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February Commentary by Jack Wolcott
This is a good opportunity to continue the discussion of how “big box” retailers impact the local community. Now that Home Depot is no longer an unknown, we can talk about real experiences. It is like an elephant in a living room, too large to ignore and often too awkward to point out to your host or guest.
I think one of the more interesting points to watch will be the one about all the extra money that was supposed to leave town because of the additional shopping people did when they went to Albany. Can we now plan for that money to stay in town and be spent locally? This could be a great opportunity for new businesses and diversification of existing ones.
Corvallis is on the threshold of a fundamental shift in how our community defines its identity. Will it be shaped by “formula” stores that base their inventory and customer service on a national business plan? Or will it continue to support locally owned, independently operated businesses that draw from their community’s needs and desires?
Once small businesses are lost to national chains, it is extremely difficult to convince someone else to invest their family’s future in an unknown environment. The best things an established business have going for it are loyal customers, community awareness, and an intimate familiarity of local business cycles. The new business trying to replace a longstanding local business that was forced to close because of national competition has a very low rate of success.
The Corvallis Independent Business Alliance is not opposed to growth or national businesses. We are just committed to helping support and nourish local ownership. This is a significant and fundamental difference. We believe that giving the “local option” the first choice is in our community’s best long-term interest.
It is very important to understand that, just because you went to Home Depot and maybe purchased something, you should not feel awkward about coming back to your local store. Curiosity about something new is natural. It is understandable to shop around, consider bargains and compare offerings. Business owners understand the nature of competition: That is why they value your patronage so much. They know you have a choice, and when you choose them, they take it as an endorsement of their business practices and personal standards.
Don’t think the small sale is not important. While the large purchases obviously directly affect the profit of the business more, it is often the small, regular sales that make a significant difference in the final bottom line profit of the business. Why do you think the big stores try to lure customers with loss leaders, place them to the rear of their stores and surround the sale items with lots of attractive displays of small impulse odds and ends? I hope you don’t make only the small purchases locally, but I want you to understand how important it is to continue whatever level of patronage you are comfortable with.
If you visit Home Depot, I hope you go there with your eyes wide open. Ask questions; study a broad range of prices and items. Will the level of service still be the same after six months? After two years? How convenient was the location? How much time was spent getting there and back? How about personal interactions with other shoppers?
Please check local prices before making a final decision. If you see something you like, tell your local merchant. Also, if there is something about local businesses that you would like to see improved, tell them. They will appreciate your consideration.
jerry@kristinandjerry.name">jerry@kristinandjerry.name">jerryheilman, 3:28 PM [link]
CIBA Notes - February 9th, 2007
Home Depot to Open
Home Depot’s local store is set to open February 15. Local independent businesses have built their success on what sets them apart from the national chains, and will continue to do this. Check out the story in the Gazette Times that features CIBA businesses and owners. If any members have special plans or things happening that you’d like other CIBA members to know about, send them in. Here’s the link for the story from February 5th in the “In Business’ section. http://gtconnect.com/articles/2007/02/05/news/business/7biz01_depot.txt
January Membership Meeting
Our January Membership Meeting was a big success! The meeting topic was “Avoid the Marketing Blues”, with panel members Chris DuPont, Branch Manager of Citizen’s Bank, Sonya Bachelor, Marketing Assistant at The First Alternative Co-op, and Jean Bonifas of Springboard Productions (given voice by Coleen Clancey of LBCC), sharing their tips and expertise. A Mardi Gras theme provided a festive atmosphere, which included beads and decorations from ‘Day Dreamers’ and delicious French pastries from ‘La Patissier’.
New Associate Board Member
Long-time, active CIBA member, Becky Picton, is welcomed to the CIBA Board as an Associate Board Member. Becky has a variety of experiences, including involvements with the OSU Horticulture Dept, Chintimini Wildlife Refuge, financial planning, and spends time with her son at the horse stable. CIBA is very thrilled to have her join the Board.
EVP and CIBA’s Interests
Several groups have taken up the various parts of the EVP plan. One of CIBA’s interests was in developing a ‘buddy’ or mentoring system to match new or struggling businesses with small business owners in the community for support and ideas. Barbara Ross has received the board’s approval to continue working on this, and welcomes input from CIBA members. CIBA has also been tapped for involvement in a “Buy Local” campaign, of which our member, The First Alternative Food Cooperative, has already been involved with.
jerry@kristinandjerry.name">jerry@kristinandjerry.name">jerryheilman, 9:15 AM [link]
January Commentary by Jack Wolcott
In the next year or so we may see a sort of mini retail boom in Corvallis as proposed and already in-progress developments take place. Soon the riverfront will have several new tenants (retail, office and residential), Third and Fourth streets have vacancies with new and proposed tenants, and the recently announced developments along Ninth Street have already stated their intention to seek national chain stores to fill their spaces.
My question is simply, “Why not look regionally and locally first and help keep Corvallis unique?”
This would help preserve the qualities that most residents identify as a primary reason for choosing to raise their families here. If a regional retailer can’t be attracted to locate here, then it is reasonable to expand the search.
The Corvallis Independent Business Alliance supports the appropriate and relevant growth that citizens desire. But why not give our uniqueness a chance to sustain itself and attract other quality merchants who will also support and nourish our diverse values and lifestyle?
Last year, in a meeting with CIBA leaders, our mayor, Charlie Tomlinson, while still a city councilor, proposed sending small recruitment teams to other communities that we admired and respected. He thought we could attract targeted businesses to either relocate or open another branch here. I believe this is a worthwhile effort, rather than just accepting another formula business that will only represent ideas and products based on priorities determined by absentee owners.
Local owners develop their ideas based on interactions with their friends, neighbors, and community input. Independent ownership means that they determine what they carry, not some corporate officer focusing on bottom-line profitability. We have a golden opportunity to fundamentally shape the character and responsiveness of our city for years to come; we should not let this opportunity pass without our best effort to influence the outcome for our community’s long-term benefit.
There is a sustained and substantial movement across America in which caring and concerned cities are establishing Independent Business Alliances. These IBAs help nourish their economies for the mutual benefit of their citizens and locally owned businesses.
In several of these communities, studies have been done that consistently demonstrate that over $3 of local economic benefit is created for every dollar spent in a locally owned business compared to the same dollar spent in a national retailer. So not only do locally owned, independently operated businesses better reflect and respond to community interests and needs, they also contribute over three times as much economic impact as the national retailers!
jerry@kristinandjerry.name">jerry@kristinandjerry.name">jerryheilman, 9:12 AM [link]
November Commentary by Jack Wolcott
Holidays are wonderful times, full of opportunities to remember what is important to you and why you enjoy your friends, family and community.
They are also full of events and messages vying for your attention and time. The Corvallis Independent Business Alliance would like to remind you that it is a good time to help restore some humanity to the holidays as you prepare for your own celebration.
There may be a lot of confusion from all the advertising, glitzy displays and often overwhelming variety of products to choose from. It is easy to forget two simple things: What you buy and whom you support really do make a significant difference to your community.
Shopping locally owned, independently operated businesses is a way to treat others, your community and yourself at the same time. Not only can you can find truly unique, personal gifts for loved ones, but your money stays in your community, circulating up to 3½ times longer than if you spent it at a chain — it helps everyone. And you get a level of customer service that you just won’t find at the chains — after all, these are your friends and neighbors, and they truly appreciate you and your patronage.
As I mentioned about this time last year, 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! Just think of the benefit throughout the whole year if this effort continued.
You can also help your favorite school by purchasing CIBA scrip from the parent-teacher organization, with 10 percent of the value going to the program.
These cards can be redeemed at participating CIBA members — a complete list is available on our Web site at www.corvallisIBA.org.
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.
• Local merchants keep their modest profits in their community.
• 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.
jerry@kristinandjerry.name">jerry@kristinandjerry.name">jerryheilman, 9:10 AM [link]
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