We are in a crazy sort of world right now. There are protests happening in hundreds of cities all over the world, consumers are rallying to defeat new banking fees, and millions of Americans are unemployed. It’s a tough time for small businesses in America, but it shouldn’t have to be.
We don’t normally talk about politics on this site, instead focusing on how businesses can grow their customer base, but we found it appropriate this time to talk about how small businesses can actually thrive in this environment.
In this article, we attempt to show how millions of people making millions of small decisions can have a radical impact on life in America.
First, let’s begin with a little background. My friend Anthony is a part of the occupy protest in San Francisco. He’s been there for weeks. He tells me so far his greatest accomplishment has been shutting down (albeit temporarily) the Port of Oakland. For the benefit of those who don’t know what that is, it’s one of the West Coast’s major shipping ports, where many Chinese goods first enter the United States. By shutting down the Port of Oakland, the occupiers felt that they would stop Corporate America from bringing in their goods for sale, thus hurting corporate profits. Considering that these goods often take many weeks to arrive, a day or two delay won’t hurt corporations much.
What many of these protesters don’t realize, is that all the issues in America (well not all, but certainly many) could be solved virtually overnight. It would take a concerted effort among Americans, but we could stop the corporations, stop the overinflated CEO pay, and stop the unemployment problems within a matter of weeks. The solution is simple and two fold:
1. Buy American Made Products
2. Stop Purchasing Products From Corporations
Many will ask how this all relates to the title of this article, we’ll get there soon…
Let’s start with a simple product that everyone uses: printer paper.
You can buy printer paper almost anywhere, your big box stores like Office Depot or Walmart, your local grocery store, and some place many people don’t think about, your locally owned corner drug store. By simply choosing to purchase a package of printer paper at the local corner drug store, rather than someplace like Walmart, you’re contributing to the local economy, and most likely helping America build more jobs.
You see, what most Americans don’t realize is that small, local owned stores often have a higher number of employees overall than big box stores have. Considering that a typical corner drug store will have someone to unload the shipping trucks, someone to stock the shelves, someone to ring up purchases, a manager, a maintenance person, and someone to clean the store at night. Simply making the small decision to purchase that package of paper at the corner drug store helped contribute to at least 6 jobs in this scenario, the decision to purchase that same paper at Walmart will most likely contribute to 4 or 5 jobs.
At the same time, the profit from that sale ends up in the pockets of a local business owner, not a greedy bunch of shareholders.
It seems like such a small difference, 6 jobs versus 5. And in reality, one person making a single purchase at that store won’t make a difference. Imagine, however if that one person convinced 3 other people to do the same, and each of them convinced 3, etc. Soon, millions of people would be making small decisions and that 6/5 ratio of jobs turns into 600/500, or even 6,000,000/5,000.000.
If, at the same time, those consumers demanded that the printer paper they purchased was made in America, rather than in China, thousands more jobs would be brought to America, which in turn fuels the economy more and more.
Back to the title of the article, how small business can capitalize on #occupywallstreet. Remember that most American’s won’t make the leap on their own. It’s up to the savvy business owner to remind people that making the decision to shop at a locally owned store versus a big box store really makes a difference.
There are many ways to do this, and every business will find their own voice and method, but the message is what’s most important.
Constantly reminding your customers that they are making the right decision by purchasing from you will reinforce their decision to shop from you and grow your bottom line. Here’s just a few of the ways you could implement a “buy local” campaign:
Offer promotions to your customers that reward them for bringing in their friends.
When people complete the purchasing process (check out at a store, or pay an invoice) thank them for contributing to the local economy, and remind them of how many jobs they have contributed to.
Offer customer loyalty programs. (Buy 5, get one free)
Let people trade in purchases from big box stores to get a discount on your own products and services.
Offer fantastic customer service.
Include a coupon that is only good for a customers friends with every receipt. This will encourage your customer to give the coupon to their friends and family.
Donate a portion of your sales to local charities. Let your customers decide which charity gets the donations. A company called Buffalo Exchange does this whenever people bring in their own bags. They keep a supply of wooden nickels in a jar, and customers get to place those wooden nickels in the jar of their favorite charity. At the end of each month the company donates to each charity based on the number of wooden nickels in each jar.
Work with local schools and youth organizations to hold fundraisers. One of the hottest business models in America right now is the “Groupon” model. Companies offer (for example) a $20 gift card for $10. Groupon keeps half, the company keeps half. Consider using a similar model to sell gift cards for your store, but sell them through these organizations.
Especially for service industries and local brick and mortar stores: Collect the email addresses of every customer, and use that to remind their friends to use your business.
There are many other ways that small businesses can capitalize on the current political environment in America. We’d love to hear your ideas in the comments space below.
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