What is Digg?76 Comments
- TheCaptainJS, on 10/11/2007, -3/+50Comment Abuse (Site Down):
The 10 Small Businesses that are Being Killed by Technology
When I was a kid, I lived in a Chicago suburb with a thriving and quaint downtown shopping area. It wasn’t a mall or a strip mall - I mean a real downtown with a train station, neighborhood bank, farmer’s market, city hall and little one-of-a-kind shops that were owned by people who lived in our town.
Although many businesses have come and gone since I was a kid (not THAT long ago!), technology and the Internet has changed the way we do business, plain and simple. Some of the shops that used to dot our neighborhood shopping areas will simply never come back to a brick-and-mortar way of doing business. Others are ‘endangered species’ - ones that with just a little more momentum will be gone in the next few years.
Sometimes the culprit was the convenience or advancement of the Internet. Others, it was the in-store technology of large chain stores that made it easier and cheaper to carry a wider variety of products.
In all cases, business found a cheaper and more efficient way to deliver in-demand products. In the end, it also meant that many small mom-and-pop stores either have had to change with the times or go out of business.
1. Record/CD Stores
2. 1 Hour Photo Shops
3. Video Rental
4. Camera Stores
5. Neighborhood Bookstores
6. Niche Art or Craft Stores
7. Travel Agencies
8. Neighborhood Grocery Stores
9. Neighborhood Movie Theaters
10. Independent Pharmacies
This entry was posted on Tuesday, June 12th, 2007 at 8:47 am and is filed under Entrepreneurship. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. - martinraul, on 10/11/2007, -1/+31They forget "Porn Magazines" in the list....
- FreshHaikus, on 10/11/2007, -2/+23shoe stores?
I don't know about you, but shoes are one of the few things I would not want to buy online. Perfectly fitting shoes are the key to happyness. - treelovinhippie, on 10/11/2007, -0/+20Poor Dunder Mifflin :(
- cdrew, on 10/11/2007, -2/+20Unless the newspaper publishers find a way to build an effective digital model, they may wind up on this list as well.
- fthead9, on 10/11/2007, -0/+10Sad but true, the local record store is pretty much dead. I just hope Amoeba Records sticks around, love their instore concerts.
- heythisismyname, on 10/11/2007, -0/+9looks like this small business server is being killed by technology
- mykodacon, on 10/11/2007, -1/+9I think Video Game Arcades should have been on that list. You don't see those as the entire business model anymore.
- inactive, on 10/11/2007, -3/+11"Great article"? Not great, and not exactly an "article."
I don't agree that all of these items are going extinct, and some of the cited endangerments are not the result of technology but rather economies of scale. For example, the mom-and-pop grocery stores.
Lame. - SpaceMonkeyZero, on 10/11/2007, -0/+8I remember trying to see if I could save a couple hundred bucks on a 3-day weekend trip to Vegas. I found a great price online, and decided to call a travel agent for the hell of it to see if they could get me a better deal.
The deal they gave me was flying from the east coast at 11PM on Friday night, getting to Vegas Satuday morning, and flying back Sunday morning. Cost? $1,000 more than what I found online for a full 3 nights in Vegas at the same hotel.
I never called a travel agent before... or since. ***** 'em. - VIrus9, on 10/11/2007, -0/+7I don't know so much that neighborhood bookstores are being adversely affected by technology. I have a friend who owns a used bookstore and has been able to use technology to his advantage. The rise of the internet has made it easier for him to find rare and out-of-print volumes through estate sales and allowed him to increase his sales.
I'd say the same thing applies to "Niche Artists" as well. As a niche artist myself, the internet has been a valuable tool in promoting my work. I'd have a much harder time finding people who were interested in buying my work with out it. - shifty2, on 10/11/2007, -0/+7Some major newspapers own their own printing presses to save money. Newspapers like the Washington Post actually boosted their profits by publishing 99% of their print on their website. Local businesses and people have the opportunity to places their ads or classifieds in both print and on their website. Also lets not forget that new features like RSS and email/cellphone notifications also cost less than printing.
I think newspaper companies (at least the big ones) have taken much advantage of technology to reduce operational costs and boost profits. - ScienceDoc, on 10/11/2007, -5/+11You can add realtor, no need to pay the 6% tax for nothing...or anyone involved in real estate for that matter...
- kevinfell, on 10/11/2007, -0/+611. Shorthand & Typing Institutes
- slezzzter, on 10/11/2007, -0/+6Hey now.
Real business is done on paper. OK? Write that down. - BTrey, on 10/11/2007, -1/+6The only one who pays the realtor is the seller? Sure, and the only one who pays sales tax is the store.
You don't think the seller takes into account the cost of the realtor when he calculates his bottom line? When I sold my house two years ago, I used a friend as my realtor. He set up the sale as a 5% commission instead of the usual 6%. I'm not a realtor so I don't know all the details but that meant that the buyer's realtor got a smaller commission. I had a young couple with two children make an offer. They were struggling to find a house and barely qualified for the loan. Their agent refused to accept the smaller commission and wrote into their contract offer an additional fee that would go directly to her in order to make up the difference. - Landin, on 10/11/2007, -1/+6I used to run a record store, right after I left, technology took over and just made vinyl obsolete.
- Biskino, on 10/11/2007, -0/+5There will always be a market for newspapers as long as they continue to publish quality content. The market might diminish - other mass market media can deliver the latest Paris Hilton gossip or Mavericks box score better and cheaper - but newspaper journalism still delivers a depth of coverage that you just don't get from any other source.
Stricly online news services haven't established the same credibility as print journalism and TV news (and associated online news services) just recycle their TV content. - MikeonTV, on 10/11/2007, -1/+6Bill Hicks said "10 years from now there will be two types of jobs in this world; the people who work on computers and the people who sweep underneath them"
He died in 1994. - raynar, on 10/11/2007, -0/+4No it wont. You'll try and be indie and hip to appeal to all the emos, but since they hate everyone, they'll wind up robbing you.
- inactive, on 10/11/2007, -0/+41. Record/CD Stores - big box retailers (WalMart, BestBuy, etc), crappy music.
2. 1 Hour Photo Shops - digital format.
3. Video Rental - Blockbuster, Netflix, the fact that one can buy the movie and watch it at leisure for the cost of a night at the movies.
4. Camera Stores - big box retailers, the move to digital format
5. Neighborhood Bookstores - being killed by Barnes&Noble and Borders
6. Niche Art or Craft Stores - Art stores, sure, but the craft stores I doubt. And, if they offer classes, I doubt it seriously.
7. Travel Agencies - True.
8. Neighborhood Grocery Stores - being killed by chain stores, WalMart, and other big box stores
9. Neighborhood Movie Theaters - overpriced tickets, overpriced food, screaming kids, noise from other movies.
10. Independent Pharmacies - being killed by chain stores, WalMart, and other big box stores - Ryosen, on 10/11/2007, -1/+5@thecaptainjs - Thank you for posting that. Why anyone would use Wordpress for a large commercial site (which Entrepreneur.com does) is beyond me.
I can personally attest to a couple of items on the list. My family owned a "niche arts-and-crafts" store. Although we had the best prices and largest selection in the state, we couldn't compete with the big box craft stores that would have coupons for 40% off everything on a nearly perpetual basis. We also knew another couple that owned a photo processing place that went under within six months of a WalMart and four (yes, four) big box pharmacies opening up on the same road, all within a 1/2 mile radius.
Entrepreneurialism is still alive and well in the U.S. and still one of your best bets at financial success. However, the retail channel is one of the riskiest approaches (second to restaurants).
Just my two cents. - bben46, on 10/11/2007, -0/+4For 2 years I owned a small local VCR repair shop. At first I could charge $50 & up to repair a VCR as new ones cost over $350. Business boomed. then as the price of a new VCR dropped I had to charge less just to get business. Finally when the price of a cheap VCR reached $99 I decided it was time to move on. I don't even repair my own VCR any more. it's too cheap to buy a new one to watch all of my old VHS movies. I now make 3 times as much repairing industrial motor controls. And I don't have the hassles the government puts a small business man through.
- ButtersMarsh, on 10/11/2007, -1/+4Dunder will be OK! Would you rather buy from Dwight when he worked at Staples? I didn't think so.
- MarkOfTheDead, on 10/11/2007, -3/+6dugg for ridiculous amounts of accuracy.
- bigtech64, on 10/11/2007, -0/+3and the guy who sweeps underneath them was just replaced by a roomba.
- MarkOfTheDead, on 10/11/2007, -3/+5i have a feeling the printed newspaper will not follow this model.
my backup is, look on every train and bus in the city in the early a.m. what are the majority reading? not to mention educational institutions that buy newspapers in bulk on a daily basis. the college i work for consistantly has full racks of new york times and the local times for people to just grab a copy and take to the office in the morning. not to mention the mass volume of people who would buy the paper every day when i used to work at a local dairy market in my teenage years. we'd empty 2 five foot high quad racks every morning by lunch. not to mention how fast the sunday paper would run screaming.
unlike us on digg, the general public will enjoy paying the 35-50 cents and read their news printed, as a lot do not have internet access on their breaks or as they work. - szembek, on 10/11/2007, -4/+6The only one who pays the realtor is the seller. When you buy a house you can have a realtor help you out because many times they can show you houses before they are listed in the MLS, plus they can provide more insight than a website with some blurry pictures.
- byronm, on 10/11/2007, -0/+2I find the independent pharmacies to be the ones who refuse to sell prescriptions based on religious grounds more so than any big chain. Infact i found out the little dumb ass pharmcy down the road swapped out pain killers on me after a major amount of dental work and while they thought they were doing me a favor that just incited more pain and bleeding because the warnings of medications were only checked against the prescriptions i had dropped off and not what i had opened - with the doctor knowing what he gave me i think its assinine a pharmacist on religious grounds can change it. And yes, i now know they refuse birth control and other medications.. jack asses.,. needless to say i don't shop there and i think those places should be shutdown for opperating illegally. If your a christian pharmacist then state it obviously on the front door or come up with a new name all together
- CorpT, on 10/11/2007, -1/+3@thebarge
Sure you can. You can list it in MLS for a flat fee. And you can certainly show your house yourself. Selling realtor will still usually get 3% but that is negotiable as well. - vondur, on 10/11/2007, -0/+2Well, this has been happening throughout history and is nothing new. How many blacksmiths do you see now that the automobile has displaced the horse for transportation?
SLAYER! - Murphious, on 10/11/2007, -3/+5@willynilly
Restocking your entire store is costly to say the least.. - wstrinz, on 10/11/2007, -2/+4I know everyone already knows this, but technology, like anything, makes us all better off overall, while making some people worse off. Its the same as trade, outsourcing, or immigration.
Does anyone really want the wooden ship building business to be booming? - MikeonTV, on 10/11/2007, -0/+2Tool was a great supporter of Bill. But you already new that.
- hiPpymIck, on 10/11/2007, -0/+2re neighborhood stores in cities
in UK theyve recently launched this -
discount card - 10% discount for using your local stores
http://www.wedgecard.co.uk/
by the same guy who successfully launched The Big Issue a magazine sold by homeless ppl
outside supermkts train stations etc
often has some interesting unusual content and sells quite well - raynar, on 10/11/2007, -0/+2I wonder if they'll be able to print more Schrute Bucks.
- wildfire, on 10/11/2007, -0/+2That's it? I was expecting something a bit more extensive coming from Entrepreneur.com such as trends/forecasts for other industries that might suffer the same fate and how these current industries are trying to cope.
Moreover, lots of people still prefer seeing an actual item in person, as most of the businesses on the list sell tangible items. So I don't think it's as dire as she makes it to be, especially in the small town environment she describes. - Error601, on 10/11/2007, -0/+1Open up "books, music, and bongs" to get with the self proclaimed hip crowd.
- MrBrenner, on 10/11/2007, -0/+1@freshhaikus - "Perfectly fitting shoes are the key to happyness."
This is why many people actually prefer to buy shoes online. My wife has hard-to-fit feet, and she has found that online shoe shopping is the way to go. Huge selection, detailed reviews, accurate fitting guidelines, and no-cost returns make the process a breeze. - RanZom, on 10/11/2007, -0/+1the digg effect took it down :( Any mirrors? I'm interested in reading this
edit: nm, I see a repost in the comments - greatkingrat85, on 10/11/2007, -0/+1They've already been mentioned, that's what.
- coldcoffee, on 10/11/2007, -2/+3I'd hit that.
- dawglse, on 10/11/2007, -1/+24 minutes on the front page and already dead?
Anyone have a mirror? - emom, on 10/11/2007, -0/+1I wasn't referring to niche artists - just niche art and craft supply stores. Small and large art stores will do well, but you will have a hard time finding just a quilting or needlepoint supply store anymore. Art and craft finished products will always do well imho.
- l33tsauce, on 10/11/2007, -2/+3Walmart single handedly murdered 7 of those on the list.
- bitmanx, on 10/11/2007, -0/+1I think many of these could still survive, especially in small towns. I'm sure their profits would be small.
It's just a matter of time before a majority of online businesses fall into that same category when the Walmart effect hits them compliments of Google. Whoever has the most $$ to advertise and support an online business will continue to thrive.. - kd1s, on 10/11/2007, -0/+1Interestingly Providence, RI just got it's first Big Box store this year. It's a Wal-Mart. But it has not had any impact on the CD stores, book stores, artisan food stores, etc.
It's just finding your niche and doing it well. - bemenaker, on 10/11/2007, -1/+2Isn't that just life?
-
Show 51 - 75 of 75 discussions
The Digg Toolbar for Firefox lets you Digg, submit content, and keep track of Digg even when you're not on the Digg site. Download the official 
© Digg Inc. 2009
— Content created and posted by Digg users is