Borrower Spotlight: East Bay Drums

Artie Siegel had a love of drums, and experience running his own janitorial business. But before he jumped into launching his own retail shop, he made sure to do his market research. “I got a lot of good information from the sales reps of the products I wanted to carry. They knew the area, and could give me some insight into how much demand there was – particularly with the bigger chain stores,” explained Artie.

Artie opened East Bay Drums – a specialized shop featuring drum sets, accessories and repairs – in June 2005. The store is located ½ block off Shattuck in Berkeley. “We carry brands they don’t have in the big chain stores,” said Artie. “And we offer personalized service and knowledge to help each of our customers understand the products.”

Artie approached OBDC last spring for a $12,000 loan to help buy inventory and make improvements to his space. “OBDC helped me develop realistic projections for the business – and provided me with cash to get started, even on a tight budget.”

What Artie lacked in financial resources, he made up for in creativity. Artie shared his “guerilla marketing” tactics that he’s used to promote East Bay Drums.
• Online classified ads featuring free drumsticks – customers came into the store to take advantage of a small give away, and got the chance to see the range of products offered
• 10,000 flyers – Artie distributed flyers at rehearsal spaces and other locations where musicians congregated
• Regular email updates – Artie keeps track of customers’ email addresses, and sends them regular notices about sales and other store events

Inventory management has been a key component of Artie’s success. “If a product doesn’t sell in 30 days, I hold a blow-out sale on the item,” he explained. “That way my customers know when they come in I’ll have fresh inventory, and I won’t have cash invested in older items.”

Artie offers a few other pieces of advice for other entrepreneurs. “Do your market research before you open, and make sure there’s a demand for your business. Then be patient!” Artie spent a lot of time establishing his business foundation before he opened, including attending a number of workshops at an industry conference. “Take advantage of all the seminars and free information you can.”

Artie hopes to open another store in Concord in 2007.

East Bay Drums is located at 2107 Woolsey in Berkeley (1/2 block off Shattuck and 3 blocks south of Ashby) and can be contacted at 510-644-1028.