Frugality vs. Ethical Buying
A reader, Michelle, sent in this question a while back, and I'm finally getting around to posting about it.
Should we support small/local business over national chains, even when the local business' prices are higher?
For instance, at our neighborhood paint store, a gallon of paint is $42. (higher-end paint, not the cheap-o stuff) Similar-quality paint is about $25 at Home Depot. Or, at the independent scrapbook store, a sheet of nice cardstock runs close to $1, but at the national craft chain it's about 60 cents. There's a similar dilemma between farmers' markets and the big grocery stores.
I can see paying more for better quality (local free-range chicken vs. supermarket birds), but when the quality is similar, should we pay the lower price and be frugal? Or support the small business and pay more?
This is a really, really tough issue.
Obviously, when I can get a superior product for less than I'd pay somewhere else, I buy local or support a small business. For instance, when peaches are in season, I can buy a half bushel of local peaches for a much lower price per pound than I can at the grocery store. And the beef I bought in bulk from a local farmer was less expensive per pound than the beef at the grocery store.
Also, if the price is close, I try to choose the local, small stores over the larger chains. For instance, the cilantro at the little organic store is only slightly more expensive than the cilantro at chain stores, so I buy my cilantro there when it's possible.
When it comes down to a large difference in price for a very similar product, I think that needs to be an individual decision. Of course it would be lovely to always support the little guy, but some households have budgets that don't allow that, and I'd never encourage overspending (and getting into debt) for the sake of supporting local businesses. After all, if you spend yourself into oblivion, it's not like you'll have the ability to support local businesses!
We all have a limited number of resources, and I think it takes wisdom to figure out what to do with those resources. If we all do a little bit of local buying, though, those little bits of local buying could make a big difference. It doesn't have to be an all or nothing kind of thing....buy local when you can, but don't feel uber guilty when you can't.
This is the way I approach things when I get a call asking for monetary donations. There are a bazillion charities that are worthy causes, but I can't help them all. I have a few charities that I support faithfully, and I politely say no to the rest.
I will say that buying less stuff overall helps to make it easier to find the money to support local businesses. If you skip buying a new gadget, simplify your cell phone plan, or get by on a less-extensive wardrobe than you used to, you could use some of that saved money to buy some local items.
So, those are some off-the-top-of-my-head thoughts on the topic, but I mostly wanted to open this question up to you all. How do you handle the frugality vs. local buying dilemma?
Today's 365 post: The niece is here!
Joshua's 365 post: Something we do on Mondays
I try to balance this issue the same way you do.
I won't purchase lower-quality items just because they're from a local store, and I won't purchase items from a local store that are exorbitantly more expensive for the same quality. We have a pretty tight budget, and I simply can't afford to do that.
However, I am willing to pay a premium for quality products from local businesses. Food is my best example. We reliably purchase all meat and eggs from a local farmer, and when produce is in season, we purchase 95% of it at our local farmers' market. For us, this is a win/win/win. Better quality food, supporting the local economy, and saving money. While meat and eggs are definitely more expensive at the farmers' market, oftentimes produce is much cheaper, even for better stuff. It all balances out.
I buy whatever is cheapest... simple as that. I would love to support local farmers and if their prices are cheaper or comparable that is the route I am in favour of.
I notice that when I purchase things from a local store I do not overspend. Usually I pick up the item I need then move on. Yet at a big box store I tend to grab more items that I think I "need" but actually could live without. So I may spend a few dollars more at the local store but save on my total bill (b/c I buy less).
same here. when you paid a little more (either with money OR the time to get it from a specialty retailer) for a consumable, you tend not to waste it and/or overbuy. Also, there's not as many tempting impulse purchases.
Personally, I try to shop less period. I live on a very limited income and most of my shopping for staple items is done at Walmart because the prices are the best. However, I do buy meat at a local butcher and vegetables and fruit locally, if I can. I'm also growing some of my vegetables this season to be even more frugal.
I agree that this is a difficult issue. We have a family-owned, small chain grocery store in walking distance of our house, and of course I want to support them as much as I can. However, they have no organic produce whatsoever, and the produce is frequently very old and of poor quality. The meat is all store brand, mostly beef and pork. In general, the prices in the store are higher, especially for shelf-stable items such as cereal, canned soups, etc. and the selection is limited. I find myself going there more for convenience than anything else.
As for stores such as Home Depot, while it is a national chain, a local person owns the franchise, or some interest in the business, and the store of course employs local people. So, in a sense, it is a local business, and is supporting the local economy.
We also grow fruits and vegetables and live frugally. It's a balancing act, to say the least!
I think that you made a great point, ie, "As for stores such as Home Depot, while it is a national chain, a local person owns the franchise, or some interest in the business, and the store of course employs local people. So, in a sense, it is a local business, and is supporting the local economy." It is something that frequently gets lost in the debates over the economy. Once upon a time, the franchise owner was a local trying to achieve the American dream. Now, they employ many people, give to charities, support the community, etc... - precisely by employing locals. We are supporting our communities no matter where we shop.
Also, if you reuse/recycle, that is definitely helping the small businesses! I donate whatever I can to a resale shop, instead of sending it to the landfill. And I shop there, as well. There's more than one way to be frugal and ethical!
I am struggling with this as well. right now I have a pretty loose food budget for just my husband and I, but that is about to change as we go back to school. I feel guilty for going to Walmart even though I will be on a very limited income and it is the best option in my area.
My husband and I usually try to buy things that are generally made locally (such as food), and things that require a knowledgeable service staff (such as my husband's beer brewing stuff) from locally owned and smaller stores. We have also made a personal commitment not to shop at Wal-mart. Ever. This is due to my husband's union affiliations and not so much about frugality, but it impacts things. When we want something that isn't a usual purchase, the first place I look is Craigslist, then I look for local stores, and then I look to eBay or amazon. Usually, in fact almost always, I can find whatever I'm looking for on Craigslist!
We have always committed to never shopping at Wal-Mart. I know that in some communities this isn't possible (like where Wal-Mart has knocked out all the other competition), but it is in ours--and I'm happy to not support them.
I have no guilt issues with Walmart. I shop there whenever I can because it is cheaper. A lot of people in my community work there, so I feel that if I shop there as often as possible I'm keeping them employed so they can put food in their children's mouths. Where I live, Walmart gives A LOT back to our community with scholarships for company employees, huge monetary donations to United Way organizations and the Boys and Girls Clubs to name a few. I get so tired of people constantly slamming and bad mouthing Walmart. I like that it's affordable and that they give lots to charities and help out with natural disaster victims. They gave alot to Haiti, Katrina, etc. They give lots of new clothes and back to school supplies every September to kids that need it. They give an awful lot of toys to underprivileged kids at Christmas Time. Check it out. They give back.
Kayleigh, thank you for sharing your thoughts on Walmart. I have to say I've never thought about it from your perspective, and I didn't know they were generous in these ways.
Our local wal-mart also allows the salvation army to ring bells @ Christmas & other groups (such as veterans & girlscouts) to do limited fundraising in front. A lot of other stores in our area quit allowing that.
I have recently commited to not shopping at Wal-Mart as well. Even when hear of good things they do I feel that the bad ones far outweigh their donations. The donations they can give come at a price to the people at the stores who aren't paid what they are worth (my dad found a study recently that said if Wal-Mart would commit to paying their employees 12 dollars an hour it still only take up about 2% of the profits they make each year). I also don't like that because they can buy things so much cheaper because of the massive volume that it means that others cannot compete in any way with their prices and they have forced even some suppliers out of business with their demands. Americans pay far less of a percentage of their income for food than pretty much any other nation.
I agree with what you said about doing a little bit. I feel this way about charities. Nobody can save the world, but we can all focus on doing one thing, or a few small things, to make it better. You're right when you say that if we all do a little to support local businesses, that can all add up.
When I consider local shop v. big chain, I also take into account SERVICE LEVEL. Does the local store/chain offer better or more knowledgeable service? Did I take advantage of that knowledge? If yes I should pay for it. I think that asking for info at a local shop, then buying it at cheaper national chain is stealing. If I do that, I've stolen the value of the better employee's knowledge.
I don't feel as strongly about going into a store to check out a product then buying it elsewhere ... most of the time. The smaller/more local the store and the less common the item, the more strongly I feel I should buy the item at the small/local store. So I will look at a chest freezer at Sears then buy online; I would look at scrapbook supplies at Michael's then buy online; but I would not look at knitting yarn at the local shop then buy online.
I also discriminate among national chains. One of the many reasons I like The Container Store is that they have knowledgeable, pleasant, helpful employees (that they pay well and give good benefits to, btw).
Not all national chains have negative effects. For example, Starbucks gets a lot of flack but they have good employee and environmental policies, and in the long run areas with Starbucks have more coffee shops than before Starbucks moved in. (Details available upon request.) I've thought long and hard about this and have come to the conclusion that my antipathy for Starbucks can only be explained by unjustifiable bias.
Don't forget to ask "*Why* do I want to support the local business?"
I support a business that offers better goods, better service, or that doesn't have abusive employee practices (coughWalmartcough)[1]. Sometimes this means a local business, sometimes it doesn't.
Sidenote: I'm not likely to pay more or accept lower quality "for a good cause." I donate instead, and buy what I want.
[1] Speaking for myself; this isn't the forum to try to convince others.
I definitely feel the same way about choosing local businesses as well. I worked for a local business for a while and now I won't shop their any longer, but instead give my business to another local business instead. I did not like the owner or the way he treated employees or paid them.
Totally agreed. I'm happy to pay a bit (although not a whole lot, simply because we can't afford it) more to support a local business if that business has same or better quality stuff and provides good service.
That isn't always the case. I buy my yarn online because my local yarn store is generally staffed by very rude, unhelpful people. I'm not going to pay 30-40% more for yarn when that means dealing with bad service. I've had the same issue with bookstores. I used to always order my textbooks for my classes from independent bookstores, until I realized that those stores often provide worse service for my students (unhelpful staff, difficult return policies, etc.) while costing a bit more than if I ordered the books from the large chain bookstore on campus.
But, there are other times I will be glad to pay more. There's a farmers' market on the campus where my husband and I work from June through October, and we buy our produce there those months. It is quite a bit more pricey than buying produce at Aldi--probably twice as much, or close to that--but nearly all of the produce is grown in Detroit by small independent farmers or, if not, grown right outside the city. The people who bring their produce are great, it's a fun place to go, and we're very happy to pay more to support urban farming.
Thanks, Kristin, for posting my question! Since I wrote, I ran across a little notice in a local store that said something along the lines of, "Pick three local stores and choose to support them." Dave and I can't afford to always shop at the local stores, and frankly, in our part of Portland, there aren't very many local stores ("Portlandia" doesn't exist in the suburbs). But we decided to choose three--that scrapbook store, the neighborhood paint store, and local restaurants in general. This seems like a good compromise to us.
On a side note, around here the farmers markets are significantly more costly than the grocery stores. If it's a choice between a large quantity of conventionally-grown produce and a small amount of local/organic, I'm going for the conventional stuff.
Sounds like Michelle saw a 3/50 Project www.http://the350project.net that encourages you to select 3 local store to spend $50. "Stores" can be anything: farmer's market, dining, retail, pest control, lodging, anything.
Yes, the Holiday Inn and Home Depot have a local owner but a stiff percentage of the income goes to franchise fees and income shares. In my area B&Bs are a better value than the hotels/motels because we offer free hot breakfasts, free parking/WIFI and other amenities for which the hotels charge daily fees. Most of us are less expensive too in high season but not in the winter when the motels charge less per night than it would take to heat our B&Bs.
I try to buy local. Our hardware store reduced most of their prices after Home Depot opened. The service level far exceeds the big stores. Now that gas is so expensive it makes even more sense for me to shop local.
My sympathies to those with few retail options other than the big boxes.
I love to stay at B&B's whenever I travel and can find a place in the area I want to be. I think the atmosphere is better, the rooms are always nicely decorated and it feels less foreign to me. I also like a homemade breakfast!
This is something I struggle with on a daily basis. I want so badly to purchase all organic, all locally grown products but it's just not in my budget. So I buy and stock up when these products are on sale and supplement with regular grocery store items for the rest.
And I'm with Brandie. When I shop big box retailers I end up spending more than I intended too, especially with WalMart and Target. I have a friend who does all her grocery shopping at Super Target and she does save a bit of money. I know for myself I'd never be able to resist the temptation to buy other items I don't really need. So if I stick to Whole Foods, my neighborhood grocery store(s) and farmers markets I buy less overall.
I think it is case-by-case. I won't pay exorbitant prices from a boutique-type shop unless the quality matches the item. I do try to support local businesses as much as I can, though. For example, if I need to buy a cake (usually I bake myself) I go to the local baker. She charges a bit more than say Kroger, but I'm getting a work of art custom made for me. Likewise, I get all my honey from local farms because each honey is unique and special, so worth a few extra dollars to me. But those same little markets will charge an arm and a leg for other items and I just won't do it.
Why should I feel guilty for trying to save money? No matter if it is a local business or a farmer,if the price is right,people will buy. It's called Free Enterprise.....the American way. Who said that saving money is unethical?
There is nothing unethical with shopping at large stores.
No one said that saving money is unethical. Money in and of itself has no moral value. It's what one does with the money. Is it unethical to lock employees in a store late at night? Make them clock out and then continue doing work without pay? Continually schedule 39 hours a week so the employer doesn't have to provide benefits? Bypass women in favor of men? Rape women? Make children labor in unhealthy conditions? Not report injuries and then threaten employees with a job loss? These are the FACTS of actual lawsuits and/or working conditions of Wal-mart employees and the meat packing industry. I will not support these companies. Not for a cheaper pair of jeans or meat. We are a one, VERY MODEST income, family of 4 and do not shop at WalMart. The meat we eat comes from 2 local families. Yes, I pay more per pound for that meat but I am happy to go without cable or some other luxury to do so.
Eww, I understand saving money but why are you eating local families? Cannibalism is worse than anything Walmart does!
thanks Battra92, I haven't laughed so hard in a long time!!
I wasn't trying to say that saving money is unethical. However, I would infinitely prefer to support the family farm that's 30 minutes from my house than support a slaughterhouse that treats both humans and animals poorly.
Also, I'd prefer to support a small, locally owned store that treats its employees well than give my money to a larger corporation, if that corporation treats its employees like garbage.
Of course, poor employee treatment is not limited to large corporations...Mr. FG has been treated poorly by both.
But when I know the small business runs in a way I appreciate and respect, I'd prefer to spend my money there.
I've been really interested lately in reducing my food miles (buzzword alert!! :-P) - so I've been trying to buy local especially when it comes to food. To balance this with my frugal side, I've been trying to expand my veggie garden. My ultimate goal is to have half or more of my family's vegetable intake growing in the backyard!
I'd like to throw out a point about local business that no one has raised yet---when did Amazon last donate prizes for your son's Cub Scout Pinewood Derby? Or donate food for a local fundraiser? Every small store owner I know is constantly asked for donations and most are happy to give, considering it their contribution to their community. It would be nice if some of those folks who come around with their hand out also came around with money in that hand!
National chains seem to vary widely in their local contributions--at least in our town one or two are really good, but others have so much paperwork it's nearly impossible or flat-out refuse. Appears to depend on how much power the manager has near as I can tell.
Trader Joe's chain-wide policy is to give a $50 dollar basket to anyone who asks, one per year per cause.
Amen! There are actually stats on this, unfortunately I don't have them on hand. Maybe our good friend William does 🙂
Kristen said "buying less stuff overall helps to make it easier to find the money to support local businesses." Very true. At the local-only market, they don't have lots of distractions and shiny doo-dads and convenience items to distract me from buying what I need. I will 'fess up with an example. I went to Trader Joe's to get eggs and a few vegetables. I also got cheese, a chocolate bar, a gallon of iced tea, some strawberry preserves, and 2 bunches of flowers, all of which was unplanned. So, although the eggs at the locally-sourced store are nearly twice as much per dozen as the ones I bought at TJ, if I had gone to the local store I would have saved at least the iced tea, the chocolate bar, and the flowers.
I should also point out that my "local store" is all locally-supplied, so the products there come from less than 100 miles away, which has an environmental benefit and a economic one.
I am grateful every day for the blessings of saving money at Walmart,Target,Save-A-Lot. There are plenty of local places,but the larger stores are just as local,but the prices are much better!
I think you're using local differently. I believe the discussion is about locally-owned and/or locally-supplied.
I think this is a valid question to raise and I'm enjoying the discussion. We also ponder these decisions. While saving money does impact our decisions there are more factors to consider. So many have already brought up the point of customer service, desire to support local small businesses and reducing driving costs/time. As a farmer who relys on people to purchase directly from us locally, I also see it from the producer end of this question. We really try to offer better service and products - locally grown food that is picked as close to when you come to get it as possible. Nothing over 24 hours and corn is picked only an hour or so before customers come. On the same hand, prices must be kept reasonable. It just gets near impossible to compete (at times) with mass-grocery store pricing.
So many good thoughts to ponder in this discussion. Thank you for raising the thoughts for us to consider.
I love supporting our local farmers Heather, we get to our farmers market when it is in season and buy our beef from a friend who is a farmer to have it butchered at a local shop.
I think something a lot of people forget about the vegetables they are buying at stores (of all kinds really, big, small, local, coorporate) is that it is usually not as flavorful because it was bread to come to riped and look uniform, taste not being a main factor, plus the taste lost as it travels and sits.
The same thing for local vs. store eggs, I can't eat eggs from the grocery store anymore after we started buying eggs from my uncles farm because the taste was so much better.
At my student teaching placement we were required to purchase our groceries from the small local store. The store was in disrepair and offered poor quality merchandise. Their prices on produce made some labs cost-prohibitive. Apples for one of the labs cost $1.80 per pound and they were mealy.
I am all for supporting small local businesses, but only for like-quality items.
I find it ridiculous that a student teaching placement job can dictate where you buy your food.
I will not support one business over another solely because they are situated closer to my residence than another. The Walmart hate is not only irrational but it's founded in a sort of desire to feel morally superior to those who shop there. People forget that local people work at those big stores.
That said, I buy very little at Wally World. I just got some Chuck Taylor-like sneakers there the other day for $12. Should I have gone to a locally owned shoe store (if such a thing exists) and bought the for-real-deal for $55? I buy King Arthur Flour at Walmart because it's $3 a bag for bread flour instead of $5 at Price Chopper. I buy most of my groceries from Schenectady NY based Price Chopper and Aldi (which is a German company.) I don't have the luxury of buying all my produce from Farmer Jones's stand down the road but I do get a lot of things locally but only when it makes sense quality wise or price wise. All quality created equal, I won't spend more than a few cents extra to buy locally unless I'm stuck and I have to.
Kind of on a different tack than the rest of the comments, but I think the charity discussion is important. I give my money to two charities in the form of a monthly direct deposit; one is environmental and one humanitarian and I researched them both well. I give my time to a local health related cause. When charities call for donations I say that I already have causes I support regularly.
It won't really make the phone calls terribly less awkward, but it usually ends them a bit faster.
For me, I try to balance price, quality and return on investment. If the local item is more money but lasts longer/has a better ROI I go with that. But price is an issue. I gave up my CSA subscription for the summer because my dog needed knee surgery and we wanted to pay cash for it, his meds, etc. For the time being my fresh veggies are going to come from the grocery store until the farmer's market opens for the summer.
I agree with the majority on this subject. I do pay more for local, organic food, as it's benefiting my health. I also always try to purchase from local businesses unless it's just exorbitantly expensive. I guess in the end I still try to cut costs by not purchasing much, and really thinking before I make a big purchase!
I'm very blessed in the grocery department.
We live in a rural area, can pick our own eggs, strawberries, blueberries, etc.
We also have 4 slaughterhouses within a 30 mile radius. We can pick our calf from birth, and be given their health history before purchase. Farmers market? I pass at least 6 going to and from work.
So groceries aren't really our issue. It's the goods such as shoes, or art supplies, or even a bank. I must say, price is not my driving factor, though it is quite important. I shop at a retail shop for jeans because they include alterations in their purchase price. The same.exact.jeans. are probably 5-10 dollars cheaper in a chain store. I chose a three branch credit union because they are more active in the community than the larger chain type banks. And I go to the diner because they know my daughters by name, and which one likes what on her burger or ice cream. So...service before during and after the sale depends on whether my money goes local or national.
I live in a relatively small town ( 10,000) where people regularly bemoan the fact that we are getting smaller and there are fewer shops and restaurants. However, they prefer shopping trips to an area outlet mall and chain restautants in neighboring larger communities: Applebees, Olive Garden, etc. If you want your town to retain shops and restaurants, you have to patronize them some! My husband and I always check locally and if it's even close, we buy in town. We just don't buy much and prefer eating at home so we probably don't impact our ecomony all that much. 🙂
I travel to a variety of different sized towns, and the "Shop __your town__ First" movement is a very popular outreach message. My grandparents' town has embraced it for several years--and their town is kind of challenging for things like that because it is quite small (<5,000 people) and it is "dry." Which is not to say that you must have drinks to have dinner, but the sit-down restaurant business model relies on alcoholic beverages and their profit points; therefore, this town doesn't have any. They have several fast-food restaurants, though, and the franchises (as opposed to the corporately-owned ones) have signage out front saying things like, "This Sonic franchise proudly owned and operated by [man's name] since 1992."
So, local is as local does? 🙂
We live in a small town that is made up of primarily locally owned stores. The county capitol is about 10 minutes away and the state capitol is about 25 minutes away. Because of gas prices, I try to shop within my town as much as possible which can be tricky considering our house is gluten-free. But fortunately our local stores are starting to offer more of the gluten-free products. So shopping local is a frugality thing just because of the money I save on gas.
Fortunately, we live in a farming community so there are lots of local options for produce and meat. I'm really happy that I can get quality food, support local businesses and save money.
We are very fortunate to have a plethora of family owned businesses and farmers in the Asheville area, and I try to support these businesses as much as I can with my limited budget. Clothing is generally out of the question since it is much more expensive, but I'll try to get my stationary at a local store or my essential oils from a small batch provider. I really try to support local businesses when it comes to produce and restaurants! We have a great CSA and have a college meat sale just down the street- it is a bit more expensive, but the quality is really worth it! There are tons of family restaurants in Asheville and the majority of them are decently priced (some participate in a discount program as well). I've lived in towns where this has not been an option, so I really appreciate having the choice of a local food option.
I buy staple stuff like cereal and dry goods at Walmart (hardest part is dealing with the "can I have"s from my five year old son), meat and produce at Stop-and-Shop. The exception is during the summer - I ALWAYS buy my produce from the local farmers during the summer! Not only is the quality better, but the nutrient content is higher as produce that travels far distances loses important nutrients along the way, and it is by far cheaper. I can get an entire grocery bag FULL of produce from a local grower for around $8!
It's difficult for small businesses to compete against big box store prices. I buy what I can locally even if it costs a bit more. And when I need a big box store, I head to Costco or Target, but I force myself to take a list and ONLY buy what's on it.