Consumers : Some Don’t Mind Second Fiddle on CDs

Paul White studied the stacked spines of names and titles meticulously. A grin spanned his face as he made a selection from the sea of sounds at the top of the rack.

“You see this?” he asked, pointing to the Michael Jackson “Bad” compact disc he displayed in his right hand. “Over there, in the new section, this cut is $13.99.

“The same, exact CD is $8.99 in this section,” he said with a chuckle. “That’s why I buy my CDs used. The extra five or six bucks I could save on this one could go to buying me another.”

From $2.99 to $8.99

It’s a case of simple economics. While the price for the hottest, new compact discs now ranges from $13.99 to $17.99 and up, used CDs can cost from $2.99 to $8.99 at area shops.

“CDs (also) don’t scratch like records,” said Gregory Neal at CD Banzai in West Los Angeles. “That’s why you are seeing a lot of used-record buyers buying used CDs now. The condition of the CD is more likely to be in better shape than an album.”

Besides their inherent resistance to wear and tear, CDs also produce a remarkably clear, crisp sound; that sound-quality factor, combined with the prospect of lower prices, has helped create a burgeoning used disc market, experts say.

While not an entirely new phenomenon--record stores have been selling and buying used LPs since the dawn of the turntable--the old idea applied in the high-tech CD Age still makes dollars and sense.

“There is a large demand and supply for used CDs,” said Rockaway Records manager Marty Levy. “Most people are aware of the discrepancy between the cost of an album and the cost of the disc and are looking for viable alternatives. Used disc buyers are the types that will buy a used CD for the price they would pay for a new LP.”

Certainly, it’s not always possible for collectors to immediately find used copies of the latest, hot-selling discs; they may not find the range of selections in used sections that they might find by buying new; and they don’t always get the advantages of the sleek packaging that accompanies some releases.

But Mike Hash, an assistant manager at Compact Discount in WestLos Angeles, sees other pluses, beside price, in buying used discs, which usually cost “only about 60% of the price of a new CD.”

Buyers of used CDs can, for example, “listen to the whole album” before their purchase, and, because the packaging seals are broken on used CDs, they can examine the discs’ accompanying notes and paraphernalia, Hash said. At the store where he works, there are “three CD players hooked up” to let buyers scrutinize the quality of their pre-owned product.

The used market, Hash said, is “just more convenient in the long run.”

Just because a CD is used doesn’t, however, automatically guarantee its price will fall. Rockaway Records carries used CDs costing up to $350. These special items include rare concert albums, other unique collectibles or higher-quality radio station recordings, said Rockaway Records manager Tom Phillipsen.

Quality is important to the CD consumer, explains Paul Rock of Aaron’s Records on Melrose. “I have seen people walk up to the counter and ask a lot of questions about our used CDs. They want to know about quality. When we let them listen to it, they can’t believe they are getting that great a quality for the discount price. And they end up buying a lot more CDs.”

High turnover is what keeps most swap shops in business. Consumers walk in with their old CDs, trade them in, then end up buying a new set of tunes. To encourage this churn, Rockaway Records gives an additional 20% credit to CD buyers who sell their merchandise for store credit instead of cash; Compact Discount’s trademark is to “buy six, get the seventh free,” said Hash.

Industry analysts say the reduction in CD prices already has spurred sales of players. Not that the devices aren’t already hot. CD players, according to industry estimates, now are in more than 14.5 million American homes; they have increased sales from 1 million units in 1985 to an estimated 6.5 million by this year’s end, with a projected increase of 2.1 million more players above that figure in 1990.

Unlike three or four years ago, when classical music made up much of the CD market, compact discs now also can be found in abundance in the jazz, Top 40 and rock categories.

To potential customers, shops and savvy disc shoppers offer some simple advice about buying used CDs: Let your ears and eyes beware.

“Listen to the quality of the disc itself,” Hash recommended. “Examine the playing side (the side opposite the label) for deep scratches, fingerprints and debris. Usually light fingerprints and debris can be wiped off with a dry cloth.”

To get the best bargains, experienced buyers like White also insist that shoppers must tune their routines to a fine art. White says he scouts stores often, seeking to find just the discs he wants at just the right time and price he wants them.

And, if he can’t buy they immediately, he’s not afraid to tuck them in less obvious display spots until he can return.

“I have my secret hiding place . . . these are half price. . . right here,” White says, as he peers to his left, then to his right.

“I didn’t expect to buy anything. I had left my checkbook at home,” he later explained. “I hid (some discs) on the top row together and came back later to get them. They were still there. What a deal! With the money I saved, I can go out and buy $50 worth of groceries or something.”