Tapping into the Buy Local phenomenon …

1
Tapping into the Buy Local phenomenon

• Why its 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
Local Economic Impactby the numbers

• 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

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
Lets 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?