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I use local-type pharmacy in NY even though there are numerous chain places, some closer to me. Why? They knew me by name the second time I went there. They don't waste my time . At Duane Reade/CVS they'll tell me 2 hours wait for a simple perscription. At my place, they fill it when I walk in, no more than 5 minutes of waiting. They're friendly, and they don't hassle me with insurance every time I walk in - they keep up with my circumstances. I'll never expect any of that from Duane Reade. I just hope these guys don't go out of business.
Promote yourself as the local guy. Run an open house or some sort of special for your local customers - and expand your presence into the sidewalk. What I mean is get signs up and maybe have a table outside for a week with keychains/water bottles with your info on it. Give them to people for free along with a pamphlet about why local service is better for the individual. Strange as it is, people may not even realize you are there. In Manhattan it is so easy to just walk from a to b without even looking at the store fronts. So raise your profile in the coming weeks. Above all, be that "local" business. Offer the small town experience and attention that sets "mom and pop" places apart. Have relationships with your customers and make them feel welcome, and that you are going to personally see that they get the service they desire. This is what I get at my place, and it does make all the difference. That way, if you get someone inside once, they'll come back.
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Cogito ergo spud -- I think, therefore I yam
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