Jefferson
Iowa News had a chance recently to sit down and hear the problems
Jefferson area businesses are facing today. Martin van der Hoer, a
longtime resident of Greene County, was graciously willing to spend a
few hours of his time with us in an attempt to provide more information
to people who otherwise may not understand the obstacles small
businesses in Jefferson face. Mr. van der Hoer has owned his own
business for over three decades, and served as President of the Chamber
of Commerce. What follows are excerpts from our rather lengthy
conversation.JIN: What, in your opinion, is the biggest obstacle facing a business starting up in Jefferson today?
der Hoer: People simply do not shop locally. These days, they prefer to travel to larger areas.
JIN: Almost all studies show that people prefer to shop close to home, as long as the products they want are available.
der Hoer: All you have to do is look around. Everyone is traveling out of town. Local merchants are struggling.
JIN: But isn't it possible that other factors are involved? For example, most of Jefferson's retail stores are only open 50-60 hours a week. Some even less. Nobody is open in the evenings. Nobody is open on Sundays or holidays. All research shows that these are the heaviest shopping hours.
der Hoer: You can't expect these business owners to work evenings and Sundays. Customers need to shop when it is convenient for US. Besides, it is very expensive to pay people to keep your store open those late hours.
JIN: Most business owners I speak with work those hours themselves. They are willing to put in long hours establishing their business.
der Hoer: People don't become business owners to work hard. They become business owners so that they can keep their own hours.
JIN: The small business owners I know would tell you that they became successful due to long hours and hard work.
der Hoer: Ridiculous.
JIN: Another common reason often cited for small business failure is the refusal to take financial risks. Businesses that are well-established almost all took major financial risks early on in their development.
der Hoer: You are asking people to risk money they would rather spend on a new house, SUV, or a vacation? Why should they have to risk that? Maybe if the state or federal government provided them with a grant or subsidy, it would make sense.
JIN: So you basically just think that people should shop at your store because it is here locally, regardless of the goods or service offered?
der Hoer: Local businesses are failing and it's the customers' fault. They should shop at my store when I decide to be open, and they should be willing to pay higher prices, even if it places a financial burden on their families. They should be willing to make these sacrifices, so that I will have a successful business, even if it means they will become poorer financially.
JIN: Here are the four reasons most frequently cited as to why consumers do not shop locally. 1) You are not open when I have time to shop, 2) Your merchandise is greatly overpriced, 3) You do not carry the merchandise I want, and 4) Your inventory is not available online.
der Hoer: Customers should simply buy what I have, when I am open. These are not the main reasons why these businesses are failing. The economy is terrible. People simply aren't spending money.
JIN: Did people suddenly quit buying shoes? clothing? groceries? cars? furniture? Believe it or not, consumers are still buying these things. Are the casinos failing? If you look outside your backyard, people are still spending money.
der Hoer: Stay out of my backyard.
Spencer Straight, 06-01-2011