Despite the diminutive classification, small businesses have an outsized impact on the American economy.
There are more than 30 million small businesses in the U.S., comprising the majority of all enterprises in the country. Compared to large, non-local organizations, small businesses tend to have a pronounced positive impact on the local economy.
As a segment of the overall small-business pie, resale retail franchises play an important role in supporting the community in a variety of ways.
Here’s a closer look at how resale franchises help improve their communities:
Resale Franchises Boost the Regional Economy
Local small businesses like resale retail franchises support regional economies in several ways. First, they help provide access to jobs. These companies employ roughly 58.9 million people, making up nearly half of the entire workforce in the U.S.
According to research from Penn State’s Northeast Regional Center for Rural Development, small, locally owned businesses tend to provide higher incomes for community members. The same study suggested that larger organizations that employ 500 workers or more and that have no roots in the region or state correlate with slower economic development.
Resale Franchises Help Consumers Keep More Money in their Pocket
A key distinction between a traditional retail business and a resale franchise is the value offered to consumers. Resale retail stores provide access to high-quality used products at a fraction of the original cost.
When you take into account the mounting expenses that families face, resale shops can make a huge difference in making life more affordable – particularly in keeping their kids’ wardrobes up-to-date, as well as making sports or music activities more accessible.
According to the Bureau of Labor Statistics, the average household income before taxes was $78,635 in 2018. The average annual expenditures for apparel and related services was $1,866 – or about 3 percent of total expense – for all consumer units. For married couples with children, the proportion jumped to 3.3 percent of annual expenditures.
Meanwhile, the cost for school supplies, extracurricular activities and technology has consistently risen over the past several years. The 2019 Huntington Backpack Index found parents can anticipate spending $1,017 per elementary-age student and up to $1,668 per student in high school per year.
The skyrocketing cost of sports participation is also putting a squeeze on families across the country. According to the Kids Play USA Foundation, the price of league team membership can range from $50 to $1,000 or more – and that’s not even taking equipment into account. Using ice hockey as an example, participation in certain areas of the country can cost up to $10,000 per year per child due to equipment, facility costs, enrollment fees and coaches.
Resale franchises help families reduce how much they spend on clothing by between 70 and 90 percent of regular retail costs. Franchises that sell quality used sports and music equipment similarly help families reduce expenses and enable more families to participate in extracurricular activities.
Resale Franchises Support Sustainability and Decrease Waste
The resale business model is rooted in sustainability. Because these types of businesses encourage consumers to sell their used items for cash, community members can repurpose and reuse their items.
As a result, resale businesses help reduce landfill waste, prevent overproduction and encourage sustainable living. In 2019, the five resale retail franchises that make up the Winmark family of brands were able to save more than 154 million items from ending up in landfills. And over $1 billion of used merchandise was resold.
This scale of recycling helps prevent wastewater during the production of apparel and other textiles, which also take between 20-200 years to biodegrade. At the same time, the supply chain is kept within the local community, reducing the amount of carbon dioxide needed to transport products from one place to another.
How to Get Started Learning about Resale Retail Franchises
With over 1,250 locations across North America and over $1.2 billion in retail sales, Winmark knows what goes into a successful franchise business. Part of that means creating a close partnership with all of our franchisees and giving them the business model, brand name, resources and support they need to thrive in their community.
Are you ready to learn more about franchise opportunities in the resale industry? Take the first step by downloading one of our free franchise reports here.