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
Kimberly at Rubber Chicken Madness
Saturday 7th of July 2012
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.
Cheryl
Friday 13th of May 2011
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!
Merrilly
Friday 6th of May 2011
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.
Lucinda
Thursday 5th of May 2011
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.
Barb
Wednesday 4th of May 2011
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. :)
Virginia Dare
Friday 6th of May 2011
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? :-)