Once a year, we are encouraged to support local business on Small Business Saturdays. This follows Black Friday, which follows Thanksgiving. You follow? One year, my wife and I decided to make a concerted effort to support local businesses on this special day. We had brunch at a cozy house-turned-restaurant, bought some decorative hand towels for the kitchen at a craft store, and enjoyed some delicious beers at our favorite brewery! Ah, memories. But, like many of us, this local pride all but evaporated as we got back into our normal routines. Mom-and-Pop turned back into Walmart-and-McDonald's. But why are we so quick to abandon the "shop local" mentality? And, dare I ask, is it so bad to patronize the dreaded chain store or online merchant?
Supporting local businesses has an undeniable benefit to the regional economy. The money you spend - covering wages, rent, taxes, profit margin, etc. - are all typically getting reinvested in your town. Some businesses even specialize in locally-made products. One of my favorite burger joints gets most of its meat, produce, and buns within a 50-mile radius. Besides the economic benefits, there are also environmental benefits to reducing the travel of your purchases. With food, my humble opinion is local ingredients taste fresher, which makes sense as you can get them from source to market faster. Plus, I always feel a sense of being welcomed at a local business, as if they're truly happy to serve you. So, with all these benefits, why would you ever stray from community-based goods and services?
Well, here are two major reasons: availability and cost. The cruel reality is we are a global economy for a reason. With massive supply chain infrastructures, we enjoy products originating from around the world. Perhaps the initial driver is availability. Going back in time, humans have always been captivated by the unknown. Medieval merchants like Marco Polo traveled the world, bringing back goods to western society that intrigued consumers. That curiosity remains with us today, as many of us enjoy new, unique experiences not found in our backyard. But, without our robust supply chains, these fancy wares aren't readily available.
Now let's dig a little deeper on costs. Americans are well-compensated for our labor relative to other countries. As a result, most of our textiles, electronics, etc. are made overseas, where labor costs are much lower. Is that ethical? I somehow avoided Intro to Philosophy in college, so I'll leave that debate up to you. We could certainly bring those jobs back to the U.S., but companies would have to pay a higher wage, which means higher costs for you. Do you look at labels for the country of origin before purchasing? Or do you look at the price tag? Business Insider did a great article on the cost of imported goods if they were made in the U.S.A. a few years ago (feel free to skip the political intro). If you feel strongly about this subject, I suggest you do your homework on the sources of the products you buy.
Let's shift gears to my favorite consumer topic- the chain store! Chains tend to get a bad rap, sometimes deservedly so. Besides muscling out local businesses, they can be bland, sterilized, or just plain boring. Drive through any major city, and you'll experience retail déjà vu. Subway, Chick-Fil-A, Target, Kohl's, and other big names litter the landscapes of our hometowns, in a manufactured, plug-and-play format designed to be repeated across our great country. Why do we support these dreaded chain store? They've become are a necessary part of the retail ecosystem. Take the local hardware store. Go back 50 years, and let's pretend you need to buy a new lawnmower. You go down to Dave's Hardware, locally-owned by Dave himself. He knows you well, as you've been a customer for many years, and you shop at his store because you like him... and there's really no competition in town! Dave shows you the two mower options: green or red. You're colorblind, so it's all the same to you,. Okay, now same scenario, but modern times. You now have a Lowe's, Ace Hardware, and Home Depot within 15 minutes of your house. You do some checking online to figure out costs and features from the 27 options available, and find Lowe's carries the mower you want at the lowest price. You reserve it online and have it loaded on your truck after checking in to the store on the app upon arrival, with nothing more than a thank-you wave as your drive off. Aided by technology, chain stores can simply leverage their pooled resources (IT, supply chain, etc.) to bring down costs and provide a better customer experience than many local stores. They may not provide the same level of warmth or individuality, but for many items, is that critical? Chains also ensure a level of consistency - you can order a Big Mac in Boise or Baltimore (or even Barcelona), and it will be nearly identical. Especially when traveling, knowing what to expect from a restaurant, hotel, or other business is valuable.
I'm not even going to get into e-commerce here - I'll save that for another blog. But suffice to say all brick-and-mortar retail is in jeopardy, especially in the wake of COVID-19. The face of retail has certainly morphed over the years, as technology enables the most agile companies to succeed.
If you think I'm taking sides in this, I most certainly am not. I support local businesses, chains, and online retailers. What I hope I've brought to light are some of the considerations for and against each kind of business. The truth is, you decide what's best for you. If you feel strongly about shopping local, then shop local! Every time you spend money at a business, you are sending a message. And, as everyone sends their messages with their money, the picture gets clearer. When I look at our retail environment, I see an economy where we dabble in local businesses for items like coffee shops, boutique clothing, and craft breweries. We patronize chains for groceries, electronics, and more generic goods. And the big wildcard is online - what products and services can we obtain from our phones in the next few years? When all is said and done, the businesses we support will make it. The rest will go the way of Radio Shack.
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