Living in a small town, and being a business owner myself I can really appreciate the efforts many people take to purchase local. I myself am willing to pay more, say up to 40% more in some cases, not just to support a local business but also for the convenience. But what do you call it when a local merchant is charging say, a 600% markup on a product which they are the only providor of?

Last week at my day job employer, there was concern that a recent computer failure had been caused by a power surge. This in turn brought about a discussion of upgrading many of the non protective “power bars” with proper surge protectors. After counting up the number of protectors needed we headed off to the local computer/electronics store to purchase some new surge protectors. Upon arrival I was shocked and horrified to see the exact same surge protector I had bought for my home (~$9.99 at Costco) priced at $69.99!!! How can they justify this? This was no mere small town markup, or “local premium”; this was price gouging comsumers who had no other choices. Having a total loss for words, we quietly purchased the one we absolutely needed, and have decided we will be heading out of town to purchase more.

Buying local vs shopping out of town

I am all for keeping local business local, but I believe that it is the businesses responsibility to maintain a relationship of trust with their clients. I need to trust that the business I am buying from is being honest and selling their products at a fair markup, fair being where they make a profit and I get value for my money. If a retailer gets too greedy this trust is broken and I feel no guilt in taking my hard earned money out of town, where I will no doubt pay less and get more.

I understand that it costs money to bring in merchandise and that many stores are not large enough to get significant supplier discounts, but a 600% markup? Please.