Sparkle, Unique Gifts and More was mobbed by about 40 people last night as part of a series of spending sprees across the state. These "cash mobs" are the product of online activists who have been harnessing social media to get consumers to support local businesses. This was the third event hosted by Let's Buy Local, an alliance of independently owned businesses in Rhode Island.
During a cash mob, participants flood a predetermined store at the same time. The mob is encouraged to spend at least $20, instantly injecting capital into the business.
Co-founder Timothy Hudyncia, one of many local organizers, said cash mobbing fits well with the business alliance's initiative to support the local economy.
Hudyncia is just one of several local cash mob organizers in the state. The first event in Rhode Island was organized by Wakefield's Waves of Creation owner, Laura Winward, who first read about them in an article in the Wall Street Journal.
"I thought, this is brilliant," Winward said. "Why isn't this happening everywhere - it's so simple!" When she heard of the cash mob trend, Winward said she knew she had to act to get the ball rolling. Small business owners can't rely on national brand recognition, like the larger "big-box" stores, and must promote themselves on smaller budgets to survive, she said.
Winward set up a Facebook page and a Twitter account for Rhode Island Cash Mobs, still the sole means of advertising for the events besides word of mouth. The first mob attracted 50 people who invaded Jennifer's Chocolates Jan. 30. Jen Dowell, owner of Jennifer's Chocolates, in turn hosted Wakefield's second cash mob.
Beyond the sales boost, cash mobs act like e-commerce sites such as Groupon or Living Social by attracting first-time customers. The recipients of a cash mob also benefit from free publicity.
"It also creates a sense of community. People get really jazzed up about it," Winward said. "There's a little competition going on between the South County group and the Warwick group, you know, who can get more people to come," she chuckled.
Business owners as well as customers, Facebook friends, members of chambers of commerce and people from out of town show up at the mob events.
Anyone can post an event to the Rhode Island Cash Mob Facebook page, administered by Winward, but the mob recipient is not revealed until the night of the event. "The secret destination is half the fun," Winward said.
Alexandra Miller, owner of Johnny's Barkin' Bakery in South Kingston, attended the first cash mob and is organizing her own event this week. Each organizer has unique criteria for selecting a cash mob recipient. "I was looking for something where just about anyone can find something to buy," Miller said. She thinks Winward did the same thing with the first cash mob at Jennifer's Chocolates. "Anybody can use chocolate," Miller said.
The Rhode Island Cash Mobs are creating a supportive network for the community while spreading the message to buy local. "These aren't big anonymous corporations. These are your next-door neighbors trying to pay their mortgage," Winward said. In the case of Winward's business, she said, "it's 50 Rhode Island families that are affected by your decision to buy here or not buy here."
Winward said she has seen several local companies go out of business. "It all comes down to how many people are walking through the door. I struggle with that every day. I think every small business owner does."
But Miller said she does not expect to change everyone's shopping habits entirely. "When you're out and about, think about the small businesses in your community. You just don't realize how many businesses are out there until you start looking."
One obstacle facing Rhode Island cash mobs is maintaining the momentum. Miller said she thinks branching out to different areas will keep the events "fresh and fun."
