Friday, July 12, 2013

Make the 10% shift


Here's the biggest obstacle for many to shopping locally: Why should I pay $1.09 for a widget at a locally owned and operated business when I can get the same or equal widget for $0.99 at a Big box Store or off the Internet?   

The shop local message is directed at two audiences: one with disposable income and one who budgets from paycheck to paycheck.  For those who have disposable income, the message of why one should shop local rings loud and clear and are, most likely, shopping local as much as they can.

For the majority of people who are living from paycheck to paycheck, budget is important and no matter how many stats one posts about the benefits of shopping local, the shoppers' bank account determines where one shops.  Invariably, these consumers will opt for the widget that is ten cents cheaper.

Getting people to shop local, or at least thinking about breaking their routine and visiting some locally owned and operated shops, is a three-pronged effort.

First, educate the average shopper on the benefits of shopping local.  The benefits one would see in their community if everyone shopped local is a bit intangible to most people, yet immediately conceptualized by most  regardless of their budget.

Second, show the average consumer that not everything is "overpriced".  Sure, one could save by buying some "necessities" at a big chain store, but there are plenty of locally owned and operated business that offer competitive pricing, and, yes, cheaper pricing than the big box stores.   Not only offering the competitive pricing, but locally owned and operate businesses also offer a variety of products, often locally produced or in a "niche market", that one would never find a big box store.

Third, offer an opportunity to encourage the average shopper to shop local and discover what the big box stores don't offer.  Big box stores want you, your family, your neighbors, and friends to have everything the same because mass-produced items can be sold cheaply.  Your locally owned and operated businesses offer a variety the big box stores can't.  (Please read Shop Local Delmarva's article, The Homogenization of Rural Town, USA, for more information.) 

Some studies suggest that a 10% shift in spending habits aimed towards our locally owned and operated businesses would result in $140 million in new economic activity, create over 1,600 new jobs, and   provide $50 million in new wages.  No matter how tight one's budget is, making a 10% shift in spending habits is a doable goal for most people once they fully understand the importance of shopping locally.

Shop Local Delmarva created Shop Local Delmarva Day to help the average consumer learn more about why it is important to shop locally and to help achieve the 10% (or more) shift in spending habits.  By designating the second Saturday of every month as Shop Local Delmarva Day, the average consumer, regardless of their budget, can decide the best way to support his/hers local community by supporting his/hers locally owned and operated businesses. 

Let's say a couple spends $1,500 per month in all the major areas of expenses such as food, clothing, household, home improvement (including yard and gardens), and entertainment.  To meet the 10% goal, the couple could choose to spend $150 all on Shop Local Delmarva Day in several different locally owned stores or spread the spending out over the entire month (about $34 per week), depending on the couple's budget. 

With the numbers broken down, the couple can easily make conscious buying decisions.  Thirty-four dollars per week isn't a whole lot of money.  They can decide to stop at a produce stand on their way home from work to buy fresh, local produce (food); buy a new pair of shoes and a new shirt or blouse at a local boutique during their lunch hour (clothing); stop at the local hardware store on their way to do their weekly grocery shopping for odds and ends hardware (nails, hinges to fix a cabinet, or some paint or wood finish to bring new life to a piece of furniture or room) or stop at a local garden center for a bag of mulch, pest control products, or new fencing (home improvement); and stop at a locally owned restaurant, deli, or grocery market to pick up something to eat and drink instead of going through a national chain's drive thru (entertainment). 

With little shifts like these in shopping habits, the couple would easily make the 10% shift in spending habits towards our locally owned and operated businesses.  It may not sound like much, but if everyone made the tiny shift, the economic benefits to the community would be immense.  Please read American Independent Business Alliance's informative, yet easy-to-read, article, Benefits of Doing Business Locally, to learn how immense that impact can be. 

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