Do You OzBargainers Care about Shopping at Local Small Businesses?

• 

  [Deactivated] on 07/12/2015 - 21:43

  +3

  I never shop at Coles or Woolworths. Bunch of scumbags.
  I buy all my fruit and veg from local shops.

  • 

    supervigilante on 08/12/2015 - 10:31

    What extra benefits do you get from your local shops? Better service, fresher produce or money well spent supporting the owner?

• 

  Axelstrife on 07/12/2015 - 22:06

  +3

  I buy cheapest and most convenient.
  So I'd pay slightly more if it's in my area compared to driving to another suburb.

  • 

    supervigilante on 08/12/2015 - 10:36

    most convenient, as in location & opening hours?

    Would you care if the local small business owners support local events/school?

• 

  mskeggs on 07/12/2015 - 22:15

  +6

  I shop at small local retailers who offer competitive prices. There are quite a few like that. But we also have those who are never competitive on price, and basically price gouge people who don't shop online. I don't shop with them.
  There are some stores (e.g. our butcher) who charges a lot, but provides extraordinary quality and service. I don't shop with him very often, but I know a lot of people who value that approach very highly.
  I think it is easier to be a successful small business if you target the high quality niche. Woolies or Dick Smith will never be able to match you on expertise or quality if you go high end, but you will lose the cut-price customers.

  • 

    supervigilante on 08/12/2015 - 11:15

    We all know that price doesn't mean value. I am as frugal as the next person, but I always buy sliced beef from a certain local Korean store. I am happy to buy from them every single time because they are near my house, their beef slices taste amazing, and they are happy to change the thickness according to my need. The weird thing is I don't even know/care what other butchers/korean stores are selling it for per kg. Somehow they have my absolute loyalty and it's not because of the price.

    For example, what would the butcher need to do to get your constant business and change your shopping habit? Hopefully your input could inform some small business owners here, since they can't win the price war against larger corporations with more money to throw at experts.

    • 

      mskeggs on 08/12/2015 - 13:03

      +1

      That is a good question.
      My budget doesn't extend to being able to buy all my meat at my local butcher. I buy less expensive mince, sausages for kids, marked down roasts etc. at Woolies. In theory, my quality butcher could capture that business by dropping prices - but I doubt that would be a good move.
      It is OK for a business not to capture every customer, as long as they gain enough to be profitable. My butcher would forego the profit he gets from higher prices from the people who value his quality and service if he lowered prices. Would there be enough volume to make up for it? Perhaps, but he would be certain to lose some custom who currently pay fairly high prices, and uncertain of what the new customers might bring.
      A risk.
      A compromise another local butcher did was to put together "family packs" of cheap cuts like chicken wings, sausages, mince, a roast etc. and sell them for $80. That allowed him to divide his market into price sensitive customers who might buy in bulk to save, while keeping the discerning purchaser of 4 cutlets and two rib eye steaks. Sadly, that butcher is gone and the bloke who took over dropped the bulk packs (and lost my business, as he wasn't upmarket enough to capture the top quality market or cheap enough for the bargain seekers).

• 

  purplelady on 07/12/2015 - 22:51

  +1

  I try to, if the price is competitive. After all, Coles pisses me off lately.

  • 

    supervigilante on 08/12/2015 - 11:17

    -1

    What would make you pay slightly more if the price is not competitive?

    • 

      purplelady on 08/12/2015 - 12:23

      +1

      if it's wayyyyy not competitive, I don't think I would ever buy.

      If it's slightly not, then good service would get me there.

• 

  scrimshaw on 07/12/2015 - 22:54

  +2

  For food and groceries, yes, I do shop at smaller stores.

  For other categories of products, e.g clothing, computers and electronics, I usually go with the big guys. I don't know if you can call MSY, Mwave or UMART 'small businesses' though.

  • 

    kywst on 07/12/2015 - 22:58

    +1

    Sure you can. It doesn't necessarily make it true but you certainly can.

• 

  DeafMutePretender on 07/12/2015 - 23:15

  +4

  "Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires."

  I view small local "mom and pop" businesses as temporarily embarrassed megacorps. They're just as greedy as megacorps, they're just less blatant about it and if they had the opportunity to become a megacorp, then they would behave like one (tax evasion, erosion of worker rights etc).

  The "small local businesses employ locals" argument doesn't convince me much. So do the bigger businesses.
  Also, I see both small businesses and megacorps as both having the potential to abuse workers (see 7/11 below minimum wage in the former, using unregulated 3rd world sweatshops the latter).

  The only positive aspect of small businesses that I can see is that ceteris paribus, the money that you spend on small businesses does the community/country more good than spending it on a megacorp. The reason is that megacorps can employ expensive accountants and all that consumer money gets siphoned off out of the country, to Swiss bank accounts untaxed. Then this money will come back to bite us in the ass (when megacorps bribe sorry donate to our politicians). Small businesses can't do that, not to that extent anyway.

  So realistically, the only and best thing I can do is look after my own interests and pay for the product that best suits me at the price I want, whether that product comes from a small business or megacorp. Because I promise you that the owner of the small business or the CEO of the megacorp is only looking after their own (interests).

  I'd like to hear more arguments for small businesses though.

  • 

    kywst on 07/12/2015 - 23:36

    +2

    The CEO of a 'megacorp' would likely be looking after the interests of the shareholders. The small business owner is most definitely looking out for themselves but this isn't surprising and doesn't mean a mutually beneficial transaction can't take place. I don't understand how Socialism or how America's peoples view of their financial status relates to the topic at hand.

    An argument for small business. Small business has certainly helped the Germans - https://en.wikipedia.org/wiki/Mittelstand

    They attribute the following to the Mittelstand:
    -Family ownership or family-like corporate culture
    -Generational continuity
    -Long-term focus
    -Independence
    -Nimbleness
    -Emotional attachment
    -Investment into the workforce
    -Flexibility
    -Lean hierarchies
    -Innovativeness
    -Customer focus
    -Social responsibility
    -Strong regional ties

    One could argue that what Germany has experienced could be true more universally for most the controls are the same if we are looking at developed nations.

    • 

      mskeggs on 08/12/2015 - 07:36

      +2

      I think kywst hits the key point. All other things being equal (and I accept that local business owners can be as cut throat as woolies) the interests of the local overlap more with your own than the interests of the megacorp.
      Kmart, for example, will happily move their store to the next town over if it will save them money or make them more, and they have little interest in the employment etc. benefits for your town. They rightly judge the people they help in the next town over are as worthy of a job from their position.
      But the local chicken shop owner is much more invested in the community they operate in. Their kids go to school with yours, they are concerned if graffiti is on the increase, they share your desire for local amenity. Undoubtedly, they also wish to make money as much as Kmart, but supporting them, all other things being equal, is better for you.

  • 

    supervigilante on 08/12/2015 - 10:55

    Yes, small businesses want to make as much money as possible like any megacorps, but most small businesses would try to provide the best for their customers. After all, they depend highly on their reputation, word-of-mouth and referrals. Referrals and repeat customers are their bread and butter. Any local shops that try to screw over their customers for short-term gain, wouldn't last long.

    Small businesses support local events, school, clubs to generate good reputation & hopefully return of investments. Yes, their main intention is to get more sales, but at least their "greed" is creating a positive change in the community.

    So, as a consumer, I'd happy to pay slightly more for some services/products, if it means higher chance of getting the most value e.g. better customer support, more lenient policies, less bureaucracy etc.

    What do you think?

• 

  barginhunter11 on 08/12/2015 - 09:43

  +1

  Vegies yes ! Coles and Woolies are crap for quality
  The small local butcher / Grocer always best - not to mention better service

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  Keano on 08/12/2015 - 13:15

  +1

  small biz say Australian owned, western australian made etc? ok i am in WA.

  I will say go for the price after all, the price index here is so freaking high.