Author Topic: Finding a balance between saving money and supporting small businesses  (Read 3183 times)

FreelanceToFreedom

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This is something I struggle with, so I thought it might be a good conversation to have here on MMM.

Basically, I want to support small businesses - farmers market vendors, specialty stores, local restaurants & food trucks, etc.

But I also want to save money - and those two desires often struggle to coexist.

I am self-employed, and always admire entrepreneurs who are trying to do their own thing. I also really appreciate that I live in an area with a pretty incredible diversity of locally grown/produced food products, from produce to dairy to meat.

I want to support local farmers and business people, but there's this constant push-and-pull between buying their (relatively) expensive goods, and shopping at Winco or Costco.

How do you balance the two? Any thoughts/tips?

BTDretire

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Re: Finding a balance between saving money and supporting small businesses
« Reply #1 on: September 14, 2018, 08:05:15 PM »
It's a nice thought, but you should take care of yourself,
there are enough spendypants out there to support small business.
 If the small business has something special that you want then splurge
otherwise "you should take care of yourself".

FIRE Artist

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Re: Finding a balance between saving money and supporting small businesses
« Reply #2 on: September 15, 2018, 05:03:40 AM »
It's a nice thought, but you should take care of yourself,
there are enough spendypants out there to support small business.
 If the small business has something special that you want then splurge
otherwise "you should take care of yourself".

I agree with this 100%.  Small businesses, hipster restaurants on wheels, and “farmers’ markets” where produce of dubious origin is being resold, don’t get my business out of charity.  They need to have a unique, high quality product at a competitive price to get my business.  I might feel more generous to support someone else’s passion project once I have achieved my own (FIRE), but before then?  Nope.
« Last Edit: September 15, 2018, 05:36:24 AM by FIRE Artist »

Villanelle

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Re: Finding a balance between saving money and supporting small businesses
« Reply #3 on: September 15, 2018, 05:21:45 AM »
I support small businesses if they *earn* my business.  Sometimes that means I will pay more, but only if the prodcut or service is better than I can get elsewhere. 

A few years ago I was looking for a pet toy for my sister's dog, who chew threw everything in minutes, if not seconds.  I walked to the small pet, independent pet store near my home at the time.  The lady asked if I needed help and I explained my mission, and she spent a lot of time talking with me, going through the products and explaining the pros and cons of each.  She was clearly extremely knowledgeable.  I could have bought the same product on Amazon for cheaper, but I was happy to pay for her service and knowledge.  But for nothing more than offered at a Big Box or via Amazon?  Nope.  That's where I draw the line--paying more for different or better, whether that's product or servce.

SquashingDebt

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Re: Finding a balance between saving money and supporting small businesses
« Reply #4 on: September 15, 2018, 07:01:00 AM »
I choose to vote with my dollars to support a healthier food system.   I buy as much as possible from my local farmers and producers.  The quality is excellent (and the value is often good!) and it supports people working hard at a somewhat thankless but important job.

I also preferentially buy products from employee-owned companies, B Corp companies, and companies who source fair trade products. 

Penn42

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Re: Finding a balance between saving money and supporting small businesses
« Reply #5 on: September 15, 2018, 07:04:49 AM »
I feel similarly.  I know there are plenty of other people out there spending money, but there are services and/or establishments that I appreciate being available to me and I don't feel I can expect those to be around if I don't pitch in a little bit.  I give myself $100/m for "fun money" and I try to only spend all that on local businesses.  Kinda killing two birds with one stone.  I'm not gonna eat out at Olive Garden with that money or some shit, haha.

YttriumNitrate

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Re: Finding a balance between saving money and supporting small businesses
« Reply #6 on: September 15, 2018, 07:13:36 AM »
As a guy with an orchard who has sold fruit at farmers markets, I'd suggest simply buying stuff that you find to be of good value (whether it be at a big box store or a farmers market stand). In terms of delivering a high quality product, local farmers have a huge advantage in terms of not having a long distribution chain and controlling how the products are handled from picking onward.

I would guess that my peaches were selling for 50-100% more than Wal-Mart, but since they were picked at the peak of ripeness (because they were going to be sold/eaten the next day) my peaches were at least twice as good as the crap at Wal-Mart. They sold quite well, and it was rare for me to bring a peach home. It's certainly true that some farmer's market vendors don't offer good value, and I'm all in favor of not supporting them.

EnjoyIt

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Re: Finding a balance between saving money and supporting small businesses
« Reply #7 on: September 15, 2018, 03:57:37 PM »
I try to support local businesses when I can and if the cost is not significantly more this is especially true if reviews are good or the product or service is better.  For example there is a local family owned Ace Hardware store near us.  They charge slightly more than a Home Depot that is further away but the customer service is superb.  I am willing to spend an extra couple of dollars for that service and support of our local business.  Plus I save 1.5 miles in driving (I know, I know, I should bike there, and sometimes I do but it is an exception and not the norm for me.

OtherJen

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Re: Finding a balance between saving money and supporting small businesses
« Reply #8 on: September 15, 2018, 04:14:59 PM »
I try to support local businesses when I can and if the cost is not significantly more this is especially true if reviews are good or the product or service is better.  For example there is a local family owned Ace Hardware store near us.  They charge slightly more than a Home Depot that is further away but the customer service is superb.  I am willing to spend an extra couple of dollars for that service and support of our local business.  Plus I save 1.5 miles in driving (I know, I know, I should bike there, and sometimes I do but it is an exception and not the norm for me.

We also have a great independently owned Ace store by us! I much prefer to shop there over Home Depot for home maintenance/repair items.

We rarely eat at restaurants so when we do, it is always at locally owned places (of which our area has an abundance). I figure if I'm going to splurge on food, it had better be worth it.

Hargrove

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Re: Finding a balance between saving money and supporting small businesses
« Reply #9 on: September 16, 2018, 12:35:42 AM »
There are special tomatoes - Rutger, Jersey, whatever you like to call them - that are legendary little things and a total pain in the ass to cultivate. Rutgers has a whole department throwing cash out the window to keep them going, because sterile plant offspring produce the best ones. They bruise like ferrets with hemophilia and stay fresh as long as sushi in Giza.

Worth the money? Afraid it isn't. Neither is most small business. We either have to figure out an approach that values things that are less efficient (like the ugly US corn subsidy), or we're basically voting that we want the most cost effective (whatever) irrespective of its quality. Like supermarket tomatoes.

I agree that it's not really a consumer-level decision that keeps small business alive in the grand scheme of things, but I'm also not personally comfortable with shopping at Wal Mart or Amazon. I won't even use the self checkout lanes in grocery stores.

Hula Hoop

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Re: Finding a balance between saving money and supporting small businesses
« Reply #10 on: September 16, 2018, 12:40:44 AM »
We try to support small businesses too, particularly as my husband is a small business owner.  If something is significantly cheaper online I might buy it but if not, we try to get it from a small independent business.  Only problem is that we both work full time so sometimes it's just easier to buy that thing on Amazon.

We're lucky as small businesses often sell things cheaper here.  For example, our local food markets is full of independent stall owners and the food there is dirt cheap and good - way cheaper than the supermarket.

FreelanceToFreedom

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Re: Finding a balance between saving money and supporting small businesses
« Reply #11 on: September 18, 2018, 07:21:21 PM »
Thanks for the insight, everyone!

One thing I've been thinking more about recently is the complete cost of various purchases. Not just the direct cost to me, but the environmental cost of international shipping, the societal costs of big companies paying poor wages, the cost to society when smaller businesses can't survive, etc. Obviously those costs are hard to compute, but just keeping those things in mind can definitely shift the value proposition of buying from a local supplier.

kimmarg

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Re: Finding a balance between saving money and supporting small businesses
« Reply #12 on: September 18, 2018, 07:33:25 PM »
Like others I often support a small business when they provide a *service* in addition to a product. For example I buy my running shoes at my local running store. I could get the same shoes cheaper on Amazon but the local store is excellent at fitting my feet and getting just what I need to keep away sore feet. Plus they offer a free weekly training group run. It is to support these services that I'm happy to pay an additional 15% on my shoes.

SquashingDebt

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Re: Finding a balance between saving money and supporting small businesses
« Reply #13 on: September 19, 2018, 04:47:50 AM »
Thanks for the insight, everyone!

One thing I've been thinking more about recently is the complete cost of various purchases. Not just the direct cost to me, but the environmental cost of international shipping, the societal costs of big companies paying poor wages, the cost to society when smaller businesses can't survive, etc. Obviously those costs are hard to compute, but just keeping those things in mind can definitely shift the value proposition of buying from a local supplier.


Yes, exactly.  The main reason I buy a lot of organic food is not because I think conventional food is risky for me - it's because I know too much about how farmworkers are treated to get that $2 box of strawberries to me in January and don't want to support that system any more than I need to.

Loren Ver

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Re: Finding a balance between saving money and supporting small businesses
« Reply #14 on: September 19, 2018, 05:13:47 AM »
When I buy from small or independent places I don't use my credit card, but pay in cash.  That way more of the profits go towards the company.  No I don't get the credit card points, but oh well.

I really like the places that give you a cash cost and a credit card cost.  A little diner by me does this, and I really appreciate it.

LV

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Re: Finding a balance between saving money and supporting small businesses
« Reply #15 on: September 19, 2018, 07:08:23 AM »
I try to support local business when I can, and I hardly ever shop online. I find that my local little grocery stores have better prices in general, and one of them doesn't take cards (or charges extra for it) so I have to pay cash. They also don't give plastic bags, not even for a fee, which I like. I also try to buy Canadian, especially since the tariffs, and I don't like idea of my food being shipped around the world anyway, although certain things that can't be grown in Canada I'll buy in season.

mm1970

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Re: Finding a balance between saving money and supporting small businesses
« Reply #16 on: September 19, 2018, 10:29:24 AM »
I choose to vote with my dollars to support a healthier food system.   I buy as much as possible from my local farmers and producers.  The quality is excellent (and the value is often good!) and it supports people working hard at a somewhat thankless but important job.

I also preferentially buy products from employee-owned companies, B Corp companies, and companies who source fair trade products.

Quote
Like others I often support a small business when they provide a *service* in addition to a product. For example I buy my running shoes at my local running store. I could get the same shoes cheaper on Amazon but the local store is excellent at fitting my feet and getting just what I need to keep away sore feet. Plus they offer a free weekly training group run. It is to support these services that I'm happy to pay an additional 15% on my shoes.

These two things right here.  I think it's important to remember that most things aren't "either/or".  AND we all have a responsibility for making the world what we want it to be. 
- I want to eat fresh produce that tastes delicious.  So I should buy it from people who grow it so they can make a living.
- I like having a decent job that pays a decent wage and provides benefits.  So, I think about that when I shop - one reason I like Costco.
- I want to be able to try on running shoes and get advice from experts.  I have hard to fit feet and I run a lot.  SO, I shop at the local running store for their expertise.  If they go out of business, my option will be then a long drive somewhere else or on-line - which is risky with my feet.

I have a family of 4.  We eat a lot of food.  I can eat locally AND save money.  Because I do both.  YES you can shop locally for all your food, everything organic from the farmer's market.  And if you don't watch your budget you can easily spend $2k a month (nevermind the "killing your $1000 grocery bill).  However, you can do the same - buy half, or 75%, of your produce at the farmer's market or farm stands, and spend $600 a month.  You get to support the local farmers and their delicious produce but not go broke in the process.

The same thing goes for local restaurants.  We rarely eat out - it's a treat for us.  Maybe monthly?  So when we do, we aim for locally owned places with good food.

merula

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Re: Finding a balance between saving money and supporting small businesses
« Reply #17 on: September 19, 2018, 11:02:16 AM »
One way that I balance this is to buy gifts from local businesses: record shops, bookstores, independent coffee shop gift certificates, etc. (I've managed to reduce a lot of gift-giving with family generally, but I've accepted that I'm not going to get to 100%.)

This lets me fulfill my gifting responsibility and introduce new customers to local businesses I love, for virtually no additional cost. For example, when a friend recently had a baby, I gave her Sock-Ons, which I had originally found at a local kids boutique, plus a gift certificate to that boutique, which is walking distance from her house but a lot of people don't know about it. Her favorite part of the gift was learning about this local business and all the community stuff they do. They have a playroom for open play, they host music classes and photo sessions and all sorts of stuff. Yeah, the clothing is overpriced ($25 for leggings?!) but it's well made and durable and good for special occasions and to round out the rest of their Goodwill wardrobes. We spend maybe $40 a year there.

ninja

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Re: Finding a balance between saving money and supporting small businesses
« Reply #18 on: September 19, 2018, 01:11:14 PM »
I'm one of those small businesses selling fresh roasted coffee at a local farmer's market. For artisan coffee my prices are actually pretty reasonable - but I can't touch the prices of the crap you buy at the grocery store. My prices for beans are slightly higher than Starbucks but my product is far superior. My trick is that I buy REALLY great green beans where the entire 50 lb bag is beans harvested at the peak of ripeness rather than a mix of too young/too old like the "larger" coffee producers are forced to use.

I'm not trying to get the business of people who are okay with drinking Folger's Maxwell House etc... I'm after the people who WANT to pay a little extra for a superior product. Besides - buying my coffee and making your own is still MUCH cheaper than a daily trip to Starbucks for brewed black coffee.

mountain mustache

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Re: Finding a balance between saving money and supporting small businesses
« Reply #19 on: September 19, 2018, 02:26:29 PM »
I work at a small business, in a small town, and so I completely believe in supporting small businesses. But, I don't make a ton of money, so I can't do it 100% of the time. In my town there are small businesses I believe in, and value, and there are others that I know aren't worth the 50% markup. Since we only have a farmers market for a few months, and the produce is insanely good, I treat myself for a few months and support the local farmer, even though his organic produce is at least twice that of our local Safeway. It's way more than twice as good tasting! I wouldn't be able to buy his produce year round, but for 3 months, it is a delicious treat, and I love buying food that is grown near me. The rest of the year I stock up at Costco when I go to a big city, and eat more frugally.
We have a local outdoor store that is definitely much more expensive than REI, or Sierra trading post, etc...so I don't shop there often, but I recently made a big, full price purchase there because the owner of the store spent no less than 5 hours researching, discussing with me, and figuring out the perfect product for me. I was hesitant to spend the money there at first, knowing I could get a good deal online, but it was totally worth it, and he steered me in a direction that I wouldn't have thought of! Totally worth the 30% more I ended up spending

Anyway, that's two examples that I have found valuable in my own purchasing. Obviously most of the time I am always looking for a good price, and I think most people shop that way. But every once in a while I think it is worth it to seek out the small businesses that specialize in what they do, and have knowledge or product that is worth the extra $$ spent.