If you’re a fan of classic country music, chances are you’ve heard the song “Little Man” by Alan Jackson. But, in case you don’t listen to country music and you haven’t heard of “Little Man” by Alan Jackson, here’s a snippet of the lyrics for you…
…People go round but they seldom think ‘Bout the little man that built this town before the big money shut ’em down and killed the little man…He pumped your gas and he cleaned your glass and one cold rainy night he fixed your flat. The new store came where you do it yourself, you buy a lotto ticket and food off the shelf. Forget the little man, forget about that little man…”
In the song “Little Man” by Alan Jackson, he speaks the honest, hurtful truth…the truth behind big corporate chains having the power to crush the heels of small businesses. Although it’s difficult to perceive if the big corps will one day have enough power to demolish small businesses forever, one fact remains relevant no matter what the future of retailing may hold: big things tend to become bigger, and small things tend to become smaller. Although it may not seem like an issue for big corporate chains to become the only avenue for purchasing products, it can affect our future deeply, our children’s future, and the future of purchasing as a whole.
All About Chain Corporations and CEOs
What Constitutes as a Chain Corporation?
Home Depot, Walmart, Bass Pro Shops… the list of chain corps is long and plentiful, expanding over all different categories of retailing. Once small businesses and entrepreneurial dreams pursued by a loving founder, these large chain corporations have grown into massive companies that continue to grow larger through the support of their stockholders’ capital and the ambition of their CEOs. Unlike a small business that’s independently owned by one person or a small group, a corporation has many, many owners who all own varying amounts of the business. Make sense? Okay, great! Now, let’s take a look at what a CEO is.
What the Heck is a CEO?
In the last section, you may have been wondering what a CEO is and why they’re considered to be some of the most ambitious, powerful people. CEO stands for Chief Executive Officer (i.e., the decision maker. The controller. The face of a company. The person’s shoulders that a corporation’s successes and failures rest upon). Most CEOs work crazy long hours and have massive amounts of pressure from all angles of the corporation thrown at them. Their day-to-day duties include any or all of the following: Overseeing operations, managing the company’s organizational structure, driving revenue and profitability, and communicating with the board. There’s no denying that being a CEO is not an easy job. Most CEOs work crazy long hours and have massive amounts of pressure from all angles of the corporation thrown at them. But, is the exorbitant amount that they’re paid equal to the value they provide to the company?
Salaries of Some of the World’s Most Venerated Hardware/Home Improvement Companies’ CEOs
Home Depot
CEO Name: Ted Decker
Yearly Compensation: $14.6M as of January 2023
Tractor’s Supply CO:
CEO Name: Hal Lawton
Yearly Compensation: $10.48M as of December 30, 2022
Menards:
CEO Name: John Menard
Yearly Compensation: $20-$25M as of 2023
Lowe’s:
CEO Name: Marvin Ellison
Yearly Compensation: $17.5M as of February 2, 2023
Chewy:
CEO Name: Sumit Singh
Yearly Compensation: $2.5M as of January 28, 2023
Amazon:
CEO Name: Andy Jasy
Yearly Compensation: $1.3M as of December 30, 2022
*Side Note: Bear in mind, the average wage employee of a large corporation sometimes receives as little as a .25 cent increase for all of their dedication and hard work.
The Overall Effect That a Large Corporation Has on Small Businesses
Were you blown away by the massive salaries of some of the world’s most venerated corporate chains? Chances are, you already know that these companies and their CEOs make more money than you or I will ever see in a lifetime. With these large companies being so financially successful, what we often don’t stop to think about is the side effects of these companies being so financially successful. The more the large corporate chains receive in sales, the less the small businesses will receive in sales as a result. Much like the “Little Man” song from the beginning of this post, it’s not unheard of for a small business to have to close due to a large corporate competitor moving in next door. Once a small business loses all of its customers to a large corporate chain, it loses financial stability. And, eventually, have to close the doors of their childhood dream, their livelihood, their past as well as potential future.
Why Purchase Local?
Reason #1: You Are Helping Contribute to the Local Community Instead of to the Nation
Whenever you purchase a product or service locally, oftentimes that money that you use to buy the product stays in the community. Your money becomes part of an employee’s salary that works for the small business, or it becomes part of a contribution to your local parks, roads, etc.. Not only should purchasing locally make you feel like you played an important role in serving the community but that money you spent will most likely return the favor to you in one way or another.
Reason #2: Better Customer Service
Unlike the large chain retailer that must adhere to nationwide sales strategies and plans, your local, independently owned retailer tailors his/her sales strategies and plans towards you and your community. Every community is different and has different needs. The local business owner knows this fact and uses it to their advantage. They can purchase products and offer services that he/she knows are needed within the community. Meanwhile, Lowe’s down the road knows that every community is different, but that doesn’t matter because they must stick to the chain’s list of products they must carry and services they must offer. Not only will purchasing locally make you feel better about yourself, but you will receive an overall better shopping experience.
Reason #3: Aligns Better With Ethics
Small businesses treat their customers as friends (and, in most cases, they really are friends) and their employees as family (and, in most cases, they really are family). Chains, conversely, often treat their customers as part of a statistic and their employees as assistants to help them achieve their financial/business goals. Now, that’s not to say that all corporate chains are unethical. In fact, some corporate chains do a really good job of truly caring for their employees and customers. However, it’s way harder for a corporate company to view its massive customer and employee base as humans who have thoughts and feelings than for a small business to view its smaller customer and employee base as part of one big family.
Wrapping Things Up:
It’s now, more than ever, more important to support your local community and businesses to help our country’s overall economy stay afloat. Rising inflation, high interest rates, and unaffordable credit card debt loom over us like a large stormy cloud. One small way that you can help combat economic collapse is by buying your bananas from the town grocery store, buying your lumber from the hardware right down the road, and dining at your local restaurants. With the ability to jump online, hit the order button, and expect delivery within as little as 2 hours, it can be easy to overlook the importance of buying locally. Allowing the big guys to grow stronger will only result in crushing people’s entrepreneurial dreams and subjecting our future generations to a world where community pride and strong rapport are nonexistent. It’s time to take a step back in time, remember who used to “pump your gas, clean your glass, and fix your flats”, and, whenever possible and financially able, buy from the “Little Man.”