Photo by Ben Schwartz Mitch Fiedler sits in front of the cooler at Fiedler's Meat Market in North Platte.

For a country that prides itself on identifying with underdogs, the United States has certainly birthed a large number of cold, calculating corporations.

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Not only do shoppers flock to mega-chains and retailers with their dollars, but communities all over America compete with each other to offer the most attractive incentive packages to bring in stores like Wal-Mart and Target.

Political exuberance can have dire consequences for locally owned small businesses. Pulitzer Prize winning reporter David Cay Johnston noted in his book “Free Lunch” that giving the Wal-Marts and Cabelas of the world tax breaks is essentially asking local business owners to pay for their own demise.

However, it is certainly possible for small businesses to compete with and thrive against major corporations.

The Bulletin is a locally owned business that competes directly with corporate outlets on a daily basis, and we are not alone.

This week, we examine how several other local businesses handle their respective gorillas in the room.

The big boys

North Platte is home to many out-of-town corporate entities, including some of the largest companies in the world.

Major players in North Platte include:

• Applebee’s. Its website proclaims it the largest casual-dining chain in the world.

• Wells Fargo, the third largest bank in America.

• Menard’s. This chain of home stores offers to beat any local competitor’s price by 11 percent.

• Karl’s T.V., Audio, Appliance and Furniture. Founded in the small town of Gregory, S.D. in the 1950s, Karl’s has saturated the South Dakota market and spread into Nebraska, Minnesota, Iowa, and Wyoming.

• JC Penney. The retail giant’s website claims it operates 1,106 stores and employs more than 150,000 people.

• Union Pacific. North Platte’s largest employer is headquartered in Omaha and employs 45,000 people system wide.

• McDonald’s. The fast food behemoth claims to serve 58 million people in 118 countries every day.

• Sun Mart. The grocery chain operates stores in Colorado, Minnesota, North Dakota and Nebraska.

• The Omaha World-Herald. The company is the largest news corporation in Nebraska, and owns several daily newspapers through the state, including the North Platte Telegraph.

• Wal-Mart. No company carries a larger reputation for trampling local business and robbing communities of their identity than the world’s largest retail corporation.

Wal-Mart draws criticism for, among other things, its practice of aggressively seeking subsidies from communities it expands into, and for driving ‘mom and pop’ stores out of business.

That Wal-Mart is the harbinger of small businesses’ doom has become so ingrained in many Americans’ consciousness that in 2008 two West Virginia University economics professors launched a rigorous examination into how deeply the mega-retailer’s affect on small business runs.

Their findings seemed to contradict the popular belief that Wal-Mart negatively impacts small, locally owned competitors. While the study did not dispute that businesses that offer the same goods as Wal-Mart often fail to compete effectively and go out of business, it claimed that other small businesses offering different goods and services spring up to replace them.

It’s a phenomenon called ‘creative destruction,’ and it may prove to be Wal-Mart’s legacy in regard to small business.

The professors behind the study claim that there is just as much opportunity for entrepreneurs in the modern, Wal-Mart dominated economic landscape. It simply isn’t wise to attempt to compete directly with the super-store at its own game.

The little guys

While North Platte certainly hosts some corporate giants, it is also home to a bevy of locally owned and operated restaurants, retailers, and grocers.

The Bulletin spoke with several owners of independent local businesses, representing different services, to learn how they have not only endured but also prospered despite the presence out of town corporate competitors.

One theme that was common to all is the premium they place on servicing customers. Customer relations is one area where big chains and retailers simply cannot compete with small business. A sales associate paid an hourly wage at a big box store has neither financial nor personal motivation to work extra hard to provide the best service possible.

It is a different story at some of the family-owned operations in North Platte.

Fiedler’s Meat Market, 408 N. Chestnut

In business since 1986, Fiedler’s Meat Market looks to the past to guarantee its future.

“More or less, we’re an old fashioned meat market,” said Mitch Fiedler.

Along with meat cutting, the market has deli meats and cheeses, and supplies local restaurants and bars.

Mitch’s brother Mark started the store, and their father Fred was a Hormel meat salesman for 34 years. Mitch said the entire family grew up around the meat business.

Mitch claimed his biggest challenge is convincing people that his prices are better than other outlets. “I tell people ‘It’s true. Take a price sheet with you the next time you go shopping.’”

He explained his prices stay low because he mostly buys directly from slaughterhouses. Fiedler’s beef comes from the Swift plant in Grand Island, and their pork comes from Hormel in Fremont.

Fiedler believes that the services offered by his store are specialized enough that no one else in town can compete with them directly, even if the services offered are somewhat similar.

“When Wal-Mart first came to town, our sales actually got a boost,” he said. “People will try new things at least once. People gave their meat a try, then came right to us.”

Fiedler admitted that when Gary’s Super Foods first opened, his business took a slight hit. He said it wasn’t sustained and that when True Value occupied that same building it did not affect his business.

For the future, Mitch said Fiedler’s plans to stay as old fashioned as possible, though Fred would like to open a German-American restaurant in their back storage area one day.

Until then, it is business as usual.

“My dad has an old saying,” Mitch said. “You go to a grocery store to buy groceries, you go to a meat store to buy meat. That’s why we’re here.”

Fellows Home Appliance, 1803 E. Fourth

Duane and Linda Fellows have run their appliance store on E. Fourth Street for more than three years. They are a family operation in every sense of the word. The store is staffed entirely by immediate family.

Duane worked in appliances for more than 20 years before he owned his own business. He worked for Dean’s through the 90’s and built a strong relationship with the owner, Dave Julich.

When Julich retired, he decided there was no one he would rather hand his clients over to than the Fellows.

Their business received another boost when Dean Kittle retired and sold them his clientele. Kittle wanted to know that his customers would receive the service they were accustomed to, prompting his decision.

With the clients of two long-time North Platte businesses in their pocket, the Fellows began to prosper.

To hear Duane tell it, they do not have any competition. Fellows is the only appliance store in town. “Everyone else sells TVs,” he said.

Linda conceded that Karl’s is their biggest direct competitor. Sears and Menard’s also offer appliances.

As mentioned earlier, Menard’s offers to beat any competitor’s price, but Duane says that is only half the story.

“Menard’s gives you that low price because they never have to see you again,” he said. “You’re buying an appliance from a salesman that might sell you a hammer the next day.”

The secret of Fellows’ success, Duane said, is posted on their sign and all their advertisements – ‘We service what we sell.’

By that they do not mean they service the brands they sell. Their two factory trained technicians only service machines that came through their store.

“When we first started, we serviced everybody’s machines,” Duane said. “We had so many that our own customers were waiting two or three weeks for their appliances.”

The family decided to stop repairing machines they didn’t sell to concentrate on their own customers.

Linda told a story of a man who called and wanted his washing machine, purchased from another store, repaired.

“I told him ‘We only service the machines we sell at our store.’ He told me ‘you just lost a customer,’” she said. “I told him ‘I’m sorry, but you weren’t our customer to begin with.’”

She said that policy has alienated some people, but that it is worth it to guarantee their clientele the best service possible.

Merrick’s Ranch House, 1220 East 4th

Long hours and personal dedication are keys to success for Jacki and Bob Karre, the owners of Merrick’s Ranch House Café.

Both put in six-day workweeks and pull double shifts when necessary. Bob handles the kitchen and Jacki manages the front.

The two have worked at Merrick’s since 1967 when they were high school. They began managing the place since the mid-1970s and bought it in 1982, carrying on a tradition of “affordable prices with a hometown atmosphere and the best service around.”

The Karres also raised five children. All have taken a hand in the operation.

“We treat our customers like family and friends,” Jacki said. “I try to find out a little about each of them and visit with them. We like to show that someone cares.”

The Karres are cautious about raising prices. They ignore wholesale price “bubbles” as long as possible, such as the soaring price of coffee a few years ago.

They recently raised the price of a hamburger by about 15 cents, from just under $2 to just over, even though their food costs began climbing more than a year ago.

Hirschfeld’s, 401 N. Dewey

Downtown on Dewey St., Hirschfeld’s caters to a different clientele. The clothing store has operated in North Platte for 92 years, according to owner Alan Hirschfeld.

He said generating traffic is his biggest challenge and Wal-Mart is his biggest competitor, but not because of the brands they carry.

“Wal-Mart doesn’t sell what I sell,” Hirschfeld said.

Instead, Wal-Mart dominates shopper’s days, which is why they are his biggest obstacle. People who come from out of town to shop at the super-store often don’t think to explore North Platte and see what is offered in other parts of town.

To draw local shoppers, Hirschfeld said he markets directly to customers and maintains a strong web presence. He has a fashion link that is entirely e-mail based, and a loyalty program for long-time customers.

Having market-exclusivity on the brands he carries is a trump card Hirschfeld holds.

He and the other downtown merchants are also taking steps to bring people to their area. “We have a vibrant downtown association,” Hirschfeld stated. “We are creating events to draw people to downtown North Platte.”

Sports Shoppe/Big Red Etc., 1320 S. Cottonwood

Proximity to Wal-Mart has proven to be a boon to one locally owned business. The Sports Shoppe and Big Red Etc., located just north of Wal-Mart, often benefit from customers that come to shop at Wal-Mart but decide to investigate what the Sports Shoppe has to offer.

The hardest part, says owner Tim O’Connor, is figuring out what hours to be open.

“Wal-Mart is open 24 hours, and obviously it’s not practical for us to do that. So it is difficult to know what hours we should keep.”

O’Connor said he accidentally left the door unlocked around 7 a.m. one morning, three hours before the store typically opens. A Wal-Mart shopper walked over and came right in. He ended up buying something, O’Connor said.

The Sports Shoppe has been around for 33 and a half years. O’Connor brought Big Red Etc. online seven and a half years ago. They started out as sister stores at opposite ends of the Platte River Mall, but in February 2006 the stores moved to their new location. The move has given O’Connor the best of both worlds, he said, attracting crowds that come for Wal-Mart while still enjoying the support of long-time customers.

Small community loyalty is underrated, O’Connor said. “If you are good to people, they’ll be good to you.”

Donna’s Kitchen, 320 Rodeo Road

Donna Girty said small business success is based on giving customers what they want.

After life-long work in the restaurant business, including stints at Perkins and the salebarn café, in 2008 Girty opened Donna’s Kitchen at the Hershey I-80 interchange.

She moved the business to North Platte in February, to the corner of Rodeo Road and Willow Ave.

And she has enjoyed success.

“It’s home-style American food,” she said. “We try to make it like eating at home, except you’re eating out. And, it’s important to keep prices reasonable. Lots of my customers are elderly. We offer good service, consistency and good food.”

Girty goes an extra mile to help people, serving a free meal each year at Christmas, thanks to many donations of food and cash. Nearly 400 people have attended the last two years.

She works hard and keeps her smile.

“I have a good reason to smile,” she said. “I take one day at a time. I like to see people satisfied and happy.”

Gary’s Super Foods, Fourth Street Plaza

Donna’s is not the only local business to come down Highway 30 from Hershey. Gary Suhr operated his grocery store in Hershey for 14 years when he decided North Platte was ready for a locally owned grocer.

The city fathers agreed, and granted Gary’s Super Foods $300,000 to open a store in the newly minted Fourth Street Plaza. The new grocery opened its doors in February of this year.

Suhr was prepared to compete directly with Sun Mart and Wal-Mart. “We’ve only been 12 miles away for years. We were already competing with them,” he said.

The power of the big stores is their power, Suhr said -- specifically, their purchasing power.

“Wal-Mart can keep Tide cheap every day. We can run Tide on special once a quarter,” he said.

But the big boys do not hold all the best cards, however. Gary’s emphasizes superior meat and produce to what could be found at the bigger stores.

Gary’s Super Foods also offers Shurfine and Shurfresh products, popular brands that were absent from the North Platte market since True Value closed its doors four years ago.

Suhr said that the allure of supporting a locally owned store is not lost on many shoppers.

“Being locally owned is its own advantage,” he said.

He said the public response has been overwhelmingly positive since the store opened for business.

As for closing the price gap with Wal-Mart and Sun Mart, Suhr said he is working with Affiliated Foods to start buying smarter.

“Hopefully,” he said, “we can give them a run for their money.”

Nebraskaland National Bank, 121 N. Dewey

It’s one thing the start a catering service in your kitchen, or a weekly newspaper in your basement. It’s another animal entirely to establish a financial institution in a store front downtown and in 10 years grow it to a financial power with nearly $300 million in assets.

That is exactly what Nebraskaland National Bank did. Founded in 1998, the bank employed fewer than 10 people at first, and its stock was worth less than $3 million. In 2008, the last year records are available, Nebraskaland employed 56 people and its stock had soared past $21 million. All this at a time when the largest banks in the country were failing and being bailed out by the government.

Asked if the government would bail him out if he failed, bank president, chairman, and CEO Mike Jacobson said simply, “No.”

That has forced him and his staff to play the game differently than larger competitors. “When you go over to Wells Fargo for a loan, they’ll enter your information into a computer and they will tell you instantly whether you qualify or not. If you don’t, there’s nothing you can do. You can’t talk with a computer,” he said.

Jacobson said he actually believes Wells Fargo is a well-run company as far as major corporations go. The problem they run into, according to him, is that when organizations get that large, their management loses touch with their communities.

“All our decisions are made right here, in North Platte. Our staff and board of directors live here. People can walk into the bank and talk to the bank president,” Jacobson said.

Nebraskaland (which also has a branch in Mullen and a sister bank in Wyoming) is large enough to offer the amenities of the larger banks, like deposit boxes, online banking, and mobile banking.

Ultimately, Jacobson claims he prefers competing with the big boys. He likened a community bank like Nebraskaland to a sports car driving down a highway. Behemoths like Wells Fargo and fellow giant U.S. Bank are like tractor-trailers.

“They’re big enough to run you over if you stop moving, but they have to catch me first,” he stated. “That sports car can weave in and out of traffic, change lanes quickly, stop on a dime, turn around and head the other way. Try doing that with a semi.”

Jacobson had been in banking since 1980, but the desire to make his own decisions prompted him to start Nebraskaland. He also made a point early of reinvesting in North Platte.

It is a practice that continues. Jacobson estimated that about 10 percent of the bank’s after tax profit is put right back into the community.

Ultimately, Jacobson said, you have to be able to respond to what customers want. “People think it’s all about price, but it’s not. It comes back to great people,” he said.

Not competing

North Platte brims with examples of both corporate giants flexing their financial muscles and intrepid local businesses finding the holes that the big boys fail to fill.

Many of the local owners feel that by offering superior goods and service, they are not competing with the major corporations at all.

“I shop at Wal-Mart every Sunday with my wife,” Mitch Fiedler said. “I don’t have anything against them.”

That probably won’t change as long as local businesses can continue to thrive in the long shadows of the giants.

Bulletin editor George Lauby contributed to this report. First published Sept. 2 in the print edition of the North Platte Bulletin.