In addition to the perceived convenience of online shopping, another reason consumers give for not shopping local is that it is “more expensive” to shop at a small business than it is to shop at a big box store or online. This is certainly not a new perception, and however false it might be, it is one that is persistent.
Sure, we have shared anecdotal information in the past about local products being less expensive than those found at national chain stores or online, but we decided to do somewhat of a more formal case study and run price comparisons on identical products from different retail outlets.
We decided to engage our friends at Bradford’s Hardware in this experiment as they have been an institution in Hyannis since 1892, sell a vast variety of products, and are representative of a lot of other businesses on the Cape. Additionally there is research that shows that consumers on average assume that independent hardware stores are 17% higher in price than their corporate counterparts.
So, we chose products at (complete) random, and obviously this list is not exhaustive, however it does illustrate the very important point that local does NOT always mean more expensive.
Comparing Bradford’s prices to those of national chain stores with locations in Hyannis:
- Keurig K15 Classic Series Coffee Dispenser
- Bradford’s price = $99.99
- Bed, Bath & Beyond price = $99.99
- Scott’s Turf Builder Fertilizer
- Bradford’s price = $22.99
- Home Depot price = $22.98
- Fancy Feast Cat Food
- Bradford’s price = $.99 per can
- PetSmart price = $.57 per can
(same price on their online seller chewy.com, which also charges shipping)
- Box of Milk Bone bones for small dogs
- Bradford’s price = $5.99
- PetSmart price = $5.29
- Nest Home Thermostat System
- Bradford’s = $249.99
- Bed, Bath & Beyond = $249.99
Comparing Bradford’s prices to those of Amazon.com
- Red Char Broil Electric Patio Grill
- Bradford’s price = $169.99 (complimentary delivery service)
- Amazon price = $194.99 (plus $25.80 shipping)
- Ove’ Glove
- Bradford’s price = $19.99
- Amazon price = $24.99
- GE 65W Soft Indoor Floodlight Bulb
- Bradford’s price = $8.99
- Amazon price = $11.94
- YETI 20oz Tumbler
- Bradford’s price = $29.99 (for all colors)
- Amazon price = $29.99 (except the army green one which is oddly $41.99)
The takeaway from this exercise? Online and big box shopping does not always equal a cheaper price.
We urge you to challenge this (mis)perception you and many of our community members might have; and if something is cheaper at a box store or online, ask yourself, will there be hidden costs to my community if I choose to save a few dollars?
9 Comments. Leave new
Well done, LLL.
Bradfords is great
Plus, Bradford’s always has what you need.
Go Bradford’s. Great place to shop. Awesome customer service! I’ve got to go there today.
I’m glad you did this fantastic exercise. I have watched many a favorite store close and as a result we no longer have a wide range of creative choice for our shopping needs. I love your new store set up as it has alot of wonderful unusual items available for everyday use and gift items. Thanks you for all your hard work and leadership.
I’m turning the tables on Amazon.
Here’s how.
Recently I Needed a new screw gun. I called my local Hardware store, Harwich Ace, and found out what they offered. They had 3 similar tools, different brands.
I then went on Amazon and read the reviews and made my decision.
Then I went to Ace and bought the tool, for $20 less!
Lots of smaller businesses have been going down due to internet competition, frequently because of a phenomenon called “showrooming” where customers will come into the store (like EMS) and try on a brand-name jacket or a pair of boots. They will then take that information, including the size and model, and go online and find it cheaper.
That store just gave away their employees time and their inventory to help consumers make a more informed purchase online.
It’s nice to know that now we can use Amazon in the reverse
And similar comparisons across all sorts of local Cape businesses will produce similar results. No brainer: keep it LOCAL!
Sorry, but it’s not Bradfords Hardware, it’s Bradford’s “Ace Hardware”…another franchise. Yes, they may be “locally owned”, but that is another name for a franchisee.
They have the same buying power as Home Depot which allows them to offer these prices. They probably even have some loss leaders that they are forced to offer to compete with Home Depot.
It is not “Bradford’s”, but rather it is “Ace Hatdware”.
Ace Hardware has twice as many locations as Home Depot.
Don’t get me wrong, I love Bradford’s, but Ace Hardware was smart in keeping these small Hardware stores the same as they always looked, while taking their franchise fees from them.
It is not a franchise.They are part of a buying cooperative. They are able to operate independently. A lot of small, local businesses benefit from buying cooperatives.