Northern Arizona residents nod in agreement when they hear a friend or colleague sigh, “Oh, Flagstaff, it’s ‘poverty with a view.’” The favorite Northern Arizona colloquialism is shared by many as a sort of badge of courage for choosing to live in Flagstaff when they could be living elsewhere where they believe wages are higher and the cost of living lower. However, demographic information and market research shows that the popular expression may not be quite so accurate. It is true that Flagstaff’s views can’t be beat, but in actuality, the area’s median income is actually higher than the national average.
“We have extreme demographics here. High-worth, second homeowners are on one end of the spectrum while on the other side, 18,000 NAU students struggle through the day-to-day,” said John Stigmon from the Economic Collaborative of Northern Arizona (ECoNA.) “But overall our demographics are strong, and we tend as a community not to acknowledge that. We need to look at the whole community.
“There is a percentage of those who are struggling – students who want to stay here after graduation, others that have grown up here and would like to stay,” continued the ECoNA vice president, who uses marketing research to attract, retain and expand business in the region.
“Poverty is really not the right term. The word presumes a lack of choice,” explained Rich Bowen, the president/CEO of ECoNA. “Traditionally, river runners and Snowbowl employees have exchanged high-paying jobs for the recreational lifestyle that Northern Arizona offers. That’s different than young couples that need to leave the area to advance their careers. Flagstaff is a challenging place to build a career – it’s the yin and yang of being a very attractive place to live. One of our roles is to create more livable wage jobs with benefits and career paths.”
“Access to demographics helps us understand the community better and helps it grow. This is not just census information,” said Stigmon, who in a prior career did site selection in 14 countries and every U.S. city with a population greater than 100,000. “If you understand demographics, it comes together to tell a very interesting story,” Stigmon said. The data comes from Buxton, a leading customer analytics firm that, according to their website, “helps organizations identify who their customers are, where those customers are located, and the value those customers have.” ECoNA uses Buxton demographics that are provided by the City of Flagstaff to help businesses choose Flagstaff over other municipalities, which vie to attract job-creating businesses.
“For example, RED Development comes to us and asks, ‘Do you have data that is comparable to Bozeman, Montana?’” said Stigmon. RED had a potential client that operated a successful retail store in Bozeman and was interested in Flagstaff’s Aspen Place at the Sawmill location. But before deciding on the locale, the client wanted to compare the two community profiles in terms of buying patterns, per capita income, median age and consumer density. Stigmon was able to take Buxton data, which pulls information from 180 sources and show that Flagstaff surpassed Bozeman in many of the categories.
Describing the difference between census data and Buxton demographics, John Saltonstall, business retention and expansion manager for the City of Flagstaff, said, “Census data is self-reporting and is fairly infrequent – it’s published every five to 10 years. Buxton is part of a credit reporting agency and allows for more consumer-based knowledge. It has an idea of how geographic areas spend money and provides great insight into the region.
“If anyone uses a frequent buyer card, a customer loyalty card or they use something other than cash, there is an electronic record of what products are being purchased. It is good for retailers to be able to send coupons and specials. On the retail side, it is very telling. On an economic development side, it really tells. We can compare a locality to national averages, and we’re able to take a look at the propensity for certain consumer behaviors,” said Saltonstall.
“The way I typically provide the information is that I give a cautionary note: there is no silver bullet. Buxton provides more information to help triangulate decision making. It shows a bigger picture. With a 65-square-mile city limit, we appear pretty small, but when we provide data about the region on the whole – including the Navajo Reservation, Grand Canyon tourism, etc. – there are far more people that are coming through than based on city limits alone. Our trade area is very large. The reality is that here, people will drive a half hour or more for purchases or a night out. It is a more textured story.”
Businesspeople who wish to access the demographics and marketing information may call Saltonstall to set an appointment. “The city has subscribed to this information for the sole purpose of helping businesses expand their markets and their market shares. They can call me directly,” said the economic development expert.
ECoNA works closely with the City of Flagstaff and other member organizations. “ECoNA was created to break down silos in the community, where everyone saw each other as competitors. Coconino County, Flagstaff, Williams, Winslow – we’re really a community all doing economic development work and we need to all look to each other so resources are better utilized,” Bowen said.
And about that “poverty with a view” nickname? The median annual income in Flagstaff and surrounding areas is $68,000, compared to the nationwide median of $51,017, revealed by the September 2013 Census Bureau Report. The area’s median average income is almost three to six times higher than the actual U.S. poverty level, defined as those making $23,492 a year for a family of four, or $11,720 for an individual. “There’s a lot more money here than most think,” said Stigmon. FBN
City of Flagstaff
John Saltonstall
Business Retention & Expansion Manager
928-213-2966
http://www.flagstaff.az.gov/index.aspx?nid=1760
Economic Collaborative of Northern Arizona (ECoNA)
201 E. Birch Ave., Suite 12 , Flagstaff
928-707-7939