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Buy Local? You Bet! (But why?)
Published: June 07, 2004
While it may sound strange, when Bozeman’s “Buy Local” group formed last spring, they had no idea how valuable it was to buy local.
Now known as GVIBA (Gallatin Valley Independent Business Alliance), the group was spearheaded last March by Suzie Johnson, an energetic community member, who found shopping at locally-owned stores enjoyable and enriching. Suzie thought she was lucky to live in a town the size of Bozeman where such a variety of locally-owned businesses, from grocery and hardware to books and clothing, were still thriving. And she was right.
For the past 8 months, a core group of community members and business owners have been meeting faithfully every week to strategize about the seemingly simple concept of supporting locally owned, independent businesses. In May, the group held a facilitated Town Meeting, where citizens and businesses owners gathered to determine current needs and what role the “Buy Local” group should play. It has been the group’s charge ever since to 1) educate the community on the benefits of buying local, 2) obtain community support for locally-owned independent businesses, 3) sustain and grow a healthy local economy, and 4) maintain the character and integrity of the community.
Since GVIBA’s inception, a steady unraveling of statistics and studies assures them that their mission is a critical one.
Working with the recently relocated, Bozeman-based American Independent Business Alliance (AMIBA), revealed that the economic and community challenges identified at the Bozeman Town Meeting, were facing other towns and cities across America. GVIBA’s founders were inspired by the recent launch of similar alliances around the country in communities as diverse as St. Louis, Santa Fe, and Corvallis, Oregon.
Choosing to spend dollars locally provides an incredible boon to the local economy. One of the most motivating figures from a study by Liveable City (www.livablecity.org), shows that when $100 dollars are spent at a locally-owned business, $45 of those are recycled back into the local economy versus $13 out of $100 spent at a national chain store. Of course, if that $45 gets recycled back again into locally-owned independent businesses and so on, and so on there is a huge multiplier effect.
And what about the contributions to the local economy made by locally owned businesses themselves? Consider the dollars these businesses spend on goods and services in our community. For example, Kenyon Noble Hardware puts its “support local business” philosophy into action by reimbursing to its staff only those out of pocket expenses spent at a locally owned business unless spending at a chain store provides a savings of 15% or more. (Rare, by the way.)
Locally owned businesses naturally tend to use local goods and services more often. Their accountants, advertising venues, lawyers, printers, bankers, and many product suppliers are usually local. Chains typically centralize most of those functions at corporate headquarters. And think about it. If chain stores don’t spend dollars locally and then proceed to put our local stores out of business, then those local, independent stores are no longer spending dollars on our local goods and services. Interesting “chain” of events.
The Gallatin Valley has a fertile agricultural legacy, and if we value this, we must support businesses that support our local growers. Locally harvested produce, meats and other products are a mainstay at Bozeman’s Community Food Co-op. You’ll also find some of these items at locally-owned Van’s County Market, Town and Country, Heebs and Joes Parkway. These products rarely receive shelf space at chain supermarkets. Furthermore, these locally owned groceries provide a much more livable wage for their employees compared to chain stores.
As for restaurants, just try to find locally produced ingredients at chain restaurants, compared with the supplier lists of locally-owned Sweet Pea Café, Savory Olive, Gourmet Gas Station, the Flying C or Mackenzie River Pizza.
And what about Bozeman’s charm? Its character? While many residents feel that much of this is already in short supply and dwindling, locally owned businesses help keep homogenization and sprawl in check. Local businesses provide a sense of place. Local stores are where you can find unique products, overhear sincere conversations between local shopkeepers and true blue customers, and (if need be) “talk to the owner.” And shopping closer to the heart of town, where most local businesses are located, keeps our town streets lively. Driving to the outskirts, where most chain stores are located, keeps people secluded in cars and stuck in traffic.
The community benefits that independent businesses provide are many. How many readers know that improvements made to the Bozeman High Staduim would never have been completed if it weren’t for the generosity of local independent businesses such as Sound Pro, Universal Athletics, Owenhouse Hardware, and many more. A local grammar school is building desperately needed library shelving using lumber donated by a local businesses whose owners’ children attend the school. Furthermore, as Dr. Thomas Lyson of Cornell University determined in his study “Big Business and Community Welfare,” comparing economies dominated by a few large corporations to those with many small, local businesses in 225 counties nationwide, those with a strong supply of small, local businesses had higher rates of civic engagement, based on voter turnout and membership in community organizations.
Of course, self-interest is another good reason to buy local. Contrasting what many believe, local, independent businesses provide superior value. Last year, the Maine Department of Human Services researched the prices of 15 common prescription drugs at 106 independent and chain pharmacies statewide. The 10 lowest-priced pharmacies (based on the combined cost of all drugs) all were locally-owned drugstores. Closer to home, who can argue with the value of time saved when five eager, knowledgeable salesmen at Owenhouse Hardware run to you the minute you walk in the door, compared with the time wasted waiting…and waiting…and waiting…at a chain store for help. And well-informed help might take even longer.
GVIBA is learning a lot about why their efforts are so important. As Dr. Lyson said in his study mentioned above, “Once a nation of shopkeepers, we are rapidly becoming a nation of clerks with potentially devastating social and economic consequences.” Bozeman is not immune. So, does it make sense to buy local? You bet!
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