buying local, why its important to our economy
DESCRIPTION
It\’s a movement, buying locally, and we should all be on the train. (Well, we can\’t get on the train because it got squashed, but we can get still get on the bus.) There\’s so much more to buying locally than the fact that it makes us feel good. It just makes good business sense for our economy. This presentation was prepared for the office products industry, but regardless of what industry your business is in, you can benefit from it by understanding the exponential numbers. (Presentation developed by Advantage Marketing Wholesalers)TRANSCRIPT
Tapping into the “Buy Local” phenomenon … Tapping into the “Buy Local” phenomenon … Why it’s important! (Presentation developed by
Advantage Marketing Wholesalers)
Why it’s important! (Presentation developed by
Advantage Marketing Wholesalers)
What is the “Buy Local” Movement?
What is the “Buy Local” Movement?
A national community-based effort to emphasize the importance of supporting local businesses
A series of action steps that:Unite local companies of all kindsEmphasize the benefits of buying localDemonstrate the true costs of buying
outside the communityIncrease local revenue
A national community-based effort to emphasize the importance of supporting local businesses
A series of action steps that:Unite local companies of all kindsEmphasize the benefits of buying localDemonstrate the true costs of buying
outside the communityIncrease local revenue
What is a community?What is a community?
A group of people living and working in the same area with:Similar lives and valuesShared interestsCommon historical & geographical
perspectivesReciprocal dependence
A collection of puzzle pieces that need each other for the big picture
A group of people living and working in the same area with:Similar lives and valuesShared interestsCommon historical & geographical
perspectivesReciprocal dependence
A collection of puzzle pieces that need each other for the big picture
Why buy local?Why buy local?
Economic ImpactSocial ImpactEnvironmental ImpactGovernmental ImpactValue Impact
Economic ImpactSocial ImpactEnvironmental ImpactGovernmental ImpactValue Impact
Economics – When is a dollar more than a dollar?
Economics – When is a dollar more than a dollar?
When it is spent in the local community
When you consider “the economic multiplier” – US Chamber of CommerceMoney circulates – is spent and re-spent –
seven times When it is spent locally a larger
percentage is also spent locallyMore money stays in the community
benefiting everyone that lives there
When it is spent in the local community
When you consider “the economic multiplier” – US Chamber of CommerceMoney circulates – is spent and re-spent –
seven times When it is spent locally a larger
percentage is also spent locallyMore money stays in the community
benefiting everyone that lives there
Local Economic Impact…by the numbers
Local Economic Impact…by the numbers
Case Studies Andersonville IL Mid-state Maine Austin, TX Toledo, OH Economic Impact
Analysis
Case Studies Andersonville IL Mid-state Maine Austin, TX Toledo, OH Economic Impact
Analysis
% Dollars retained
68% – 43% 45% - 14% 45% - 14% 45% - 20% 45% - 13%
% Dollars retained
68% – 43% 45% - 14% 45% - 14% 45% - 20% 45% - 13%
The “economic multiplier” makes this real money!
The “economic multiplier” makes this real money!
ANDERSONVILLE STUDY 68% v 43% on $1 million1 TIME $680,000 $430,0002 TIMES $462,400 $292,4003 TIMES $314,432 $198,8324 TIMES $213,814 $135,2055 TIMES $145,393 $91,9406 TIMES $98,867 $62,5197 TIMES $67,230 $42,513TOTALS$1,982,136 $1,253,410
ECONOMIC IMPACT ON LOCAL COMMUNITY = $728,726! – 58% More!
ANDERSONVILLE STUDY 68% v 43% on $1 million1 TIME $680,000 $430,0002 TIMES $462,400 $292,4003 TIMES $314,432 $198,8324 TIMES $213,814 $135,2055 TIMES $145,393 $91,9406 TIMES $98,867 $62,5197 TIMES $67,230 $42,513TOTALS$1,982,136 $1,253,410
ECONOMIC IMPACT ON LOCAL COMMUNITY = $728,726! – 58% More!
It could be much worse!It could be much worse!
Maine Study 45% v 14% on $1 million1 TIME $450,000 $140,0002 TIMES $202,500 $19,6003 TIMES $91,125 $2,7444 TIMES $41,006 $3845 TIMES $18,453 $546 TIMES $3,737 $87 TIMES $1,682 $1TOTALS$805,139 $162,791
ECONOMIC IMPACT ON LOCAL COMMUNITY = $642,348! – +395%
Maine Study 45% v 14% on $1 million1 TIME $450,000 $140,0002 TIMES $202,500 $19,6003 TIMES $91,125 $2,7444 TIMES $41,006 $3845 TIMES $18,453 $546 TIMES $3,737 $87 TIMES $1,682 $1TOTALS$805,139 $162,791
ECONOMIC IMPACT ON LOCAL COMMUNITY = $642,348! – +395%
Ultimate ReciprocityWhat goes around, comes around – 7
times!
Ultimate ReciprocityWhat goes around, comes around – 7
times!
Local Business
Local Business
Office Supply Dealer
A Picture is worth… A Picture is worth…
…a thousand words…a thousand words
Follow the
Money!
Social Impact Decisions that shape lives
Social Impact Decisions that shape lives
Local businesses employ more people – your friends and neighbors
Poverty increases with “Big Box” retailers like Wal-Mart – Penn State study
Local businesses provide better benefits like healthcare – recent study reports 55,000 Wal-Mart employees on state healthcare
Local businesses bring diversity to the community – “A choice not an echo”
Local businesses support local charities Local Businesses enhance the “Quality of
Life” of their communities
Local businesses employ more people – your friends and neighbors
Poverty increases with “Big Box” retailers like Wal-Mart – Penn State study
Local businesses provide better benefits like healthcare – recent study reports 55,000 Wal-Mart employees on state healthcare
Local businesses bring diversity to the community – “A choice not an echo”
Local businesses support local charities Local Businesses enhance the “Quality of
Life” of their communities
Environmental ImpactEnvironmental Impact
Store failures - closures create “blight”
Store successes – more of the sameQuestionable behavior - pollution &
safety Traffic congestion – stores and trucksSuburban sprawl – when everything
looks the same
Store failures - closures create “blight”
Store successes – more of the sameQuestionable behavior - pollution &
safety Traffic congestion – stores and trucksSuburban sprawl – when everything
looks the same
Governmental ImpactGovernmental Impact
Big Box retailers:Receive tax subsidies in excess of
actual tax revenue – so you pay more taxes
Require more public services – from local government, police, trash collection, road maintenance, etc
Pay less wages so people pay lower taxes
Force more people to state welfare services that also raise taxes
Big Box retailers:Receive tax subsidies in excess of
actual tax revenue – so you pay more taxes
Require more public services – from local government, police, trash collection, road maintenance, etc
Pay less wages so people pay lower taxes
Force more people to state welfare services that also raise taxes
Value Impact – The true cost of “everyday low pricing”
Value Impact – The true cost of “everyday low pricing”
Price “Churn” – unreliable pricing Percentage of items above list – which ones? Bait & switch marketing Demographic pricing – inconsistent High percentage of imports – job loss & quality Service issues – by former & future “burger
flippers” Unique product numbers – difficult to compare Fewer choices – more effort to get what you
want – including employees driving from store to store
Store impulse items – so you spend more Cost of “un-returnable” returns
Price “Churn” – unreliable pricing Percentage of items above list – which ones? Bait & switch marketing Demographic pricing – inconsistent High percentage of imports – job loss & quality Service issues – by former & future “burger
flippers” Unique product numbers – difficult to compare Fewer choices – more effort to get what you
want – including employees driving from store to store
Store impulse items – so you spend more Cost of “un-returnable” returns
Let’s Get RealLet’s Get Real
Big Box bashing is not a plan Wal-Mart is not the principal
competition – not yet anyway Most studies concern Wal-Mart but… Big Box means any business that takes
money “out of the community” Consumers have been programmed -
Big Box means less expensive Buy Local movements are only a piece
of the puzzle – not a magic potion Dealers must still deliver price &
service
Big Box bashing is not a plan Wal-Mart is not the principal
competition – not yet anyway Most studies concern Wal-Mart but… Big Box means any business that takes
money “out of the community” Consumers have been programmed -
Big Box means less expensive Buy Local movements are only a piece
of the puzzle – not a magic potion Dealers must still deliver price &
service
What Dealers Need to Compete
What Dealers Need to Compete
Sales message that resonates Perception changing price message Marketing materials that work Marketing plan that builds awareness Aggressive sales effort Exceptional service – that truly delivers
more than expected Effective margin management Expense control Business owners that are active –
Strong leadership!
Sales message that resonates Perception changing price message Marketing materials that work Marketing plan that builds awareness Aggressive sales effort Exceptional service – that truly delivers
more than expected Effective margin management Expense control Business owners that are active –
Strong leadership!
Creating a “Buy Local” Initiative
Getting started …
Creating a “Buy Local” Initiative
Getting started … Create a “Task Force” with like-minded
business owners – Find some friends Enlist the support of local Chambers,
Rotary, etc. – educate them Contact existing “Buy Local”
organizations around the country - ask for help
Create Buy Local presentations using available data
Expand the organization – recruit more members
Create a “Task Force” with like-minded business owners – Find some friends
Enlist the support of local Chambers, Rotary, etc. – educate them
Contact existing “Buy Local” organizations around the country - ask for help
Create Buy Local presentations using available data
Expand the organization – recruit more members
Recruiting ToolsRecruiting Tools
PowerPoint & other presentations Information packet on existing
researchPrototypes of banners, decals,
buttons, etc. Organizational goalsList of membersBenefits of membershipChampions – persistent people who
make things happen
PowerPoint & other presentations Information packet on existing
researchPrototypes of banners, decals,
buttons, etc. Organizational goalsList of membersBenefits of membershipChampions – persistent people who
make things happen
The Presentationshould include…The Presentationshould include…
The multiplier effectMoney trail – Big Box vs. LocalThe Impact on economy, society,
environment and local government
Price gamesService issuesCommitment to the community
The multiplier effectMoney trail – Big Box vs. LocalThe Impact on economy, society,
environment and local government
Price gamesService issuesCommitment to the community
Build the OrganizationBuild the Organization
Create a charter with dues & rules for membership
Develop a real member benefits program
Create “Buy Local” paraphernalia Jointly create a website Start a letter writing campaign – to
customers, prospects, newspapers, elected officials
Alert the media!
Create a charter with dues & rules for membership
Develop a real member benefits program
Create “Buy Local” paraphernalia Jointly create a website Start a letter writing campaign – to
customers, prospects, newspapers, elected officials
Alert the media!
Making the Sale Making the Sale
Start making unified presentations to: Elected officialsLocal government buyersLocal schools & colleges with a stake
in the communityLocally based businesses of all types
Live the message – Support local businesses & ask for their support
Start making unified presentations to: Elected officialsLocal government buyersLocal schools & colleges with a stake
in the communityLocally based businesses of all types
Live the message – Support local businesses & ask for their support
Remember this - pleaseRemember this - please
The primary goal of the movement is to build an organization that promotes the “Buy Local” concept.
It is not to solicit business, exclude local competition or create a dues-paying revenue stream – although that will probably happen.
The benefit of this approach will ultimately yield a network of local support and plus sales for all members.
The primary goal of the movement is to build an organization that promotes the “Buy Local” concept.
It is not to solicit business, exclude local competition or create a dues-paying revenue stream – although that will probably happen.
The benefit of this approach will ultimately yield a network of local support and plus sales for all members.
Carpe Diem!Carpe Diem!
Sieze the dayStart todayAnd remember,
No puzzle was ever solved in the boxThe best puzzles have a lot of small
piecesSomeone has to place the first
piece…
Why not you?
Sieze the dayStart todayAnd remember,
No puzzle was ever solved in the boxThe best puzzles have a lot of small
piecesSomeone has to place the first
piece…
Why not you?