When you buy local, statistics show that more money stays in your community. More than that, the circulation speed of your dollar accelerates when it stays local. Think of it like this. The big box national chains make larger profits than your local corner store. A local business owner has to put more money than the big guys back into their business. Employee salaries, marketing, and inventory replenishment hit local businesses harder than the big guys. This is where the circulation speed of your dollar comes into play. Since local business owners have less of their money to sit on the cash flow pipeline maintains a steady flow.
The benefits of buying locally don't just stop with the increased velocity of money in the local economy. One of the key benefits of buying locally is the community identity that is shaped. Travel through any city and there are a half a dozen or so national chain businesses that you can expect to see. Look at like this. When you are on vacation is it not more appealing to seek out that great local eatery over the typical restaurant franchise? Unique businesses help differentiate your city from neighboring cities. It gives your community an identity that is distinctive.
Buying locally is not always an option but thinking "local first" opens the doorway for increased benefits to our communities.
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