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:

• Employees live locally so wages earned by employees are spent locally on housing (rent or mortgages), food, gas, restaurants, entertainment, car & home repairs, home improvements etc
• Management employees live locally so wages earned by these employees are also spent locally
• The owners of the company live locally so income earned by the company is spent locally
• Expenses paid by the business for consultants, accountants, gas, electricity, advertising, vehicle repairs, occupancy costs (rent or mortgages), food, entertainment, meetings, internet etc are typically all spent locally
• Any property taxes paid by the company or any employees are paid locally
• All income taxes paid by the employees and company go back to the local ecconomy

For those foreign businesses that have a local presence typically there is still a large portion of their expenses that does not support the local economy. For example,

• A large layer of high earning management staff is NOT employed locally but rather in the foreign country drastically reduces overall income taxes collected locally
• Companies with call centres, typically locate them in foreign countries where wages are cheap. Again, this significantly reduces the amount paid in local wages and income taxes collected locally
• 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: Click Here
• Many major investments and expenses (eg consultants, banking, web development, advertising, insurance, benefits etc) are typically NOT spent locally but rather in the foreign country

Overall, this drastically reduces the multiplier effect of foreign companies that are simply operating in Canada

2. Local businesses are larger supporters of local organizations like networking groups, chambers, local charities, local events, sports sponsorships as well as others.
3. Increased local economic activity creates more interest in the community, creates better local services and facilities and improves property values
4. 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.
5. 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.