Selling 8 CDs for a penny finally caught up to them

[SeaPA]

Columbia House is liquidating. If they're going to firesale their remaining inventory, you'll probably be able to get 120 CDs for a penny.

http://www.msn.com/en-us/news/other/columbia-house-owner-files-for-bankruptcy/ar-BBlCRac?ocid=OIE9HP

I know when I was young, I started my music collection buying from them - who else did so?

Oh, and from the article, which of you was the guy who stung them:

The company's business model exemplified what is known as the "negative option cycle" which put members on the hook for items sent by the club unless they declined them first.
Though scores of members were burned by Columbia House's fine print in the '90s, one New Jersey man bilked the company out of 26,554 CDs over a five-year span by setting up 2,417 customer accounts at 16 different post office boxes.

 

[Bartdog]

I was thinking about them just the other day. Actually thought they had already gone out of business.

 

[Nole Lou]

Was just talking to my kids about it the other day. Hard to explain how that program was such an common part of youth culture for what, 10-20 years? Almost everyone started their collection with that thing. It's a bizarre thing to explain to teenagers today how/what/why of that even existing, let alone being such a big deal.

 

[SeaPA]

Probably more like 20 to 25 years. I know I can remember when they sold albums & 8-tracks when I was a kid (early 70s), and I know they were a massive part of the music sales market through the 90s when CDs were taking over.

 

[kc78]

I certainly remember signing up. You'd get your first free ones and always forget to cancel immediately. So you always wound up with at least one terrible cd. However, still wasn't a terribly bad deal as long as you took care of the cancellation immediately.

 

[SeaPA]

I certainly remember signing up. You'd get your first free ones and always forget to cancel immediately. So you always wound up with at least one terrible cd. However, still wasn't a terribly bad deal as long as you took care of the cancellation immediately.

Ha, yeah I definitely got introduced to some new artists courtesy of them.

 

[dmm5157]

I have somewhat fond memories of Columbia house.

Back when I was in college (2005) I did one of those "get a Free iPod for completing 5 offers" and two of them were Columbia House CD's and DVD's.

Back then, iPod Photo 64GB was going for around $400 MSRP.

I kept a spreadsheet and calculated out how much I could sell each of the items in each tier of options. Figured out I could make money by re-selling the CD's and DVD's on Ebay. Probably couldn't wing it to make money these days, as shipping is pricier now and eBay takes a bigger chunk.

Anyway, I was able to sell all the CD's and DVD's from those "get 10 CD's and DVD's for 1 penny" offers and make a few bucks (probably around $50-60). Figured even if the iPod deal never went through, at least I made a little coin. As a poor college kid, it was easy enough. Once I sold all the stuff and fulfill the minimum requirements, I cancelled Columbia House. I did get random calls for a while asking me to re-join, but not a big deal.

Low and behold, about 2 months later, I get a shipping confirmation and got my iPod delivered to my door. If I had been smart at the time, I'd have turned around and sold it for around $300 on Ebay, but I decided to keep it.

...CSB.

 

[surfnole]

Most of the selection was crap, but there were just enough good albums to make you join. I returned a few after I forgot to opt out.

 

[dero316]

BMG was my club of choice, always had a fresh supply for my panasonic 3 disc changer I jammed to while playing super nintendo in my room.

 

[montconole]

People used their real names when they joined CH?

 

[Lemon Thrower]

 

[Funk#49]

I joined Columbia, BMG, ABC............there were at least five or six others over the years.......

At one time I had about 7,000 LP's, 1,000 singles, and probably around 3,000 CD's. Not all from the Record Clubs of course but it really was a great way to have your ears and mind opened by being open minded enough to listen to more than a couple genres of music.

 

[Nole Lou]

I never realized this, but I something I hadn't thought about until I heard it mentioned, for a large portion of the country, Columbia House was the only way they could get their hands on records. In rural middle America, there might be some records in Wal Mart or K Mart, but only the most modest selection. The record clubs were a lifeline to music outside the very most mainstream for a lot of kids who couldn't hear it any other way. You might hear of say, Siouxie and the Banshees from somebody or read about it in Rolling Stone, but there was literally NO WAY you could hear what it sounded like outside of decent size cities, let alone own it. Except for Columbia House.

I never thought about it, because I grew up around all kinds of record stores, but it was real life for a lot of teenagers.

Days before the internet, yall.

 

[Nole Lou]

Good read from a while ago on Columbia House if you are interested...I enjoyed it:

http://www.avclub.com/article/four-columbia-house-insiders-explain-shady-math-be-219964

 

[Bartdog]

People used their real names when they joined CH?

someone used MINE. Guys who moved into my apartment after I graduated UWF got an offer in the mail and got a bunch of CDs in my name. CH hounded me for about a year. My first experience with or knowledge of "identity theft."

 

[Formerly Rockymtnole]

Remember in the 70s they used to send the packet with the postage stamps of album covers and you would lick and stick the ones you wanted and then mail back to them?

 

[Lemon Thrower]

Good read from a while ago on Columbia House if you are interested...I enjoyed it:

http://www.avclub.com/article/four-columbia-house-insiders-explain-shady-math-be-219964

very interesting article, especially about the fake names like Patty O. Furniture and Abe Lincoln.

Reading it really brings you back to those times and the thrill of getting so much stuff for "free." Still not sure how they made money - i guess suckers who got stuck buying the monthly selection or something.

 

[Nole Lou]

very interesting article, especially about the fake names like Patty O. Furniture and Abe Lincoln.

Reading it really brings you back to those times and the thrill of getting so much stuff for "free." Still not sure how they made money - i guess suckers who got stuck buying the monthly selection or something.

Sounded to me like they cut extremely low payout deals to the labels/artists, compared to record stores, so they could afford significant losses.

 

[Nole Lou]

Remember in the 70s they used to send the packet with the postage stamps of album covers and you would lick and stick the ones you wanted and then mail back to them?

Wow, I totally forgot about that, but I remember that now. That wasn't the case by the time I was doing it, but I remember my father doing that and the stamps being around.

 

[billanole]

I had a couple of dogs, and several extra brothers who joined up....

 

[QuaZ2002]

My dad wouldn't let us buy CDs that were Parental Advisory so my brother and I figured out we could order them through Columbia House and they would be delivered during the day when my dad was at work. Money in the bank. I remember being so horrified he would find those CDs.

 

[EveryoneBleedsGarnet]

Bankrupt or not those guys are still legendary in the marketing community for pioneering lead magnet and tripwire offers where they would take a huge loss on the front end and still rake in huge profits.

 

[FreeFlyNole]

I built my CD collection off these guys, I was just talking about them the other day. I'm sure I had a few accounts.

 

[OrlandNole]

Is this really a surprise? Who buys CDs anymore?

If they were smart they would have converted to a streaming service 10+ years ago.

 

[Bartdog]

Remember in the 70s they used to send the packet with the postage stamps of album covers and you would lick and stick the ones you wanted and then mail back to them?

In my case it was for 8-track tapes...

 

[SeaPA]

Is this really a surprise? Who buys CDs anymore?

If they were smart they would have converted to a streaming service 10+ years ago.

I think they did get out of the CD business, right around that time (mid-2000s)

 

[More Kirk Less Spock]

I had a couple of dogs, and several extra brothers who joined up....

made me laugh. I used to have a client who would do this for the WSJ and Barons -

 

[NoleNewsIsGoodNews]

It was a bizarre business model...pretty much everyone in my high school signed up multiple times and got the free cassettes and/or cd's and then promptly never bought a thing..it was common knowledge that CH could not do a thing about it since we were all under 18 and that we could not legally be held responsible..never understood how they stayed in business with so many people scamming them

 

[SeaPA]

It was a bizarre business model...pretty much everyone in my high school signed up multiple times and got the free cassettes and/or cd's and then promptly never bought a thing..it was common knowledge that CH could not do a thing about it since we were all under 18 and that we could not legally be held responsible..never understood how they stayed in business with so many people scamming them

Despite undoubtedly getting scammed, A LOT, they were extremely profitable for a long time. The effect of the internet - both in terms of sales and streaming - collapsed them, not 16 year old kids ripping them off.

 

[NoleNewsIsGoodNews]

Back in the day there was another outfit doing the same (BMG maybe?)...I did both for 8 Tracks..Cassettes..Records...and finally CD's

 

[SeaPA]

I think there were several other companies that did the same, but Columbia and BMG were by far the two biggest. At some point they merged, with Columbia being the surviving entity (for awhile, anyway).