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by gonehome 2015 days ago
Not to go too off the rails, but they only “contributed to the decline” by being a better option for customers that switched from small businesses in rural areas to Walmart.

A lot of small businesses are bad. Bad hours, bad selection of products, bad customer service, bad prices.

They’re often held up in some idyllic form, but it’s clear from the behavior of their own customers that Walmart provides these customers more value.

3 comments

My wife teaches in a small, poor town that is off the beaten path. It is just outside of what most would consider the suburbs (we live on the edge of a suburb and she commutes through rural area to get there). The only grocery store in town is what used to be a locally owned and supplied store, and is now under the branding of a "Piggly Wiggly Xpress." The options are to go there, Dollar General, or drive almost 30 minutes to another option, one of which is a Walmart. Everyone who can just drives to the Walmart.

The local grocery store is the worst excuse for a grocery store I've ever seen. There are only a handful of fresh vegetable options, including $1/lb bananas and $5/head iceberg lettuce. Everything is overpriced and there are very few healthy food options. Apparently a lot of people due to transportation limitations can ONLY shop at this store (or Dollar General), which is expensive and mostly has unhealthy options. There are talks of a Walmart coming in, and I have no doubt it would be a huge quality of life improvements for folks in the town.

And then they leave the area after a while leaving nothing for anyone. I posted the links for a reason and that's because they support my claims. People like to ignore the facts in favor of their feelings and emotions.
They're held up in some idyllic form because while they're worse for customers, they're on average much better for employees. 'Small business' isn't just meant to be heartwarming when talked about as important - small businesses also spend a much larger percentage of their money on wages.
This feels like a false dichotomy to me (if it’s true which I’m not certain of).

It’s not very good for employees if your small business customers don’t like you and as a result you have to close.

A local car dealership may be great for its employees by ripping off customers and generally being a terrible experience, but I won’t have much sympathy when direct to consumer sales come and wipe them out.

Small businesses need to offer something of value to customers that’s real and differentiated as opposed to a narrative of their own self interest. In short - they have to be competitive. There’s no reason they can’t do this while also being good to employees.

A lot of the complaints I see come across as sour grapes and trying to legislate their existence rather than just being better and caring about what customers want.

At its best capitalism is a force for aligning value and interests between provider and customer. On net this leads to more efficient distribution and better outcomes for the most people.

At its worst it’s rent seeking and leveraging local power over people without choice. Small businesses often fall on that side of the spectrum to me.

It's not that simple. Small businesses, like small anything, are less efficient than larger versions. The inefficiencies inevitably bother customers.

It just so happens that in business, much of that inefficiency is the number of employees required per unit of economic activity. Ultimately all employees are an unwanted cost to the consumer. Small businesses have fewer options to avoid that cost, so they account for more employment.