(Originally published in the October '09 issues of Merchant Magazine and Building Products Digest.)
For most of us independent business owners, the idea of buying local is pretty familiar – at least with respect to our own businesses. We know that money spent in our stores, from folks in our own community, tends to stay in the community. A good chunk of our salaries and those of our employees will likely be spent and invested locally, for other goods and services, as well as for local taxes that pay for fire, police and other municipal services. Awareness of these benefits is spreading and giving rise to hundreds of buy-local campaigns which could be an important component of your green strategy.
Recently, the media has covered the growing interest in buying locally produced food as “locavores” seek to reduce the “food miles” and carbon footprint of their daily meals. Right alongside, the shop local movement has been quietly picking up steam. Organizations like BALLE, the Business Alliance for Local Living Economies, (www.livingeconomies.org) and AMIBA, the American Independent Business Alliance, (www.amiba.net), and a few others, are experiencing rapid growth. Combined they represent over 30,000 independent businesses and over 130 local networks, with the bulk of those forming over the last two years. Not surprisingly, a growing number of these businesses are LBM dealers, such as Kenyon Noble Lumber in Montana and Burke Brother's Hardware in North Carolina.
“Joining an Independent Business Alliance, or starting one in your local community, is not unlike joining a co-op, where members can benefit from group buying on advertising, supplies, etc.,” says Jeff Milchen, co-founder of AMIBA. Milchen, counts the recession and growing interest in reducing environmental impacts as two of the main drivers lifting the number of independent business alliances they work with from 30 before the recession to an anticipated 75 by year’s end.
Both organizations provide support to locally-focused business networks to educate the community about the benefits of buying and “thinking local.” Alissa Barron, of BALLE, points out that there’s a strong economic case for local businesses to form collaborative networks that promote buying locally. “Dollars spent at locally-owned businesses circulate in the community 2-4 times longer, and do 2-4 times more good, than those spent with chains,” says Barron. “We’re also finding that businesses end up collaborating on broader issues, too, like pooling resources for buying renewable energy.“
Seeking to tap this trend with some innovative twists is San Francisco start-up, Viv, (www.doyouviv.com). It’s a forward-thinking rewards program that helps green customers entice participating retailers to continuously green their operations with a simple card scan. The businesses take green steps based on the number of customer visits, while the Viv team offers consulting, free energy audits, and discounts from affiliated wholesalers. Meanwhile, your customers share pride in your accomplishments and become more loyal.
For most independent LBM dealers, this trend plays to your natural advantage, but you can’t sit on your hands. Join your local network, put signs in your windows, buy your supplies locally, and start educating your customers – both contractors and home owners - about the community benefits of buying local. There may be opportunities to pool resources with fellow local businesses, too. If you’re sourcing local materials, make sure to point them out - they can also contribute to LEED regional credits. All in all, by fully embracing your local selves, your business will benefit and your community will, too.
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