Indie Bookstores' Survival Stories

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I got a call from a woman in Melbourne looking for a book," he says. "I asked her how she heard about me, and she said from her meat purveyor."

Unlike the chains, which rely on fast turnover of shelf space, Waxman maintains a huge basement inventory. "It's my underground resource," he says. "We have books that you can't get anywhere else." Although he stocks bestsellers, he primarily lures customers with his broad collection -- everything from books on aroma to tomes on cannibalism and even a volume examining food in the works of 17th-century French playwright Molière.

REPLICATING INDIVIDUALITY.

While he frequently receives inquiries about expanding or franchising, he has steadfastly refused. "I discovered almost immediately that doing this right requires an intensity of effort and concentration," he says. "You can't run a store like this on a big scale. It's far too personal."

Others, however, have taken a chance on replicating their own success as independents. When Joyce Meskis founded Denver's famed Tattered Cover bookstores in 1989, she created an inviting space with stuffed couches. "We wanted to bring people in for as long as possible," says manager Neil Strandberg. "Our logic is that it be a place where people discover books that they didn't know existed and that it fit like an old comfortable slipper." Last year, the Tattered Cover opened a third location and is now considering a fourth.

The store also hosts some 600 readings, art exhibits, and other events a year. Ten years ago, it opened the Fourth Story Restaurant & Bar at its flagship Cherry Creek location, featuring an award-winning menu, live jazz, and book-themed dinners.

SHARING PROFITS.

Some booksellers have found success by making group efforts and establishing connections within their community. In 1961, 17 people founded the Seminary Co-op, in the shadow of the University of Chicago. Today, with more than 100,000 titles, the shop is considered one of the best academic collections in the humanities and social sciences and has expanded to three locations, each with its own area of specialty. "We give people a reason to shop," says Jack Sella, the store's general manager.

Co-op members purchase a minimum of three shares of stock, each valued at $10, limited to 100 shares. In turn, they divide the spoils, receive a 10% discount on purchases, and can sell back their shares at anytime. Currently, membership stands at 46,000 worldwide.

Scott Meyer, the owner of three Merritt Bookstores, in Duchess and Putnam counties in New York, calls himself a "bibliotherapist." He sees his stores as an integral part of the community, and he focuses on encouraging the next generation of readers. Each year, he puts on what he calls a kindergarten social with readings and art shows in his shops for the elementary school set. And five years ago, when Harry Potter and the Goblet of Fire was released, he held a sleepover in the store with a local Girl Scout troop and its chaperones.

And while he bemoans the industry's woes, like most independent booksellers -- and small-business owners -- he persists for one reason: "I love what I do. I really enjoy books, my customers, and community. I've had passing thoughts about throwing in the towel once in a while. But I wouldn't know how to close." Let's hope he never will.

Perman is a staff writer for BusinessWeek.com in New York.