Embracing a Mobile Change

May 13, 2009 By Mark Landiak

multipage

How one imaging retailer transformed his business through cellular

In the last five years, we have seen hundreds of imaging businesses fail due to a refusal to embrace change.  If you own or manage a camera store, you may be (or should be) concerned about the future of your business.  This is the story of how one retailer watched the trends and took action to not only save his business, but grow it dramatically.

32 years ago Bob Stumpner, photographer, bought a small camera store in Wisconsin and promoted himself to small business owner.  He called the business Camera Case and slowly and steadily grew his retail business, eventually buying a Kodak mini-lab and getting into the finishing end of the biz. Stumpner has always been on the look out for product trends and on a trip to Disney noticed that a large number of people had camcorders. 

This prompted him to start selling video cams and VCR’s.  An opportunity came along to purchase the small electronics store next door, and needing the space, he made the deal.  Camera Case now sold a variety of electronics including TV’s.  More products meant more space, so he went on the hook for a 4,700 sq.ft. building to display all his products.

Business was pretty good in his town of 8,000, but things started to change. Digital cameras killed the film and processing business and profit margins weren’t as robust as in years past – a familiar tale.

One of his long-time customers asked him to sell her a cell phone.  “I’m sorry, but we don’t carry them” was his response.  She persisted, saying that she knew if she purchased it from them, that they would take care of her and show her how to use it. That was the start of the cellular story for Camera Case.  It proved to be THE most profitable decision that Stumpner ever made as it saved his camera business and showed him how to focus on making more money versus just trying to make more sales of low-margin products.

“Without cellular, we’d have gone out of business long ago,” he says.  The imaging business has changed.  Film and development services have all but disappeared and the margin on cameras, “is pitiful,” as Stumpner puts it.