'Ethical capitalism' inspires local record label's deals

When Chris Johnston describes "ethical capitalism," the term he coined to describe his approach to running his Bloomington-based record label, Plan-It-X Records, it doesn't sound like a very good business plan.\n"Don't charge more than necessary," he offers as his advice to become an ethical capitalist. "Figure out what you need to maintain whatever project you're doing and make that the price. ... Unless you're increasing the quality of the product, there's no reason to increase the cost."\nPlan-It-X Records, which operates under those ignore-supply-and-demand principles, is proof that there are other reasons to run a business than just maximizing profit. Johnston's reasoning behind such a business model? He thinks art, and music specifically, is too important to simply become a commodity. Johnston said music today has become commercialized and he runs Plan-It-X so he can release bands he thinks should be heard but are not because they're not profitable for major labels.\nPlan-It-X's way of doing business is rare indeed, a sentiment expressed by David Waterman, a professor in the IU Department of Telecommunications who specializes in the economics of media.\n"It's not very common at all," Waterman said of Plan-It-X's business plan. "Lots of people start out with ideas like that, but usually they go out of business because they're not making enough money or else they change their mind; they convince themselves that the way to make a living is to charge higher prices."\nJohnston started Plan-It-X almost by accident in 1994 when he and a friend wanted to release a tape of Johnston's band. After designing the artwork that accompanied the tape, there was blank space left, so Johnston filled the rest of the area with a quick logo he designed for a then-imaginary record label, Plan-It-X. After this initial foray into production, Johnston got the idea to release an album by a band he met while he was on tour, and Plan-It-X was born as an official record label.\n"I never meant to start a record label," Johnston said. "I guess I'm doing it just because I like music."\nHowever, contrary to what Waterman said is typical, that principle -- releasing music for music's sake -- is still the reason Johnston runs Plan-It-X. He puts out the music he likes and thinks people should hear, not the most popular music or even the music he thinks will sell. Plan-It-X never charges more than $5 for a CD, and that price includes postage if the order is by mail. Johnston himself would rather not charge money at all -- he said his ideal society is anarchist -- but he has to cover the costs of the label.\n"I would love to not encounter money or deal with it in my life but it's impossible," he said. \nBut even so, Johnston does his best to make sure customers get their money's worth: Plan-It-X releases often come with stickers and a patch of the band, along with a full-length CD for that $5. \nAt least some people in the Bloomington music community are taking notice.\n"It functions very differently (than major labels)," said Peter Stran, who works as a manager at TD's CDs and LPs in Bloomington. "They have a DIY aesthetic whereas major labels don't."\nJohnston clearly doesn't feel the need to change.\n"We still make enough money to feed ourselves and release more music," Johnston wrote on the Plan-It-X Web site, www.plan-it-x.com. "CDs only cost about $2 to make. Think about that the next time you buy a $10 CD."\nMatt Tobey, who performs as solo musical act Matty Popchart on Plan-It-X, said he's supportive of Johnston's ideals, even if it means taking less money for himself.\n"After being involved with Plan-It-X and knowing how much it costs to make a CD, seeing big labels sell CDs for $12 to $20 seems really ridiculous," he said. "Ripping people off with something as important as music seems really wrong to me."\nJohnston is adamant that smaller record labels like his are important to music's survival. Major labels, he said, have too much to lose by taking risks on potentially controversial bands and are more concerned with making money than with producing good music.\n"I've never seen an example of a band going to a bigger label and reaching the masses or making an impact," he said. "Usually their lyrics just start to get toned down, they become more (mainstream) rock, they get more produced and lose every edge that ever made them appeal to people in the first place."\nJohnston doesn't spare MTV, either, in part because many bands he produces have particular political agendas that are frowned upon by large music companies like MTV.\n"MTV is not going to play your really badass political video," he said. "If it's in any way anti-capitalist or anti-shopping, or if any business could be offended by it in any way it won't get on the air."\nJohnston's views are good news for the Bloomington alternative music scene, which relies heavily on Plan-It-X bands. Besides the myriad of local shows that involve or are inspired by Plan-It-X musicians, Johnston is planning a festival to build community and showcase small punk bands. The event will be held beginning July 6 in Bloomington.\nAs for the more distant future, Johnston will continue running his business, his way -- music first.\n"I never think about the survivability of the business or what I can do to make sure we stay afloat, or if (a certain) record is going to crush the label by spending too much money on it," he said. "None of that ever comes up. It's a continual accident that keeps happening."\nIt may not be orthodox, but it's working for now.\n"Making as much money as you can pervades everything, so it's certainly a breath of fresh air when people demonstrate that they're not trying to do that," Waterman said. "It demonstrates very clearly that the artists are interested in their art and not trying to make a lot of money"