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How Consumers and Communities Can Benefit From 'Buying Local'

Comparison shopping between independent stores and chains is about overall value, not just price

October 28, 2011 RSS Feed Print

Certainly, there are other retail realities. The existence of any business, chain or not, is often preferred over an abandoned storefront, and will better serve communities void of key supplies for everyday existence. While I happily patronize my local toy store, the reality is that big-box retailers that include a grocery section may just be the saviors for the vast "food deserts" across other parts of my home city, Chicago. There, zero grocery options, especially fresh food, exist for blocks on end.

Still, the risk of losing more independent businesses or even slowing their growth is only reenergizing the small-business community. Local and national campaigns that join efforts to raise awareness can boost results for indies.

A 2011 Independent Business Survey was conducted by the Institute for Local Self-Reliance and dozens of national and local business organizations. Respondents who participated in "Buy Local" campaigns reported an average gain in revenue of 5.6 percent, compared with a 2.1 percent revenue increase for those not involved in these campaigns. The survey gathered data from 2,768 independent, locally owned businesses during an eight-day period in January. It covered all 50 states and included a range of business types.

National campaigns are also gaining some traction. Nov. 26, 2011, the Saturday immediately after Thanksgiving and Black Friday, is designated as the second-annual Small Business Saturday holiday shopping promotion. An effort called Independent We Stand joined with American Express to create the national program in 2010 in response to small business owners' most pressing need: more demand for their products and services. Last year's inaugural program drove millions of dollars to Main Street merchants, the campaign says.

"Locally owned businesses reinvest in the local economy at a 60 percent higher rate than chains and Internet retailers, so Small Business Saturday shoppers will be revitalizing their economies while finding great deals at their favorite local merchants," says Bill Brunelle, project manager of Independent We Stand, in a news release.

For Milchen and other advocates, the fight is as much about preserving quality human interaction and a sense of community as it is about the bottom line.

For more on the Independent We Stand holiday promotion and other resources for the indie shopping movement, see below:

Independent We Stand: independentwestand.org

U.S. Chamber of Commerce Small Business Nation: uschambersmallbusinessnation.com

Civic Economics' Indie City Index 2011, a ranking of American Metropolitan Areas by the proportion of retail activity captured by independents: civiceconomics.com

American Independent Business Alliance: amiba.net

Institute for Local Self-Reliance: ilsr.org

Business Alliance for Local Living Economies: livingeconomies.org

Tags:
small business,
shopping,
money

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I try to always to buy local all of the time. Check out why you should buy local. http://www.tntsupplies.com/NC/office-supplies/winston-salem.php

Paige of NC 3:33PM March 22, 2013

Replying to WRITE2LIVE. Sometimes you are correct but having experience in a multinational and a local family owned that is often not the case.

1. Many local businesses have joined forces to create purchasing associations for buying power (such as the office products industry)

2. Often the local business can provide a much higher level of service while remaining competitively priced, I know, we do it all the time.

3. The reduction in price of computing power for small businesses has been an equalizer.

4. When a local business I worked for was acquired by a multinational a few years back the cost to do business for our branch almost doubled. Most of that through multiple layers of unnecessary management. Multiply that experience by several hundred and you get the idea.

5. Large organizations do have the benefit of HUGE marketing $ I'll admit, but much of the savings is smoke and mirrors. Large discounts on a few items but believe me, they make huge margins on MOST of their items, sometimes charging over manufacturers suggested retail pricing.

6. Think buying online is the answer - try returning to those companies and see what that costs.

7. READ THE FINE PRINT of Low Price Guarantees and Online Retailers.

I don't mind good competition, but buyers should be informed and not just assume bigger is better.

Also, and I say this with the kindest intent, I would not compare a "boutique" store with Target. That is like comparing A Marriott Hotel to Motel 6.

To Small Business Owners - it is imperative for us to be sure we are providing value if we push the Buy Local campaign. If we cannot compete on price (and some of us can) then we need to be providing some value that justifies our existence.

From someone who is in small business and believes in community.

4LBRTY of CA 12:43PM November 22, 2011

Supporting local businesses requires more awareness than just the sometimes slightly higher price tag. Developing a strong sustainable local economy is a holistic way of thinking. Sometimes sacrificial! Think quality over quantity. Support the economy by investing dollars in the thriving community YOU live, pay taxes, and raise your children in. Maybe one day the masses will realize the effect of outsourcing goods and services internationally has had on us over the years--look at the declining value of the dollar.

andy of MI 10:12AM November 13, 2011

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