Rhythm of the city: family-owned independent music chain has become local authority on rap, hip-hop scene by selling hard-to-find items, promoting little-known artists. (Small Business).

KELVIN Anderson likes to boast that he helped Snoop Dogg break into the business by shopping around the once-unknown rapper's demo tape to local record labels. Even today, the rap star is said to be a regular customer (Anderson recently helped him find an album by soul singer Little Willie John).

"I always tell people that I had Snoop Dogg when he was a pup," said Anderson, owner of V.I.P. Music's Long Beach store, perhaps the best known of the 11-store chain and featured in several music videos.

It's not the typical role of a music retailer-but V.I.P. isn't a typical music chain.

Combining their retail sales with in-store promotion of artists from independent labels, V.I.P. has become a well-known player in the local rap and hip-hop scene.

"They may just describe a video...(and) you know exactly what they're talking about," said Lesia Anderson, the youngest sibling of a family that owns and operates the chain that has 11 independently operated stores in Carson, Compton, Inglewood, Long Beach and Watts. "The people who come in, they come in often because they know that you know what they want."

Hard-to-find music

While V.I.P. carries many top-selling artists, its racks also include hard-to-find releases. Along with the Rev. James Cleveland and the L.A. Gospel Messengers as well as Gospel Gangstaz, V.I.P. carries Michael Jackson, Boyz II Men, and, in a nod to the growing Latino market, Mana and Enrique Iglesias.

V.I.P. also is known for carrying unsigned artists and discontinued albums. Performers will sometimes call the stores for help in finding old songs.

But V.I.P. has not been immune to the decline in music sales. This year, the chain projects revenues of $6.4 million, up just slightly from $6.3 million a year earlier - and thanks to a newly opened store in Chesterfield Square. Another location is expected to open near the USC campus later this year.

"It started to kind of flatten out," said V.I.P. founder Cletus Anderson.

Though industrywide R&B and urban music sales were up about 1 percent last year, rap and hip-hop music sales fell by 1.5 percent, according to the Recording Industry Association of America.

The total number of "units" of recorded music shipped (including CDs and cassettes) fell to 968.6 million last year, from 1.1 billion in 2000.

Hitting the industry hard has been the overall economic downturn and downloading of music off the Internet. But hurting V.I.P. in particular has been competition from large chains like Wal-Mart and Best Buy.

"Their prices are so low, they're the prices we buy CDs," said Lesia Anderson, who owns three V.I.P. stores. "When one comes to your area, it's practically all over."

Family affair

Cletus Anderson moved from the family farm in Brandon, Miss., to Los Angeles in 1963. A friend knew about his love of music and offered him six months free rent at Broadway and 108th Street, where the first V.I.P. store opened in 1967. As more stores were added, it became a family affair, with several of his siblings starting their own V.I.P. stores.

"I'm from the South and we worked hard," Cletus said. "We always worked for someone so the first chance we got we wanted to be independent."

Lesia Anderson came to L.A. in 1988 and went to work for one of her brothers. She recently opened her third V.I.P. shop and manages 15 employees. Her Chesterfield Square location, with its bright decor and easy-to-find layout, is the model for future locations. Her husband owns ahother three V.I.P.s.

Lesia's business strategy is simple - know the music your customers like and help them find it.

"I'm looking for something really old... O'Bryan?," asked customer Gina Makkar at the Chesterfield Square store. A couple of minutes later, Makkar was listening to samples of the little-known soul singer, called "The Best of O'Bryan'

Promotional efforts

V.I.P also works closely with record labels to promote artists who aren't getting much exposure on the radio or on MTV. Albums from independent labels are often played in the stores.

"My family has been responsible for the success of many groups," said Kelvin Anderson. As radio play lists get shorter, independent record stores become a way for lesser-known artists to get through.

The original store used to feature live radio broadcasts. Today, promotional efforts include community events, in-store appearances and a weekly in-store music guide. There are also V.I.P. caps and T-shirts.

But marketing isn't enough to keep sales up. Lesia concedes she had a hard time opening her latest store, but says her family helped pull her through.

"This being a family business and (with) all the support from each other, we were able to hang in there," she said.

RELATED ARTICLE: PROFILE

V.I.P. Music

Year Founded: 1967

Core Business: Selling gospel, hip-hop, rap and urban music.

Revenues in 2001: $6.3 million

Revenues in 2002: $6.4 million (projected)

Employees in 2001: 46

Employees in 2002: 51

Goals: To offer DVD rental and Ticketmaster services and to open V.I.P. stores in other cities.

Driving Force: Love of music and knowledge of the business.