In 1989, a small group of activists united by causes ranging from nuclear disarmament to opposition to the South African apartheid, agreed to volunteer their time, and open their wallets, to create an alternative bookstore based on co-operative principals.
From these modest beginnings, according to Marsha Rummel, one of the store's four full-time employees, the Rainbow Bookstore Cooperative, 426 W. Gilman St. has grown into a $500,000 per year business with 10,000 titles in stock, 600 community members and 30 regular volunteers in addition to the store's paid staff.
It even makes a profit-sometimes.
Incorporated under Chapter 185 of the Wisconsin Statutes, Rainbow Books functions as a stock co-operative, with shareholders electing a board of directors that supervises the store's long-term finances through quarterly meetings. Rainbow's shares, however, have several restrictions. Each shareholder has one vote, regardless of how many shares they may own, and shares can only be sold back to the co-op.
Management is non-hierarchical, explained Lorry Bond, a volunteer who has served for one and a half years on the board, with monthly volunteer meetings providing the impetus for decisions about how the business should run.
Volunteers work at least four hours per week and receive a 25-percent discount at the store. Co-op members pay $10 per year and receive a 10-percent discount.
While the American flag on the window may have corporate logos instead of stars, and a T-shirt with the slogan \George Bush-International Terrorist"" may be acceptable work wear, Rainbow Bookstore faces challenges common to any small business.
The store needs to meet annual cost increases of health insurance, property taxes and utilities. It also faces growing competition from national chains, both in the suburbs and cyberspace.
Bond noted one of the key questions facing the co-op's board is, ""How do we survive as a small independent bookstore in an age of on-line booksellers and 'big boxes'?""
In order to compete, the store has expanded, nearly doubling its floor space following a 2001 renovation, and added related merchandise such as DVDs and an expanded children's section.
Equally important to Rainbow's continued success has been a focus on using the store's size and structure as a competitive advantage. In its core market, selling textbooks for courses at the UW, which constitutes 80 percent of its business, Rummel noted, Rainbow can offer personal service to professors and students because it carries a smaller number of titles.
Bond says, ""We are a specialist bookstore. We have a mindset that you're not going to find at Wal-Mart.""
This includes carrying 'zines and titles by small presses and by publishers-such as anarchists-that do not believe in having the industry-standard ISBN codes on their books.
Patrons appreciate the store's unique services and atmosphere. Robert Manning, a high school student and activist on an informal ""field trip"" remarked approvingly, ""We don't have any bookstores like this in Cedarburg [Wis.],"" his hometown.
For students interested in a career in co-ops, Rummel said ""It can be very satisfying and challenging ... [But] if you're in it for the money, it's not for you.""
Without the security of a corporate bureaucracy to hide behind, employees are required to become leaders planning for the future, rather than passive functionaries completing a routine. According to Rummel, ""you're not in a little cube.""
The opportunity to promote one's beliefs also makes up for harder work and lower pay than in more mainstream workplaces.
""Most people don't have a clue that the Marxist or anarchist traditions are relevant in the world today, but they are,"" Rummel said.
The irony of this position, of Marxists toiling over spreadsheets to make payroll and inventory expenses, is not lost on Rummel.
""We at least try and make capitalism visible to every one,"" he said.
