Thursday, July 14, 2011

Beer Bottles, Books and Bouncing Balls

So what is a blog about toys and a toy store doing talking about Beer Bottles you ask? Well give me a few minutes of your time and let me explain the connection. Now let me first also write this disclaimer for anyone out there that might have objections to what I am about to write. First off, this is all my opinion. I have no basis of research or other means to prove what I am about to say. Secondly, I, as a toy store owner do have a vested interest in getting shoppers to come buy at my store so I am biased in what I am about to say. Now let me finish telling you what the correlation is between beer bottles, books, and bouncing balls.

Back in 1991, I left college to become an apprentice at a machine shop which was the beginning of my training as a manufacturing engineer. (How I ended up as a toy store owner is another story to be told later.) The shop owner used to tell all of his machinists to only buy beer in a can, not bottles. Why? This 100 man machine shop made parts for the canning industry. He had a vested interest in the consumption of cans instead of bottles, because he knew that the more cans that were needed meant that his business was sustainable and his customers would return to him for more machine parts to make more cans. For some reason that always stuck with me and even today I tend to buy cans instead of bottles.

So how does that really apply to me as a toy store? How are you going to make the connection you ask? Things have changed a lot over the last 20 years. One of those changes is in the way we shop as consumers. Have you been watching the landscape in your local area? How many buildings are empty? How many brick and mortar retail businesses have closed up? This thing called the internet continues to change our society as we know it and one of the ways it’s changing us is in the way we shop. Never before has product been so widely available and as cheap as it is today just by clicking on your mouse.

Yes folks, as much as I hate to admit it, shopping online does seem to be taking over traditional retail. Brick and mortar stores are closing up left and right. I first saw this with hobby stores back around the turn of the century. Customers would go into a hobby store and get all the information they needed about their trains, slot cars, RC Planes or whatever they were into and then go back home and order it online because they could get it 20-30% cheaper. How many hobby stores do you know about today? Borders, the largest retail book store filed bankruptcy last year and have closed up hundreds of book stores. Things are not looking too bright for book stores these days. Do I need to ask if you have a record store in your community? Those under 30 are probably asking, “What’s a record store?” What about toy stores? Do you have a toy store in your community? I’m not talking about Wal-Mart or Target’s toy department; I’m talking about an actual toy store where someone working there actually knows something about toys. Probably not, some say toy stores are now a thing of the past as well. And after all kids don’t play today like they used to anyway, video games, IPods, and getting online with their friends is all they want to do. It’s true, (and I think it is a shame) that girls once played with dolls between the ages of 2 to 13 and today girls tend to stop playing with dolls around age 8.

Again you ask me, “What do beer bottles have to do with toys?” Well for me, it was the valuable lesson I learned over 20 years ago from that shop owner in the manufacturing world. Support what supports you. Hear me out. There was a time when an entrepreneur went to the local bank to get a bank loan to start a business. The banking officers told bank employees, check out this business if you’re looking to buy what their selling. The local bankers knew that their bank had a vested interest in the business succeeding and repaying the loan. The business owner than went to the local insurance man and bought insurance who in turn told all of his clients about the business because he knew his insurance commission was dependent on the entrepreneur’s business success. The entrepreneur would contact a local electrician or plumper to make repairs in his shop. The entrepreneur would get his lunch at the local deli, the local deli, would get their bread from the local baker, the local baker would need a light bulb and would get it from the local hardware store and all these local businesses would support each other. Don’t get me wrong, things were not that easy for the entrepreneur, after all he still had to know and be able to provide products and services that his community wanted and needed. As the entrepreneurs business grew, employees were needed and hired from the local community. These employees in turn had more to spend in the local businesses. Likewise as the entrepreneurs business grew the local tax base would grow from business and sales tax and the income tax of the employees that the entrepreneur had hired giving the community more money to spend in the local economy and fund community projects. Police officers would get new uniforms, firefighters would get new fire engines, and school teachers would get supplies locally that would then give the local businesses more funds to advertise in school programs and pay for sports equipment, scoreboards and other things those communities need but never realize where the money comes from to buy them.

THOSE DAYS ARE OVER.

The internet has changed all of that. Oh it isn’t the only thing to change all that. The proliferation and growth of big business and large big box retail chains started the ball rolling in the 1980’s and 1990’s. The internet just picked up the ball and kept it rolling over the last 10 years. Some would say that I’m just waxing nostalgic. Others would say that’s progress, you can’t stop change. Still more say that’s just business, people are going to shop where they get the best price. I say at what cost is that best price impacting your local community? You can get everything online but none (or at least very little) of the money you’re spending is staying in your local communities. Ask a local entrepreneur (if you have any left), why they went into business? Sure they probably wanted to make money (don’t we all), but most likely a part of it was because that entrepreneur saw a need and wanted to make their community better. There is a high amount of risk that those entrepreneurs took on to try and improve their community. A lot of business advisors are telling those entrepreneurs that the best thing for them to do right now is to close down stores, warehouse everything and sell on the internet. Cut Costs, Cut Costs, Cut Costs! That advice doesn’t help out local communities that much but what else can they do if everyone is shopping online instead of shopping in stores. It leaves more people out of work and more empty storefronts and more community eyesores on the landscape. (Does anyone ever notice the warehouses are in your community?)

So what will your town look like in the next ten years? What do you want it to look like? Do you want beer bottles, books and bouncing balls and the places locally where you can go to buy them? Every time you spend your dollars, you make an impact on your local economy. Now I ask you, what kind of impact are you going to make for the future?

For a list of local businesses check out the following list:

http://www.rentertainment.com/local.asp

Thank you to That's Rentertainment in Champaign for publishing this list.

For more about supporting locally owned independents check out:

http://www.the350project.net/home.html

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