The Kiwi Rider Podcast's Raymond Heron explains just why your local bike shop needs you now more than ever thanks to Covid-19.
Is this your first recession?
Let me prefix this by saying, I’m no economist, and my Delorean is broken, so I cant see the future.
If you’re my age (mid-30s) then you lived through the Global Financial Crisis (GFC), but it probably didn't affect you all that much… I know I was still young, and living paycheck to paycheck, likely spending any income I did have on alcohol or gadgets.
The silver lining of being this age is that you can walk around asking people if this is their first recession. It’s a power move of sorts…
Back in 2005, when the world was heading into the GFC, I was in tertiary education, finishing off a diploma in radio broadcasting.
Being the youngest in my class, and not really caring about the state of world financial affairs, I was spending every cent I earned. On the daily from the tutors and older students, I would get “what?, is this your first recession?”
Now, Boomers, hold that thought while I school the younger readers...
If you’re younger than me, this might in fact be your first recession. So what exactly does it mean?
If you completed 5th form (year 12) economics, youll know a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending and generally last for at least six months.
An economic depression, on the other hand, is a more severe decline that lasts for several years.
There have been 33 recessions since 1854, but only 1 depressions since then, which was the great depression of 1929.
Ok Boomers, you can join back in now.
Its no secret that COVID-19 has screwed us over, and the level 4 lockdown restrictions have been severe. Businesses being closed for that long, and cash flow drying up is going to mean some businesses simply don’t re-open their doors.
Regardless of your political views or opinions, 22 deaths (at the time of writing) due to COVID-19 is pretty low compared to the rest of the world. But things are not going to be the same as they were before lockdown. And we are going into a recession.
So what can we do about it? It’s simple really… 2 words… Buy Local.
When you save yourself $20 by buying that motorcycle part online from an overseas outlet, you send the full cost of that item to another country's economy.
Just like that it's gone… and Trev, or Barry, or Steve, who owns your local bike shop is one day closer to making the hardest call of all, to make his staff redundant.
His staff, could be your mates parents… heck, his staff, may well be your mates… When you buy that item locally, sure it may cost you slightly more, but you inject cash into that local bike shop, and in turn, the NZ economy.
When you spend with your local bike shop, they can then afford to employ locally.
You’re also supporting the NZ based distributor, who had to fork out the cash to get the stock from where-ever in the world it had to come from.
That item came in likely through sea freight, so the dock workers have made an income.
The truckies drove it from the port, to the warehouse. The distributor unpacked it, marketed it, boxed it up and couriered it to your local bike shop, and the they in turn put it on display for you to buy.
All those people are kept in work, by you purchasing that item locally.
All those people can afford to buy a beer, or put their kids through school right here in NZ, because you bought that item from a local supplier.
This is the only way the local bike shops are going to survive the next 12 months. You know, the local bike shops who you have asked for donations, or to help with fundraisers for your local school.
The guys who support our community by organising trail rides and charity events. The local bike shops who have their name on NZBSK bikes and kids 85cc motoX bikes.
Your local bike shop needs you now, they have supported you for years, now you need to support them.
Keep your mates in jobs, and buy local. This is the only way the NZ economy will survive.
What? Is this your first recession?