By Nelson Rios
Since coming to live on Orcas, I have heard the admonition to buy local more times than I can remember. Buying locally and supporting your neighbors sounded like a reasonable and appropriate practice to which I adhered, at least initially. Then reality set in and I began to wonder why the act of supporting your neighbors was not reciprocal.
For the life of me, I have yet to understand why it costs over 80 cents to move a gallon of gas or diesel from the mainland to Orcas. Or why it costs so much more for other products, including groceries, to be brought to and made available on Orcas. I routinely hear similar complaints made in private but rarely in public. Oh, I understand the economic impact of ferry and barge costs and travel time, but I also recognize the large-scale nature of moving product to the island. It certainly would cost far more than 80 cents to move just one gallon of gasoline to Orcas; but, does it really cost $3,200 to $4,000 to move a bulk load of 4,000 or 5,000 gallons onto the island? If so, I am ready to be educated on the economics of this situation, as are other residents who routinely complain about on-island gasoline costs.
I am not just focusing on the cost of fuel. In fact, the motivation to write this editorial was a printer cartridge, as I needed to print and sign a legal document and my printer ink was running low. I dutifully called a likely merchant to verify that this particular cartridge was in stock and available before I burned up about six dollars of expensive gas getting into Eastsound. As I prepared to pay for the purchase, much to my dismay, the gentleman helping me scanned the cartridge and said “this is a pricy one, it is forty-eight dollars . . .” (I quit listening when he said forty-eight dollars, so I do not know the full price, plus tax). I was stunned at the price, so he went into the back of the store and confirmed that the scanned price was, indeed, correct. I made some comment about island pricing, to which he appeared to take mild offense although none was intended, and left without the printer cartridge. A quick internet search turned up the same item for just over $22, including shipping and tax.
I fully expect to pay, and have willingly paid, a reasonable premium for the convenience of purchasing products from local merchants, a reasonable premium being defined as a 10% to 25% markup over mainland costs – – not a 50% to 100% price increase. And, I have since wondered about the cause of such unusually high mark-up? Is it the smaller purchasing volume? Is it the cost of moving product to the island? Is it the lack of real market competition, whether intentional or unintentional? Is it the “I’m on vacation, so cost is of little importance” tourist-oriented pricing? I will venture a wild guess that each is a contributing factor, but leave readers to reach their own conclusions.
So I ask again, should the principle of supporting neighbors be reciprocal? If so, I am willing to buy locally and support our local merchants, even if it means paying a modest premium to do so. But, should not my neighbor merchants also try to support their neighborhood customers? I don’t consider charging more than twice the market rate (in the printer cartridge example) to be very neighborly. Unfortunately, it drove me, and more importantly it is driving many other island residents, to do business on the mainland where costs are more competitive.
This “mainland flight” for large or volume purchases cannot be in the best interest of anyone on the island, neither for merchant or customer. I recognize that merchants are also burdened by higher local prices when they become consumers, so, somehow, local residents need to catch a price break, else they will continue the Costco, Walmart, Fred Meyers shuttle. And this off-island spending will continue to hurt the island economy which, in turn, will stifle competition and encourage even higher prices.
Nelson Rios has had an extensive career in local government and in the non-profit sector, addressing societal issues. His prior political interest and involvement have included local and statewide political campaigns in Virginia.
The world’s economies are festering with it. Our elected officials silently wallow in it. The one percent strut immersed in it. Sadly our island appears to be mimicking it.
Somehow it all seems to boil down to the most common denominator, doesn’t it? GREED.
I found Nelson’s observations astute and refreshing and I applaud that such should be exposed by the bright light of day.
I dare say the majority of Orcas residents came here in the hope of finding the life we knew years ago where the Golden Rule was sacred.
One way or another we will reap what we sow, wont we?
Had Nelson compare one brick and mortar stores price with another, instead of with an Internet discount web site, he might have found the difference to be less severe. Had he compared the price at a local office supply store to another local office supply store as opposed to a big box store, he might have found little difference.
I periodically, but thankfully not often, have customers tell me then can get a product I’ve quoted them for cheaper on the Internet. Yes they can. But the extent of the service they will get is putting a UPS label on it and call it good. No advice as to which one to get, no follow on service, nothing. While that may not matter for a printer cartridge, it does for other products.
If your only measure of the value of a merchant is the price of the product they sell, then please stick to buying from WalMart, Home Depot, and the like, because that’s all they have to offer. But if you value the ability to see a product in person, try different pens to see which one you like, handle a new hammer before buying it, get a knowledgable persons advice about different options, or any other of the myriad different services a local merchant can offer, you should support these same stores. Because if you shop, based only on price, you quickly won’t have anywhere to shop except at the the large corporate box stores.
Greed, Barry? Most Orcas merchants are barely hanging on, especially those whose customers are most us buying everyday necessities, not tourists shopping for gif ties. Most make enough to pay the rent and feed their families, and that’s about it.
Nelson, of course you found cheaper prices at large retailers on-line. They have volume buying deals with manufacturers. They can stock tens or hundreds of each printer cartridge. Our local folks very kindly stock a wide range of cartridges to better serve their customers, but they buy in the ones and fives from middle-level suppliers. No volume discounts.
I agree that buying local is crucial to customers and retailers alike. I am willing to pay (a reasonable amount) more so that I can get that printer cartridge when I need it, or the prescription medicine at odd hours, or try out different hammers before I buy.
I happen to be aware that the Office Cupboard has a very small profit margin on their ink cartridges! I am also aware that the area taken up by said ink cartridges could be stocked with more profitable items.
Barry, I am stymied by your use of the word ‘greed’! I am pretty sure you intend to sell that 37 acres and make a profit. Is that ‘greed’ – or is that ‘business’?
If you don’t like the prices, don’t buy there, but be prepared to eat little crow when you run out of that ‘must have’ item!
Michell & Doug do an awesome job of filling a need in our community – quit whining!
Your Guest Editorial scolds our store as “very unneighborly” because – in Mr. Rios’ telling – we sell a certain printer ink cartridge for “more than twice the market rate”. Balderdash!
I recall his visit, and he asked for an HP 78 cartridge. We retail it at the exact price recommended by our supplier, which is the largest supplier of office products in the country. One of their large, national competitors recommends the same retail price. Note: that is the recommended price for ALL their stores across the country, not just those of us on Islands. Our small store may have a more costly supply chain than the box stores, but as I tried to explain to Mr. Rios (who wasn’t interested in listening) that has nothing to do with being on an Island. We try to compensate for higher product costs by taking narrow margins, and on some products (like toner cartridges) we usually can sell more cheaply than the box stores.
The HP 78 cartridge is an old product, and “no longer available” from Costco.com. Internet sites for Best Buy, Office Depot, Office Max, and Staples are ALL at $41.99 (plus shipping in some cases). In his Guest Editorial Rios admits he “stopped listening” when he heard our price was $48 (actually, $47.66 plus tax, delivered). We seem to be about 10% higher, but for the past 4 years we’ve advertized a “Cartridge Savings Program” to get a free one after buying 10. If you factor that in, we are very competitive, and actually cheaper than buying on line if you have to pay shipping.
Interestingly, someone else with the same last name as Mr. Rios has such a Savings card, and buys an HP 02 cartridge, which we sell for only $13.60 for colors. Perhaps Mr. Rios asked for the wrong cartridge.
He claims to have paid $22 on line, including shipping and tax. Where? I have looked all over the internet and can’t find that price for the HP 78 cartridge he asked us for. His price IS available for a RE-FILLED cartridge. Refills should be priced much lower, and we refuse to sell them because we’ve heard about so many problems. If they work for him, that’s fine – but if his comparison (“more than twice the price”) was to a re-filled cartridge, that would be like saying he shouldn’t pay $48,000 for a new car, because he can get a used one for $22,000.
For Mr. Rios to editorialize that “the market rate” of the cartridge he asked for is $22, including tax and shipping, is poor research at best and falsification at worst. Our wholesale cost is substantially higher than that.
For him to publicly label our store as “very unneighborly”, is very disheartening. And it’s even more demoralizing to see Rios supported by Mr. Neville, who attributes Mr. Rios’ experience to “GREED” (his caps). Neville has seemed to be a satisfied customer, whom I have helped many times with his copies, and for whom we once put in a special order on a product we didn’t stock (try that on line!) and for whom we have extended credit (a cost to us that no online retailer or box store has).
We did not buy our business in order to rip people off. We have tried to become a positive part of this community. We each donate a great deal of community service time on boards of directors. Our store contributes thousands of dollars in products and services to Orcas non-profits (something no online retailer can say). We don’t force you to buy an entire carton, or even an entire box. We offer single envelopes for only 10 cents, and individual reams of computer paper for only $4.99, far better pricing than online merchants offer for such small quantities (most won’t even sell small quantities). We guide customers to the cheaper alternatives, because we don’t want them to think they need to shop off-Island. And we try to offer information and service that the box stores do not. Our music is better, too!
It’s tough enough being a small business on this Island, with a small customer base and lower volumes than many comparable stores in larger areas. But it’s even harder, when we hear cheap shots like these, that I earnestly feel were extremely unfair — and especially because Mr. Rios acknowledges that the primary motivation for his guest editorial was to openly criticize our cartridge pricing. With that privilege comes a moral obligation to do competent research before claiming we charge “more than twice a market rate”. It’s easy to hurl hurtful words, but sometimes it’s hard to back them up.
So . . . Mr. Rios, I CHALLENGE YOU to tell these readers exactly what cartridge you bought online, and whether it was remanufactured or new, and where I can go online to get the HP 78 cartridge you requested for only $22, so I can buy cheaper and sell at what you claim is “the market rate”. And if you actually can do that, I’ll give you two free ones!
Sincerely,
Doug Marshall
The Office Cupboard
Thank you Moana and Chris for articulating so clearly the reality of the retail experience for island merchants.My response to Mr. Rios is one of outrage. He clearly is having a temper tantrum because he didn’t get what he wanted and never took the time to consider anything else . . like reality. To address you directly, Mr. Rios, you are utterly misinformed and as a consequence of your little tantrum, you have slandered two people, Michell and Doug, who are two of the most generous, helpful, community minded people on the island. They have done more to support the economic well being of islanders than anyone else I know, doing multitudes of work for free, giving locals discounts and generally bending over backwards to insure that everyone is served to satisfaction, regardless of the inconvenience or cost to themselves. They are also prominent leaders in supporting the economic health of the business community. Frankly, they are a gift to this island. What have you done? Whine. Slander. You should be ashamed of yourself. I see you were active in some form of local politics. Well, perhaps that explains your quickness to blast others with no basis in reality but your own infantile pissed off-ness because you didn’t get something you thought you should have. You talk about greed. Your tantrum is the most greed-based piece of whining I’ve ever read.
You are wrong and you owe Doug and Michell a public apology.
My comment following Mr. Rios’s article is born of my frustration of the Greed force driving the cost of living and what I feel has sadly become the norm everywhere. Mr. Rios highlighted what has been long whispered frustrations concerning comparative prices for gas, diesel, groceries and other products here.
The issue is the high prices on Orcas are driving consumers to Friday Harbor and the mainland in greater numbers. And as Mr. Rios pointed out this will only continue to exacerbate already painful circumstances for everyone.
I also expect to pay a reasonable premium. God knows the island life is worth it. Yet as to the contributing factors, he asked the same questions I ask and routinely hear my fellow islanders ask in private….. rarely in public. I felt he invited readers to reach their own conclusions and I still acknowledge his willingness to bring what I perceive as the big picture into the light of day.
I do apologize if my comments were believed to attack the merchant that motivated Mr. Rios’ editorial. Such would never be my cause and I’ve stated this to Doug. I was supporting what I perceived as a much greater portion of the topic.
Thank you
Your apology is appreciated, Mr. Neville. Unfortunately your clarification (that you were not intending to join in Mr. Rios’ comments about our store) will probably not be read by those who had already read your original posting which praised his “astute” observations. Those words implied your support for his unsupportable claim that we charge $68 for an ink cartridge which he says has a “market rate” of $22.
Orcas Issues is widely read, and several of our store customers have been kind enough to ask for our side of the story. But a majority will just remember the defamatory words without ever hearing our side of the story.
That is why bloggers have a moral obligation to make sure they (you) have it right, BEFORE saying things which may harm others. I urge you to be more careful about what you say and how you say it. And if do you criticize others, you should provide specifics, to allow a fair opportunity to respond.
To illustrate: your second post added “groceries” to the public discussion about “high prices on Orcas”, as you put it. But you provided no specifics. Have you taken the time to talk with Island Market? Do you have data to show them, such as a price comparison with the store you seem to compare them with (King’s Market in FH)? If you ever should try to do a price comparison, be sure to compare a wide range of items, because it is so common in food retailing to run specials to attract customers. Today, one store may advertise cheaper oat meal and another may have cheaper Raisin Bran; but next week both comparisons could reverse.
I don’t know Island Market’s economics, but I do want to publicly thank them for: (1) the tremendous amount of food they donate to the Food Bank, (2) having invested in a bigger and nicer and better stocked (and therefore more expensive) store than King’s Market; (3) paying staff to stay open well into the evening, when I see relatively few other customers in the store; (4) employing a lot of young people who need work during summer vacations; and (5) generously supporting the Fourth of July fireworks, the Shakespeare Festival, and other local causes. Those intangibles should be part of what our community should judge them on, not solely on a price comparison. But my hunch (which I cheerfully admit is unsupported) is that a careful price comparison with King’s Market would show little overall difference.
Also please keep in mind that there are different ways to compete. McDonalds uses price, Nordstrom uses service, Apple uses style and elegance. It would be wrong for you to suggest that all Orcas businesses should only compete to provide the lowest price. For example, in my limited experience there seem to be more open checkstands (better service) at Island Market than at the bigger Safeway in Anacortes, and I appreciate that.
If your goal was to encourage a dialogue about on-Island pricing, why did neither of you come have a dialogue with us? To the contrary, Mr. Rios contemptuously strutted out of my store after grumbling about “Island pricing”, pointedly ignoring my attempt to discuss it with him.
Successful dialogue begins with discussions, not going public with careless allegations that recklessly disregard what damage might be done to the target’s reputation.
Doug Marshall
I am very thankful for the stores and restaurants who are on the island to provide us with the services and products we enjoy while living here. Coincidently, after Mr. Rios wrote his article I needed an ink cartridge. I called Doug, he confirmed he had it and I was very thankful I could ride into town to get what I needed. And the price was very reasonable.
Plus I was greeted by a four legged friend. Priceless.
Mr. Rios: There are no greedy business people on Orcas. We have, rather, a community of caring and concerned people who attempt to provide us with necessary goods and services. It is not possible for us to walk in their shoes. Many of them have eight or ten weeks in which to earn enough to carry them throughout the rest of the year when they continue to serve us. Although it appears your comments were directed at price rather than people, it’s unfortunate that the focus became the Marshalls at The Office Cupboard who are such a gift to our community. Good luck with your off-island and web-based purchases.
Doug and Michell Please order my printer cartridges again and I also need 2 more cases of paper. Thanks for all you do.
Bravo, Ken Speck!