The premise is that the more actively we try to spend and re-spend our money locally the more money there is around for people to continue spending.
And, as any business person knows, getting peoples attention (hopefully in a positive way) is essential for trade.
The flip side of this recognition is making it clearer which local businesses are super efficient at local procurement. When Norfolk District Council did a simple LM3 audit in 2004 the discovered that a contract worth £72,000 given to a local contractor yielded a local re-spend value of £154,580 after three 'rounds'.
In contrast a much larger contract of £120,000 given to a non-local contractor only generated £147,160.
The lesson? Less money spent wisely within our local system is of more value than more money spent in such a way that it easily leaks away.
That means they will benefit from more publicity which will bring them to more peoples attention which, hopefully, will bring them more sales.
So one way to view the Food Loop points that you earn is as votes for your favorite local food businesses. And, if they continue to keep your Food Loop Pounds in local circulation they will continue to earn you extrea points as well.
But that a subject for a different article.
Monday 24 August 15