Meet Jeff Ferguson | Co-Owner, Run Out Groove Records

We had the good fortune of connecting with Jeff Ferguson and we’ve shared our conversation below.
Hi Jeff, we’d love to hear more about how you thought about starting your own business?
My parter, Ellen, worked managing some of the best restaurants in Los Angeles for decades, and for the past 30 years, I’ve worked in digital marketing and advertising for Fortune 500 companies and beyond. However, during the Covid-19 pandemic, Ellen found herself treated like a frontline emergency worker and I really started to wonder, “If we survive this, are we really doing everything we want with our lives?”
So, we started brainstorming some ideas for businesses we could do together. I’ve written many business plans and executed a few of my own over the years, so went through the paces with a few ideas, and one of them was a record store. During the pandemic, I went through the process of cataloging my sizable record collection as a way to keep my mind busy and along the way, I sold off some duplicates or other titles that “didn’t bring me joy” (Marie Kondo was a big thing at the time).
We had a couple of ideas for record store concept in the beginning, one was for a full retail store, but the places we first looked at had rents that were a bit terrifying, so we put a hold on that for a bit. The other was to expand the online business, but we didn’t like the idea of storing the stock in our garage or a cramped storage unit, so we went looking for a small space where we could store everything, but also do a “reservations only” type thing if people wanted to pick things up in person, etc.
We found a 350 square foot space in the back of the Magnolia Park Shopping Arcade in Burbank that fit the bill. I started building out storage racks that were designed for retail (in case we ever got to that point), but otherwise keep things pretty simple.
Then, one day, while I was pricing records for sale on Discogs, someone knocked on the door of the space and asked if they could look around. I told him we weren’t really open, but he could go ahead and look around. He ended up finding some records, so I had him pay via Venmo, and suddenly, we had our first retail sale. More people came and eventually we decided to start having regular hours on the weekends. Then we added Friday, then Thursday, then Wednesday.
Sales continued to grow and we were able to cover expenses for the space almost immediately, so we decided to lean into the retail side of things. We started having events, in-store performances, listening parties, book signings, and anything else we could do. By the end of the first year, we were able to participate in our first Record Store Day (Black Friday).
Now, two years later, we’re in the process of moving to a new, larger location, just down the street, which will feature a small performance stage, a listening booth, and a proper back room for storage, in addition to more retail space.
What should our readers know about your business?
My major during college was originally Computer Science, but I couldn’t hack the high-level math that used to be required for the degree, so I changed to Communications/Advertising after a few years with the intent of becoming a copywriter. Near the end of my time at Cal State Fullerton, my advisor informed me that they had changed the requirements for Computer Science and that I was only one class away from getting a double major, so I put in the effort figuring it wouldn’t hurt.
This was in 1995, not long after the first web advertisement on HotWired (Wired Magazine’s original website).
After I graduated, I went looking for a job in copywriting, but instead kept getting asked about internet marketing. I usually replied that I knew about the internet, but no one really knew about the marketing side of things and anyone calling themselves an expert already was most likely lying.
Then I got my first invoice for my student loan.
The next interview I went on (a medium sizes hardware/software company out of Santa Ana, California), I said I knew everything about internet marketing, and as a reward for my lie, I got my first corporate job.
I went on to run internet marketing for larger firms such as Hilton Hotels, Kimberly-Clark, Experian, and was even the last director of internet marketing for Napster (before it was sold off to Best Buy and eventually shut down). After 15 years on the corporate side, I started my own consulting firm, Fang (named after my cat), which eventually became a full-service advertising agency. Just before the pandemic, Fang merged with a partner agency, Amplitude Digital; however, after the pandemic, my business partners decided that they wanted to follow other dreams, so I bought them out and continued things on my own. We’re still running today with a nice collection of clients.
Meanwhile, in addition to the agency and the record store, I teach classes on digital marketing at UCLA. Teaching was one of my “retirement dreams” that became a reality much sooner than expected after doing a guest speaking appearance at the school and subsequently being asked to teach.
When I’m not working on all these things (heh), I do woodworking (furniture and other projects).
Adam Savage, one of the hosts of the original MythBusters, said in his book, “Every Tool’s A Hammer,” that one day you’ll use everything you’ve ever learned at once. Run Out Groove Records has proven that to be true.
Let’s say your best friend was visiting the area and you wanted to show them the best time ever. Where would you take them? Give us a little itinerary – say it was a week long trip, where would you eat, drink, visit, hang out, etc.
Well, first I would take them to this amazing record store I know in Burbank…
However, after that, I’d show them the wonders of Burbank’s Magnolia Park shopping district. Tons of vintage shops, places to get coffee, and much more. It’s like the Melrose shopping area, but without the traffic and high prices.
After that? Well, we’re in the middle of Los Angeles. I’m sure we’ll figure it out.
The Shoutout series is all about recognizing that our success and where we are in life is at least somewhat thanks to the efforts, support, mentorship, love and encouragement of others. So is there someone that you want to dedicate your shoutout to?
My shoutout goes to my business and life partner, Ellen Rehak. I couldn’t have made this dream happen without here.
Website: https://runoutgrooveburbank.com
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