The joy (and peril) of small business shopping
Like many Americans, I like to shop at small, locally-owned businesses when I can. Millions of people participated in "Small Business Saturday" this past weekend, with an eye toward improving our local economies. After all, a 2008 study of Grand Rapids, Mich. from research firm Civic Economics found that locally-owned businesses tend to spend a higher percentage of their revenue on payroll than chains. For instance, for every $1 million in revenue, chain restaurants employed 9.7 people while independent restaurants employed 14.8. In other words, if you want to create jobs, you buy local.
That said, small business shopping can be a mixed experience. Some retailers are amazing. And in other cases, there's a reason Walmart put mom and pop shops out of business. So you have to be savvy, and understand why you're shopping and what you hope to get out of it. Some do's and don'ts:
Do shop at stores where you know the proprietor and value what they're doing. If you attend readings at an independent book store, be sure to buy your books there, or possibly even your morning coffee if that's an option. Otherwise, there won't be readings for long.
Do shop at independent stores if you want something in a broad category, like "$75 gift for a wedding," but don't have specific ideas about what you want. Who knows, you might find something wonderful! But you'll definitely find something, hopefully with a story attached.
Don't experiment with a new-to-you small business if you really need a mediocre but certain result. I was reminded of this the other night when I was trying to order pizza for a bunch of hungry kids because I was too tired to cook. I attempted to order from a local pizzeria whose menu sounded amazing. After putting in the order, however, I got a call back 20 minutes later informing me that they would not be delivering it, because I was out of their range. So I wound up calling Dominos, which is what I realized I should have done in the first place. The pizza wasn't gourmet, but it was definitely there in 30 minutes.
When do you shop at local small businesses, and when do you prefer chains?