Supporting Local Business

Individuals who have been bitten by the entrepreneurial bug often take chances and enter the world of business ownership. A common risk one may have is giving up the comforts of a stable work environment and going into the uncharted waters of being a new business. There are so many barriers that a business owner has to break through in order to get one’s business into the market place and be recognized by the consumer.

It doesn’t really help matters when you are competing with big companies who have million dollar budgets and can afford to take a little extra off their price in order to seriously damage their competitors. However, it doesn’t have to be this way. In my experiences I have become very frustrated when having business relationships with big companies. It seems as though the bigger the company is the less I feel like a customer and more like a number that gets applied to their bottom line.

Again, it doesn’t have to be this way. We as consumers have the ultimate power, consumer power. It all goes back to the old consumer economics that we were taught in school or college. When a sudden increase of requests for a product is demanded before production can satisfy the demand the price of that product goes up. Once the market is saturated with the product and there are more units of the product available than are demanded, the end result will be the reduction of price of the product or service.

Local businesses with a more limited range of customers have no choice but to price their product based on what the economics of their situation are. Businesses that invest much of their time producing inventory have little choice but to undercut themselves to compete with bigger corporations who have larger amounts of inventory at a lower prices (as a result of bulk purchasing discounts etc). This causes a harmful ripple effect to small business owners.

The results of these effects cause small businesses to have to relocate their business or close altogether. This forces the consumer to do business with the only option available to them instead of having a variety of choices to choose from. By supporting the local business community the consumer also supports local consumers.

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