Kaufman, Texas

Kaufman, TexasKaufman is one of those rare cities fortunate to still have a thriving downtown, small businesses and no Wal-Mart, Lowes, or Home Depot.

How long that happy circumstance will last and small businesses survive remains to be seen because it was through lucky circumstance and not local awareness that Wal-Mart has not yet built there.

They do have experience with what happens to small businesses when a multi-national corporation expands. Kaufman had three family owned pharmacies. Two have closed since CVS expanded. (To be fair, regional grocer Brookshires expanded too so CVS alone may not be responsible for the loss of two family pharmacies.

The way I understand it, Wal-Mart did look at building in Kaufman about 7 years ago, but the property they wanted was outside the “wet” part of town. (Texas has some very unusual zoning when it comes to alcohol.)

By the time a vote could be held to allow beer and wine sales on that property, Wal-Mart had decided to build in Terrell, TX instead. My source remembers that vote passing with 95-97% approval, so it is obvious that there was no awareness that Wal-Mart is ALWAYS bad for small businesses.

Since then the declining economy saved Kaufman as Wal-Mart first built in Segoville and Forney and has so far not gotten around to building in Kaufman. For Kaufman’s sake, I hope they never do – or sufficient numbers of people living there realize what they will lose if they allow a Wal-Mart to be built in their town.

My regular readers know I am a huge proponent of supporting small businesses. Raising their visibility, assisting them to implement the highest priority ways to use the Internet – most of them free – and encouraging their customers to understand the impact their actions have on their neighbor’s businesses are all reasons I created this new Kaufman, TX Business Section.

The more Kaufman locals know about what helps their communities and what hurts them, the more likely they are to make good decisions. Since I believe the reason Kaufman is still doing so well is the lack of a Wal-Mart, let’s start there. In the Executive Intelligence Review, Richard Freeman wrote about how Wal-Mart destroys communities:

“During the last 20 years, Wal-Mart has moved into communities and destroyed them, wiping out stores, slashing the tax base, and turning downtown areas into ghost-towns. This is accomplished through Wal-Mart’s policy of paying workers below subsistence wages, and importing goods that have been produced under slave-labor conditions overseas. Often, communities will even give Wal-Mart tax incentives, for the right to be destroyed.”

That post has many statistics based on actual sales tax receipts of how Wal-Mart impacts both the town where they build and neighboring towns. He is only one of many who write about how Wal-Mart pricing creates unemployment by pressuring Wal-Mart suppliers to move manufacturing overseas and employ child and virtual slave labor in sweatshop conditions.

Wal-Mart is also known for having their HR department teach their employees how to get government assistance as shown in a University of California at Berkeley Study on the burden Wal-Mart’s practices place on state government programs.

Wal-Mart burden transferred to California:

  • Reliance by Wal-Mart workers on public assistance programs in California comes at a cost to the taxpayers of an estimated $86 million annually; this is comprised of $32 million in health related expenses and $54 million in other assistance.
  • The families of Wal-Mart employees in California utilize an estimated 40 percent more in taxpayer-funded health care than the average for families of all large retail employees. The families of Wal-Mart employees use an estimated 38 percent more in other (non-health care) public assistance programs (such as food stamps, Earned Income Tax Credit, subsidized school lunches, and subsidized housing) than the average for families of all large retail employees.
  • If other large California retailers adopted Wal-Mart’s wage and benefits standards, it would cost taxpayers an additional $410 million a year in public assistance to employees.

Wal-Mart burden transferred to Taxpayers:

A Congressional study estimated that a typical Wal-Mart store employing 200 people costs the American taxpayer $420,750 a year – about $2,103 per employee. And in every state that releases the data, Wal-Mart tops the list of companies whose employees rely on state-funded health care. (Quote from Wal-Mart and the Earned Income Credit)

Companies that refuse to pay a wage their employees can live on and transfer responsibility to the taxpayers are responsible for our declining standard of living. Local businesses can not compete and pay their own employees fairly so we – as buyers – need to understand that by shopping at these multi-national stores we are equally guilty.

Price is not everything. Would you sell what you do for less than the cost of creating it? That is what they are doing and as quoted in Marxism 100: The Case of Wal-Mart :

“Wal-Mart is leading the so-called ‘race to the bottom.”

We CAN do something about this. Stop shopping at big box stores and shop at small family businesses. For example:

  1. Instead of CVS, visit the friendly folks at Medication Station on 175 near the hospital
  2. Buy your groceries at David’s and NOT Wal-Mart – Did you know you can see their specials or find a store online at their sites (Just click their name – they’re linked to their site.)
  3. Kaufman has TWO hardware stores.  So I recommend shopping at Cates Hardware instead of Ace Hardware, Lowes, or Home Depot. Unlike the big stores, THEY carry the blades and bulbs for what they sell!
  4. More coming soon

Every dollar you spend with your local small business is paid to their employees who live here and spent in other small businesses who then spend that dollar at another small business. Doing this brings a higher standard of living for each person who is touched. When you spend your money at a multi-national store it does NOT come back to support your community.

The profits are funneled off and their suppliers are primarily in other countries. The more local sources we use and the more we keep the money we spend local the better Kaufman will weather the sliding dollar. Do your part and buy local. Support your local small business by writing reviews for them online. See our Support Small Business for where and how to write those reviews.

New research: Economists Stephan Goetz and David Fleming, both affiliated with Pennsylvania State University and the Northeast Regional Center for Rural Development, conducted the study, “Does Local Firm Ownership Matter?“.

Their study finds local businesses create income growth:

The key to reversing the long-term trend of stagnating incomes in the U.S.
lies in nurturing small, locally owned businesses and limiting further
expansion and market consolidation by large corporations.

Previous studies by Goetz have found that the number of Walmart stores in a county correlated with both higher poverty rates and reduced social capital.

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Gail Gardner

Small Business Marketing Strategist at GrowMap
Creator and owner of GrowMap.com, Gail is primarily known for mentoring small businesses and encouraging bloggers to join collaborations to share skills and support small business.

Comments

  1. I always shop at small businesses, they’re friendlier and their shop is cozier too. And, they’re honest. I do hope Walmart will meet a worthy opponent one day.

  2. Fantastic “food for thought” in your latest post. “kaufman texas”. I never took time to see how Walmart is not only bad for the small business, but the small town as well.

    The only point I can make is a sarcastic one in that at the very least, Walmart is giving back by offering low prices to all the people that are unemployed as a result of their take-down of their local businesses and employers.

    Thanks Walmart!
    Joe would love you to read ..Palm Coast SEOMy Profile

  3. Mom and pop stores are sinking and I HATE to see that. I would rather they stay and I would rather support them. Here is the bad part about our situation. Brookshires Grocery Store is not a mom and pop store. It was ranked #193 and climbing on Forbes with $2.3BILLION in Revenue in 2010. Trust me I hate Wal-Mart. I feel like one of the cattle everytime I go in there. But we have gotten ourselves in this pickle with the way society is going. Big business is acending and we are decending. It goes straight to the top and rests at the feet of our elected officials. And whos fault is that? Look in the mirror my fellow Americans! With special interest groups, Lobbyists and lazy people we are doomed. The only way anything will ever change is if the people change it. Our system needs a complete overhaul. And until people stand up and change the system it will continue to get worse. Go back to the 60′s and people (MILLIONS) would march on Washington and demand it. Now people sit in their fat happy little homes and change the channel while quietly mumbling how they hate where we are. I would personally enjoy seeing John Doe from Scurry Texas who has nothing to gain from being elected other than to speak for the people, become my representative but instead we are FORCED to pick from a handful of very wealthy bank executives or high ranking families who try to tell us what we need and how we should swallow it all the while getting kick backs, free healthcare, tax free paychecks and summer homes on the tax payer. Does Wal-Mart suck? Yes it does but since we put ourselves in this position I have not much choice but to buy my discounted smiley face crap from them.

    • Hi Bill,

      I agree that Brookshire’s is not really a small business, but David’s Supermarkets is and they could compete if they would sell what people like me want to buy that is not widely available – people who are driving past their stores to go to Whole Foods.

      There is no reason for us to do that as most of the food and products at Whole Foods are no healthier than what we can buy anywhere – it just costs more. What we really want is only a tiny percentage of what Whole Foods carries so if they would just carry key products – and I could give them a list – I could advertise them as having them and they could become THE grocery store for the most aware shopper.

      I agree that our decisions have taken us here, but there IS a way out. Politics usually isn’t it because money buys position and those with money just don’t get it. Look at the official Kaufman Chamber of Commerce site claiming credit for a museum in Dallas instead of what is important to regular Americans trying to have a decent standard of living. (I have nothing against museums – just saying that is not even IN Kaufman and there are more important issues at stake here.)

      Small communities CAN decide to make a change:

      They can promote their local INDEPENDENT East Texas wireless Internet Service company that is not even mentioned on the official sites instead of the corporation that doesn’t care.

      Kaufman could offer a source of healthy water and promote that! The North Texas water they provide is fluoridated which causes SERIOUS health issues and most likely contributes to the extremely high cancer rates in their area. See this video about Why Fluoridated Water is Unhealthy.

      David’s grocery could source food from local farmers and ranchers. There are probably laws that interfere with them doing that so they would need to be changed. We have a right to eat healthy. See my post about government taking away our Food Rights.

      Kaufman has a local newspaper: The Kaufman Herald. They would be key to raising awareness if they would. Kaufman has a far greater percentage of people who do NOT use the Internet than most locations and that paper could do a booming business if they would publish human interest stories about local businesses and about healthy living, gardening, small business, using the Internet, etc.

      There are TONS of ways to tie their Web site and their newspaper into promoting small businesses and get bloggers like myself to contribute content and promote them using our social media influence and geo-targeted Twitter accounts.

      I know newspapers traditionally want to sell advertising first and then write about a business, but doing the reverse will work faster and stronger. If they did feature stories – say one on the Cordell family and the history of their store – how many copies of that paper do you suppose their customers would buy? Or their friends and relatives? And if that boosted their income THEN they would consider advertising more viable.

      Newspapers are no different than blogs or social media accounts. You have to deliver the audience first and then you get the business! Newspapers have to use new strategies for growing their audience and then their incomes will grow.

      With the large percentage of Kaufman county residents who don’t really use Internet that much newspapers still have the potential for sharp growth – especially if they promote their local small businesses that need them and WILL RECOMMEND THEM – and then put coupons in the local editions which will make readers want to buy the paper again! (We KNOW that works – look at the huge number of coupons in the Sunday Dallas Morning News and the larger distribution for that issue.)

      I would love to hear from the Editor or owner of the Kaufman Herald to discuss even more ideas for creating demand for newspapers. An INDEPENDENT news source – especially one that covers local news, people and events – is still highly important for a free America.

      If they happen to read this I hope they’ll check out this post on how to write local content to appeal to the people in your community.
      growmap would love you to read ..Twitter for Business: How to Geo Target Twitter for Small Business Local Social Media #smallbusinessMy Profile

      • I agree with many of the points you make. Kaufman is a quiet little town and I do like it that way. I don’t live in Kaufman proper, I’m out in Scurry but its my closest local town. I’m not sure print ads are as much use as they used to be and I don’t see them growing. I’m in the I.T. field and I can say that there are more people that use internet in non-traditional ways such as smart phones. I for one look for local news on the Kaufman Herald web site but they don’t issue or update stories daily. I think if they took themselves more seriously and made an attempt to stay on top of it they would gain readers. Its very much like the Austin Statesman that offers new stories in the form of bloggers instead of full blown reporters.

        I do think that if you could get the spotlight shined on the area it might come out how wonderful it is and make people proud to use it. If you notice on the nightly news they rarely even cover the Kaufman area on the weather unless there is a catagory 5 tornado headed right for town. I drive into downtown Dallas every morning and trust me when you see the traffic headed into Dallas, there are many people in the area. Yet if you don’t live in Dallas, Tarrant or Collin county you are nothing.

        The Kaufman area has some of the greatest benefits in the area. Just minutes from Dallas, an affordable tax base and wide open areas to enjoy. I moved from Dallas 9 years ago. The Scurry school system is one of the best in the state. Heck, we even have students from Seagoville, Kaufman and Crandall to name a few who are paying out of district to use our school system.

        So again, I will probably continue to shop at Davids (I worked for Davids in Seven Points when I was in high school) Brookshires and Ace as I do feel that Wal-Mart if nothing will bring competition to help pricing. But you are probably right, it will take a toll on those business’s.

        I think if you could organize a movement, website, local banter or something you would probably have no problem getting people behind the movement. The only issue with that is the American people have short term memory loss. They forget too easy. But I’m behind you and would be more than willing to participate.

        • Hi Bill,

          The problem with the “competition” that stores like Wal-Mart bring is that their low prices are due to unfair practices that transfer costs of doing business onto taxpayers and drive their suppliers to financial ruin. The problem is NOT pricing – the problem is buyers are selfish and cheap through conditioning.

          We should all be willing to pay a reasonable price that includes profit for the manufacturers for better quality products instead of buying worthless junk that ends up in landfills. Here are just two examples:

          One person I know has bought not one, not two but THREE fishing poles at Wal-Mart and each one (different brands but all cheap junk) lasted one or two uses and then broke. He could have bought ONE better fishing pole at that fishing and tackle shop in Kaufman that can’t even be found online and spent LESS money, supported a local business that pays taxes and hires people and not wasted resources that got thrown away almost immediately.

          You want to see where this has already gone? Go to local.yahoo.com and type in fishing pole Kaufman and see the results YOU get. I see FIVE listings for Wal-marts and NOTHING ELSE!

          That is NOT accidental and not because there is nowhere else to buy a fishing pole – it is because Wal-mart is the favored company store of what I call “The Borg” – all the multi-national corporations controlled by the global elite.

          Yahoo, Google, Bing – they are all pushing out their competition and making choices go away. Right now diligent searchers can still find alternatives buried deeper in the search results but how long before they disappear altogether? See the screen captures in my post about how Google limits choices through their updates from Mayday to Farmer / Panda.

          That same person has bought the same ice trays three times in less than six months. How many times does something have to break within weeks before the average person will stop thinking that cheap junk is SAVING them money and realize what a waste it is?

          The majority are probably headed for an economic crash that ends in shanty towns and one company store. The few that are awake enough to realize our choices create our future may be able to build independent communities but they would really need to be at least a couple of hours away from cities full of hungry, desperate people before the worst comes.

          When I first published this page I tried to share it in person with people in Kaufman. At Cordells only ONE person who works there – the son of the owner – even has an email address. None of the others have ever used the Internet for anything.

          At Ace Hardware I gave the URL to the employees but it is likely none of them ever looked at it. When I talk to friends about why they need to stop shopping at Walmart and buy local they listen and then just keep shopping there because they are on auto-pilot.

          Excessive consumption of fluoride will do that = make your brain unable to make decisions. I can tell when one friend is taking Prozac again because she can’t decide whether I need to move left or right when backing up her truck to hook up her horse trailer. That is how profoundly excessive fluoride affects decision-making – and every city that gets water from North Texas Water Supply as Kaufman does has fluoridated water.

          Post Oak Bend is the only local city I know of that doesn’t have added fluoride in their water – and that isn’t because they are wiser – it is because there is enough naturally occurring fluoride in their water supply that they don’t add the toxic waste product North Texas uses.

          Try finding non-fluoridated water – it is a major challenge. The best water I use comes from a private deep well hauled north many hours in bottles when I can get it. Kaufman has lakes they built for water but they’ve abandoned using them. Why I have been unable to find out. All I know is that they removed the pumps when they switched to North Texas water.

          Do you happen to know if Scurry has safe drinking water or any alternative sources for water? Even most bottled water is fluoridated including most Sparkletts water. Any community that offers an independent newspaper, a local high speed Internet company, and safe water – and in the case of Kaufman county they could also easily designate the bar ditches as horseback riding trails – could attract people who want to live healthy.

          The Kaufman Herald should have been regularly reporting about the Farmers’ Market, but good luck finding ANY coverage. I only knew about it because there was a small blurb about selling there. I did not find anything online about BUYING from the Farmer’s Market.

          I agree that there is far more they could do and bloggers and local writers would be happy to provide content and promote them – IF they’re interested.

          Don’t you know that Cordell’s family members would buy the issue that had an interesting story about them? And their customers would read and talk about it over coffee or wherever – and again, coupons are key to people wanting printed media. You and I are more interested in doing everything online. but the current population of Kaufman is definitely partly online and partly off and the newspaper should bridge that gap to reach them all.
          growmap would love you to read ..Amazon: The Wal-Mart of the InternetMy Profile

          • The Kaufman Herald’s Twitter account activity consists of one RT for all of 2011 and before that no tweets since Nov 25, 2010. They could easily use a service like dlvr.it or TwitterFeed to automatically share their online content and add some feeds of local interest so they can build a local following.

            All they need to set that up is linked from my Twitter Best Practices post.

            The Editor and Publisher of The Kaufman Herald and The Terrell Tribune is active on Twitter @ObstructedViews but I assume he doesn’t have alerts set up because I’ve never heard from him when I’ve shared content about Kaufman and published posts like this one.

            growmap would love you to read ..Twitter for Business: How to Geo Target Twitter for Small Business Local Social Media #smallbusinessMy Profile

          • Well I will say this, you make very valid points that make sense. I personally don’t buy fishing poles from Wal-Mart or clothes etc etc. I on rare occasion buy groceries there because although you are correct in how Wal-Mart gets their prices so low, they also serve a purpose even if it is evil, its unfortunately a necessary evil at this point.

            2 years ago I lost my job. It was a great job I had for 9 years. I made GOOD money and was comfortable at the very least. When I lost that job I got behind on the house, the car and everything else my family depended on me to cover. Sure I found a job in one week unlike some out there but at a 50% reduction in pay. As much as I would like to say most wouldn’t mind paying fifty cents here or a dollar there more than Wally World charges. But the reality is that sometimes it isn’t an option. In my case I have made up 25% of that reduced pay but that still leaves me 25% below. Things are getting better but you have to take the shortcuts you can when you can. Brookshires doesn’t care about my situation. I’d go as far as to say Davids doesn’t either. They have people to pay and they are a “for profit” company.

            I do think that Wal-Mart is a horrible and rancid place to have to visit hands down. I get tunnel vision when I go in. I walk straight for what I need and head out the door. But again its something I have to do at times. I have a hard time comprehending that Brookshires couldn’t be a little better on pricing. I have written to them and had NO response.

            Also after reading the article about how Wal-Mart employees put a strain on the system I have to sit back and think. Does that mean Brookshires, Davids, Ace etc are paying way above average on wages? I doubt that. I think that when you have a large company like Wal-Mart the footprint they make on society simply shows up better from space. I wonder if you took those same statistics and applied them by size to other companies, if they wouldn’t be very familiar in the data they spit out? Another thing that I don’t like about local companies and mom & pop stores is the exclusivity of the staff to family and friends. In otter words as you research the community look at how many people drive to other cities for a job and how many who don’t are family and friends of the companies that essentially run Kaufman. I know we have some prominent families in the area who seem to own very large portions of the surrounding area and plenty of people who don’t.

            Again I love the area and most of what I’ve stated is true in all areas not just ours. But when it comes to choosing where I can find products and services that will make it easier and benefit my family, I will go with where my dollar goes farther and where that tends to be is large box stores.

            If the smaller stores can compete with pricing to some degree, they will get every dollar I spend simply because I HATE walking into Wal-Mart in the first place. I’m not asking for a price match. But I go back to my first response. $2.19 for milk at Wally World and $4.19 for milk at Brookshires? Seriously? That stuff don’t come from overseas.

            I’m probably just babbling anyway. My opinion means nothing.

          • Hi Bill,

            I sincerely doubt that David’s or even Brookshire’s has a business plan to pay their employees so little that they qualify for food stamps and other government benefits and trains them how to get it the way Wal-Mart does.

            Most likely David’s and even Brookshire’s don’t use primarily part time workers or pay them as little as Wal-Mart does theirs.

            What David’s and other regional independent stores need to do is source locally. If they did that they could compete on price especially for locally grown produce and grass finished meats.

            The problem we have is that the conditioning has been going on so long that most are making invalid assumptions. For example, almost all cattle ranches in Texas inject hormones, feed medicated feed, and even if they don’t send them to a feedlot – and almost all of them do because most of them don’t own the cattle – they are paid on gain – they still finish them on corn because “that’s how it is done”. That is NOT the best way but they don’t know that.

            There will be laws in the way that we need to circumvent until we can get them changed. If a rancher can’t butcher their cattle and sell the meat then they can sell on the hoof and have a process in place that buyers can use.

            Did you know there is a Farmer’s Market during the spring and summer in Kaufman? Hard to find out because the paper didn’t write about it every week the way they should!

            If David’s would buy milk from a local dairy they could compete better and the milk would be fresher and healthier. If people want to buy raw milk that should be none of the government’s business. Anyone who thinks the FDA and the government cares about our health is asleep. See my post about Food Rights for more on that.

            Everything in life is interconnected. The only reason “food” is cheaper at Wal-Mart is government subsidized corporate farming and unfair business practices. Most of what they sell isn’t worth eating, has little nutritional value and is unhealthy to eat.

            That is true for most of what David’s sells, too, but they could learn what is real food and what isn’t and become THE local source for healthy food and products. It isn’t that complicated once you know what to avoid – the thing is that most commercial foods contain what we need to avoid!

            The best quote I’ve seen on food besides “You are what you eat” and “Let your food be your medicine and your medicine be your food” is “Never eat anything your great-great-grandmother would not recognize as food”.
            growmap would love you to read ..Small Business Internet Marketing: Where to StartMy Profile

  4. It’s happened – Walmart will break ground in Spring of 2012 and be opened by Thanksgiving 2012. I overheard this at a holiday party at which city council members were discussing.

    • Hi Smithy,

      Since the people of Kaufman have little awareness of WHY that is bad news no doubt most of them will be excited and divert even more of their spending to Wal-mart than they already have by shopping in Terrell and elsewhere. It is sad to me.

      If I knew influencers who would listen I would share this post with them and explain why Walmart and other big box stores will reduce – not increase – tax revenues and hurt many small businesses that have been in Kaufman for decades or even generations.

      Few think about the fact that Walmart sells the same plants that Cordells sells or how much overlap there is in what they sell and what Ace Hardware carries to cite just two examples.

      I am surprised at how little loyalty small towns have to their neighbor’s businesses. If you know anyone I hope you will try to get them to understand – but most likely Kaufman will go the way of so many small Texas communities before them.

      Hopefully some day people like me will find a way to create communities that only have small businesses and alternatives to multi-national banks and corporations. I’d be happy to be the driving force behind one should someone care to do this – ideally many hours from any big city and in the most remote location possible.
      growmap would love you to read ..Twitter for Business: How to Geo Target Twitter for Small Business Local Social Media #smallbusinessMy Profile

  5. John martinez says:

    I think that walmart destroys small towns without the right amount of population. I would be disgusted if mayor ford allowed a walmart here.

  6. I have to say I agree that small business and the community in Kaufman are great but they also take advantage of that. Brookshires rapes the local community on pricing. They are extremely over inflated. Example: I can buy milk almost anywhere for under $3 but brookshires is always at around $4. I walk in to get stuff for dinner and can’t get out for less than $30. I have even written customer service about it and never even received a response. I.d love a Kroger or heck even an El Rio Grande.

    • Hi Bill,

      We have to be aware that we have been buying products at subsidized prices for years. I don’t shop at Brookshires because I like David’s so I can’t speak to the prices of either, but I do know that Walmart prices are low because they have transferred what should be their cost of sales onto the taxpayer and pay far less than they should to their suppliers.

      Something else we need to know: the value of the dollar is sliding and much of the food and other products we buy are imported so prices HAVE to climb – and buyers are going to be astounded at how fast and how high.

      Now is the time to stock up on staples and necessities because prices are never going to be what they are now (unless the dollar completely collapses or another currency replaced it).
      growmap would love you to read ..Happy Birthday GrowMap 3 Years Old TodayMy Profile

  7. What a great article and right on! We have been supporting local business for 18 years and now our buy local movement of Local Proud is the answer to big business. We need help from articles like this – help spread the word to support local business – the back bone of this great nation called America.

    [Note from GrowMap: You can get the Local Proud feed here: http://localproud.com/index.php/blog/feed/rss/local-proud-blog?format=feed ]

  8. The documentary film WAL-MART: The High Cost of Low Price, available in some indie stores and on their site http://www.walmartmovie.com/ is very supportive of your words here, and sadly projects the truth about how their employees are treated. South Park has a great episode as well, comedy with a message, available for free viewing courtesy of Matt and Trey, http://www.southparkstudios.com/full-episodes/s08e09-something-wall-mart-this-way-comes The facts are sad. Mom and Pop stores are sinking and big chains are winning. Shop as you wish, but please, if you can, vote with your dollars.
    xo
    Savory Tv
    Savory Tv would love you to read ..Chefs Speak: Ferran Adrià on His New Beer, IneditMy Profile

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