Note: State sales tax is typically not paid unless the e-tailer has a physical presence in your state. In those cases, they’re supposed to pay sales tax, but don’t always do so. City sales tax follows the same pattern, but is even less predictable or reliable.
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Headlines in local paper…
“Budget deficit could mean cuts to public safety services!”
Saving our local economy does not only mean supporting 3 stores that you would hate to lose, but keeping our communitites in tact!
Most people I shop for live out of state which is why I do most of my shopping online. Local stores which offer their goods for sale online, including a shipping and wrapping service, would definitely get my business.
Many local businesses are selling on-line using Etsy & such. These are independent artist who are local businesses. Maybe in your community, maybe in one across the country but the effect of supporting them is still the same, keeping local economies alive. Please consider supporting these people if you want to shop on line or can’t find what you need/want locally. You’ll still be doing something for the greater good.
Editor’s note: Please see my response below.
Happy to say my Christmas shopping is complete and only did two gifts online of out of area family. I live in Northern Minnesota and was able to find everything on my list from local retailers. I found the items at the same prices that I saw in the sale flyers from the big box stores. White shopping I got to visit with friends, share hot cider and remember how much fun shopping can be!! Happy Holiday to everyone!
@Lori:
Actually, it’s not the same. Most (read: not every single one, but most by far) of the artists on Etsy operate out of their homes. Unlike their brick and mortar counterparts, every penny they make goes toward paying for their personal residence (property tax on their home, electricity for their home, water for their home, gas for their home, etc.).
By contrast, a brick and mortar business pays all those items plus commercial property tax, a second electric bill for their business, a second water bill for their business, a second gas bill for their business, etc., not to mention the duplication of taxes on each.
While we certainly recognize the role home based businesses play in the overall economy, the reality is that they don’t contribute financially to the local economy the way a physical brick and mortar business does…which is one of the reasons The 3/50 Project asks consumers to think of their local, independent brick and mortars first, before shopping online, in a big box, or with a chain. Our neighborhoods depend on it.
All goods and services are made somewhere. When you buy online you are helping someone’s local economy. Of course, when you buy only locally, you buy from people who look and think like you. I prefer diversity in my purchasing.
Editor’s note: The goal of The 3/50 Project is to support local, independent brick and mortar businesses since they return significantly more of their annual revenue to the communities they reside in. Shopping online sends money out of the community, to someone else’s backyard, as noted in your post.
As for buying “from people who look and think like you,” my suggestion would be to branch out a bit, trying businesses in town you may not have stopped into before. Might be surprised at just how many hidden treasures are right there in your front yard. Always a bonus!
I understand where you are coming from and as the owner of a local construction business, I appreciate your support. However I do disagree with the points you have made above.
1. If consumers were to purchase the items above at a big box store, there would probably be an overall savings of 15% compared to purchasing the items locally. Overall cost would be $82,300.64, a savings of over $14,500 to the local consumers. Not to mention, if the calling birds didn’t do their job, there is usually a better return policy with the big boxes.
2. The big box stores are paying large sums of money to local utility companies, they are paying local employees as well as offering health benefits, dental, and 401k packages (not typical of a small local business). State taxes are paid at the same percentage from a small business to a large business, and commercial property taxes are paid out based on the property value.
3. When items are purchased online, there is a savings to the consumer. Prices are usually 15% lower and the customer is saving time and fuel costs by completing their shopping from home. Local taxes may not be paid, however, when items are shipped, companies such as UPS or Fed Ex hire locals to deliver the packages.
Overall, I like to see local businesses do well, but it doesn’t make sense to pay 15 to 20 percent more for an apples to apples products. Local businesses need to sell based on their services such as gift wrapping, customer service, etc… Big boxes and small local stores all have their place in the community, I buy large bulk items at big boxes, however I support the small local stores that provide services big boxes don’t.
Rob, I invite you to check out a book titled “Big Box Swindle” written by Stacy Mitchell. While I’m not affiliated with the organizations she is, I do believe the information provided in her book is noteworthy and valuable to anyone seriously interested in understanding the financial impact (good and bad) a big box retailer has on a local economy.
The premise of your initiative makes the point – - – choose 3 that you’d rather not see disappear and support them. ALL THE TIME.
I like shopping where I am recognized and appreciated and thanked. Main Street keeps money circulating locally. Wall Street benefits a completely different crowd. Perhaps there’s a place for both, but persoanlly, I feel a LOT more compassion for the former, and I feel a far greater compulsion for personal reasons to keep those locals humming. Ms. Mitchell’s book is SO on point, so quoting her seems trite – - – I agree, just read it. And avoiding sales tax is just plain stupid, chopping the legs out from under us. See the Arizona campaign with a firefighter saying “without your sales tax dollars, I can’t do my job”. I’m still stunned that states like mine (MI) don’t have a law requiring collection from online resources.
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