Small Business Saturday: 'Think Small' Gets Big Push

During Thanksgiving weekend, big box stores leverage their massive distribution networks and economies of scale to offer huge discounts. It can be difficult for small businesses to compete with Black Friday bargains.

In hopes of encouraging consumers to shop local and support neighborhood businesses, American Express is sponsoring “Small Business Saturday” on Nov. 26 for the second year in a row.

American Express cardholders who register beforehand are eligible to receive a $25 credit toward a Saturday purchase at a small business.

In Mendota Heights, local business owners have found the boost helpful.

Natalie Jaeger, the owner of Olive Grove Olive Oil Company, said that the American Express credit helps her bottom line.

“We have had customers come in and say they’re shopping our store specifically for Small Business Saturday,” she said. “We don’t make a lot of money as it is so people have to pay full price at some point or we won’t be here very long.”

Some Mendota Heights small businesses are offering discounts and specials this weekend.

Olive Grove Oil is having a store-wide sale. Roe Wolfe will offer two gift packages at different price points. The Nature of Beauty spa is offering 15 percent discounts off holiday items and free travel kits with purchases of spa package gift certificates. Sunfish Cellars is selling wine and craft beer for 10 percent off.

But other small businesses have found it difficult to discount their merchandise for the holidays.

Diana Petrich, the owner of the cigar lounge Perfect Ash, said she couldn’t afford advertising or discounts.

“We have to pay such high tobacco taxes in the state of Minnesota that our margins are so low we can’t do anything like that,” she said.