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July 24, 2008

We demand that you supply!

What timing. Just yesterday I linked to one of my favorite posts ever from this blog. In that old post, I had a go-round with a blogger named Mac about the evils of "Big Box Mart".

As we all know, "Big Box Mart" and other evil corporations are constantly alleged to put Mom and Pop out of business. And as I pointed out to Mac, that's a load of crap.

WalMart doesn't put competitors out of business - the customers do. Even Hollywood got that one right.

When my wife and I first saw You've Got Mail, she pointed out to me that Fox Books is clearly supposed to represent Barnes and Noble - right down to the font on the Fox Books storefront. The customers who complained about Meg Ryan's bookstore going out of business had a way to keep it open -- they could have shopped there. But they partook of the convenience and low prices that are available in the Tom Hanks' big chain store, and the small bookstore did what it was supposed to do. It followed the laws of economics. And customers were so, so sad. They never even realized the part they played -- that they had complete control over which store would thrive.

This aspect of the movie was funny because it is true. So it should be no surprise to see people in real life failing to understand the laws of economics. Via Captain Capitalism, a WSJ article on how upset people are about certain Starbucks locations closing. Letters are being written. Calls are being made. Petitions are being signed. But these things don't pay the bills. Starbucks will, of course, keep open any stores where cappuccinos are being ordered. Just like in the movie, consumers have control over which stores will thrive.

Cap asks; "Anybody want to point out the OBVIOUS freaking solution to this problem then?"

I'll point out an opportunity. Rather than think as a consumer, these folks should think as potential owners. If, as the WSJ says, "Starbucks outlets serve as key draws for other retailers, making the loss of one a blow to the surrounding area," then it shouldn't be impossible to lease the location of your favorite Starbucks and open your own coffeehouse. In fact, it should be pretty easy to convince some of the local retailers to cooperate in shared advertising, WiFi, and discounts or deliveries that would encourage sales to the employees of the nearby stores.

Sound crazy? It is. Too bad Meg Ryan's character didn't think of that. I think it would have made the movie a lot better.

Wulf Posted by Wulf on July 24, 2008 at 12:12 PM

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