Circular Economics

A lot of times the question is asked why independents are more expensive than bigger brands.  Hopefully, the below will provide some insight.  

The Problem:

One of the biggest problems the UK faces is the use of offshore entities to not pay taxes.  The principle behind the idea is that companies don't pay TAX twice for the same product sold in the UK vs where the head office resides. There is merit in that, however in the UK it resulted in independents paying more TAX than bigger companies,  this unfair advantage is why independents are failing.  And strangely the focus is on providing tax incentives like the "Super-Diductor" program which only large companies could capitalize on.  The problem ends up being a system that rewards companies that do not spend or pay taxes locally while penalizing the companies that do.

Small independents cannot compete on price points against the big companies,  and a lot of consumer decisions in the UK are based on the price point,  the other problem is the lack of understanding of the cost of things,  for example when you purchase a coffee from a big brand,  they grow the beans in places in the world where it costs a fraction of what independents pay to purchase their coffee beans and roast it locally.  So not only are our margins smaller but we pay more tax on the marginal profit of each coffee we sell. 

So why would you care right,  your coffee is cheaper on your pocket from a big company than an independent,  The answer is that you and every person in the UK who is employed pay a third more tax than would be required if the tax system was fair,  which means the if you paid pennies more for your coffee and of course purchase other products from independents in time you could achieve a third tax reduction on your salary. 


The Solution:

It has become apparent that change is not driven by the machine of government anymore,  and with their endless budgets for the use of Behavioral Insights scientists to create nudge messages to drive a single narrative, we are in a dystopia. So the solution is changing buying behavior,  and you control who you support and purchase from. Buy from independents and not only help support us by paying less tax but also create a money multiplier in your local community which will lift the UK living standard in your local community.  

So be kind to the family-run independents,  behind them are people who truly care,  and who believe in their community,  don't punish them support them,  they are Fathers, Mothers, your friend from church,  your yoga buddy the guy that greets you when you walk past him.