Latest / Small Business Success with Fexingo: Local Companies, Main Street Stories, and Community Commerce / How a Local Bookstore Beat Amazon with a Book Club for Kids
Transcript
- Lucas: So Luna, I was reading about this independent bookstore in Portland called Story and Song, and they've done something really clever to fight back against the big guys — they started a monthly book club for kids. Luna: A book club for kids? How does that work exactly? Because my niece would love that, but I'm curious about the business side. Lucas: Right, so the model is pretty simple. Parents pay twenty-five dollars a month, and each month the kid gets a curated book, a themed activity, and a small snack. And on top of that, members get ten percent off everything else in the store. Luna: And that's enough to make a difference? I mean, twenty-five dollars a month doesn't sound like a huge margin, especially when you're giving a book and snacks. Lucas: Well, that's the thing — the book itself costs them about eight or nine dollars wholesale, the activity maybe two bucks, and the snack a dollar. So they're clearing roughly thirteen dollars a month per member. But the real win is the foot traffic and the other purchases. Luna: So the club is kind of a loss leader or a hook to get families in the door regularly. Lucas: Exactly. Since they launched the club about eight months ago, they've seen a thirty percent bump in foot traffic and a twenty-five percent increase in overall sales. And they've grown the club from thirty members to two hundred. Luna: Two hundred members at twenty-five bucks a month — that's five thousand dollars in recurring revenue a month. That's significant for a small shop. Lucas: It is. And what's interesting is that the club members are their most loyal customers. They're not just showing up for the book pick-up — they're coming in for story time, they're buying birthday gifts, they're grabbing a coffee from the café they added last year. Luna: So it's about building a habit, almost like a subscription box but with a physical presence. Lucas: Right, and that's something Amazon can't replicate. You can't get the experience of a themed activity, a snack, and a group of kids reading together online. The social aspect is huge. Luna: And I bet parents are willing to pay a premium for that. I mean, we're seeing a lot of small businesses succeed by selling experiences, not just products. Lucas: Absolutely. And the store owner, her name is Sarah, she told me that the club has also changed how she buys inventory. Because she knows the reading levels and interests of two hundred kids, she can stock books that are more likely to sell. It's like having a focus group on tap. Luna: That's smart. So they're using the data from the club to make better purchasing decisions for the whole store. Lucas: And they're not just selling books — they're building a community. Parents are chatting in the store, kids are making friends. It becomes a destination, not just a place to buy something. Luna: Before we dive deeper, I want to mention something that's been on my mind. We get a lot of questions from listeners about how we keep this podcast going without ads. Lucas: Yeah, it's a good question. And honestly, it's because of a small group of listeners who chip in monthly through buy me a coffee dot com slash fexingo. That's what funds our research and production. Luna: And we really appreciate that. It keeps everything ad-free and lets us focus on stories like this. So if you've gotten value from these conversations, that's one way to keep it going. Lucas: But let's get back to Story and Song. Because one of the challenges they faced was how to market the club without a huge ad budget. Luna: What did they do? Lucas: They relied on word of mouth and partnerships with local schools. They offered a free trial month to the first ten families who signed up, and then they let them be the evangelists. That first group told their friends, and suddenly they had a waiting list. Luna: So they turned their early adopters into a referral engine. That's a classic growth hack for small businesses. Lucas: And they also used their Instagram to show the activities and the unboxing moments. Parents love seeing their kids excited about books. Luna: I can see that. So what's the downside? I mean, every model has some risk. Lucas: The biggest risk is churn — parents might sign up for a few months and then cancel, especially during summer or holidays when schedules are crazy. Sarah told me they lose about ten percent of members each month, but they're adding more than they lose, so it's growing. Luna: So they have to keep the content fresh and the activities compelling enough to retain families. Lucas: Exactly. And they've adapted by varying the themes — one month it's dinosaurs, another it's space, another it's mysteries. And they let the kids have a say in what gets picked. It gives them ownership. Luna: That's a great point. When kids feel like they're part of the decision, they're more excited to come. Lucas: Yeah. And the store also hosts a monthly meet-up where the kids can discuss the book. It's like a mini book club for children, and parents love that it encourages reading and social skills at the same time. Luna: So it's really a hybrid of a retail subscription and a community program. I could see this working for other types of stores too — like a toy store with a monthly STEAM kit club, or a craft store with a DIY box. Lucas: Absolutely. The principle is the same: give customers a reason to come back regularly, and make it feel like an experience, not just a transaction. The key is to curate something that's valuable and that you can't easily get online. Luna: And for Story and Song, it's clearly working. They've even started a similar club for adults — a cookbook club where you get a new cookbook each month and then they have a potluck to try the recipes. Lucas: Oh, that's a great idea. And it shows the model can scale beyond just kids. It's about building a community around a passion, and in this case, that's reading and cooking. Luna: So what's the one takeaway for our listeners who run small businesses? What can they learn from Story and Song? Lucas: I think it's that you don't have to compete on price or selection. You can compete on community and experience. Find a way to bring people together around what you sell, and they'll become loyal customers who also bring their friends. Luna: And it doesn't have to be complicated. A simple subscription with a physical meet-up can do it. Lucas: Exactly. And if you're thinking about starting a club like this, start small. Test it with ten families, learn what works, and then scale slowly. That's what Sarah did, and now she's got two hundred members and growing. Luna: That's a solid plan. And it makes me wonder — what other small businesses are doing something similar? Maybe we should do a follow-up episode on other local stores that have turned their customers into a community. Lucas: That's a good idea. If any listeners have a story like this, let us know. But for now, I think Story and Song is a great example of how thinking outside the box – or outside the bookcase – can pay off.