"Buying local" vs. frugality

[bae]

I live in a community with a strong "buy local" ethic.

In part because it takes a day's travel-time round-trip, and about $60, to go shop at any non-local stores.

Even still, people take a day off, head over to the mainland, and stock up at Costco now-and-then, and arrange to pick up things for family/friends.

Some of our local merchants have over the past couple of years increased prices substantially, while reducing "family-size" packaging options to nothing. Picture 4 or 8-roll toilet paper packages, for the price you paid for a 20/24 pack last year. While at the same time increasing their "buy local" messaging in the local media.

It seems to have gotten almost to the point of price-gouging the locals. From the change in what is carried, it seems as if they are rearranging their goods to hit up the visitors/tourists, and not serve locals so much.

So what I wonder is: where is the balance between "buying local" and simply handing over money to someone because they happen to be "local".

I ask in the context of just now today discovering Amazon Prime's subscription service for common household items: TP, Kleenex, paper towels, detergent, soap, ... If I buy from them, free shipping, stuff just arrives, it's *vastly* cheaper than the "buy local" approach, and it's exactly the same goods...

Hmmm.

[iris lilies]

I live in a community with a strong "buy local" ethic.

In part because it takes a day's travel-time round-trip, and about $60, to go shop at any non-local stores.

Even still, people take a day off, head over to the mainland, and stock up at Costco now-and-then, and arrange to pick up things for family/friends.

Some of our local merchants have over the past couple of years increased prices substantially, while reducing "family-size" packaging options to nothing. Picture 4 or 8-roll toilet paper packages, for the price you paid for a 20/24 pack last year. While at the same time increasing their "buy local" messaging in the local media.

It seems to have gotten almost to the point of price-gouging the locals. From the change in what is carried, it seems as if they are rearranging their goods to hit up the visitors/tourists, and not serve locals so much.

So what I wonder is: where is the balance between "buying local" and simply handing over money to someone because they happen to be "local".

I ask in the context of just now today discovering Amazon Prime's subscription service for common household items: TP, Kleenex, paper towels, detergent, soap, ... If I buy from them, free shipping, stuff just arrives, it's *vastly* cheaper than the "buy local" approach, and it's exactly the same goods...

Hmmm.

Island prices are pretty extreme, I would have a hard time supporting the locals but for unplanned, emergency purchases.

For me, I consciously shop within the city because I'm basically lazy and will not drive outside of it, but I always want to feed my money into city. And besides, we DO have 2 big box stores where I can shop in my part of the city: A KMART and a Target. No Sams or Costco, though. Our city is very small geographically and the national chains don't come round much but for low end fast food that the urban dwellers like.

It's an important lesson for your daughter, I would think. Support the local guy until you are convince that he's gouging you, then move some of your business.

[SteveinMN]

From the change in what is carried, it seems as if they are rearranging their goods to hit up the visitors/tourists, and not serve locals so much.

So what I wonder is: where is the balance between "buying local" and simply handing over money to someone because they happen to be "local".

I ask in the context of just now today discovering Amazon Prime's subscription service for common household items: TP, Kleenex, paper towels, detergent, soap, ... If I buy from them, free shipping, stuff just arrives, it's *vastly* cheaper than the "buy local" approach, and it's exactly the same goods...
Good question.

I wonder just how prevalent the stock-up-at-Costco-for-family-and-friends has become. I don't need a quantifiable answer; I'm just wondering if it's become widespread enough that merchants think they're better off snagging the visitors, who are still coming in and are less price-sensitive than the locals.

I don't have a fixed rule for determining the balance between buying local and not. For me, it's a matter of how much I would miss that local vendor if it was gone. I'm kind of committed to our neighborhood supermarket. It's convenient for me and it's a bit of a lifeline for many area residents who either don't have cars or are elderly or disabled and would just as soon not have to get to the big-box supermarket several miles away. The owner has been responsive, too, stocking items geared to the clientele, employing several stockers/baggers who probably would have a tough time getting work elsewhere, and, really, the people working there have been there quite some time. And if the owner decided to pull the plug on the place because sales were terrible, it would be a good-sized empty building sitting in a prominent part of the neighborhood. So I don't shop there exclusively but I'll buy what I can there. The liquor store next door to it? Don't care; there are other much better liquor stores (maybe cheaper, too) not far from here. So I don't feel bad about never setting foot in there.

I guess if it were me on your island, the balance point would be where the cost of doing business (both in $ terms and in annoyance/feeling gouged) outweighed the nuisance of not being able to run in and buy a package of <fill in item here> and the possible social cost of running across these merchants in social/business circles (friends, fundraisers, etc.).

Anyone bold enough and familiar enough with some of the owners to ask them WTF?

[iris lilies]

...
Anyone bold enough and familiar enough with some of the owners to ask them WTF?

I was thinking that, too. A conversation about extreme rise in prices would be in order.

[bae]

I wonder how much of this is caused by a change in the nature of retail sales brought on by the ease of Internet ordering and price-checking, and the consequential loss of captive markets? I mean, just how much value-add does a local merchant provide when selling you a case of toilet paper?

Stepping in to fill the void is an effort to create a co-op food/sundries market, using the space of the "competing" grocery store here that went out of business last year. They have a top-notch team, and the community seems to be stepping up to capitalize it, keeping my fingers crossed.

http://www.orcasfoodcoop.com/

[Tussiemussies]

I live in a community with a strong "buy local" ethic.

In part because it takes a day's travel-time round-trip, and about $60, to go shop at any non-local stores.

Even still, people take a day off, head over to the mainland, and stock up at Costco now-and-then, and arrange to pick up things for family/friends.

Some of our local merchants have over the past couple of years increased prices substantially, while reducing "family-size" packaging options to nothing. Picture 4 or 8-roll toilet paper packages, for the price you paid for a 20/24 pack last year. While at the same time increasing their "buy local" messaging in the local media.

It seems to have gotten almost to the point of price-gouging the locals. From the change in what is carried, it seems as if they are rearranging their goods to hit up the visitors/tourists, and not serve locals so much.

So what I wonder is: where is the balance between "buying local" and simply handing over money to someone because they happen to be "local".

I ask in the context of just now today discovering Amazon Prime's subscription service for common household items: TP, Kleenex, paper towels, detergent, soap, ... If I buy from them, free shipping, stuff just arrives, it's *vastly* cheaper than the "buy local" approach, and it's exactly the same goods...

Hmmm.

We also have Amazon prime and have bought some household goods. The shipping is fantastic, we always receive it In two
days. There are some items that don't fall under the prime Catagory but overall it has saved us a lot of money.....

[lhamo]

Hope your co-op is successful, bae. Does seem like a good business opportunity for those who are really committed to serving the local community -- you can charge a modest markup, provide jobs and a modest profit, and a needed service. I would patronize such a business. The ones who are gouging? Not so much.

[lhamo]

PS: Is there any possibility your land trust could purchase a commercial building where such a community-oriented and supported enterprise could be housed? That seems like one way to contribute to the long-term sustainability of the model and ensure they are not forced to raise their prices/close by rising real estate prices.

[lhamo]

PPS: The membership investment seems really reasonable! I'm tempted to join just to see how this effort turns out, even though the chances of me ever buying groceries there are pretty slim. Unless you want to do a house exchange at some point. Hmmmm.....

[flowerseverywhere]

I would pay a little more for food grown locally, as well as humanely raised meat. One thing I was thinking was that wages in your area seemed higher than in other areas. This could count for a small part of it. But if I felt that someone was trying to take advantage or it was really outrageous I would not hesitate to do the amazon thing. it sounds to me like a great opportunity to start a business to cater to the locals if someone were so inclined, but as time goes on young people will probably buy more off the net. Amazon prime, diapers.com etc. deliver quickly and you can get exactly what you want with no hassle.

[SteveinMN]

Hope your co-op is successful, bae. Does seem like a good business opportunity for those who are really committed to serving the local community -- you can charge a modest markup, provide jobs and a modest profit, and a needed service. I would patronize such a business. The ones who are gouging? Not so much.
Agreed.

I am a member of (one of the many) local food co-ops (approximately 8000 members at ours). I know it's not the cheapest place in town to buy food (though the boutique supermarkets in town charge even more for similar products). I trust what I buy there and -- maybe more to the point -- I trust (I know) the workers there are paid decently and have health insurance, tuition reimbursement, etc. Even though members are not required to volunteer hours at this co-op, it's good to know we are all owners. And if the co-op does really well financially, some of the profits are returned to us as owners. I think it makes a difference.

[Dhiana]

The Buy Local idea works best, even at higher prices, when what you are buying is grown/manufactured locally. Is that TP manufactured locally? If not, then get the non-price gouging kind at a place you feel comfortable getting it.

Or maybe the owner is just continually raising prices until they receive a drop in sales or a complaint. At which time the price may drop a bit or hold steady. Customers have power, too.

[SteveinMN]

The Buy Local idea works best, even at higher prices, when what you are buying is grown/manufactured locally.
There are other virtues to buying "commodities" from a local vendor: they pay taxes in your community (often at a rate higher than individuals); they contribute to fundraisers and Little League teams and the high-school yearbook... Just sayin'... :)

[catherine]

Having started my fledgling local food delivery service this summer, I know exactly what you mean about the tension between "cheap" and "local." Unfortunately it's VERY hard for local producers to compete against big box stores. I think the key is in catering to the segment of the population who values local for any number of reasons, and is willing to pay more for it.

But that's kind of a small number.

[ToomuchStuff]

I wonder how much of this is caused by a change in the nature of retail sales brought on by the ease of Internet ordering and price-checking, and the consequential loss of captive markets? I mean, just how much value-add does a local merchant provide when selling you a case of toilet paper?

Stepping in to fill the void is an effort to create a co-op food/sundries market, using the space of the "competing" grocery store here that went out of business last year. They have a top-notch team, and the community seems to be stepping up to capitalize it, keeping my fingers crossed.

http://www.orcasfoodcoop.com/

Lack of competition, does and will play a part. For one, they use the same suppliers and if there are fewer vendors in a given area, it costs the suppliers more to deliver those goods to the remaining stores. (competition has a cooperation element) Then anything else the vendor does, can increase costs, for example, a friend was telling me that the beer vendors, went from discounts on 4 kegs plus, to only discounting at 8 kegs. That hurts the little guy and helps bigger groups like stadiums, etc.
Second, like the guy who took over the neighborhood hardware store said to me once, your paying for convenience. He is the last individual hardware store around, the few others are national/regional chains, then the home improvement centers.
Then there are the legal restriction issues. Using the friends restaurant as an example, they can't buy bottled beer, from the local club and resell it in the restaurant. The coop, might be allowed to do things that the other local places are restricted from. (Beer wouldn't be one of them, though)

Don't forget community reaction. A business goal is profit and they hate it when their prices go up, but when they go back down, they don't always drop their prices back, either. (until the community reacts)