Keith Clark is a New England advocate of "buy local movements."  He has a website and blog which he uses to promote "Think Local First."  In his latest blog post, he provides a formula for calculating the "savings" you will receive when you "Buy Local".

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RCOG x BLM = LEV
LEV + CIC = ALEV
ALEV - RCOG = BLS


Retail Cost of Goods  X  Buy Local  Multiplier = Local Economic Value* 
$1.00                                 1.45                                $1.45             

*For every dollar spent with locally owned businesses $.45 is reinvested with other locally owned businesses.  This creates a "Buy Local Multiplier" and the compounding effect results in what we call the "Local Economic Value."

Local Economic Value + Community Investment Credit = Adjusted Local Economic Value*
$1.45                                 $.024                                             $1.474


*According to a study by American Express, the average corporate charitable contribution is 6% of gross profits.  Other studies have shown that locally owned businesses typically contribute twice the national average.  Assuming a Retail Gross Profit Margin of 20% we arrive at a "Community Investment Credit" of $.024 per dollar.  This creates what we call an Adjusted Local Economic Value; the influx of cash to your community for economic development and local non-profit causes.

Adjusted Local Economic Value* - Retail Cost of Goods = Buy Local Savings*
$1.474                                              $1.00                              $.47

What other investment guarantees nearly a 50% return with NO RISK!
© 2011 PayLessFirst

To learn more about Keith Clark and promoting local businesses click on the links below: