by Maggie Avant, Senior Staff Writer
A few years ago, thanks to American Express, the concept of “Small Business Saturday” was born.
It’s the Saturday after Black Friday and before Cyber Monday that will have passed once this paper goes to print. So although retailers have traditionally relied on the holidays for their largest gains, let’s examine the positive effects of shopping local all year round.
In Murrieta, for instance, the city’s revenue was up 8.5 percent for Fiscal Year 2013-2014 due in large part to an increase in sales tax revenue. With the $2.8 million unanticipated bump, the city did not use $1.2 million in economic contingency funds that it had planned to. Further, there are plans to pump some of that additional money into its police and fire departments for items such as new vehicles.
“Murrieta depends on sales taxes to help pay for city services including our strong public safety services,” said Bruce Coleman, economic development director for the City of Murrieta.
A recent crime statistics article featured on Yahoo! News showed that Murrieta was ranked the No. 2 safest city in America among others with similar population, showing that the city’s funding of its own police department has not gone to waste.
Further, Coleman said, spending money locally strengthens many other crucial areas of the economy.
“This supports our small businesses which are the backbone of Murrieta’s economy, it creates and maintains local jobs in our city and helps keep Murrieta a unique community,” Coleman said. “The City of Murrieta works hard to encourage our residents and businesses to shop locally for goods and services.”
A study done by Civic Economics found that for every dollar spent in a small business, 48 cents recirculate into the community. For every dollar spent at a chain retailer, 14 cents finds it way back into the local economy; whereas, sales and use taxes paid for online purchases go to the state where the company or warehouse is located.
“As for online shopping, I would encourage people to ask about price matching,” said Patrick Ellis, president and CEO of Murrieta Chamber of Commerce. “Most retailers these days will price match sites like Amazon.”
But shopping local, Ellis pointed out, must be a conscious effort, which can be difficult when people have set routines.
“People get used to shopping at certain places which become a habit,” Ellis said. “Habits are hard to change. So instead of trying to get everyone to change all their shopping habits, if you could get people to focus on one thing to change or focus on, chances are you would be more successful. The one thing that would have a great effect on their community would be to get gas in their city. The tax dollars that come back to the city would be effectively used to make impactful improvements.”
As Christine Damko, economic analyst for City of Temecula, put it: “By shopping local, you are helping your community thrive. Every dollar spent counts! Not only are local jobs being created and sustained, but sales tax generation supports our outstanding police and fire services, well maintained roads, beautiful parks and an overall high quality of life that we cherish here in the Temecula Valley.”