Nomoreradionews said:
What happens if the other grocery store is run by a major corporation whose economy of scale keeps prices lower and employs fewer people, too?
You keep doing what you are doing, and some stick around for the full service experience, but the low low prices drive the vast majority to the competition. Now you're running a full service store with a bunch of employees whose salaries you can't justify because your market share went from 50% to 20%.
As long as you can continue to make a profit and still pay everyone, then there's no reason to cut back on service or employment. But more often than not, the competition forces you to cut back so you're still making money and staying in business. If it's between running a bare bones operation or being out of business and giving the competition ALL your customers, which would you prefer?
I lived in this small Mississippi town for four years and lamented the lack of grocer (and radio) choice. Back in the day, they had a Kroger, a Piggly Wiggly and two locally owned Associated Grocer type stores. Then Walmart built their Supercenter on the outskirts of town and everything changed. Now, there's Walmart and the two independent grocers, who are basically one and the same, choice-wise. Walmart put Kroger and Piggly Wiggly out of the market because neither could justify staying in business with such fierce competition.
Now, in this small town the indies were able to eek out a niche (one specialized in fresh meats, the other with customer service) but their higher overhead means they will never see the same profits they did before Walmart came to town. In other small towns, all across Alabama, Walmart's entrance has meant the exit of many, many locally owned businesses.
Radio is the same, except it's Clear Channel and Cox and Cumulus buying out the mom-n-pops, but the results are the same. You either have to find a way to keep making money against them, with their massive corporate resources and skeleton crew expenses, or you sell out (go out of business).
It seems the majority of stations survive by also cutting to the bone, which at least implies that staying on as a full service station with a full compliment of airstaff, news, etc. is not the way to go.
In my little town of Foley we have a true full service station that plays music, talk shows, swap shop… you name it. It has carved out its niche amongst a dial of full power, corporate music radio stations in Mobile and Pensacola. But even there, it appears the majority of the day is automated and there's only about three local voices you'll ever hear on air. The old timer who has been there for decades, the younger guy (probably in his 50's) who helps out and a female voice who is probably also the receptionist and sales person. In other words, a skeleton crew.
How many fully staffed stations do you know in Alabama that still exist and compete with corporate, voice tracked competition? Obviously the listener doesn't care or they would choose local over corporate!