Dan in Alaska

Guys, help me out. Something's been bugging me for a while, and I am not quite sure of what to make of it.....

I understand the idea of keeping local businesses employed. But if they want to charge me 30-40% more for something I can buy elsewhere, what favor are they doing me? Why should I support them? Why do big chain stores get regularly hammered by critics, yet no one seems to mind when items are purchased online or through the mail?

Recent Local Examples:
1) Best Buy - before they came into town, everyone in Anchorage was paying $16-20 for music CD's and the high price was blamed on the shipping costs. Best Buy did some research before deciding to build a store up here, and discovered that it only cost an extra nickel a piece to get CD's to Alaska vs. anywhere in the lower 48. Now we have $10-13 music CD's like the rest of the lower 48. It is interesting to note that most stores in Anchorage now have $10-13 CD's, and no one has gone out of business because of it.

2) Sportsman's Warehouse - before they came to town, I was paying $10.50 for 7oz Crocodile spoons. SW has them for $5.99, like they are supposed to be. Rifle & pistol powder was $25-30 a pound, but now it is only $18-20 a pound. A Cannon Easy Troll downrigger now costs $159, just like all the major mail order catalogs. Before, they were $179-189. In fact, Sportsman's Warehouse beats most Walmart prices, and when they don't have something, they recommend a local business! As a fairly new boat owner, how is this bad for me?

More examples:
3) I bought a Racor fuel/water separator this past winter. Local retailers want $99 for the unit. Thanks to suggestions from the folks here at THT, I bought it through Marinefilters.com and paid under $60 after shipping.

4) Two weeks ago, I saw a set of stainless disk trailer brakes at the sports show (where everyone advertises the their lowest annual prices). The local retailer wants $165 for each hub/disk/caliper assembly. The EXACT SAME set up costs $109 though a mail order, plus $20 shipping.

Why should I buy local? I'm starting to feel like a sucker for even thinking about buying from a local shop. Please note: I do not work in a retail store, nor do I own my own business. I am a consumer. I bought a boat last summer and I have spent thousands of dollars in recent months getting it set up. I am just tired of getting burned on purchases because I'm made to feel guilty for not "supporting the local guys."

BlueMarlin

Well... there are limits I think even the average person
would admit. I will say that some large chains have had and
do have a practice of building in an area.... offering drastically
lower prices than the local competition... and once most of the
competition is gone..... suddenly their prices are much higher.
Interesting to note that you said none of the local guys have
gone out of business...YET.... it wont happen overnight...nor will
it probably drive all of the local guys out..... but the fact of the
matter is... there is only a finite amount of business to be had
and it can only be split so many ways. It reallly is a personal
decision... I choose to do most of my shopping with local shops
but do make occasional purchases from west marine ( the local chain ).

Recently we had a leaky seastar hydraulic tilt helm. After talking to
West who wanted an outrageous amount for the seal kit... and a 2-3
week shipping period we ordered from Boaters world... less than HALF
of Wests price.. but still the 2 week shipping delay. Called several
local marine shops.... none had the seal kit in stock.. but the last one
I called and a dealer I buy yamaha fluids from .... said... "i bet if you just replace
the "quad seal" it will solve your problem..and for only 2.95 vs 34.95 for the
kit....he didnt have the kits...but he DID have the seals...Moral of the story...
we fixed the problem for less than 1/10th of what it BW wanted for the kit..
and 1/30th what West wanted for the kit...because the LOCAL guy gave
advice and suggestions that neither of the others offered. Being a small
business owner who competes with large chains in our business... I tend to
not mind paying a few bucks more... but there is a limit.

__________________
Glacier Bay 260 Canyon Runner
Twin Yamaha 150's
"Full Deck"

Capt. Dan

Blue Marlin nailed it. As the little guys slowly go out of business, watch for those prices to creap back up.

In Too Deep

With the internet and most chain stores having a dot-com store it's not likely that once a big store drives out local competition that they will start gouging customers. Best Buy for example will always have competition somewhere (Circuit City, Sears, regional electronics chains, etc) and it's too easy for consumers to price shop all over the country now. Look at the prices Dan was paying for CD's , do you think that his local music shops had to pay $15 for a CD in the past and made a few bucks and now they're loosing money? Not likely. Now, all things being equal, I will support a local store if prices are similar but I won't pay 25-50% more just to help out the local guy.

Chris