Anyone who lived in the Northeast in the 80s and had a TV or radio will likely know the name Crazy Eddie, whose boisterous commercials implored you stop by, because his prices were “INSAAAAANE!”
A recent book, “Retail Gangster” by Gary Weiss, takes a deep dive into the rise and fall of founder and CEO Eddie Antar, whose unlikely success is the stuff of legends – as well as reams of court documents and criminal files. Antar faced a plethora of charges from securities fraud to tax evasion and eventually served hard time as his empire of stores crumbled under the weight of justice.
The book is on my reading list for two reasons. As a college kid I earned some spending cash selling vinyl records, CDs and cassette tapes at two Crazy Eddie outlets (including the flagship site in Brooklyn). So there’s bound to be some nostalgia.
Also, much of the book recounts the brilliant marketing skills that lifted a mom and pop operation on Coney Island Avenue into a serious competitor against more established retail chains.
Though few of us are likely to open a brick and mortar stereo and TV shop in the age of Amazon, there are lessons to be learned from Eddie about selling anything, from physical goods to services or intellectual property.
It's mainly about enthusiasm and consistency.
Early on, Eddie reportedly handed the copy for his ads to radio stations to be read by whatever DJ happened to be on air. When one of them, Jerry Carroll, put so much gusto into the readings with his signature breathless, fast-paced tone, Eddie fell in love and hired Caroll as permanent pitchman. Carroll became so closely associated with the brand that he was often mistaken for Eddie himself (and perhaps still is.)
The company owed much of its success to shady accounting. But judging by the large crowds I saw at stores, the amount of merchandise that moved, and the number of people they employed it’s clear that marketing created a groundswell of sales. This allowed the privately held company to punch outside its weight class, eventually leading to an IPO (which sadly turned into the beginning of the company’s downfall).
Antar recognized that it was fun to shop for consumer electronics in the burgeoning age of studio-quality stereo components, big-screen televisions, VCRs and disc players – items the average Generation X consumer didn’t imagine owning in their low-tech childhoods.
The next step was to make it fun to buy them at Crazy Eddie, rather than boring Sears or Macy’s.
The frenetic commercials and decidedly non-corporate name, along with the goofy mascot-emblazoned black and yellow logo, got consumers’ attention, while the promise to beat any price – guaranteed! – helped win their trust.
We’ll never know how far Eddie would have gone with an above-board operation, but he clearly showed that marketing can achieve its goal best if it shows:
Confidence: “We are growing fast, be a part of it.”
Relevance: “We have the latest merchandise you need at a price you can afford.”
Persistence: “You can’t turn on the TV without seeing me!”
Energy: “Fast talking, creating a sense or urgency.”
Fun: “We take our business seriously, but you don’t have to.”.
It’s easy to see how the feel of those Crazy Eddie ads helped shape the contemporary market, with everything from car insurance to cars and cell phone plans these days taking an offbeat rather than corporate tack to engage with humor, rather than sticking to a value-based pitch.
Yes, one could argue the commercials were part of the con, a sleight of hand helping Eddie lull the public into complacency as he defrauded investors.
But even bad business stories have lessons for good people. To ignore what he did right? Well, that would be … insane!
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