Get ready for another “Shop Local” campaign in your town. Hopefully this one will do better than they usually do.
I’m not knocking the abilities of the Chamber of Commerce folks who are putting this together. They have a lot of successful business people who are able to attract customers, but the track record for creating artificial desires in the minds of shoppers isn’t good.
For example, take the campaign from the 80’s that encouraged us to “look for the Made in the USA label”. Celebrities such as Barbara Mandrell did TV and print ads to drive the point home. It worked for a short while, but it never became a habit. Why? American factories just couldn’t compete with imports from China, and American consumers are simply too addicted to low prices to care.
That’s one of the biggest obstacles to a shop local campaign; small local stores usually have higher prices, and in the end, low prices will win.
Smaller stores can fight back with a much better selection and more helpful staff, but they’ll have to be content with a smaller base of loyal customers. Take the battle between Home Depot and Johnson’s Do It Center; I usually go to Home Depot for things like tile or large power tools, but the Do It Center is a much better place to go for smaller things like glue or specialty light bulbs. The price is usually a little higher, but they have dozens and dozens to choose from, while Home Depot has just a few.
Besides low prices, big retailers and restaurant chains also offer one other big advantage; consistency. If you go to a McDonald’s or a Costco in either Covington or Honolulu, your experience will be exactly the same. It’s safe, and we’re probably not going to get sick or feel ripped off. We know what to expect every time we go into a chain store, and there aren’t any unpleasant surprises.
The reason is, chain stores are run from an operating manual, and every store must be exactly the same. That’s not always a good thing, since if there’s a flaw in the system, no one is empowered to fix it. I have a membership at L.A. Fitness (because they have racquetball courts), and tried to sign up for a $5 per month service so I can reserve a court. Well, I paid for a three year membership all at once, so according to their corporate system, I have to pay for the reservation service all at once too, for a total of $316.
Smaller retailers and restaurants usually create their policies based on the owner’s personality, which is why you’ll see goofy handwritten policy signs at the cashier or in the window. My favorite one lately is the “please respect our no cell phone policy” at the liquor store in Maple Valley. I would think that if you could call someone, they would probably ask you to buy more liquor, so I’d try to encourage more phone calls.
The short-lived Blue Fire Mongolian Grill in Maple Valley also suffered from goofy sign syndrome, and may have contributed to their demise. They had handwritten signs by the soda fountain, the sneeze shield, the bathrooms and the cashier. The worst one was the sign advertising the child price, which was something like $3.99, but in very tiny print it said that the child price was good for 5 and under only. Anyone older than 5 paid the adult price, which meant that I only ate there once.
“Shop Local” campaigns aren’t going to solve these problems, though. Getting people to spend money at small stores is a two-way street; if stores can stay somewhat competitive on price, offer a consistently good experience and find creative ways to get the public’s attention, consumers will reward them.
The best reason to shop in your town? The sales tax revenue goes to your city, and helps offset the costs of the services like police, parks and roads. For example, the Fred Meyer store that’s planned for Maple Valley is projected to bring in over $300,000 per year in sales taxes. That would pay for two new police officers that the city desperately needs. But because that money isn’t there, the utility tax will probably have to be raised instead. You’re going to pay for it anyway, so it might as well be through money you’re already spending. Shop local!