The many benefits
of shopping locally
BY DANI BULL
S-E Staff Reporter
The current economic cli¬mate should be forcing people to think about where to spend their hard earned dollars. With this in mind, the Kettle Falls Chamber of Commerce has begun a local campaign with the slogan “SHOPPING LOCALLY … BENEFITS LO¬CALLY.”
The campaign has been de¬veloped by David Bull, Kettle Falls Chamber President. Bull holds a degree in Busi¬ness and has over 20 years of marketing experience.
His campaign has been de¬signed to provide local resi¬dents with information and encouragement to at least consider shopping locally first.
“The hope is that each time a dollar is spent, residents will at least weigh the full value of the choices, not solely to each person immediately, but for the future long term health of the economic climate in the Kettle Falls area,” he said.
Losing that sense of community
Every year, more national chains displace locally-owned businesses throughout the country. Consumers see clones replacing unique establishments. People across the country are losing a sense of community in their towns, and consider this trend a symptom, but could it be a cause as well?
“What are the impacts of this trend on the economic well-being of a community? Bull asked. “It seems clear that every individual will carry out business where we perceive to get the best value for their time and money. The perception, however, is not always accurate where there is a lack of essential information to make fully informed decisions.”
Consumers see and hear the advertising campaigns of corporate chains everyday, “but remain somewhat blind to the many important values independent businesses provide individually and as a community.”
Economists refer to increased presence of corporate chains as a natural trend. Although tough for the family who owns the small business, it doesn't really affect the economy,” the Chamber president figures.
“Overall sales may even go up a little when a chain drives out a small independent, so what's the dilemma? The disappearance of local businesses leaves a social and economic void that is clear and real, even when it is unmeasured. The quality of life of a community changes in ways that macroeconomics is slow to measure, or even ignored completely,” Bull said.
The real costs
“It's time to mull over the real costs to a community that loses its local business base. Independent local businesses employ a wide array of supporting services. They hire planners, designers, cabinet shops, sign makers and contractors for construction. Opportunities grow for local accountants, insurance brokers, computer consultants, attorneys, advertising agencies and others to help the business prosper. Local retailers and distributors also carry a higher percentage of locally-made goods than the chains, creating more jobs for local producers.”
By contrast, a new chain store typically puts in place a clone of other units, eliminates the need for local planning, and uses a minimum of local goods and services. In a company-owned store, the profits are promptly exported to the corporate headquarters.
Small manufacturers are also affected since they rely on local retailers to give their new products a chance.
“Local retailers are freer to take chances with the goods of a new manufacturer, or a product that is not part of a national sales plan,” Bull noted. “Therefore, small manufacturers and a wide variety of service industries have a clear stake in the nationwide health of local retailers.”
In the larger picture, some researchers show sales of the 500 largest corporations grew 700 percent in the past 20 years, yet those corporations are now downsizing staff or increasing efficiency, and despite record profits, move to fire more people than they hire.
The question needs to be asked. “Has the employment generated by small business helped avoid an even worse economy than that seen over the past two weeks on the world markets?
“Communities need to recognize the impact of each dollar spent and support institutions that benefit common interests,” Bull maintained.
Retailers sift through competing goods and services to find those that appeal to their customers.
‘Great diversity’
“Even though a single local shop may have a smaller selection than a big chain outlet, a variety and mix of independent retailers creates great diversity,” he said. “The consumer’s choice of products is potentially limited when a few buyers from national chains choose what reaches the chain stores, not to mention the limited shelf time that applies to some products.
This may be only mildly disturbing for most consumer goods, but truly worrisome when also considering the impact on the available choice of news sources, books, arts, crafts, music and other modes of expression.”
When asked to name a favorite restaurant, cafe, or shop, most can generally cite a unique local business. Local consumers embrace the idea of distinctive businesses with local character, but often forget that business’s survival depends on community patronage.
“It is easy to get so zealous on perceived savings or efficiency that community members forget how much they spend eating out, shopping, and doing other business out of their community,” Bull said. “Small town residents owe it to themselves to consider the quality of the experience, and ask who all benefits when a community-based business is chosen.”
Local investment
Local business owners often invest much of their life savings in their businesses and therefore have a natural interest in the long-term health of the community.
Community-based businesses are essential to charitable endeavors, with owners, managers or staff members frequently serving on local boards, and supporting a variety of causes.
“Some corporate chains, including the likes of Wal-Mart in Colville, do give back to communities in which they do business, but anyone who raises funds for local non-profits will tell you that independents are the ‘bread and butter donators’ partly due to corporate guidelines and red tape associated with requests for that all important corporate donation,” Bull maintained.
Not all local businesses are models to follow, and corporate chains are not inherently bad, but the overall impacts are clear. Local businesses play a vital role in small communities.
The loss of locally owned businesses hasn't just resulted from free market economics. It's had plenty of help from favoritism from large manufacturers toward corporate chains. That favoritism includes promotional allowances (free advertising) and large volume discounts.
“Local officials nationwide often fall for the seductions and political appeal of luring new national chains to their communities,” Bull contended. “Those officials often look at promises of jobs and tax revenues, but fail to consider the greater losses that occur when the local business base is undermined. There are examples nationwide of tax and regulatory breaks worth millions used to lure in out-of-state corporations.”
For long-term progress, a conceptual change is necessary, the Chamber president contented.
“Officials need to consciously plan for that future with rules and regulations that will encourage the values community members want and need for locally owned business to flourish,” he said.
With each dollar spent, residents would do well to weigh the full value of their choices, not solely to themselves immediately, but for the future they want in their own hometowns, he said.
“Another way of putting it is, Put Your Money Where Your House Is.”
When consumers shop at a mega-retailer chain store, purchase from an online retailer, or travel to shop in a large metropolitan community instead of the small hometown, most of those dollars leave the local economy.
The local loss
A consumer may save a few cents and sometimes a few dollars, but the loss to the community can result in higher local unemployment, losses in sales taxes resulting in reduced community service.
“By supporting locally-owned, independent businesses, communities keep local dollars working for the community and enrich the local economy, increase the diversity of available products, provide better service and improve the quality of life for all,” Bull said.