite of the Amazon 'you might also like'—it's a human being who's read the book and thinks you'll love it. Luna: So the revenue from the subscription is steady, but how does it help the store beyond that? I mean, they're not making a huge margin on a hardback, are they? Lucas: Right, the margin on a single book isn't huge. But the subscription brings people into the shop. They come in to pick up their book, and while they're there, they buy a coffee, they buy a gift, they buy another book. The average subscriber spends about double what a regular customer does annually. Luna: That's the halo effect. And I guess it creates a habit of visiting the shop, which is huge for a local business. Lucas: It's a habit, and it's also a commitment. When you've paid for a year upfront, you're going to make sure you get your book. And you're going to feel a little more invested in the shop's success. Luna: Do they do any events around the club? Because I imagine that's another way to build community. Lucas: They do. Every quarter, they host an author event exclusively for members. It could be a reading, a Q&A, sometimes a dinner. That's not something you can get from an algorithm. And it turns the subscription into an experience, not just a product. Luna: That's a really smart way to add value without adding too much cost. And it probably gets people talking about the shop on social media too. Lucas: Oh, absolutely. And that word of mouth is how they've grown. They don't do a ton of advertising. It's mostly members telling their friends, 'Hey, I'm in this book club, and I've discovered so many great books.' Luna: So what's the failure rate? I mean, do people drop off after a few months? Lucas: They do have some churn, but it's lower than you'd expect. They say the retention rate is around eighty percent year-over-year, which is pretty solid for a subscription. And the ones who leave usually come back within a year or two. Luna: That's impressive. And it shows that the relationship, not just the product, is what keeps people. It's like the difference between a gym membership and a personal trainer. You'll stick with the trainer because you feel accountable. Lucas: Exactly. And for a small business, that kind of loyalty is gold. It's predictable revenue, it's community, and it's a buffer against the big bad online retailer. Luna: I love that they're not trying to be everything to everyone. They're doubling down on what they do best: curation and personal connection. Lucas: And that's the lesson for any small business. You can't out-Amazon Amazon. But you can offer something they can't: a human being who knows your name and your taste. Luna: So what's the biggest challenge they've faced with the club? There must be something. Lucas: The biggest challenge is picking the right books. They've gotten better over time, but there are still months where they get it wrong, and they hear about it. But they've learned to embrace the feedback. It's a conversation, not a complaint. Luna: That's a healthy way to look at it. And I guess it keeps them on their toes. Lucas: It does. And it also makes the club feel collaborative. Members know they're shaping what the shop stocks and recommends. That's a powerful thing. Luna: I'm curious, has the club changed how they buy inventory? Like, are they now buying more copies of one book because they know it'll be a pick? Lucas: Yeah, that's a great point. They've become smarter about their buying. They can predict demand better, which helps their cash flow. And they can negotiate better deals with publishers because they're buying in volume for the club. Luna: So the subscription isn't just a revenue stream, it's a strategic advantage. It gives them data and buying power. Lucas: Exactly. And for a small shop, that's a huge shift. They're not just reacting to trends; they're creating them. And that's a really exciting place to be. Luna: So, for a small business owner listening, what's the one takeaway? Is it 'start a subscription' or is it something broader? Lucas: I think it's broader. It's about finding a way to turn your expertise into a recurring relationship. For a bookshop, it's a book club. For a coffee shop, it's a roast club, which we've covered. For a barber, it's a membership. The key is to find the thing that your customers want to commit to. Luna: And it has to be something that only you can provide, right? Because if it's easily replicable, you're just competing on price. Lucas: Right. The curation, the events, the personal touch—that's the moat. And it's what keeps the big guys at bay. Luna: It's inspiring to see a small business not just survive but thrive by doing what they love. And it makes me want to go join a book club. Lucas: Ha, I'll join you. But first, let's grab a coffee at the shop. I hear they have a great espresso.