There are several advantages to dealing with a local business versus a large corporation in retail:
- Personalized service: Local businesses often offer more personalized service because they are more connected to the community and have a vested interest in maintaining a positive reputation.
- Support for the local economy: When you shop at a local business, you are supporting the local economy and helping to create jobs in your community.
- Unique products: Local businesses often carry unique products that you won't find at larger chain stores. This can be a great way to discover new and interesting products.
- Stronger ties to the community: Local businesses are often more involved in the community and support local causes and events.
- Better customer service: Local businesses often have a better track record when it comes to customer service, as they rely on repeat business and word-of-mouth referrals to stay afloat.
- More flexible and responsive to customer needs: Local businesses are often more flexible and responsive to customer needs because they have a more direct relationship with their customers and can make decisions more quickly.
Overall, shopping at a local business can be a more enjoyable and rewarding experience, and it can also have a positive impact on the local community.
How many small retail business are there in the United States?
It is difficult to determine the exact number of small retail businesses in the United States, as the definition of a "small" business can vary and the number of businesses can fluctuate over time. According to data from the U.S. Census Bureau, there were approximately 3.9 million retail firms in the United States in 2018, and about 90% of these firms had fewer than 20 employees. This suggests that a large proportion of retail businesses in the United States are small. However, it is worth noting that the Census Bureau's data only includes firms that are actively engaged in retail trade, and it does not include firms that are primarily engaged in other activities, such as manufacturing or service provision.
How does small retail businesses compete with big retail prices?
- Buying in bulk: Small retailers can often negotiate lower prices by purchasing products in bulk from wholesalers or manufacturers. This can help them to reduce their own costs and offer competitive prices to customers.
- Offering value-added services: Small retailers can differentiate themselves from larger competitors by offering value-added services, such as personalized customer service, gift wrapping, or in-store events. These services can make customers willing to pay a premium for the convenience and experience.
- Partnering with other small businesses: Small retailers can team up with other small businesses in their community to offer combined products or services. This can help them to attract more customers and negotiate better prices from suppliers.
- Utilizing online platforms: Many small retailers are taking advantage of online platforms, such as e-commerce websites and social media, to reach a wider audience and compete with larger retailers.
- Focusing on niche products or services: Small retailers can often compete effectively by focusing on niche products or services that are not offered by larger retailers. This can help them to attract customers who are looking for something specific and unique.
Overall, small retailers can compete with larger retailers by offering personalized service, value-added services, and unique products, and by utilizing online platforms and partnerships to reach a wider audience.