Joined: Aug 2010
Posts: 4956
The &quot&#59;why bother&quot&#59; factor
8/30/2016 at 12:53 AM
Years ago I decided that I was going to buy some Saskatoon plants to grow berries, when I looked into it I thought I might get enough to have a u-pick to earn some extra cash, during my search for information, I came apon information that basically said that if you did not have a large population base within 30 minutes, the chances of success was not that great, anything over a half hour drive was considered an inconvenience unless what you were offereing was something way out of the norm.
The reason I mention this has to do with the town of Souris once having two auto dealerships and now having none, were these dealerships supported by local people, yes they were.
When Murray''s lost their building in Souris, they made what I consider a smart business move, and that was not to rebuild in Souris, they were right around the thirty mile distance and the majority of the Souris based customer would likely drive that distance to continue to do business with them.
What we are talking about here applies to other things besides autos, a four litre jug of milk costs about a buck and a quarter more in Souris than in Brandon, and if you loved milk like I do, the difference would likely add up to more than the difference in the auto example. People continue to buy milk and other products in Souris because in most cases the "bother" is not great enough to make that trip to Brandon.
I''m not making fun of those who say that shopping for a car in Winnipeg will cause Brandon to lose auto dealer, but in reality I think that is not even a risk given the size of the population base in Brandon, and it''s consumer buying draw area that surrounds it, and if a dealership did close, someone would come forward to fill that void, and the new owners might adopt a different business plan if the loss of local shoppers was seen to be the problem.
Population numbers as well as the "why bother" factor allow dealers to ask a premium price in Brandon, and if a dealer were to dissapear from the area because of people going elsewhere it would be the result of the customer using good business practice the same as a dealer does.
Last comment, if local buying keeps local business, why does Souris not have it''s two auto dealerships, the simple answer is dealers used good business decisions, and consumers are also allowed to do the same, at a certain price it is no longer a "bother" to go elsewhere.
Edited by don brown, 2016-08-30 00:59:56