Home » Business & Finance » Marketplace Economics » No competition need apply

No competition need apply

© Beth Skinner

Are you an independent business owner? Tired of having to lower your prices, provide superior customer service and guaranteed satisfaction? Are you just tired of competition in general? Then consider this - the Boulder Independent Business Alliance proposed an ordinance recently known as the Community Vitality Act (CVA). This act would limit the number of chain stores in the city in hopes that it would assist the local, independently owned retail stores by sheltering them from competition. The ordinance would prohibit any growth in the number of formula businesses - those with standardized features and three or more outlets - except at Crossroads Mall.

There is no doubt that independently owned stores like the Boulder Book Store suffer when mega chains Barnes & Noble rumble into town and put up their warehouse size buildings. B&N is able to stock more of the same book, feature a larger selection, hire more employees and provide the consumer with lower prices. Often the smaller, independently owned stores have trouble keeping up.

According to comments in the Daily Camera Boulder citizens who support the CVA do so in part because they feel bad for the mom and pop shops who are forced out of business by the big boys. Another reason Boulderites have given for supporting the CVA (if the letters to the editor are any indication) is that they dislike those big capitalist meanies who only care about the almighty dollar.

Fair enough. Let's stop and think about this though. Who are the biggest supporters of the CVA? The small, independent stores in Boulder. Why? Because when the those chain store capitalist grinches come to town they take money from the independent business coffers. Oops. Wouldn't that indicate that the independent business owner's main concern is the money as well?

The Boulder Independent Business Alliance wants you to ignore the fact that lower prices means more inexpensive books for the consumer - including consumers who don't have a lot of money to begin with, but want their children to develop a love of reading.

One letter to the editor commented on the fact that small, independently owned businesses ensure money is kept in the community "...it [the Act] protects the local economy, keeping our dollars in the community." The Boulder Independent Business Alliance want you to ignore the fact a larger store provides more tax revenue for Boulder and that means more improvements for roads, schools, senior centers, etc. You'll also have to ignore the fact that a larger store can hire more employees than a smaller store, which means more citizens of Boulder, can get jobs and spend their money in Boulder.

The copyright of the article No competition need apply in Marketplace Economics is owned by . Permission to republish No competition need apply in print or online must be granted by the author in writing.