Hope For The ‘Ma and Pa’ Store?

March 17, 2008 · Filed Under , · 11 Comments 

Some economist say we are in a recession right now. Some say we are not. Whatever, make up your minds already! Bottom line is that times are tough, especially for small business owners trying to compete against the likes of Walmart, Best Buy, and Costco. I have noticed recently that a handful of small businesses in my town have closed their doors. A couple restaurants and a beauty supply store most recently.

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But not all might be lost! I read an article this morning that gave me hope! It was in the online edition of our local newspaper. The article was about a young man, 30 years old, who moved his ‘Outdoorsman’ store up from Sacramento to Redding (my town) last fall because he thought it would be a better fit since there is a lot of hunting and fishing in our area. It was a nice article about how he strives to provide customized customer service and go beyond the call of duty for anybody that walks through his doors.

Then at the bottom of the story you can leave a comment if you like. This comment caught my eye:

They are very friendly. They even loaned me a CD on duck calls. They have nice gear for a reasonable price. If you want cheap, stay at Walmart. I for one will be back.

There are another 10 comments very similar to this one. Beautiful, just made my day! Maybe the ‘Ma and Pa’ stores still have a chance against the Goliaths. My concern is with the struggling economy; at what point are people going to put up with terrible service in order to get the lowest price at Walmart? Many would say that already happened a long time ago. Perhaps it depends on what you are buying? I know that makes a difference for me.

I typically will do a little research and if a local business can match the price or get close, I will always give them my business. I did this most recently with our washer and dryer. I think we should all do that. We need to support these guys. They boost our local tax base and create good jobs. But most importantly they give us a sense of community that you will never get from the big box stores. How often have you seen 5 guys standing around the sporting goods department at Walmart talking about the huge Bass they caught last week?

Do you support the local businesses in your community?

Photo Credit: bgroodog

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Comments

11 Responses to “Hope For The ‘Ma and Pa’ Store?”

  1. Jennifer on March 17th, 2008 1:33 pm

    Yep, we try to support our local businesses as much as possible. I haven’t been inside Wal-mart in a couple of months, I only go there if there’s something I need and no one else in town has it.

    I have found I’ve saved money since not going there actually, because I just buy what I need from the local vendors. When I go to Wal-mart, I end up buying half a cart full of extras I don’t really need.

  2. Aaron Stroud on March 17th, 2008 10:11 pm

    I’ve got more important things to do with my time and money than drive all over town, so I happily shop at the new Wal-mart nearby. But I also just as happily buy speciality items from local retailers if the store can offer me something beyond a higher price.

    Too many people ignore the huge efficiency benefits from shopping at Wal-mart and other big, well run stores (Lowes, Home Depot, Target, etc). If a smaller store can offer something special, it will survive if people appreciate what they offer.

    Otherwise, there will be plenty of new opportunities to earn the money people are saving by shopping at more efficiently run stores!

  3. Kyle on March 17th, 2008 11:39 pm

    Interesting perspectives from both of you!

    I lean strongly toward supporting local businesses when I can. I would much rather give my money for a new washer/dryer to family run Carmona’s appliances then Lowes.

    Aaron, not sure what you mean by efficiently run stores. From whose perspective are you referring?

  4. Aaron Stroud on March 18th, 2008 10:16 am

    By efficient, I mean the products are stocked more quickly and at lower cost. This efficiency in turn allows larger chains to offer a bigger selection.

    I too have nostalgic views of the past, but I’m also excited at the possibilities the future offers. Just as millions have been freed from factories by mechanization, there will be plenty of unimagined possibilities for the people freed by more efficiently run companies and time saving features like self checkouts, etc.

  5. Kyle on March 18th, 2008 10:46 am

    The efficiencies of big stores like Walmart, Home Depot, and the like, goes way beyond the physical stocking of shelves by minimum wage workers. It goes more to inventory managment and the ability to buy in such huge quantities at very low prices from suppliers that have to kowtow to them. Walmart is notorius for this. That is truly why they can offer products at cheaper prices.

    I wish I could share your exctement. My vision of the future is only 1 big store in every town across America run by a gigantic corporation who cares very little about the local community. Although, on a recent trip to Nebraska, it appeared to already have happened. Almost every town I drove through had a downtown that was all boarded up and had a huge Super Walmart on the outskirts of town.

  6. Aaron Stroud on March 18th, 2008 11:42 am

    That is the challenge, isn’t it? When we live in a society where people are free to choose, sometimes people choose cheaper alternatives, resulting in more expensive businesses closing. But at the same time, new opportunities arise that would never have been possible otherwise.

    The choice is really between a static society and a dynamic society that experiences changes, growth, and innovation. And yes, it can be painful to see familiar stores close.

    But what we don’t see are the new doors that open to the storekeeper’s children when working at the family store is no longer an option. Or how the thousands of families use their Wal-mart savings to improve their lives. Some people might choose to buy a big screen tv, others might help their children through college.

    In fact Kyle, your job would be the perfect example of the opportunities that can be found or made in a dynamic economy. Your service was unimaginable as little as twenty years ago!

    “low prices from suppliers that have to kowtow to them”

    Sure, that plays a big role in their low prices. But everyone does this. When job hunting, most people don’t promise underbid everyone else just as long as they get the job. Instead, people attempt to get paid as much as possible which is fine. If we demand too much, the employer can always turn around and hire someone else who is willing to work for a more reasonable price.

    In the same way, no one forces suppliers to sell to Wal-mart. They can choose to not supply Wal-mart with products if the requests are unreasonable. If they are unreasonable, obviously no one will supply Wal-mart with the said product, resulting in lost business to Wal-mart (assuming they don’t realize they have to pay more to their suppliers).

    Instead, Wal-mart’s low prices result in savings for their customers and pressure on suppliers to become more efficient. These cost savings don’t disappear into thin air, instead people use them to improve their lives.

    Sorry for the lengthy response, but I’m enjoying this discussion.

  7. Kyle on March 18th, 2008 12:55 pm

    Very interesting comment Aaron and I certainly appreciate your point of view and time it took to write it!

    I love discussions like this and I find the Walmart phenomenon to be quite interesting as well. You are right, they have changed supplier relationships immensely. But unfortunately, with such a huge market share, most companies face the task of either meeting Walmart’s demands or going out of business. Walmart actually tells companies/suppliers that they must lower their prices each year if they want their business. This has of course forced them to become more efficient. The end result of that has been an increase of outsourcing to cheaper workforces in China and a loss of U.S. jobs. But I don’t think that is all bad, as it has forced U.S. workers to innovate and create new fields of work and niches. (Like mine!) I can remember from one of MBA classes the Walmart ‘huge Vlasic pickle jar’ debate. If you are not familar with this, it is very interesting, I was able to find it here: http://www.fastcompany.com/magazine/77/walmart.html Interestingly, the article talks alot about the things we have been discussing.

    But as I stated before, I just have a hard time with how Walmart has changed the cultural fabric of the country. The cookie cutter sameness of it all bother me. And the loss of community identity build around a downtown has dimished immensely. It looks like I just need to get over my sentimental side though!

  8. Aaron Stroud on March 18th, 2008 1:49 pm

    I’m going to respond to a few of your points directly to save time:

    “Walmart actually tells companies/suppliers that they must lower their prices each year if they want their business.”

    But again, isn’t this what highly skilled employees do? Professional athletes would probably be the best example. They’re highly skilled and they expect to be compensated for it. If the team’s owner doesn’t meet their demands, they find someone that will.

    Wal-mart is not going to stop selling pickles next year if Vlasic can’t lower their prices, that is, they won’t drop Vlasic unless they have another supplier lined up to take their place at a more affordable price. This relentless downward push is a beautiful thing. The savings allows us to have a more well rounded diet (live longer), invest in a cure for cancer, or simply buy new shoes providing work for someone in Malaysia!

    The end result of that has been an increase of outsourcing to cheaper workforces in China and a loss of U.S. jobs.

    I know this idea is counter intuitive (read this book for more info), but the U.S. doesn’t lose jobs when “jobs are outsourced.” The total number of jobs doesn’t change. The jobs are simply replaced with different types of jobs. Now of course there is initially some displacement and personal turmoil for workers (and owners!) when a business fails. However, history has proven time and again that new opportunities arise.

    Personally, I’ve very excited to be living in a time where hundreds of millions of people are rising up out of poverty. If we look back at the accomplishments of the past 100 years that were largely U.S. and European based, just imagine the possibilities when our Chinese, Indian, Indonesian, Malaysian, etc neighbors have accumulated the wealth to provide their children with the luxury of a higher education!

    “I just have a hard time with how Wal-mart has changed the cultural fabric of the country….”

    I’m not much of a city guy, that’s why I live out in the woods. But I have a fondness for old things. I lived in England for three years as a boy. Perhaps thats when I became attached to their classic architecture and timeless small town life.

    Sadly, some things get left in the dust when progress is made. It’s a fact of life that we can struggle against or tolerate. I choose to be excited about the information age we’re entering. People are rising out of poverty. And we now have the opportunity to cooperate with people around globe in a way that was never possible before.

    “It looks like I just need to get over my sentimental side though!”

    You don’t need to get over your sentimental side—embrace it! Just be aware of the difference between sentimentality and the facts. Support stores you enjoy frequenting and recommend them to your friends. They just might survive.

  9. Melanie on March 24th, 2008 10:31 am

    Being a “Bargain Hunter” myself…I shop absolutely any and everywhere. I do not have a preference of large corporation versus small business. I do; however, enjoy the unique items you can find in small stores. My friend and I will actually go to small towns and walk their sidewalks for bargains in the side shops! We love it! Sometimes find better deals than the big stores. Most definitely, we have found deals on books, collectibles, and antiques this way! Also, great little coffee and snack shops with high ratings. Sometimes things are more expensive but quality makes it worth it!

    Just something I couldn’t believe the other day at the big “W” store…they were higher priced than my fav store Target! Double the price on LeapPad Books and $10 MORE than Target on the LeapPad Reading/Writing system! I couldn’t believe they would be higher by that much on anything. Also, the Leapster cartridges (some not all) were $10 more! I was like WOW! Didn’t expect that from the major discount store. I love both stores but Target is my fav!

  10. Kyle on March 24th, 2008 10:50 am

    Great Comment Melanie, thanks! I have noticed also that at times Walmart is not the cheapest option by far. I guess they have to make there money somehow!

  11. Melanie on March 24th, 2008 2:13 pm

    I hear you Kyle! I do believe Walmart’s prices have increased in recent years, having been a “walmart shopper” in the past. I started frequenting Target some years ago and found their prices to be equal or better which is contrary to what most think. I know, I know…this post is about the small biz vs. big biz not Walmart vs. Target. Just like anything..shop around when it comes to the big guys. But to go back on the post…I do love the “Ma and Pa shops” as they are commonly referred to. I would hate to see them go for sure. I really don’t think they will. Well not in NC from what I can tell. Raleigh, NC and surrounding area being one of the best places to start a business, and many times, Small Business, making it big here. My husband and I are always trying to come up with our “big” “small biz” idea! :-)

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