How to save the small business?
There is no doubt many countries in the world are in a state of over production. Too many people are over educated. Over production and over education were originally good signs. Unfortunately flaw characters of greedy and strife are inherited to corporation through management. Selfishness of people would not choose harmony to live with competitors. They would select business as a war to eliminate. Price is the easiest tool to knock down your opponent. Large corporations could reduce cost by take advantage of using massive capital to setup automation. Through technology, labour could be next to nothing. Intelligent level of employee could be robotic style working on minimum wage. Our next generation will be living in a world short of resources. There are only a few gigantic players left on every field of business. Small competitors had already expelled since the free trade begun. The elimination game had no sign to halt among the remainders. Large players are getting in and out. Consumers seem to be the only beneficial recipient. Unemployed found no room to survive, but to create nonessential business. They are going around annoying people. Telemarketing and fraud are signs of abnormal society. Who would want to get rebuke if he could make a good living? Are consumers really paying the lowest price? What impact is to the country? Is the government loosing taxpayers?
Below are some testimonies of nowadays business:
Selling stamps was a good sideline for small convenience store. It had 10% margins. They buy stamps from small post office in their neighborhood. One day, a large drug store chain was using stamp as their promotion giving 10% off to consumers. Stamp can be used as money on some remote cities. This sale is almost putting money on sale. This angered the post office. Very soon, the post office changed the system gave tiny profit on selling stamps. Small businesses suffer on absurd action of large corporation.
Photo-finishing was a good business for small business owner. It was $16.00 per roll of 24 exposures film. The cost is about $2.50 per roll on material, plus labour cost, plus rent, plus mortgage on machine, plus electricity, water and phone bills. When an US warehouse style club entered into business, the price was dropped to $10.00. Later a big Canadian supermarket chain was using photo finishing as promotion to attract customer. The lowest price had dropped as low as $2.99 per roll. This big supermarket had eliminated all small photo business. The price drop had only encouraged consumers taking more redundant pictures on trips. Many people took ten rolls of film per vacation. Most of the prints end up in garbage. Digital photography had eliminated photo-finishing nowadays. Another type of hi-tech garbage is printers, print heads, and empty ink cartridges.
Electronic business is a professional business. There were many neighbourhoods TV stores provide service and installations. It was such an enjoyable business that manufacturer were giving free trips to dealers on encouraging sales. Big corporation entered into business had eliminated this kind of neighbourhood relationship. They are dumping goods below the cost price of small business, which none of them can survive.
There were many stationary stores in shopping malls, plaza, and even in industry complex. Some paddlers were marketing stationary by visiting offices. There are only gigantic players left in this business.
There are huge bookstores letting you to read books in comfortable chesterfield and coffee. Consumers can wrinkle new books with no responsibility. The unsold books were eventually returned to publisher. No small bookstores can compete with this kind of business ambiance.
Supermarkets are growing bigger and bigger in size. The smaller ones are in and out of business. These giant markets touched all field of business which no small business can compete.
Many drug store franchise owner said owning such a business makes no better living than being employed.
Some people criticize a big international department store, which has lowest price is in fact stripping the wages of employee to benefit consumers. You can realize this might be true on finding this department store is using employee to do TV commercial for free.
Advertising is the soul of a big retailer. During promotions, the price they advertise is unrealistically low. Yes, the consumer can purchase the product with the advertised price within the period as they specified. The promotion period could be one day on some electronic product, and one week for household products. The price they advertise in most cases is near cost price. For a small business competitor, because they cannot get a better price break from wholesalers, that advertised price could below their cost price. Once that price has been advertised, some consumer could shop around with small business and expect to get an even lower price. This behaviour damages small business, because they just couldn’t survive with that near zero profit margins. Big retailers are always using this tactic to stir up the market to create a false sense of every day low prices. The prices on non-promotional items are not cheap at all. They mislead many consumers.
Some business cheat consumer by saying no tax and in fact is tax included. This conduct make consumers believe business man has the right to exempt tax, and giving pressure to charge no tax. False advertising could bypass nowadays law with ease, which government couldn’t do anything on these bad business ethics.
North America is a free society. It is true that you can sell things to lose money if you want to. However, creating false sense, which can wipe out competitors, is not ethical. Unethically eliminating competitors is unfair competition, which is not freedom. Government should be in a position to regulate and police business to live in harmony. There are too many holes in nowadays laws, which bad businessmen could detour. Small business is the life of a country. It creates many employments. Gigantic outfit uses minimum number of employees and strips wages. Pricing in Europe is under regulation. For example, for an identical pair of eyeglasses, you will pay the same price wherever you go. Businessman in Europe must have the qualification before they are allowed to operate the business. Price in Europe is higher than North America, but everybody in Europe could make a reasonable quality of living.
What our government can do to save small business: