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Does it though?Benefits of a “captive” customer base (local really gives you an edge
It also lessens the amount of demand for your product. Do you want to sell to 1,000 people in your city or 100,000 people nationwide? If you're selling Mercedes, you might be onto something. If you're selling pencils for architects, you need to look beyond your local market.
Obviously these examples are a little tongue and cheek.
Will someone pay 5% more with your online store that's local, just because it's local? Some people will. For sure. But most won't. Most people will click the Google ad that offers your product for $0.01 less.
You still need to have some kind of value skew to really make it. Don't lose sight of that.
Yes, I am speaking from a little bit of experience. I'm not saying you can't make this idea work. I'm just saying that the fact that you're local won't be the deciding factor for most people.
If there's enough profit in your product, sure you can make it happen. But at some point in time you're going to want to branch out from your local market anyways.
Just some food for thought.
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