Tuesday, November 24, 2009

10 Good Reasons to Shop in Your Neighbourhood This Christmas

Ann Arbor journalist Paula Gardner talked to Tricia Masing, co-owner of Tree Town Toys, who offered a list of 10 reasons that Ann Arbor residents should spend their money in independent stores.

She followed up with an email, saying "One of our fellow toy retailers hands out flyers to their customers to educate them on shopping local."

The points in those flyers, as written by Masing and framed as why a shopper made the right choice:

1. You kept dollars in our economy
For every $100 you spend at one of our local businesses, $68 will stay in the community. What happens when you spend that same $100 at a national chain? Only $43 stays in the community.

2.You embraced what makes us unique
You wouldn’t want your house to look like everyone else’s in the U.S. (substitute "Canada") So why would you want your community to look that way?

3. You created local jobs
Local businesses are better at creating higher-paying jobs for our neighbors.

4. You helped the environment
Buying from a local business conserves energy and resources in the form of less fuel for transportation, less packaging, and products that you know are safe and well made, because we stand behind them.

5. You nurtured community
We know you, and you know us. Studies have shown that local businesses donate to community causes at more than twice the rate of chains.

6. You conserved your tax dollars
Shopping in a local business district means less infrastructure, less maintenance, and more money available to beautify our community. Also, spending locally instead of online ensures that your sales taxes are reinvested where they belong—right here in your community!

7. You created more choice
We pick the items we sell based on what we know you like and want. Local businesses carry a wider array of unique products because we buy for our own individual market.

8.You took advantage of our expertise
You are our friends and neighbors, and we have a vested interest in knowing how to serve you. We’re passionate about what we do. Why not take advantage of it?

9. You invested in entrepreneurship
Creativity and entrepreneurship are what the American economy is founded upon. Nurturing local business en- sures a strong community.

10.You made us a destination
The more interesting and unique we are as a community, the more we will attract new neighbors, visitors and guests. This benefits everyone!

Your local merchant has less of an incentive to sell you something you don't need. It's true that Christmas is the big retail season of the year. And there is tremendous pressure on big box to push merchandise out the door. Their stock price is measured largely on how Christmas sales went, and thus the compensation to management. To your local merchant, a long term relationship means much more.

Moreover, returns for the independent retailer are much more expensive to process. Many merchants can't return opened goods. Minimizing returns is a really big deal. The best way to minimize returns is to "pre-qualify" the buyer and find out if the end user can really use the products. When was the last time a salesman at big box asked you what you were going to use the product for?

Your local merchant may know a lot about the person you're about to buy a present for, thus protecting you from buying another boat anchor for the old man.

In technology, timing is everything. Yes it's true that small merchants are undercapitalized and probably don't have the enormous selection of big box on the shelves, but that enormous selection comes with some strings. For example, the buying decision for these products is made six to eight months earlier, and the manufacturers have built in very lucrative incentives for big box to sell everything, and sell them fast. Thus, there is some built-in "brand bias" at big box. Independent retailers have less wiggle room to buy large quantities and thus make "large mistakes". They tend to buy from distributors more frequently, in smaller lots, but much more timely. There is a cost involved, but the price penalty for buying at a smaller shop is often offset by the time you won't waste bringing back dated products.

Also, the truth of the matter is we usually have access to just as many if not more products than big box and we usually have the flexibility to get special items on short notice. The more important point is that we usually know what NOT to sell you.

Finally, I am canvassed by between 400 and 500 parents and students throughout the year to donate to their local charities and I make available up to at least 200 gift certificates for fundraising events. Big box doesn't support your community. I do. That ought to count for something.

Update: December 23, 2009.

In the last few days I have been asked by a couple of people why they should buy iPods at my store if the box stores are offering the same products at below cost. I directed people to this blog post for some of the reasons, but there are more. I actively try to recycle everything that comes into my hands in this community. I responsibly recycle waste. I encourage people to donate their functioning if dated equipment to local schools, churches, charities, and daycares. I encourage responsible consumption of ink and paper by my printer buyers. I educate people on consumption of electricity, and how to protect their privacy on the Internet. But I spend more time educating them on how to get the most of of the equipment they have than almost anything else I do. And I am building this blog to help educate people on what their neighbours are up to. All of these things I do to help re-invigorate the commons, and for which I do not receive compensation. Are these things of value to people? Time will tell.


No comments:

Post a Comment