Today I want to talk about these buy local programs. It’s a chance to talk about the difference between good and bad economics, and feel good in reality.
While everyone screams 'Buy Local', businesses fail. Business needs a path not a rhyme.
What do I mean by that? First of all: Yes, there are some things that can be good about buy local programs, but they mostly feel good. They’re not sustainable. I’ll get to all of these, but there are some good things and some bad things, and there are some ways to make some of it work, but not if it’s done the wrong way. I
First of all, let’s start out with a basic premise. Let’s say the program is out there saying you should buy locally. Well, somebody’s telling you to buy locally because it is good, as compared to say, buy it on Amazon, have it delivered to your home, etc., and save $10 or save x%. When is it good, and when is it bad? First of all, just the idea of buying locally, while it sounds good, can you imagine walking down the street and you’re passing by a shop, and you really like the guy and you like his shop, so you walk in and say: “Here’s a $5 bill. I just really like your shop.” You walk out again, and go on. Isn’t that the same as buying local for the wrong reason?
Before I go on to some of the other parts: Yes, there can be some very good reasons, and one of them happens to be in the food area. Some things with locally-grown food… Forget the idea of just supporting the farmers for the sake of supporting the farmers, but think of the idea of what you’re really getting, because it’s the value, the perceived value of what you receive; fresh, locally-grown goods. Those tomatoes that are either locally grown or hydroponically grown. Yes, they can be grown all winter; they are in northwest and southern British Columbia. They’re grown in large green houses, hydroponically, so you’re getting something that is just about ripe as it pulled from the vine. I grow tomatoes and have grown tomatoes in my dinette, hydroponically. They grow like crazy and they taste great, so that makes sense. It might not make sense the way I do it, but it makes sense that it can be done commercially, and it is. Getting fresh things like that, what is the difference? They have more value because they taste better, they’re fresher. There is a true and perceived value difference.
On the other side of it, where I live right now, the Redmond farmers market has things, but the prices are actually higher by the “locally-grown farmers” than they are in a grocery store, and in many cases, the local farmers, because of where we are in Washington, are supplying the grocery store, too. In essence, you’re just paying more for the idea of supporting the farmer. That not only doesn’t make good sense when that happens, but it doesn’t really feel like the farmer is reciprocating in that buy local program of treating you right. At the same time, those same farmers, I can go down to Kent, Washington, and they’re selling them for about a quarter of the price that they sell them at the Redmond farmers market. Now, they’re not worth driving that far, but it’s just kind of interesting. The local farmer, which is just a few miles away is selling them based on the price as much as he can get out of whichever group he gets them, and depending on what neighborhood you live.
What about the local stores and shops? If you’re walking into a local store or shop, there should be some perceived or added value for you to go there. Keep in mind that if there isn’t something there, what are you doing? You’re really just contributing. That sounds good and sounds nice, and they have lots of different reasons that they say you should do it. Some of it is that if you’re buying locally, there’s more likelihood that they’re going to turn around (than a big chain store), that they’re going to spend their money that they receive, locally, so in a sense it does stimulate the economy.