Why Buy Canadian and Local?
Did you know that almost all of our competitors are foreign-based companies? Staples, Office Depot and Grand and Toy (wholly owned by Office Depot) are all US-based companies. Even Beatties and Monarch Business Products were purchased by Staples. So if you truly want to support Canadian business you have to look for a local independent business product company like FRID + Russell.
The benefits of buying local and/or supporting Canadian-based businesses have been well documented – try doing a web search for the words “Buy Local”. However, the following are some of the main reasons to support local companies like FRID + Russell.
- Every dollar spent locally re-circulates with other local businesses creating $7 of local economic activity. That’s right there is approximately a 7 times multiplier effect on every dollar spent locally. This is gained through:
- Wages earned by employees are spent locally on housing (rent or mortgages), food, gas, restaurants, entertainment, car & home repairs, home improvements etc
- Expenses paid by the local business for consultants, accountants, gas, electricity, advertising, vehicle repairs, occupancy costs (rent or mortgages), food, entertainment, meetings, internet etc
- Property taxes
- Income taxes
For those foreign businesses that have a local presence typically there is still a large portion of their expenses that doesnot support our local economy. For example,
- A large layer of management staff is usually not employed locally
- Companies with call centres, typically locate them in foreign countries like India. This significantly reduces the amount paid in local wages.
- Foreign businesses often engineer their finances to minimize the amount they pay in local or Canadian income taxes. In fact take a look at this article by Canadian Business magazine
- Many expenses (eg consultants, banking, web development, advertising, insurance, benefits etc) are also not spent locally
Overall, this drastically reduces their multiplier effect.
- Local businesses are larger supporters of local organizations like networking groups, chambers, local charities, local events, sports sponsorships as well as others.
- Increased local economic activity creates more interest in the community, creates better local services and facilities and improves property values
- In total, taxes paid by small businesses are significantly more than those paid in total by large companies. As a result, supporting small businesses increases the ability for government to improve roads, public transportation, health care, policing and other public programs and facilities.
- Lastly, spending locally supports your neighbor and makes you feel good.
FRID + Russell is a 100% locally owned Canadian business with head office in Burlington, Ontario. We are proud to be Canadian and proud to support other Canadian businesses.