wsj.com: Times have been hard at Scotti's Record Shops in northern New Jersey. For a while customers weren't coming in like they used to -- too busy, most likely, downloading music onto their MP3 players. The teenagers who did show up would often whisper to each other, "Don't buy that. I can burn it for you."

But co-owners and brothers Jeff and Gary Scotti didn't want to simply ignore the changes digital music was bringing to their business. "We don't want to "butt heads with iPod owners," as Jeff Scotti puts it. "We have to embrace them."

So, earlier this year, the four-store chain announced its new "Buy It, Burn It, Return It" policy. Customers can buy a used or new CD, take it home, listen and, if they want, burn a copy to a computer. Within 10 days, they can return the CD for 70% store credit. More