The Tribune

By Scott Farrington

The article today is not sales related as in selling a product or service, but how buying locally vs. foreign affects ALL of us.

A month ago I was in a business establishment to purchase an item and, by chance, I met three other business owners in the store. We were all purchasing different items and ended up at the counter around the same time. We chatted a bit, asked how business was etc etc. Then, all of a sudden, the three of us realised at just the same time that we were in an economic circle. Now I’m no economist, but in college I did extremely well in economics.

What did we realise? We realised that each of us utilised the services and products of one of the others. We realised that we created a sales/cash flow circle. Now I know this is very, very basic; as a matter of fact, it’s so basic a lot people simply don’t get it. Today, I purchased in, say store A, and next month store A purchased in store B, and the next month store B purchased in store C. Basically, the money I spent today came back to my business a few months later. Simple, right? Well, not to many others, or so it seems.

Let’s say store C decided to purchase one of the products from abroad. Bam! The economic circle stops. The monies that would have returned into the local economy just went out of the circle to never return. This transaction has affected one of the business’s sales/cash flow. No big deal, you say. On the contrary, it is a big deal.

With unemployment hitting almost 16 per cent, it is a big deal. With the crime rate escalating, it is a big deal, and with local charities knocking on everyone’s door, it is a big deal. With so many companies looking locally for sales and cash flow, it is a big deal.

Let’s just suppose every company decided to buy 100 per cent from abroad. Where would our sales/cash flow be? That’s right, zero. Let’s say 50 per cent of every business purchased 100 per cent abroad. Where would our sales cash be? At 50 per cent, right? Can any of us afford to have 50 per cent, 40 per cent, 30 per cent, 20 per cent less sales and cash flow? I don’t think so. Regardless of the amount, it affects us all.

I also understand there may be some products or services locally that are exorbitant and unnecessarily priced way above what one would consider fair or acceptable. We all pretty much know the cost associated with importing and, once you have conducted your own due diligence and you find the local product/service to be fair, then purchasing local would be the wise economic thing to do.

I have a saying: “If you buy foreign, beg foreign.” How many foreign suppliers can you call and ask them to donate to a local charity? Or to hire a Bahamian or purchase your services/products? Not many, if any at all. I understand there are some products/services we sell abroad, but in comparison to the local economic circle, it is small. I’m not talking about tourism and selling sun, sand and sea, banking. I’m talking local consumable products.

Just recently we are hearing about Wal-Mart advertising how they are trying to purchase more of their products from US domestic suppliers. Why? Because they want to help with the local economic circle and show the American people they are doing their part. It’s all part of their sales and marketing strategy.

The same with the steel industry and many other industries in the US. They are all trying to stay in their own economic circle and reduce sending monies out of the country.

I’m surprised at the amount companies, both large and small, send out of the Bahamas. They knock on everyone’s door locally to sell a product or service, yet when they need a something, the first thing they do is purchase abroad. They obviously don’t get this very simple economic circle. I hope that by writing this very basic and simple scenario, some will get it.

On the other end of the spectrum, I do experience some companies that are very pro-local and get it. I have clients tell me, in joking but serious tones: “Scott, we have to keep the money at home. One day I may be coming to you to look for a job.” Ha, ha. My reply to them is: “You’re right.” And you never know, I maybe going to them to look for a job.

Bottom line is that I hope a few more companies and individuals see the economic circle, no matter how small it is, and play their part with sales/cash flow. Next week I will be writing on said and the difficulties in maintaining good service consistently.

All of these marketing strategies are certain to keep your business on top during these challenging economic times. Have a productive and profitable week.

NB: Scott Farrington is president of SunTee EmbroidMe, a promotional and marketing company specialising in uniforms, embroidery, silk screen printing and promotional products. Established over 27 years ago, SunTee EmbroidMe has assisted local businesses from various industries in marketing themselves. Readers can contact Mr. Farrington at SunTee EmbroidMe on East Shirley Street, or by e-mail at scott@sun-tee.com or by telephone at 242-393-3104.