Wednesday, November 27, 2013

The Value of Shopping Local



Many label “Black Friday” as the official start of the holiday shopping season.  It also seems that the recent trend by many of the “big box stores” (call them what you want; corporate stores, chain stores, department stores, etc.) have started their Black Friday specials long before Black Friday even arrives.  Some have gone as far as offer special deals on Thanksgiving Day.  As you head out to do your holiday shopping this season, I want to remind you of the importance of shopping local.  “Local” doesn’t always mean the store that is closest to your house.  “Local” in this case means the locally owned and independent small business.  Why is this important?  Recent studies have shown that 50 to 70% of the money that you spend at a locally owned and independent small business stays in your community.  If you compare that to local big box stores, that number goes down to around 20 to 30%.  Local big box stores do employ local people, but they typically have their corporate headquarters somewhere else and that is where most of the money goes.  If you compare those numbers to online shopping, the amount of money that stays in your community is about 0%.       
Let’s examine how this all works.  First, let’s explore the locally owned and independent small business.  This business is probably owned by someone who lives in your community, possibly even your neighbor or someone you know. They pay local taxes, just like you do.  The business employs local people.  Small businesses are also more likely to sponsor local events - your son’s little league team, local 5K race, charity benefit dinner, or daughter’s soccer team.  Local small businesses are also more likely to offer products that are made locally, probably even products that are produced by another locally owned small business.  Big box stores aren’t interested in products unless they can get them really cheap and in large quantities.  Small businesses are much more likely to give another enrapture a chance at selling their products.  Local business owners also shop locally and spend their money locally.  They use local services; local garages to maintain their vehicles, local contractors, local lawn services, local barbers and hair stylists and do their banking at the bank on Main Street.  The money you spend at their business is money that will be recycled within your community. 
Now, let’s compare that to the big box store.  Sure, big box stores employ local people (assuming you have a big box store in your community), but that is really where the local process stops.  Big box stores buy their products from large global companies.  The products are often shipped in from overseas where they are made in foreign countries.  Any profit that the big box store makes is sent to corporate headquarters and out of your community.  Many large companies are given tax incentives (sometimes tax free) to locate their business in your community.  They are likely not paying the same local taxes as you or the local small businesses are paying.   Big box stores rarely sponsor local community events, local organizations or provide donations to local civic organizations.  When was the last time Walmart, Target, K-Mart or Home Depot sponsored your son’s Little League team? Specialty services (contract work) is usually handled by a specific company that handles those services for the big box store at a national level.  The vast majority of the money you spend at the big box store is not staying in your community.  It is going somewhere else.
Lastly, we have online shopping.  This topic is somewhat subjective since most companies, even small businesses, have websites and an online presence.  Again, I’m focusing this discussion more toward the big box stores and larger web-only stores.  Sure, it is convenient to shop at home and have items shipped to your door - especially if the store happens to offer free shipping.  But where is that dollar that you spent really going?  The online store isn’t employing anyone you know or anyone from your community.  The online store isn’t paying any local taxes (heck, you don’t even have to pay a sales tax in most cases) so your community isn’t generating any revenue from your purchase.  The online store isn’t hiring any local contractors, buying any groceries from the local market or getting their hair cut at the local barber.  In most cases, as soon as you click that “buy” button on your computer, the money you spent is gone from your community forever.  It might even be leaving the Country.
I do understand that not everything you need and certainly not everything you want can be obtained locally.  I’m not saying that you should only shop at local small independently owned business and that you can’t shop online or that you shouldn’t shop at big box stores.  I understand that sometimes those are the only places that you can get the items or services that you need or want.  However, what I am asking of you is that you consider your community when making purchases and that you make smart purchases.  Saving a dollar by shopping online or at the big box store might keep an extra dollar in your wallet when you make that purchase, but what you are doing is taking a dollar away from your friends and neighbors.  It’s no secret that shopping at big box stores or online shopping is cheaper than shopping local (small businesses don’t have the luxury of buying huge quantities to receive big wholesale quantity discounts), but what big box stores and online shopping stores can’t do is provide the outstanding level of customer service that local small businesses can provide.
 As most of you know, one facet of our business is a bicycle repair shop.  Often we get visitors that are about to go on a bike ride and realize that their tire is flat or their brakes are squeaking.  They come into our store and ask to use the air pump or ask for assistance adjusting their brakes.  We are happy to assist, and in the case of something minor like that, we don’t charge for those services.  We’re just happy to be able to assist in getting you back on your bike so you can enjoy the ride.  Now, I ask you.  When was the last time Amazon or Walmart helped you put air in your tires or adjusted your squeaky brakes?  If the trend of save a buck by shopping big and shopping online continues, you are going to see small businesses disappear from your community.  Sooner or later you are going to need air in your tires or need your brakes adjusted and there is going to be no one there to do it for you.  This holds true for all small businesses, regardless of what services or items they offer.  If you don’t help them, sooner or later you are going to need a service or item and they won’t be there.   Keep your hard-earned dollars in your community by shopping local this holiday season.                   

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