Each year, businesses and local governments in the Greater Des Moines area spend over $7.2 billion for goods and services from out-of-area suppliers. That’s $7.2 billion annually for out-of-market purchases that could play a significant role in the growth and development of Greater Des Moines area businesses.
That’s why the Greater Des Moines Partnership and its affiliate chambers and organizations are sponsoring an initiative for area businesses to “Buy into the Circle”—to look for purchasing opportunities within the Greater Des Moines area—before they buy anywhere else.
Here are some common questions asked about the Buy into the Circle program.
Where do I look for ways to shift?
Many of the companies responding to the Buy into the Circle Guide acknowledged shifting purchasing in areas that they hadn’t originally thought. From credit cards with out-of-state banks to the materials a company wraps their products in, the shifts are found in neglected areas.
Here are some tips on finding areas where you can shift:
- Sort your expenses by ZIP code. It’s an easy way to see where the money is going. Be careful, because some local companies use a national office for their billing.
- Review how often your organization replenishes supplies by ordering online. Local office supply companies have an equally efficient system and can fill your order as quickly or even more quickly.
- When booking travel, does your company utilize local travel agencies?
- Who does your organization’s advertising? A local agency or an out-of-town agency?
- Where do your organization’s insurance benefits and retirement savings plan come from?
- When your organization hires a management trainer or speaker, do you look to the local consultants and experts?
There are hundreds of ways that your organization can find the products and services that your business needs in the local area. The process begins by reviewing what your organization needs and then, how it is fulfilling those needs. Ask the question, “Is it possible that a local company could provide this?” If so, visit the Partnership Web site and search the membership directory. There are lots of members who are ready to assist your organization with whatever you need.
Why was the Buy into the Circle campaign created?
This campaign was developed in response to the concern expressed by several members of the Greater Des Moines Partnership about the amount of business that was being lost to companies outside the area, and outside of our state. The campaign exists to encourage all area businesses to consider buying from local businesses before buying out-of-area.
Who is sponsoring this campaign?
Buy into the Circle is brought to you by the Greater Des Moines Partnership and its Affiliate Chambers and Organizations. But this effort would not be possible without these sponsoring companies, who, together, have contributed over $200,000 of in-kind products and services to help launch the Buy into the Circle campaign: ACME Printing, Business Record, Clear Channel Outdoor, Des Moines Radio Group, Des Moines Register, Mediacom/OnMedia, the Meyocks Group, Screenscape Studios, and Spindustry Systems. In addition, the Buy into the Circle campaign is the recipient of the Prairie Meadows Community Betterment Grant.
What is the goal of the campaign?
Our ultimate goal is to affect a shift in local business-to-business purchasing so that five percent of the amount now spent out of the Greater Des Moines area is returned to our local community. We will do this through public awareness about the advantages of buying from local businesses and promoting area businesses. We hope to not only improve the bottom line for businesses in the metro, but to improve the local economy overall and create a sustainable future for our community. We are asking businesses and local governments to take a look at their purchasing habits and pledge to shift five percent of their out-of-area purchases back to local vendors.
Where do the statistics come from?
Data for this campaign was pulled from the economic analysis softward IMPLAN (IMPLAN Professional 2.0.1018) using 2000 data for the Des Moines Metropolitan Statistical Area. $7,238,520,000 is the total amount of goods and services purchased from out-of-area vendors annually. We would like to thank Iowa State University economist David Swenson for his assistance in acquiring and interpreting this information.
Are the results being tracked?
Yes. We will work with companies that have pledged to Buy into the Circle to track the success of this campaign. To date, we can document at least $66 million that has been brought back to our local economy.
How do you define a 'local' business?
We consider any business with operations in the Greater Des Moines area to be local. Businesses located here, whether small family-owned stores or part of a national chain or network, employ our family members, friends and neighbors and contribute to the local tax base.
What is the potential economic impact of this effort?
According to our research, if we can achieve a five percent shift in purchasing, that could mean over $360 million put directly back into our local economy. As this money moves through the community it 'multiplies' and could result in $568 million in economic impact. That could translate into 7,700 jobs.
What is the potential impact on the community?
There is tremendous potential. New jobs, an increase in products and services available locally, business growth and expansion, improved public services, better streets, parks and schools....the list goes on and on.
How can I help?
Join the movement by pledging to Buy into the Circle. Pledge to shift some of your current out-of-area purchases back to local providers. Whether you purchase $100 or $100,000 worth of goods, you can help make a difference.
What if the things I need can't be purchased locally?
Sometimes the things you purchase are not available from local vendors. That is why we are not suggesting a 100 percent shift to local purchasing. Instead, we are encouraging you to do what you can. After all, this is a global economy.
What if buying locally means paying a higher price for goods and services?
We would never ask you to make a poor business decision. And hey, sometimes the local price is not always the lowest, and we don't expect you to pay more for goods and services unless you perceive that the value outweighs the price difference. What we do hope is that you will at least give a local vendor a chance to present their information to you. The number one challenge our small business owners face is getting a foot in the door to show how competitive they can be.
How do I find a local vendor to cover my needs?
The Greater Des Moines Partnership's Regional Member Directory is a great place to start. We represent over 4,400 metro-area businesses. You can also use MarketSource, which is available directly from the Buy into the Circle website and as the advanced search option for the Greater Des Moines Partnership's Regional Memer Directory. MarketSource allows you to dig a little deeper in your search for products and services.
In today's economic conditions, Buying into the Circle is something we can all do to support our area businesses. And best of all, there is no additional cost because it is money you are already spending.
