See what these companies have done to Buy into the Circle.
Davis Brown Law Firm
The Davis Brown Law Firm has been a supporter of Buy Into The Circle since the inception of the project in 2004. "When the firm has a purchasing need, local vendors are considered first and foremost," said Sharon Malheiro, president of the board of directors. "While we work many national and international clients, we service many local businesses, so we see the value to support each other."
Davis Brown had a unique opportunity to collaborate with local vendors during the development of the Davis Brown Tower and move in 2008. "The $40 million building has been a great success largely due to collaboration with RDG Planning and Design, LADCO Development, Ball Construction, and numerous others through the project. We continue to partner with these and other local businesses on our expansion project in 2010," said Malheiro.
Iowa-Des Moines Supply Co.
With the introduction of the Partnership’s “Buy into the Circle” initiative, Iowa-Des Moines Supply reviewed its sources for products and services. At the time the belief was that all goods and services were in fact being purchased from local businesses. The review resulted in the following shift to local companies:
- Shifted credit cards for gasoline purchases from an outside company to Casey’s General Stores.
- Shifted 401(k) management services from a California company to a local company, Qualified Pension Services, LLC.
- Shifted office supplies from a national chain to two locally owned office supply stores, Triplett Office Supply and Storey Kenworthy.
- When considering to move business insurance to an east coast company, the “Buy into the Circle” initiative was a factor when Iowa-Des Moines Supply renewed the policy with Allied Insurance.
Iowa-Des Moines Supply has also benefited from the “Buy into the Circle” initiative. Due to the campaign, Embassy Suites and Park Avenue Laundry (PALS) have both involved Iowa-Des Moines Supply in providing goods and services for their businesses. “If my company would obtain $1 million worth of contracts that are currently held by companies outside of the Greater Des Moines area, I would have to hire one new salesperson, one new warehouse person, and one administrative person,” said Bill Weidmaier, President and CEO of Iowa-Des Moines Supply.
“Add another $500,000 in sales and I would need to add another delivery truck and route driver and a van and serviceperson. In addition, I would need to expand my warehouse, my equipment needs would increase, additional phones, computers, etc. would need to be purchased, my energy use would increase, legal, insurance and accounting services would increase, and my property, payroll and income taxes would increase.”
“The impact of your purchasing decisions for products and services is very real and the multiplier effect of every dollar spent in our community very definitely affects the quality of life for you and our citizens,” said Weidmaier.
Storey Kenworthy
In 2003, Dave Kenworthy, president of Storey Kenworthy, was asked to participate on the committee to develop the Buy Into The Circle campaign, communicating the value of doing business locally. With the launch of the campaign, Storey Kenworthy's management staff investigated opportunities to work with local vendors.
“As a local business, we've been sensitive to the value of doing business locally,” said Kenworthy.
Storey Kenworthy is optimistic about their new opportunities to improve existing relationships and revisit other local businesses doing business outside the state.
“On an employee basis, we have seen and heard our employees talk about how they are shifting their purchasing practices to local businesses,” said Kenworthy. “They can see the inherent value of shopping locally can be worth more than saving a few dollars by shopping online or out of town.”
Since the Buy Into The Circle campaign kick-off, Storey Kenworthy has been able to implement a shift of over $150,000 in annual purchases with local companies.
“Our hope is that the entire community will recognize the value both as individuals and as businesses,” added Kenworthy. “We envision a vibrant local economy that offers and encourages diverse business and consumer purchasing opportunities.”
S.A. Kenny Interiors
After receiving an email from the Partnership with an explanation of the campaign, Sue Kenny of Kenny Interiors thought it would be an easy process to examine the company’s purchasing habits. “My business has always revolved around local vendors and craftspeople,” said Kenny.
Kenny adds that because they are a small company, their shifts are on a different scale. By reviewing a "typical day" at the studio, Kenny saw that there were some purchasing areas that could be kept local. “I would consider my change more of a philosophical shift, where I always look to the local vendor or craftsperson, before going nationally,” said Kenny.
Kenny says that the company is loyal to their vendors because they are local and she hopes that loyalty can be reciprocal.
“Most importantly, I want to support businesses like mine who provide services or products with high quality at a competitive price,” said Kenny.
The Greater Des Moines Partnership
The Greater Des Moines Partnership is leading the campaign by example. While most of what the Partnership purchases is from local member businesses, a careful review of buying habits realized several areas that could be shifted, including its corporate credit cards. The Partnership also canceled use of a niche website product with an out-of-state company and shifted the budgeted funds to Spindustry Systems for production of two new dynamic areas of its website, the Regional Resource Center and the Member Resource page. The efforts resulted not only in increased web traffic to those two areas, but also in elevating local purchasing to 94 percent of total purchasing at the Partnership.
Bank of America
A division of Bank of America shifted their legal services to a local firm after looking at their purchasing habits.
“In a large corporation, not all purchases are controlled at the local level,” said Bob Jurgensen, former Vice President of Bank of America. “However, every procurement decision made in Iowa is done so with an emphasis on finding a local provider.”
With the leadership of the Iowa bank's former president, Rob Oltjen, bank management was informed of their commitment to the Buy into the Circle campaign. With this increased awareness, an opportunity to move a significant amount of legal services from a Kansas City firm to a Des Moines firm was realized. With this shift, and others, a five percent goal was met. As a strong supporter of local communities, Bank of America is committed to the Buy into the Circle campaign.
“This decision not only benefited a local company, but was cost effective and resulted in increased expertise and improved delivery for Bank of America.” said Jurgensen.
Belin Lamson McCormick Zumbach Flynn
At Belin Lamson McCormick Zumbach Flynn, shifting five percent was not going to be easy. Steve Zumbach knew that their biggest opportunity for a shift would be in capital expenses. When it was time to purchase a new phone system, Belin Law Firm received competitive bids from across the Midwest.
“This campaign really forced us to take a better look at the local bids,” said Zumbach. “By looking locally, we found the quality and performance we wanted without having to go to a vendor outside of the Des Moines area.” Belin Law Firm was able to shift nearly $200,000 in phone equipment and services to a local company. It my not have been the full five percent, but it was a conscious decision to Buy into the Circle.
Every little bit helps. “It is important that as a business community we pull together and recognize that there is always something more that we could be doing,” said Zumbach. “The Buy into the Circle program is a perfect example of how each company can help make Des Moines a better place.”
Des Moines Area Community College
In 2005, DMACC was able to reallocate 13% of their total budget back into the local economy. This shift resulted in $8.5 million returned to our region.
“DMACC continues to make a strong commitment to helping the local economy remain strong and prosperous by concentrating on purchasing from Central Iowa businesses," said DMACC President Rob Denson.
KDSM FOX 17
KDSM FOX 17 and their parent company, Sinclair Broadcasting, have a “preferred partner” for office equipment purchases in Baltimore, MD. When it was time to replace one of their main hub printers on the network, KDSM decided to fight the battle to Buy into the Circle and enlisted help from a local office supplier.
“This shift is two years in the making,” said General Manager Mike Wilson. “We feel that the Buy into the Circle campaign is a really great way to reinforce a business relationship that already existed.”
Imaging Technologies agreed to match any bid put forth by KDSM's corporate vendor for the copier and a service contract for the year. In addition, they agreed to haul away the old behemoth, which the Baltimore company could not do. The extra mile was worth it. KDSM kept the money in Greater Des Moines.
Mid-America Group
Mid-America Group and Coldwell Banker Mid-America Group, REALTORS was the first Buy into the Circle pledge company to announce their five percent shift of outside purchases to vendors in the Greater Des Moines area. The total dollar amount shifted by Mid-America Group in 2004 was projected to be $3,461,000 with an ongoing annual impact projected to be $380,000.
“We would like to applaud the Greater Des Moines Partnership for introducing the Buy into the Circle campaign,” said Dennis Tinker, Vice President and Controller for Mid-America Group. “What a great way to generate money for the local economy.”
Missman Stanley & Associates
“It's been hard to miss the campaign promotions in Partnership correspondence,” said Brad Skinner, Branch Manager for Missman, Stanley and Associates. “We also heard the campaign being discussed at Partnership functions throughout the year.”
Most of Missman's purchases are office or survey supplies, or specialized equipment with limited vendors. Since the company has always tried to buy office supplies locally, it was difficult to find an additional quantity of purchases to make locally.
Missman was able to purchase a new fleet vehicle from Dewey Ford in Ankeny for their survey/construction operations. This was a purchase that normally would have been made by Missman's administrative offices in the Quad Cities. “I shopped a dozen local dealerships and got good offers from several, but made our choice because we got a great price on the equipment we needed,” said Skinner.
Although the initial paperwork was more complicated, follow up after the purchase has been much easier for Missman with the dealership being local. “We were also able to save several thousand dollars on the purchase because I was able to time the purchase to take advantage of optimum discounts,” said Skinner. This was because of knowledge obtained due to a continued relationship with an established salesperson, which resulted in savings for Missman and a sale for that Dewey Ford would otherwise not have had the opportunity to make.
“We'll continue to do what we can to make our purchases local whenever we can,” said Skinner. “It can only help our prospective clients remember us when they need engineering or surveying on construction and property improvements.”
Principal Financial Group
Principal Financial Group learned about the campaign through its former CEO, Barry Griswell, and his leadership role in the Greater Des Moines Partnership.
“Our commitment was strong to the campaign, so we made the decision prior to conducting a full review of purchases,” said Mark Hays, Director of Strategic Sourcing at Principal Financial Group. “We were confident in our ability to make a shift. At the end of the third quarter of 2004, we were already at a 5.1 percent shift.”
The Principal Financial Group is taking steps to meet local vendors on a one-to-one basis. Principal's purchasing department met bi-weekly throughout 2004 with local vendors who could provide products and services for Principal's current out-of-area expenditures. “Meet the Principal Purchasing Leaders” has allowed Principal's purchasing department to get to know local companies much better.
“We think an important step in increasing our spending within the Circle is to better understand the products and services offered by our local companies,” said Hays.
Sheraton West Des Moines
Sheraton West Des Moines was going through a corporate identity change, and all identity pieces needed to be updated. Signage, stationary, pencils and pens all needed to be replaced. The Sheraton's corporate office sent General Manager Rick Funke a list of recommended vendors to use during this transition.
Funke looked at the recommendations and found an opportunity to Buy into the Circle. “When you are a national chain, it can be very hard to buy local,” said Funke. “Corporate expects you to spend money where they have made investments in time and money.” Funke decided to split the difference. He sent some of his business to the recommended vendors, but kept about half of it, including $15,000 in printing costs, at home.
Suites of 800 Locust Hotel and Spa
The Suites of 800 Locust has redirected three categories of purchasing from out-of-state vendors to local providers, including guest supplies, cable television and sales promotion.
“As a locally owned and operated business, we know the importance of local support,” said Chris Gunnare, General Manager of the Suites of 800 Locust Hotel and Spa. “We feel that every dollar we shift into the local economy will benefit the entire community from schools to hospitals to libraries and public services.”
The Suites of 800 Locust became aware of the campaign through its membership with the Greater Des Moines Partnership.
West Bank
West Bank has built a strong reputation for being responsive to local needs. With the launch of the Buy into the Circle campaign, West Bank took inventory of their professional services and found room for a shift. They were able to shift the company's 401(k) services back to a local provider and keep local dollars local.
Tero International, Inc.
Tero International, Inc. recently showcased the impact Buy into the Circle can have on the local economy. Rowena Crosbie, President of Tero International, said the company's recent expansion not only was an opportunity to bring business to local suppliers, but an opportunity for the company to do reciprocal business with some of the clients they are privileged to serve.
“Making a shift begins with each of us,” said Crosbie. “It is just good corporate citizenship to Buy into the Circle.”
The company made several large investments that could have been spent outside of the community. The total investment in the local market kept a quarter of a million dollars in the metro area.
