Table of Contents Editorial
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The indie insight Local business owners share their favorite thoughts on big questions
Eat local, Too The phrase “Shop Local” typically evokes images of strolling down Main Street with boxes and bags in hand. But shopping local doesn’t just mean hitting the local boutiques and antique shops; it also means eating local.
Unique Local Finds The big box retailers might have more stuff, but you can almost guarantee they won’t have everything you’ll find at a local shop.
Down the street Once you look beyond the big box retailers, it can sometimes be amazing to discover the unique, local businesses that have been your neighbors for years.
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Help your community Shopping local is the easiest way to help your community thrive. When you shop at local stores, it creates and sustains local jobs and helps provide unique shopping options for your community.
Spurring Growth Shopping local can help retain jobs and keep local businesses open. It’s also an investment. Without community support, the local business landscape could be drastically altered — and smaller — in the decades to come.
Local vs. online, big box Big box and online retailers may seem convenient, but it’s important to see the impact these shopping methods have on your local community.
Locally Owned & Operated 2016
Editor Seth Muller sethm@flaglive.com (928) 913-8668 Art Director Keith Hickey Graphic Artists Candace Schipper Kelly Lister Photographers Jake Bacon Taylor Mahoney
Business Publisher/President Don Rowley General Manager Seth Muller Retail Advertising Colleen Brady, Advertising Director: (928) 556-2279 Zachary Meier, Darren Weigl, Ben Zeller, Shayne Caffrey Pressroom Foreman Bill Smith
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THE INDIE INSIGHT Local business owners share their favorite thoughts on big questions |
Compiled by Seth Muller
There’s a saying that the customer is always right. Do you think this is true? If so, how do you embrace the idea with your business? If not, how do you work with the disagreeing customer?
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or this edition of our special section locally owned and operated, we decided to send out questions to some local and independent business owners to get their take on these classic questions, beliefs (myths, maybe?) and ideas around business. We also tossed in a few questions about broader topics and nudged to get behind the scenes on what it really means to run a local business and make it succeed. 4
Locally Owned & Operated 2016
Mark Love, franchisee of Massage Envy Flagstaff/ Prescott: A great resolution is when the client has been heard, the client is valued and we have come to a mutual agreement. Many disagreements come around because of a simple miscommunication or expectation. Jennifer R. Harris, president and CEO of Coconino Federal Credit Union: In the banking industry, there are times when we have to make a decision that will make someone unhappy. We do our best to handle it with respect, empathy and give them options and ideas for the future to avoid the issue. For example, if we deny a loan because of bad credit, we work with the person on ways to improve their credit history and score. Lisa Lamberson, owner of Mountain Sports: Yes, my dad (Mark Lamberson) has always said something similar, ‘Listen to your customers and you will
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be successful.’ I agree and it’s worked for us these first 37 years in Flagstaff, so I think I’ll keep it as a company mantra.
Jonathan Netzky, owner and founder of Tepa-brand Burgers: Developing a good business model takes intense work, extraordinary risk and Lately, a business diligent planning. A strong ultimatum has surfaced: business model has benefitted adapt or die. Do you believe from foreseeing realistic major that it has to be one or the pitfalls and is durable enough other? Do you see ways to make subtle adjustments your business doesn’t have when needed to persist to adapt, but to keep doing and/or grow. Ultimatums what it’s doing consistently that dramatically change a and still thrive? business’s cost structure in an unforeseeable manner Jennifer Harris: We are may have unforeseeable constantly adapting, whether or undesirable outcomes. it is for a new regulation or For instance, the impact of offering a new product or adapting to dramatic increases service to our accountholders, it in the cost of labor for food is what we do. We don’t have a service businesses in a seasonal choice. We don’t have the deep economy will indubitably pockets of the big banks for result in less labor on staff. fancy TV ads, so we have to keep That ripples to processing less changing and growing to offer labor-intensive fresh food our members the best most up and obviously less of the more to date services and top notch expensive locally grown food. security for peace of mind.
In a world of Yelp and TripAdvisor and one- to five-star ratings, how does a small business work to keep the number of stars high?
Each and every customer deserves a level of kindness and professionalism that our staff strives to provide. You never know who might help you on your path to greatness, Lisa Lamberson: Kindness and through kindness, you may and great customer service. discover and unlikely friend or We see all walks of life at our supporter. central downtown location.
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SHOP LOCAL short time, Mama Burger was opening and had experienced the same challenge finding a tasty, meaningful option for those choosing not to eat meat. As they both succeeded in extraordinary ways we began to learn that there was a great need for TepaTM brand products, not only in Flagstaff but everywhere. What would you say makes Flagstaff a much different town to do business in compared to others?
Some small businesses are not selling a product or a service as much as an experience. Do you think your business is about selling an experience? How do you create that?
Mark Love: I definitely think that Massage Envy sells an experience with every service. The only way to achieve this is to be passionate about what we do which many of our members and guests feel.
Jennifer Harris: Our mission statement is ‘People Helping People.’ We are a notfor-profit, financial institution providing quality products and services, while returning value to our member owners … We work for everyone that has an account with us. We strive to offer exceptional service. Every interaction is an experience to a member. Our job is to create the best experience possible.
Some businesses are born out of a passion. Others are born when someone sees a great need for the business in the community. Which kind of business is yours? Please share how you came to start it.
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Lisa Lamberson: The outdoor industry itself is about passion for exploring wild places. To me it’s more to
me than just selling gear. Our partnership with Patagonia has given me an appreciation for our capacity to influence and assist with local and regional conservation efforts. Being able to connect to, and bolster these initiatives keeps my work engaging and provides a sense of fulfillment. Jonathan Netzky: Our business grew out of a passion for local commerce with a most valuable renewable resource—food. The need was first clear from Diablo Burger, having searched they had not found a viable option that met their values to serve a local and vegetarian protein. After serving Tepa there for a
Locally Owned & Operated 2016
Lisa Lamberson: Willingness to collaborate. I find our best successes at Mountain Sports Flagstaff come from creative thinking by many minds. The opportunity to reach out and work with willing businesses, organizations and individuals is a unique quality of our mountain town. What is your favorite local independent business that’s not you? What do they do so well or what do they offer that you enjoy? Mark Love: There are so many. I am a foodie, so I enjoy the diverse range of restaurants that we have in Flagstaff. Each one is different, like visiting with a new family every time you go out! Jonathan Netzky: Starlite Lanes. Ron Ghetto has built a well-trained, effective staff a runs a clean fun space which offers the best bowling lanes in Flagstaff.
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he phrase “Shop Local” typically evokes images of strolling down Main Street with boxes and bags in hand. But shopping local doesn’t just mean hitting the local boutiques and antique shops; it also means eating local. Some of the best restaurants, right under your nose Sure, most people like the comfort and stability of major restaurant chains. You know the menu, you know what to expect, and they’re typically easily accessible right off the highway. Look a bit closer and you could have a whole lot more variety in your own backyard than you’d ever dreamed. The easiest way to eat local is to be adventurous and pop into new and different restaurants around your hometown. From the mom-and-pop diner to the downtown bistro, you will rarely go wrong by taking a few chances. Supporting new restaurants can be a great way to expand your palate, while also helping sustain local jobs. Hit up the farmer’s market This is arguably one of the biggest, and often most forgotten, ways to eat local. Definitely try out the cuisine at local restau-
rants, but, when it comes to fruits and veggies (and even honey and canned goods), it’s hard to beat the freshness of the stuff from your own county and state. Local farmers fill up farmers markets every week, selling goods grown right in your hometown. Sure, it might cost a bit more, but it’s almost guaranteed to be fresher than what you might pick up at the grocery store — and that purchase will help ensure there are local veggies available in the years to come. Local food is better for you According to a Michigan state report, local food has a shorter time between harvest and your table, and it is less likely that the nutrient value has decreased. Food imported from far-away states and countries is often older from having traveled a great distance and sits in a distribution center before it gets to your store.
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UNIQUE LOCAL FINDS The big box retailers might have more stuff, but you can almost guarantee they won’t have everything you’ll find at a local shop.
The best place to find local stuff As The Guardian notes, independent shops often stock items made locally that might not be available elsewhere. They make the example: “Buy a dress by a fledgling designer and there is little chance of turning up to the office Christmas party wearing the same as someone else.” Along with clothing, the report also notes local business can be the best place to find one-ofa-kind items, such as toys and jewelry. Local entrepreneurs often team up with local stores to show off their wares, and it could make for an exciting and unique find. Keep an eye out for local books and art Since local bookstores and shops are less beholden to corporate stocking issues, they often branch out and carry everything from books by local artists to the new album from a local band. It might be below the surface, but many communities have their own burgeoning art communities. Local businesses are typically where they shine through. These are things 8
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Make a change from the chains
directly connected to your local area, with its own unique flavors and charms — things you won’t find anywhere else, other than your local community. Supporting those things can keep you plugged in to the world around you.
You can even meet new friends All kinds of groups are almost certainly already meeting up weekly and monthly at your local cafes and coffee houses — and your new best friend could be there waiting for you. Local restaurants often host local groups and clubs, so make a point to check out your local newspaper’s event listings, or the bulletin board (or Facebook page) at the coffee house, to see what they have coming up. Most shops host meet-ups for everything from book clubs to cycling enthusiasts. If it matches up with your hobbies (or if you’re looking for a new one) local businesses are the perfect conduit to getting plugged in.
our dedication and desire to make the best homemade pizza possible has helped niMarco’s pizza remain Flagstaff’s hometown pizzeria for over 35 years. We strive to make all of our pizzas with only the freshest best tasting ingredients which are usually not the cheapest option and as a result we do not sell them for $5 each. We care about our product and you will taste the difference. Dave and angie nau alumni
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Lunch SpeciaLS 11am–2pm happy hour M-F 2pm–5pm We deliver all day, every day! Open 11am–clOse 7 days a Week
Downtown Westside (928) 779-2691 (928) 779-0024 101 South Beaver St. 1800 S. Milton Ste. 500 9
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DOWN THE STREET
O
nce you look beyond the big box retailers, it can sometimes be amazing to discover the unique, local businesses that have been your neighbors for years. From looking beyond the major coffee chain for the local place off Main Street to hitting the downtown boutiques instead of the major department stores, shopping local is a great way to support your community — and maybe even track down some unique deals. But, where do you start? Get to know the Chamber of Commerce Most communities — even small and mid-size cities — have a Chamber of Commerce. Take advantage of them. A good Chamber of Commerce should be at the heart of the local business climate in your community, and many publish directories and brochures designed to spotlight the local businesses in your area. Drop by one day when you’re in town, or just pull up a business directory online. Flip through the categories and see just how many businesses you don’t recognize — but might want to check out. Keep up with the local news From local newspapers to social media, there are more than a few ways to stay plugged in to your community. Many local businesses advertise in local papers, so pick up a copy and see what stands out. 10
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Many local papers also provide coverage of unique businesses, so keeping an eye on the happenings in your hometown is an excellent way to discover some new, local businesses. Social media also is an excellent tool for discovery. Like or follow one local business and it stands to reason you’ll get recommendations to check out a few more. Also, see which businesses your friends follow. Just start exploring Though all those routes are a great way to get primed on your local shopping landscape, nothing beats just getting out and strolling the streets to see what’s available. The best approach: Devote an afternoon to your own walking tour, paying attention to the businesses you probably drive by every day without a second thought. It’s amazing what you might find.
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HELP YOUR COMMUNITY
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hopping local is the easiest way to help your community thrive. When you shop at local stores, it creates and sustains local jobs and helps provide unique shopping options for your community. Plus, supporting local merchants over major retailers is proven to keep substantially more money in your own community. How much does it help? According to the research firm Civic Economics, for every $100 you spend in a local business, approximately $68 stays in your community. When shopping at a local branch of a chain store, just $43 remains in the community. Yes, both purchases certainly help by keeping tax revenue in your town, so the local government can do everything from pave roads to keeping the sewer functioning properly. But for maximum bang for your buck, its hard to beat the local corner store. helping avoid ‘ghost towns’ A shift has occurred over the past several decades, as the main shopping focus shifted away from the downtown core of most towns and into larger shopping centers built on the outskirts (largely due to the available space needed to build large developments). That’s not a bad thing, when done in balance, but the New Economics Founda-
tion notes it can sometimes result in downtowns becoming “ghost towns” over time, as shoppers stop supporting local stores and they eventually have to shutter. NEF researcher David Boyle said via TIME that “Money is like blood. It needs to keep moving around to keep the economy going. It flows out, like a wound.” It’s worth the tradeoff Yes, the product at the big box retailer might be a bit cheaper, but NEF researcher David Boyle told TIME that supporting local businesses can be a way to “shift the balance” to keep both local and national options available. Everyone likes variety, right? Though it might cost a bit more on the front end, Boyle noted that buying local can have those massive community benefits on the back end, from tax support to keeping a downtown viable for future business growth.
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SPURRING GROWTH
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hopping local can help retain jobs and keep local businesses open. It’s also an investment. Without community support, the local business landscape could be drastically altered — and smaller — in the decades to come.
Shopping local keeps that money working A Civic Economics study analyzed data from 15 independent retailers and seven independent restaurants in the Salt Lake City area, and compared their local economic impact with four national retail chains and three national restaurant chains. The study found that local retailers return a total of 52 percent of their revenue to the local economy, compared to just 14 percent for the national chain retailers. Similarly, local restaurants recirculate an average of 79 percent of their revenue locally, compared to 30 percent for chain eateries. Why the drastic difference? The report notes independent businesses spend more on local labor, goods procured locally for resale and services from local providers. This means a much larger share of the money spent at a locally owned store stays in the local economy, supporting a variety of other businesses and jobs. Keep Your community unique Entrepreneur Magazine notes that local businesses give a community its flavor. “Towns across America have similar chain restaurants, grocery and department stores but that
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diner down the street where you have breakfast every Saturday morning is one-of-a-kind,” the magazine notes. “The combined presence of your town’s many local businesses makes it different from every other city in the world. By supporting those businesses instead of chains, you ensure that uniqueness is preserved as a part of your community.” local ties Plenty of major chains make a true effort to immerse themselves in their local communi-
ties, supporting charities and local schools — but so do local businesses, and many of them have been doing it for decades. The American Independent Business Alliance notes local owners, typically having invested much of their life savings in their businesses, have a natural interest in the community’s long-term health. The Alliance adds that community-based businesses are essential to charitable endeavors. One example is that their owners frequently serve on local boards and support local causes. Locally Owned & Operated 2016
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LOCAL VS. ONLINE, BIG BOX
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ig box and online retailers may seem convenient, but it’s important to see the impact these shopping methods have on your local community. Stay close to home Though statistics show locally owned businesses typically reinvest more in the local community, shopping at big box retailers in your hometown still keeps those tax dollars flowing back into the area. When you shop in different towns, those taxes go to pave roads and operate parks in those communities. When you shop at home, no matter the type of store, that tax money stays local. Those funds are vital to keeping your town up and running. Convenience vs. community It’s hard to argue against the utter convenience of online shopping. Services such as Am14
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SHOP LOCAL azon Prime can have just about anything delivered to you in two days or less (often with free shipping). In many cases, that can be a great way to go, but it’s important to realize the detrimental effect online shopping is having on local retailers. Online sales are only getting stronger by the year, with ComScore reporting year-toyear increases of around 10 percent in online spending during the holiday shopping season. Many retailers are reporting strong growth on their sites, according to Forbes. Are the savings worth it? Online retailers are able to keep prices low because they cut out much of the brick-
and-mortar overhead required for a storefront. Plus, some online sellers aren’t required to add taxes to your purchase in some states, which also can help keep prices low. But like most things, finding balance between what you buy online and locally could be the best approach. The Retail Alliance notes: “This situation is stifling local business growth and threatening small businesses nationwide. While public opinion continues to move in favor of equity through sales tax collection, some in Congress continue to fight against sound policy based on simple fairness, good economics and common decency.”
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Hampton Inns & Suites Flagstaff, Sizzler Westside and all the Del Taco restaurants in northern Arizona are proud to be locally owned and operated by the Freer Family
The Freer’s are extremely happy to help provide jobs to over 100 people in Flagstaff and help to keep spending in the Flagstaff community.