What do you see as the future of the independent merchant

[PM Martin]

I posted this yesterday morning:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5023292&mesg_id=5023292

What do you see as the future of the following independents:
-Hardware Stores(co-ops) such as Truserv, Truevalue, ACE
-Appliance Stores
-Car Dealers

Feel free to add commentary on other businesses as well.

[2Design]

1. it has to be hard - so many of us are looking for ways to save money

on purchases - so many of these places can not compete with the big box companies

I saw appliances in Kmart so I am assuming Sears is moving its product line into the stores and some of each will be closed

[Ozymanithrax]

2. As the market exists, I don' think they have a future.

It depends on what things look like on the other side of this economic disaster. But I don't think there is a bright future in small bussiness.

[madville]

3. I've never understood how a retail business can be proftable in a decent economy

I just don't see how retail businesses do it in any economy. Between making payroll, employee benefits, insurances(WC, liability, fire, theft), leases or loans for a location, utilities, taxes, etc, etc.

[Hello_Kitty]

4. Seriously. I always wonder how those niche businesses stay afloat

Like the Build-A-Bear store at the mall. How many custom made teddy bears do people buy? :shrug:

[Incitatus]

13. Their net is a very small percentage of sales.

The retail price may often be up to 100%+ their cost, but after all expenses, the net could just be a few %.

[PM Martin]

15. Then how do they survive?

[Incitatus]

16. 3-5 percent adds up when your sales are in the billions.

They just have carefully track costs and adjust retail prices accordingly to stay within their desired margin.

[On the Road]

5. Independent Operators in Those Industries

have to try hard to find a niche. Hardware and appliances are usually sold in megastores which can carry ten times the merchandise of a local storefront. Car dealerships are usually local but increasing part of a regional chain.

There are some industries in which local operators thrive. But in a growing number of industries, the most successful model for a small operator is franchising.

[old mark]

6. Small merchants I have known personally - some of whom I have

worked for - have always boasted and complained about how tough and creative and competitive and clever they are to be successful in business.
Now, they really are going to have to be all that.

Just because someone is in a business does not mean they have a right to stay in business.

I have worked for quite a few who inherited the thriving business and seemed to think they did it all themselves and deserve it all.

They will have to earn it, and some of them should fail.

mark

[TahitiNut]

7. I always buy my hardware at owner-operated stores.

I refuse to do Home Depot or Lowes unless the owner-operated stores don't carry something that meets my needs. I don't mind paying 5-10% more when it keeps independent businesses that've been in this community for over 50 years in business.

[Lydia Leftcoast]

10. Me too

I'm lucky in that there's a locally owned hardware store just up the street. I've joked with the owner about how he has one of everything.

[defendandprotect]

8. Depends on what YOU think is the guiding threat . . . ?

Is it Global Warming or Peak Oil/Peak Gas? Is it another Great Depression?

My opinion is that the greatest threat is that we have a President/Congress who
won't act sufficiently strongly. By that I mean nationalizing oil indusry,
taking over car manufacture and converting cars to hybrids and electric.

- Nationalizing Banks and putting Federal Reserve under Treasury.
- Having Congress fulfill their responsibilities by legislating economic policies.
- RE-REGULATING CAPITALISM.
- Removing age restrictions from Medicare as a National Single Payer System.
- RE-ESTABLISHING MASS TRANSPORTATION.- SUPPORTING AFFORDABLE HOUSING.
- Putting HOMELESSNESS and POVERTY high on the agenda.

There was the first suggestion today in the Finance Committee Hearing/Barney Frank's . . .
by a Representative's question to the bankers that they might have now grown too big ---
too big to be allowed to fail. The best they could do was a "yes and no" response.

So if we have strength and common sense in the WH and Congress this corrupt capitalism
is ready to be moved in the right direction. We need Congress/Obama to start pushing
anti-trust laws.


There are questions as to whether this is going to be the "End of Suburbia."

Personally, I don't think enough people understand Peak Oil yet -- but executives of
corporations understand it. Everything about suburbia defies common sense.
We can support mass transportation --- not individual cars.

The situation right now is set up so that once again the criminal capitalists walk away
with the money. They're the only ones who have options as life becomes more expensive
for food, housing, energy.

Meanwhile, I think we can see from Australia, California, Florida that the HEAT IS ON
and it's hot enough now to be introducing some really uncomfortable events into all of
our lives. We've known about Global Warming since the late-1950's -- corrupt capitalism
blocked much of the information from that point on in its own interests -- especially the
oil industry. Global Warming has a 50 year delay; basically we are only feeling the impact
right now of our activities up to 1958 -- and one hell of a lot happened after that date!

Global Warming is breathing down our necks and every bit of legislation should be reflecting
that, at every level of government -- Federal, State and local.

War is counter to the interests of the planet, nature, humanity -- let's junk it!

[begin_within]

9. I think it's the personal, expert service and advice that makes the difference.

You'll never get expert advice at Wal-Mart or any huge chain. Most of the time you won't even be able to find someone to ask a question of. The personal connection, expertise, and individualized service are to be found at small businesses, not large. The ability, for one example, to order something for a customer.

[HooptieWagon]

11. If things get much worse...

the outlook for small family run businesses may improve. The big mega stores may go under (some already have), people may not have the gas (or transportation) to go to them, the big stores may be buried under various costs and taxes, and unemployed people may not find jobs and open micro-businesses instead. Small-scale manufacturing, retail, and entertainment/dining may return as a significant role in the economy. If that happens, then maybe the depression will have a silver lining.

[PM Martin]

12. A few small hardware stores still exist

and a many family owned appliance stores do exist.
I wonder if this burst in the bubble will bring about a return of the small business owner.

[PM Martin]

14. kick