I think there is very little evidence that most small businesses do this. In fact, I think many small business are not only bad for employees, but for customers.
Two example. Like you, I like bookstores. In the mid-80s there was a large independent bookstore near me in the heart of Silicon Valley. Like almost all bookstores, it didnât allow returns. It is understandable whatâs to prevent an unethical person from buying a book, reading it, and then returning. Yes, the owner, the main manager and some of the employees were knowledge about books and could make some suggestions. But after a couple of bum steers, I stop taking their advice, cause I couldnât return them.
Then along comes Barnes and Noble who builds store across the street. B&N off course, had more books, cheaper prices. Plenty of B&N employees were also knowledgeable about books, although not quite as good as the independent. But, B&N had no questions ask 30 return policy. I didnât abuse the policy, but if I bought book and didnât like it I took it back. Eventually, the independent start offering store credit for returned books, all thanks to B&N, and later Borders.
Thatâs still true today most small stores have a far worse return a policy, than the big box stores or Amazon.
Even services, compare Roto Router guarantee to your local plumber.
Anyone, whoâs visited Hawaii and walked into a local grocer has experience sticker shock
. It used to be far worse, Costco arrive in Hawaii in 1988. followed by most other Big Box stores over the next 15. I wasnât here but my friend describe being really angry, not a Costco, but at the local merchants for having ripped us off for so long. The excuse for higher price they used was shipping is so expensive. Yet, Costco was able to sell goods in Hawaii for the same price as California. (Iâve verified this numerous times). In California, I didnât shop at Costco much because a gallon of milk at Costco would be 50% more than 1/2 gallon at Safeway. In Hawaii, a gallon at Costco is the same as 1/2 gallon at a local grocery. So even if toss a quart cause it goes bad, Iâm still ahead.
My experience with local small business is they offer a smaller selection, much worse prices, poor return policies and warranty support. and similar service. So why I want to support them is beyond me.
As for you believe that donât local business pay their owners million. First, off all they are almost always private companies and unlike public companies donât report this information, and so neither you nor I know their salaries or net worth. I do know that several of the local merchants died with estate > $100 million, so they didnât do too bad.
Apologize for the thread jack, I think it is way cool the family got to me Biden.
Also Biden is good for small business.
