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Online sellers may gain with local buyers Ron Bartizek Business LOCAL

Sunday November 29, 2009 | 12:00 AM

WHEN ONLINE specialty foods retailer igourmet.com decided to open its warehouse for a first-ever public sale, the company’s managers didn’t really know what to expect. An economy that hit the skids just over a year ago had forced igourmet to file for Chapter 11 reorganization, and that meant there wasn’t any money available to advertise the sale. I thought the event was unusual enough to merit a small story, figuring there were others like me who had been eager to get a few special treats but reluctant to pay for shipping from West Pittston.

The response surprised all of us; instead of the dozens of curious shoppers igourmet expected, hundreds showed up, and many of them filled shopping baskets to the brim. Some items sold out within minutes and others never made it to the racks because people waiting in checkout queues eagerly snatched them as they were brought from the warehouse by happy — if a bit frazzled — workers.

Black Friday might have signaled a trend for this year’s holiday sales, but this event contained some lessons — or perhaps just reminders — as well. One is that there’s a market for quality merchandise at a fair price. Even after discounting, igourmet’s Crema di Roma was more expensive than cheddar, but to many tastes it’s worth the occasional splurge.

And don’t assume that everyone at the igourmet sale drove a Mercedes and wore designer jeans. That leads to the next point; the turnout showed that this region’s natural conservatism is proving to be a strength in otherwise bleak economic times because people who didn’t overdose on easy credit have money available for discretionary spending.

Does this mean our local Internet retail community that includes igourmet, babyage.com, vintagetub.com, petsunited.com and others should throw open their doors to the public? Maybe, at least on a limited basis. The modest potential revenue probably seemed insignificant in the heady days when online sales were doubling by the year. Now management is scrambling for every profitable dollar of revenue, so adding a traditional component may make sense.

That would be a nice benefit for local shoppers, too. When we first came to the Wyoming Valley, many quality items, from Frye boots to Jones New York suits, were available at true outlet stores. As with the online retailers, those sales accounted for a fraction of the companies’ overall business, but they provided an outlet for overstocks and out-of-fashion merchandise that otherwise would have showed up only on the expense side of the ledger.

Having sold a car before lining up a replacement, I’ve had reason to test the limited public transit between the Back Mountain and Public Square. It’s pretty satisfying, from both convenience and financial standpoints. The full fare of $1.50 each way to work costs more than the gas I’d burn, but add in the expense of buying and maintaining a vehicle and I’m ahead.

That’s from the end of the line in Dallas. Riders from the West Side to Wilkes-Barre pay the same thing to go a couple of miles, so the savings shrink. Regulars, though, can buy passes that lower the per-trip fare.

On Wednesday, I was one of about a dozen strap hangers each way, which hardly seems like a profitable formula for the LCTA, and illustrates why virtually all public transportation is subsidized. That may stick in the craw of fiscal conservatives, but I’m happy it’s there for people who otherwise lack the means to get to work or shopping, as well as for people who make ill-timed vehicle sales.

About the Author

Ron Bartizek covers business for the Times Leader. Reach him at (570) 970-7157 or rbartizek@timesleader.com.

Ron Bartizek has more than 30 years' newspaper industry experience, in advertising, news, general management and ownership. He has been business editor of the Times Leader since mid-2005.