Monday, June 17, 2024

Buying local can benefit community

Ryan Dinkgrave

With the economy in a rut, unemployment remaining stubbornly high and consumer spending understandably down, retailers put extra emphasis this year on driving customers to holiday sales. Accordingly, Black Friday saw thousands of shoppers line up late at night to participate in the annual orgy of consumer spending named for the day that many retailers’ and manufacturers’ books move from “the red” of losses to “the black” of profitability.

While there is plenty of evidence that discounts and competitive pricing can spur spending that can in turn contribute to improving broader economic conditions, couldn’t we do more to see the benefit of this consumer activity in our own communities?

Writing for a weekly magazine in Detroit, a friend of mine recently tried to answer this very question. In doing so, she profiled a number of small businesses and niche stores in metro Detroit and also took a look at a national effort called the 3/50 Project (the350project.net). The 3/50 Project is an effort to rally people to support three independently owned local businesses that they “would miss if they disappeared.” According to the site, “if half the employed population spent $50 each month in locally owned independent businesses, it would generate more than $46.2 billion in revenue” and 68 percent of dollars spent at such businesses return to the community through taxes, payroll and other expenditures, versus 43 percent of dollars spent at national chains.

Given this information, why is it that we do not see the same lines stretched around the corner of our locally owned stores that we see outside of the national “big box” chains? One simple reason is that, in most cases, the locally owned stores simply cannot match the price cuts that the national retailers can offer and sometimes take a loss on. Given the choice between a television at $500 and the same television at $400, the consumer’s logical choice is to take the more affordable offer. But in an increasingly globalized economy, perhaps we need to rethink our priorities and consider other factors in our buying decisions.

It doesn’t necessarily make sense to purchase everything locally, as factors from price to quality to availability must be considered, but if supporting our local businesses and communities were made a priority in our buying decisions, we could make a meaningful and noticeable impact. For proof, one at MSU need not look further than Grand River Avenue. Once home to an array of independently owned businesses, it has eroded throughout the past decade to a strip dominated by national chains. However, among those chain stores are some independent gems that have survived in the face of rising rents and increasing competition thanks to the support of individuals who value what these businesses offer.

These independent businesses are as much a part of the culture and community in East Lansing as the students and other residents who support them. They reflect the interests, values and needs of the community. They serve as the backdrops for meetings and memories for many. Most chains, on the other hand, are indistinguishable from their siblings across the nation and have relatively little invested in the well-being of their local communities. This is not to say they are unimportant in the community — indeed they provide many valuable jobs and services — but to suggest that our local independents could use our business a little bit more. In a lean year, don’t we want our dollars to go further and to help support our communities? This year, try picking three independent stores that you would be sad to see go and support them in your holiday shopping — you might be surprised at what you find and what your dollars can do.

Ryan Dinkgrave is a State News guest columnist and public relations graduate student. Reach him at dinkgrave@gmail.com.

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