Feb
8
Local Isn’t Everything
Local is big business. Why else was Google interested in buying Groupon last fall for an estimated $5.3 billion? But when it comes to using “buy local” as a marketing theme for your business, you should first make sure you stack up against the competition.
While the “buy local” phrase is often used in reference to local food products (i.e. local fruits and veggies, local eggs, etc.), it’s also pitched by businesses of all types as they try to pull on the community heart strings of their customers. “Support Local Jobs – Buy from These Local Merchants,” and “Company ABC – Your Local Provider of XYZ” are typical billboards or ads you can see anywhere across the U.S.
Those who choose to use “buy local” mantra should keep in mind that we live in a global economy where individuals can purchase products & services online from anywhere. Further, we live in a day and age where physical mobility is as easy as hopping in the car to drive to the store or city that has the best deal or best service. On the business-to-business front, products like Skype and WebEx, and LiveMeeting make working with a consulting partner from across the country as easy as having a face to face with a similar firm in the same town. Location in many instances is irrelevant.
When I hear a business promote the local theme, I often wonder what aspect of their business is lacking. It’s as if they are using the term as a scapegoat to comprise quality on some aspect of their business. In my experience with many local businesses, this is often the case. Sometimes it’s the products they deliver, sometimes it’s the processes they have for doing business. More often than not, it’s in the customer service they deliver. They assume that because they’re a local business, the consumer will support them even if they aren’t open on Sunday’s, or if they are a day or two late with a report.
If you really want to promote local, you should be ready to stand up against any similar company in any city. Raise the bar and compete at that level, and your “support local” theme will likely resonate with your customers and prove to be a strategic advantage over your competition.
Living in Wenatchee, I see businesses of all types settle for mediocrity and assume being local is enough. Seattle is only 2.5 hrs away, yet most businesses don’t act like Seattle businesses (B-to-B or B-to-C) compete directly with them. News flash – they do. When was the last time you scoped the competition of the nearest city? Might be worth analyzing the next time you are doing a SWOT analysis. What threats exist where potential customers can look to nearby cities to find the services or products they need?
Being local can be an advantage, don’t get me wrong. But to really benefit from it, make sure you stack up against the competition from your region, not just the city you are located. The higher you raise your standards, the more your “buy local” messaging will resonate. I will always support a best-in-class local business – but they have to truly be best-in-class and live up to that expectation.
