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quote: Originally posted by james weatherford
Your points are well taken, 'Rich.
Another point to add: A chain like Long's (or franchise like BK and KFC) take most of their revenue OUT OF the community (about 85 cent of every dollar, while 15 cents stays) while a locally owned/operated business leaves more revenue IN the local community (about 40 cents of every dollar stays).
James Weatherford, Ph.D.
15-1888 Hialoa
Hawaiian Paradise Park
I disagree.
Both the chain and the "local" business buy their inventory at the same basic places, which in this case, are not local for either one. The chain probably pays better and has better benefits to the employees. The chain also has multiple supervisors and managers which make even more money. All combined, more money will be going into Pahoa.
In the case of Burger King and KFC, they are franchises - with most likely local owners. In this case, the profits will stay here as well.
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quote: Originally posted by james weatherford
Another point to add: A chain like Long's (or franchise like BK and KFC) take most of their revenue OUT OF the community (about 85 cent of every dollar, while 15 cents stays) while a locally owned/operated business leaves more revenue IN the local community (about 40 cents of every dollar stays).
I think you mean net profit, not net revenue. If 25% of expenses are wages, BK & KFC are not hiring mainlanders to work in Pahoa and shipping their wages back home to the mainland. Those are local workers. So right there the percentages don't add up one bit.
I also think BK & KFC are not exempt from local taxes, so their GET and Property tax expenditures remain locally. And I believe they have not yet ran a power cable from the mainland to Hawaii so their utility costs are local cost.
Now, if they are using a mainland waste hauler to come to Hawaii and remove their trash and take it to a mainland landfill and pay tipping fees there, that may help your argument, but I think all those expenses are paid to the local community.
I could be mistaken, but I understand the companies that transport the products from the docks to the store are local companies not mainland companies who use mainland trucks, buying mainland fuel maintained by mainland service centers and pay mainland workers. So that money also stays in the community.
I'm not sure who handles their fumigation or food safety requirements, but I seriously doubt they fly in from the mainland when needed just to spray for bugs. I would think it’s a local company contracted for those services.
Isn't it a local company that is hired to deal with plumbing, electrical, building, HVAC, and refrigeration repairs? Or are they contracting with some out of state company that loads up parts and employees on some flight from the mainland and they take the money paid them back to the mainland?
Only fifteen cents on the dollar remains here? I don’t think so!
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Have a look:
http://www.newrules.org/retail/key-studi...x-retail#1
James Weatherford, Ph.D.
15-1888 Hialoa
Hawaiian Paradise Park
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That report has already been shown as tainted. They compared local stores that sold local products to national chains. It would be like comparing a local fruit stand to a national supermarket. But if you compared a local supermarket to a national supermarket, they both bought their products from non local sources. A local retailer of shoes wasn’t buying shoes made in the community; they were buying shoes from the same vendors outside the community. A hardware store selling power tools and lumber didn’t have a tree farm out back or a toll maker around the corner; they got the lumber from the same mill as home depot and tools from the same manufacture as Lowes.
Does a local office supply store get their BIC pens from a local maker or from the same national manufacture? Is White-Out sold from a local retailer any more local than one sold at Staples? Wrangler Jeans all came from the same national source and didn't get made in some local shop.
Comparing someone selling local scented candles, local artwork, and home made apple pies to a national chain is fake reporting. Compare the items sold at a local retailer to the items sold at the national chain and the birth place of those items are the same.
Go to your “local” store and pick up a can of Dole Pineapple slices in syrup, where were they made and where did those pineapples come from? Is Spam from a local store more local than Spam from a national chain?
Nice try.
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James,
First of all, the Longs in Pahoa is not a WalMart, so I don't think we can extrapolate all the negative findings of these studies, some of which are almost 20 years old. And as Bob notes, commerce on the Big Island is different than commerce on the mainland, so again, I think we need to look more deeply before drawing conclusions on mainland-based studies.
As to the the question of business displacement: other than the Pahoa Pharmacy (which wasn't "crushed" by Longs, since it closed before Longs even opened, and apparently sold its business/customer base to Longs)what businesses are being displaced? Malama Market is seeing competition on a limited part of its inventory, but they should be able to adapt relatively painlessly and do just fine. And according to one of the studies on your website, the small independent pharmacy should have been able to hold its own based on better service, lower prices, etc.
Lower Puna is under-served in terms of the goods that Longs, BK and KFC will be providing. Longs is not eliminating customer shopping options, it is increasing them. In the years before Longs appeared, was there a stampede to open small businesses in Pahoa or at the Malama Market shopping center? Not that I can recall. In fact, I bet the folks who are most concerned about Longs in Pahoa are the larger retailers in Hilo, like Walmart, Safeway, KTA and even the other Longs branches. These are the stores who will be losing customers to the Woodland center stores, not locally owned small businesses in Pahoa or even Hilo.
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In the Puna Pharmacy vs Longs Pharmacy, 4 out of 5 medications we use are cheaper substantially at Puna Pharmacy than Walmart, Long's, Safeway, and the now extinct Pahoa Pharmacy.
The cost of the 5th is a few dollars difference; in my mind the cost difference is made up by not having to drive when John and the folks at PP handle any issues if an incorrect prescription is written, (unlike Safeway specifically).
The wait is short, the staff is nice & treat me as a person rather than a prescription #, so out of possible 50 points, they score 48. Havent been to this Long's yet, but the Long's pharmacy in Hilo is a long wait, slightly rude clerks, and if a problem, I have to drive back and forth to resolve. Score is 10 out of 50. (and the 10 is for being open later than others when I forgot to get SB's insulin one evening and made it back to hilo seconds before they closed.)
Yes, I will go to Long's for some things; when I can, and it makes sense I will choose a business with a local business owner over a chain.
This is nothing new to me... I used Anawalt's lumber in NoHo because I grew up with them. My dad went to school with them. Even when Builder's Emporium and the other big boxes came along, I went there. Prices were reasonable and the service made up for the small price diff then. And there is nothing like hearing "Hi Cathy, what can we get for you today?". Personal relationships mean a lot.
The only other place i hear that in Pahoa is at Paul's Service station, and C&C (up to Long's opening C&C had the lowest priced Diet pepsi's on a regular basis). I dont hear it at Kaleo's, or Liquin's or Ning's. Although Paulo is good at remembering people... or rather what they liked at his resturant... lol
I think if price is an issue, keep checking - you may be surprised than the big boxes are not always cheaper on all items.
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quote: Originally posted by KeaauRich
First of all, the Longs in Pahoa is not a WalMart, so I don't think we can extrapolate all the negative findings of these studies, some of which are almost 20 years old. And as Bob notes, commerce on the Big Island is different than commerce on the mainland, so again, I think we need to look more deeply before drawing conclusions on mainland-based studies.
Part of the mistake made in those studies was assuming that the end profits remained with the owner. In a corporate chain, yes the money goes where the corporation is located. With a local owner the money remains with the owner.
But, nobody followed beyond that assumption. What if the local owner took half of it and invested in a retirement home in Florida? That money is no longer in the local community. What if they went to Vegas and gambled away some of it? That money is no longer remaining in the local community. Likewise, the national corporation may use all or some of that money to reinvest in another store in the community. If it’s being returned through investment, it’s back in the local community. They may use that money to pay for corporate employees to visit that store. Those people are spending money locally when they are there so money is flowing back to the community.
To assume that just because the owner is or isn't local is the sole determining factor as to if the money remains in the local community; is false.
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