Originally Posted by patc
First I don't buy the "support your local economy" arguments. To me that idea is out of step with current realities. I prefer to buy from a Canadian company when I can, but that's only a small preference and I order from the US all the time. (I also know that the line between Canadian/US corporations isn't always clear! McDonald's Canada is a Canadian company... HBC (Zellers, The Bay) meanwhile has significant US ownership).
The farther money must travel, the more hands snitch their share, that is a pretty good economic truism. You want more money in your community, since that means more money to spend on your services. If the money must make a very long and circuitous route back home (non local business), it will be less than if it had a short trip (local business). Now, I'm not a 'local nazi', but the idea of buying local as a way to support localized economies (which we are more equipped to change as individuals) is economically sound.
As both a consumer and a business owner, I go to local businesses for services, and shop on-line for goods. When the goods combine a service - eg I need advice on a bike part plus I want to look at some, that's local too. I don't think that most businesses that primary sell goods will survive for much longer on the local level, and if I owned a store I would be moving to a service model ASAP.
I totally agree with you! Goods are so much cheaper online, because that business model has so much less overhead, and no brick 'n' mortar store can compete on price. But an online business model doesn't include the level of service of a brick 'n' mortar. I can buy shoes online, or I can go to a shoe store and get advice about what would fit me, how to find something for my narrow feet, what would look good with my slacks, and so on. Thats a service I'm paying for, not the shoe. Shops that forget this powerful fact die quick and painful deaths.
As a consumer I research products a lot, and usually am very specific as to what I want. I seldom go out to buy a new video card or a new handlebar. Rather I know the specific model number, package, etc. that I want. It simply isn't possible for my to walk into my L{whatever}S and find that item on the shelf, and ordering it is a hassle even when possible. I certainly won't spend the day on the phone calling stores and asking, "Do you have model XYZ-123a in stock?"
Again, I agree! There is a lot of product out there, and I'm usually incredibly specific about what I want. If I need a cable, or a tube, I could care less about brands. But I usually know exactly what tire I want, exactly what seat I want, etc. I can't rely on a small shop having that much stock.
I'm not saying small, local, and often independent retailers will die out. Rather, just like any other industrial or economic change in history, businesses will change and adapt or die. The need for services won't die out, the need to see/handle/try some types of products won't go away, neither will the need for professional advice. Retailers who adapt to this will do well.
As a photographer I offer both services and products. My industry was hit by the proliferation of "portrait studios" in malls, and now by digital photography. Many photographers have predictions of doom-and-gloom as they see print sales go down. What they are not seeing is the need for the services of a professional photographer, that need is still there. Its just the product (prints) that people are no longer willing to pay premium prices for.
Its good you understand this. Anytime business models change, lots of people gripe about how their livelyhood will be destroyed. But business always changes, and the businesses that survive are the ones that are willing to adapt. I hope your photography business does well. It doesn't matter how many discount prints people can crank out of their discount digital cameras, the quality of the photo won't compare with a professional portrait, and thats a service you can count on.
peace,
sam