We're towards the end of harvest season in New York. What does that mean? Apple crisp, pumpkin pie and yummy apple cider donuts. These delightful fall treats don't just fill me with anticipation for the upcoming holidays. They also remind me that buying produce from local farmers is not only delicious but helps keep money invested in my local community. This led me to want to explore why buying local is important and how it impacts our communities in this issue.
We will start by exploring how a Buy Local campaign paired with a Tourism campaign can boost your local economy exponentially. If rolled out effectively, your county or region can hit the trifecta of:
Tourists spending.
Residents spending.
Entrepreneurs investing.
We also include information from a survey of 1,500 Americans and why they choose to buy locally. Finally, we wrap up with an analysis of how local businesses feed the Twin Ports economy.
We hope you find this information helpful as you continue to grow and prosper in the communities you serve.
Warm regards,
Kathleen McQuaid Holdridge
President/Founder KathodeRay Media, Inc.
Let Tourists Know Where the Locals Go
Autumn is a great season for tourists in the Northeast, but more and more communities are positioning themselves as 4-season destinations, albeit one season may draw more strongly than another. The general mayhem of air travel (and all too frequent flight cancellations) has made driving a more attractive option for many. This also encourages people to seek out destinations a bit closer to home, and this drive-market ranges between 2 and 3 hours each way.
With all that in mind, rural communities seeking to attract visitors target major centers within that radius, touting all the great things to see and do just a couple of hours away. So, what do these visitors do when they get there?
Most people tend to gravitate towards brands they know things they're familiar with, especially if they're in a new place. They’ll choose McDonalds instead of a local burger joint or go to Starbucks versus the local coffee café. Sadly, if visitors don’t explore beyond national brands, they miss out on the amazing offerings available from one-of-a-kind shops and eateries. Letting visitors ‘in’ on not-so-recognizable local gems brings them into the fold, and keeps them coming back.
Buying Local Statistics for 2021: Survey Finds 70% of Americans Shop Small
Small businesses were affected greatly in 2020. Due to COVID-19, many shoppers opted for online orders and same-day delivery — things most small businesses couldn’t match. As a result, small business sales decreased, and many shops closed.
For the local shops still standing, the overwhelming support of consumers definitely helped. Just over 82 percent of consumers say they’d spend more to support local businesses after the pandemic. In 2020, Intuit Mint surveyed 1,500 Americans and found:
70 percent of consumers are supporting local businesses by shopping online only, or a mix of online and in-store.
57 percent of Americans say their main reason for shopping small is to keep money local.
38 percent of shoppers say they want to support their community and local creators.
28 percent of shoppers buy local for better service and 19 percent to help local non-profits.
People who choose to shop in-store at small businesses are mostly over the age of 45 (56 percent).
The “why” behind shopping local can vary between consumers. Some shoppers may want to keep money local; others may be looking for a connection to their community. The main advantage of supporting local businesses is that money that is spent locally goes directly to your community. You’re helping locals keep their jobs, create more jobs, and invest in other local community initiatives.
Monica Haynes, director of the Bureau of Business and Economic Research, breaks down how local businesses feed the Twin Ports economy.
Economic impact modeling tracks the amount of money that is circulated throughout the local economy as a result of some initial spending or investment. One of the simplest metrics used in economic impact modeling is called a “multiplier,” which measures the additional economic impact created as a result of a direct impact. For example, a multiplier of 1.25 would imply that for every dollar spent in the economy an additional $0.25 of economic activity is generated locally, through indirect (business to business), and induced (household) spending.
Just by the nature of being local, small businesses are investing in their local economy. Small, independent businesses are more likely to purchase inputs (goods and services) from local suppliers and distributors, are more likely to hire a local workforce, and are more likely to do business with local financial institutions than are businesses with headquarters elsewhere. These things add up to a bigger multiplier for every dollar spent by the local business.
