1 / 25

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

peony
Download Presentation

Tapping into the “Buy Local” phenomenon …

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tapping into the “Buy Local” phenomenon … Why it’s important! (Presentation developed by Advantage Marketing Wholesalers)

  2. 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 kinds • Emphasize the benefits of buying local • Demonstrate the true costs of buying outside the community • Increase local revenue

  3. What is a community? • A group of people living and working in the same area with: • Similar lives and values • Shared interests • Common historical & geographical perspectives • Reciprocal dependence • A collection of puzzle pieces that need each other for the big picture

  4. Why buy local? • Economic Impact • Social Impact • Environmental Impact • Governmental Impact • Value Impact

  5. 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 Commerce • Money circulates – is spent and re-spent – seven times • When it is spent locally a larger percentage is also spent locally • More money stays in the community benefiting everyone that lives there

  6. 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% Local Economic Impact…by the numbers

  7. The “economic multiplier” makes this real money! ANDERSONVILLE STUDY 68% v 43% on $1 million 1 TIME $680,000 $430,000 2 TIMES $462,400 $292,400 3 TIMES $314,432 $198,832 4 TIMES $213,814 $135,205 5 TIMES $145,393 $91,940 6 TIMES $98,867 $62,519 7 TIMES $67,230 $42,513 TOTALS $1,982,136 $1,253,410 ECONOMIC IMPACT ON LOCAL COMMUNITY = $728,726! – 58% More!

  8. It could be much worse! Maine Study 45% v 14% on $1 million 1 TIME $450,000 $140,000 2 TIMES $202,500 $19,600 3 TIMES $91,125 $2,744 4 TIMES $41,006 $384 5 TIMES $18,453 $54 6 TIMES $3,737 $8 7 TIMES $1,682 $1 TOTALS $805,139 $162,791 ECONOMIC IMPACT ON LOCAL COMMUNITY = $642,348! – +395%

  9. Ultimate ReciprocityWhat goes around, comes around – 7 times!

  10. A Picture is worth…

  11. …a thousand words Follow the Money!

  12. 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

  13. Environmental Impact • Store failures - closures create “blight” • Store successes – more of the same • Questionable behavior - pollution & safety • Traffic congestion – stores and trucks • Suburban sprawl – when everything looks the same

  14. Governmental 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

  15. 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

  16. 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

  17. 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!

  18. Creating a “Buy Local” InitiativeGetting 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

  19. Recruiting Tools • PowerPoint & other presentations • Information packet on existing research • Prototypes of banners, decals, buttons, etc. • Organizational goals • List of members • Benefits of membership • Champions – persistent people who make things happen

  20. The Presentationshould include… • The multiplier effect • Money trail – Big Box vs. Local • The Impact on economy, society, environment and local government • Price games • Service issues • Commitment to the community

  21. 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!

  22. Making the Sale • Start making unified presentations to: • Elected officials • Local government buyers • Local schools & colleges with a stake in the community • Locally based businesses of all types • Live the message – Support local businesses & ask for their support

  23. 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.

  24. Opportunity is staring you right in the face!

  25. Carpe Diem! • Sieze the day • Start today • And remember, • No puzzle was ever solved in the box • The best puzzles have a lot of small pieces • Someone has to place the first piece… Why not you?

More Related