and then take them off to our office, which was in the crypt under a church in Bayswater.
From the first, our image and sales pitch were vital assets. (We had precious few others.) During the early days in South Wharf Road, we all contributed, but John Varnom was the one who made a difference. He was off-the-wall, utterly unreliable, and very creative. He wrote our adverts in a Victorian-gothic style of self-parody but also an early Virgin brand-message of the future: that quality could also mean value for money.
'There must be something wrong with them.'
'There isn't.'
'They must be old, bent, cracked, wizened, split, warped, spoilt, scratched and generally too hideous to contemplate.'
'They aren't.'
'They can't be smooth, glistening, perfect, unblemished, miraculous, black and shiny like those you get in the shops.'
'They are.'
'But surely there must be some difference, some gap, abyss, divide, chasm, canyon or other unusual feature?'
'There is.'
'What is it then?'
'They cost less.'
We all rolled up our sleeves, stuffing brown packages with cut-price Virgin mail-order albums by Led Zeppelin, Pink Floyd, Jimi Hendrix and the Rolling Stones. We were all paid the same, £20 a week, and it all had a very hippy, communal feel. 'Five to fifteen bob off any album on any label' – that was our sales pitch. And we were now working flat out on the mail-order business to cope with demand. The record companies realised we were the mystery behind the huge success of Ray's little record shop – and so they extended credit to us directly.
But we weren't making any money. Over the years I've met a lot of old customers who were in on a scam. Irate people would phone up or write a letter and say they had never received their rock album. We had no proof that it had gone out because in our office it was all so chaotic, and proper accounting methods were unheard of. So we would send out another album. Our profit margin was so tight that doing this regularly – and we did do it regularly – was wiping out any of the money we made. This was one of the biggest business lessons I learned. Turnover can be huge, but it is the profit margin that matters .
Still, the Virgin Records brand was getting noticed. Typical sales were several thousand LPs each week. It all had potential. Then disaster struck, and here I learned another key fact about running a business: try to have a plan B.
In October 1970, the postmen and women of Britain began a bitter dispute for more pay. The strike lasted forty-four long and desperate days for us – and our business dried up. We needed to diversify the brand. Fast.
We took out adverts in the music press. A half-page on 6 February 1971 announced that we had now opened a small shop at 24 Oxford Street. I'd managed to secure a decent short-term deal on the rent of the first floor of a three-storey shop, next to a secretarial college, and upstairs from NU Sounds.
To combat the downturn we needed to get people into our shop. We increased the advertising campaign with ' A step-by-step guide to Virgin Records' new joint in Oxford Street '. The puns continued – ' They are no dopes at Virgin Records. That's because all our customers are cool. They know a swell joint when they see one. ' We offered more than records; we had coffee, cassette tapes, posters and headphones, all within thirty seconds of Tottenham Court Road tube station. Some reckon that our staff sold even more than this, but I don't think I can comment about what they did in their spare time.
By the end of 1971, we were buying full back-page adverts declaring we were: The Firstest, Bestest, Cheapest. Another advert began: ' Ha, ha, ha, ha. This is our managing director giving a customer money. Chap tried to pay full price for a record. '
In some ways not a lot has changed. In 2008, if you're sitting on a crowded tube train on the Central line in London, you can look up and read our advertising for Virgin Media and it still carries the same
Dean Wesley Smith, Kristine Kathryn Rusch
Martin A. Lee, Bruce Shlain