The net effect of doing business with a local shop.
Our daughter Ella has just completed her first complete year of owning and operating her coffee shop down the street from us in Lowell: Ella's Coffee & Cuisine
Ella is a culinary school graduate who prides herself on the handcrafted sandwiches, soups from scratch she offers along with the top shelf quality coffee she buys from local small batch roasters.
She has some help in the baking department from her sister Amy - who is constantly coming up with delicious and tempting treats.
Anyway - I am doing some end of the year book work and I decided to tally up where the money spent at Ella's ends up. First, let me thank each and every customer who has crossed the threshold at Ella's - we appreciate the way you have helped Ella's grow.
One of our goals is to spend as much money as we can using local - Lowell based sources like Gary's Meat Market, Agape Coffee Services, etc. Our next choice is a regional supplier like Grand Rapids Coffee Roasters, Mooville Dairy, etc. Finally we try to keep the money in Michigan if at all possible.
I am happy to report that 77% of our gross sales stayed in Michigan.
Of that total 58% went to suppliers and employees right in Lowell.
41% of that total went to regional suppliers and employees.
(FYI - everyone at Ella's now lives in Lowell.)
The last 1% stayed in Michigan.
We also collected and sent to Lansing $7,246.00 in Michigan sales tax.
So, when someone spends $1 at Ella's - .77 cents stays in Michigan and .44 cents of that stays right in Lowell - where it gets re-spent and re-spent. For instance, four people from Ella's rent apartments in Lowell so there is several thousand of our annual payroll being re-cycled in the local economy. They also eat and shop in Lowell, etc. etc.
NOTE: I am sure the real numbers are actually a bit higher, but I am only willing to tear this down so far. For instance, we have our liability insurance policy through a local agent - Dave Emmette at AIC right on Main Street - but the company is Hartford. The annual premium of over $2000.00 goes out of state, but the commission to the local agency stays right in Lowell. We have also spent money at local/regional branches of national chains and a small percentage of that benefits Lowell and West Michigan.
Even with my somewhat limited math abilities, you can see the benefit of supporting your local businesses. Thanks very much for doing so!