Tapping into the “Buy Local” phenomenon …

Tapping into the “Buy Local” phenomenon … Why it’s important! (Presentation developed by

Advantage Marketing Wholesalers)

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

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

Why buy local?Economic ImpactSocial ImpactEnvironmental ImpactGovernmental ImpactValue Impact

Economics – When is a dollar more than a dollar?

When it is spent in the local communityWhen 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

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%

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!

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 $162,791ECONOMIC IMPACT ON LOCAL

COMMUNITY = $642,348! – +395%

Ultimate ReciprocityWhat goes around, comes around – 7

times!

Local Business

Local Business

Office Supply Dealer

A Picture is worth…

…a thousand wordsFollow

the Money!

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

Environmental ImpactStore 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 ImpactBig 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”

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 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

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!

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

Recruiting ToolsPowerPoint & 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 multiplier effectMoney trail – Big Box vs. LocalThe Impact on economy, society,

environment and local government

Price gamesService issuesCommitment to the community

Build 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!

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

Remember 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.

Opportunity is staring you right in the face!

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?