Home › Forums › Open Discussion › Anyone Shop Local Anymore?
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June 18, 2012 at 3:55 pm #603646
freerangeMemberI like to try and shop local but with the economy the way it is, and the markup on local merchants, I just feel like I can’t anymore.
I was just in a contemporary design store (in the junction a few weeks ago) and when looking around, happened to notice an invoice left out, probably when putting out items on the display. I noticed what THEY paid for it and then noticed that the price tag was for 50% MORE! Maybe it was just this one item but it made me suspect at the high prices there. Checked for the item at a “chain” store and online and found it MUCH cheaper for the exact same thing.
Dunno, to me, I try, but giving a 50% markup to a local merchant JUST because they’re local vs. maybe a 10-15% markup to a large store, I’d have to say I’m taking my business to the larger store. I know it sounds terrible but I just cant’ justify “shopping local” anymore when money is tighter and the markup is SO LARGE. I still think about worker treatment but also about how many jobs the larger stores have created too.
Either I give my money to the local store to help them live better or I can live better by not spending as much for the same item at a “larger store”.
What are everyone’s thoughts?
June 18, 2012 at 4:08 pm #761291
skeeterParticipantStores like Wal-Mart and Home Depot and Target and Amazon have figured it out- and so have their customers. Efficiencies lead to lower prices. That’s why so many Americans have two cars, four TVs, and newer appliances. The supply chains have achieved an exceptional level of efficiency and brought prices down. You can hate Wal-Mart all you like, but they are responsible for driving prices down everywhere – even if you don’t shop at Wal-Mart.
I don’t know how, say, a furniture store in the Junction stays in business. The profit margins have to be huge because the overhead is so high for the level of sales. I suppose a certain type of customer values service and convenience and is not price sensitive. For those of us struggling to pay for housing, food, medicine, and college for our kids, we really don’t have that luxury.
June 18, 2012 at 4:11 pm #761292
DBurnsParticipantI think it really has to be a case by case decision, and has to fit the individual shopper’s needs. Mark up is the retail way of life and 50% or more is not uncommon. The bigger stores that buy in bulk pay less so even though you think you are paying less mark up you could be paying more.
With a business license I can get into the Gift Shows and I see first hand what the merchants are paying for things. Yes, it does make me pause before I spend any more than $5 on a scarf because I know that is what they paid, but if I love the scarf I will pay the extra. I believe it is all about personal value and what you are looking for and can afford to pay at the moment. Also about how willing you are to shop around. Some people don’t want to spend time searching for the best deal – I do, but sometimes time prevents me. Just last Thursday I was at work starting payroll and realized I had forgotten my reader glasses – in particular an item at the gift show (and other places like Dollar Tree) that you can get for a dollar – I ran to Pier 1 and spent $20. Needed them and couldn’t afford the time to keep shopping.
I think it is a balance of both. We have to patronize the stores at some point if we want them to be there. The “junction charm” is not going to be achieved with big chain stores and empty store fronts. Running a private small business is EXPENSIVE – don’t get me started – so we all need to be understanding of what they go through and patronize when we can. And wait for sales!
June 18, 2012 at 4:19 pm #761293
2 Much WhineParticipantfreerange, you’ve obviously never worked retail. 50% is a standard markup. In fact, some places mark up even more so they can take 20% off and still make their 50%. How can jewelry stores knock 70% off the price of anything and still stay in business? How do you think our local merchants pay for rent, salaries, unemployment insurance, utilities, waste, theft, Halloween candy etc. and still make a little profit? Grocery stores don’t mark up as much but I guarantee that every item in a Hallmark shop cost exactly half of what the price on the back of the card or gift is labeled. You are right, though, the big chains have major purchasing power and distribution efficiencies that make it hard for the little guy to compete. That’s why they have to rely on customer service (see True Value Raves) or a uniqueness that makes them stand out from the others (think Zippy’s).
June 18, 2012 at 4:58 pm #761294
Spring ChickenMemberI shop local for whatever I can afford. Sometimes that’s yard sale or vegetable stand. Credit union and dentist, hair salon and plumber, auto repair and library. My time and gas factor into cost savings. Perhaps I can’t donate as much to charity some months but I believe in supporting working folks in our community just as well. I’ve never been inside the junction’s furniture or design stores, but enjoy browsing the bins at Rubato and the shelves at Pegasus. Everyone makes their own choices but there are values to be found nearby too! I vote local with my dollars whenever I can :)
June 18, 2012 at 5:57 pm #761295
dbseaMemberI would LOVE to purchase everything locally but my money would get me alot less. And not everything is available in a local shop. If I know what I’m buying and can find it on Amazon, Overstock, ebay etc. I will. If I’m truly shopping then I hit the stores, usually in WS first. You can often find things you won’t see at Home Depot or on Amazon. But small shops and chains simply cannot compete with the bigger chains and their efficiencies. Part of that may have to do with smaller shops paying their people better or providing more generous benefits. I’ve no idea but I have a hunch they tend to. I may be wrong.
And you just can’t replace the experience of wandering through the junction (or wherever) and stopping at many different shops and generally being very well treated. And meeting more of your WS neighbors.
June 18, 2012 at 6:29 pm #761296
365StairsParticipantFrom a pure service perspective (beyond cost)…the value you get for traditionally focused customer service at the local stores is worth it!
There is a reason Oneil’s, Husky’s Deli, and Alki Lumber have been around for so long…the list is not long for those with 75+ years…but they are solid foundations of this community!
Sure you have your less than stellar experiences locally too…but like dbsea says…you get a more social experience locally too!
June 18, 2012 at 8:50 pm #761297
WDParticipantIf I’m a big box store with say, 8,000 locations and want to sell something, like a metal flower pot, I can place an order for 50,000 – 75,000 flower pots and get a big price break, which allows me the luxury of a 15-30% mark-up. I can probably also order directly from the manufacturer, maybe overseas.
If I’m a local West Seattle small business and want to sell that same pot, I can probably only order 12 or less, have to order from a distributor (middle-man) and get no price break whatsoever. Along with rising rents for space in West Seattle, overhead costs eat up almost any profit margin available on those pots and I have employees to pay and a family to support. There’s no way a small business can compete with big box stores on price.
June 18, 2012 at 9:31 pm #761298
freerangeMemberIt’s all very true but that has to be weighed with the lack of salary growth, unemployment, and the rising cost of essentials. How can I justify spending the less money I have now because of the economy on a product that is 50% marked up or more as some have pointed out, over a box store or online.
Sad, but just don’t see myself shopping locally anymore for just this reason. Not because I don’t want to, but paying my money to a local store for the same item I can find cheaper at another store and keep more money in my pocket…………..
June 18, 2012 at 10:07 pm #761299
WDParticipantYep… economic issues sometimes drive customers to do what they have to do, to survive. I totally understand that.
But, you can always shop sales locally because sometimes local shops have great sales. And, before driving to that big box store, think about how much gas costs. If the item you purchase at a big box costs $3 less and gas for the 5 – 10 round trip miles (or more) will cost you at least $3, then you might as well shop locally and save some wear on your car.
June 19, 2012 at 3:46 pm #761300
freerangeMemberVery true WD, but I just can’t see myself buying a $4 cupcake or a $300 “froofy” bean bag chair. Exaggerations on the prices but not by much!
June 19, 2012 at 4:15 pm #761301
JanSParticipantI suppose that’s your choice, free range. I try to buy as much as I can on the local economy. Nothing is perfect, of course, so shop online at times. I haven’t been in Target in a couple of years, I don’t go out of my way to find a Fred Meyer. If I need a hardware store, I go to Junction True Value instead of Home Depot, etc. It’s good that we have choices. Just do what you can with them.
June 19, 2012 at 5:49 pm #761302
miwsParticipantI hope that freerange doesn’t mind me heading off onto a related tangent, but a question for everyone; If you were in the market for, and had the budget for, glass art, are you gonna go with the admittedly local, but world renowned Dale Chihuly, or the very local, soon to be renowned, West Seattelite, 2 Much Whine?
Mike
June 19, 2012 at 6:16 pm #761303
DBPMemberAnd why just shop very local when you can shop hyper-local or even über-local?
(Über-local is when you only buy stuff from your own garage sales.)
June 19, 2012 at 6:34 pm #761304
dbseaMember“(Über-local is when you only buy stuff from your own garage sales.) “
HA ! That’s my daughters when we have a garage sale. Buying (sneaking) back their stuffed animals.
June 20, 2012 at 3:23 am #761305
JayDeeParticipant@freerange: Last week I wanted to buy some wine storage racks from IKEA — they seemed the most suitable even given the racks available on Amazon. So I drove there, then swung by Costco, and lastly Southcenter to the Apple Store. I spent probably $15 on gas due to stopping and starting. So it is likely a net benefit to me since the products were cheaper and better than driving elsewhere. Buying Uli’s sausage — go to Thriftway. Wine? pick your choice. Within a circle route, with car or bike, lie most every retail choice aside from clothing. So I cannot understand the angst. Amazon Fresh is great, especially when one cannot drive or haul groceries. But West Seattle Produce has great prices for staples and great service and is next to QFC, TJs, and Husky Deli. I would much rather buy Red Potato Salad from Husky as well as sandwiches. The cost in time and gas money beats squeaking the last cent from a transaction in my book. My two cents.
June 20, 2012 at 4:31 am #761306
EscondidoMemberI purchase most of what I need within the community. Try to give a lot of thought to what I truly need and know that most of what I “think” I need, I probably don’t. I would rather pay a little bit more and support a local family and buy less quantity. Our country seems obsessed with buying quantity and paying less per item. To me, that thinking is just nuts. I would rather pay more and purchase a higher quality item that lasts longer and not have as much “stuff”.
June 20, 2012 at 6:09 am #761307
JanSParticipantescondido…I have said numerous times on here tht I mostly have learned the difference between want and need. There’s a whole lot of things that I want, but damned near don’t need any of it. It’s something everyone should ask themselves when they’re out shopping..do I really need this?
June 20, 2012 at 7:02 am #761308
cwitParticipantFreerange – Similar to 2 Much Whine’s experience, I recall the mark-up for apparel, when I was working retail, usually being 100%. We’d just pretty much double the wholesale cost to us.
I think one of the ways a big chain like Best Buy can have lower mark-ups on the bigger items is that they can make it up in the margins for the accessory items like cables, headphones, smartphone accessories, etc. Especially when they have their own in-house brand. Something like an HDMI cable that sells at a retail price of $24.99 or more costs just about $3 wholesale – well above the 50% mark-up you saw.
June 20, 2012 at 8:11 am #761309
EscondidoMemberJune 20, 2012 at 2:48 pm #761310
JoBParticipantescondido..
ok.. i confess.. sometimes it’s just about want…
when i splurge, i not only want to feel that i got the best product.. but i want to have the best time getting it…
our local merchants win that round every time.
June 20, 2012 at 3:07 pm #761311
2 Much WhineParticipantMike, you’re cracking me up. At least you could compare two items of equal value/quality. I’m no Chihuly (although if someone wants to pay me $50K for a piece of my glass I’d be honored to accept it).
June 20, 2012 at 3:45 pm #761312
miwsParticipantJune 20, 2012 at 4:20 pm #761313
GAnativeParticipantI’ve been out of the wholesale/retail industry for a while now but the standard markup used to be Keystone (103%). So if you’re seeing only a 50% markup in a small local store you’re getting a deal.
That being said I shop local for some things and not for others.
June 20, 2012 at 4:25 pm #761314
Genesee HillParticipantI have read several times the maximum mark up at Costco is 14 per cent.
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