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 Max) are all US based companies. Lyreco is a French based company and Corporate Express and/or Basics Davenport 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, 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, sport 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 neighbour 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.