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Home » Archives » November 2005 » November Commentary by Jack Wolcott

November Commentary by Jack Wolcott

November 30, 2005

As the holidays approach, it is a good time to step back a bit and gain a fresh perspective on the significance of our actions and how they affect those around us.

I think we would all generally agree that a higher quality of life is worth working toward. But how often do you consider how your daily decisions directly affect the quality and variety of choices available to you and your family?

The Corvallis Independent Business Alliance firmly believes that supporting your locally owned, independently operated businesses is the best way to directly influence your quality of life. By patronizing the businesses that are owned by people who live, socialize and raise their children in our neighborhoods, you are thanking them for their investment in our community and encouraging them to continue to keep it up.

It is important to realize that your support actually has a multiplier effect. For every $100 spent at a national retailer, only $13 is returned to the local economy. If you spend the same $100 at a locally owned business, the local economic impact is $45 — almost 3½ times as much. To further increase your impact, encourage your friends to consider their shopping habits or bring them with you as you visit your favorite shops.

This local benefit has been verified by several studies around the country, and they all agree that the local economy dramatically improves when people make an educated effort to shop locally. To put this into perspective, think about this: If each household in Corvallis simply redirected $100 of planned holiday spending from chain stores to locally owned merchants, the local economic benefit would be approximately $1 million! This compares to only $300,000 if spent at the national retailers. Just think of the benefit throughout the whole year if this effort continued.

If you would like to read these studies and gain a broader appreciation of the many ways local businesses contribute to community vitality, visit the Web site of the American Independent Business Alliance at www.amiba.net.

As you make your holiday shopping list this year, keep these points in mind:

• Local merchants spend a much larger portion of their total revenue on local labor to run the enterprise and sell the merchandise.

• Local merchants keep their modest profits in the local economy.

• Local merchants tend to patronize other local merchants and refer their customers to them.

• Local merchants support local artists and authors, creating further local economic impact.

• Local merchants give a higher percentage of their profits to local charities, schools and other organizations.

Don’t think that “it won’t make much difference” or “it was just a couple of items.” You really do make a difference in determining the future of the community in which your children will grow up and you will one day retire. CIBA thanks you for your support and wishes you a happy and healthy holiday season.


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