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Tapping into the “Buy Local” phenomenon …

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  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?