Money and values: Shopping locally
Posted
Nov 05 2007, 08:00 AM
by
Karen Datko
Rating:
This post comes from J.D. Roth at partner blog Get Rich Slowly.
There is more to personal finance than raw numbers. If everyone based personal-finance decisions solely on the math, we wouldn't need personal-finance books (or personal-finance blogs, for that matter). We'd all be rich.
In reality, our money decisions are influenced by psychology, emotion and, especially, personal values. For every financial transaction, we weigh a variety of personal values to arrive at a choice that makes sense in the context of our world view.
For example, it's important to me to support local businesses. I believe that buying local products from local merchants fosters community by enriching my neighbors. Buying locally often costs more, but it's a financial price I'm willing to pay.
I do not avoid Wal-Mart and other chain stores completely. Nor do I shun all national brands. But whenever possible, I support local businesses over megacorporations.
Often the choice is easy. Oregon is rich in local fruits, berries and vegetables. When we shop for produce during the summer, Kris and I go to the local farmers market a couple of Sundays every month.
Sometimes the choice is more difficult.
I collect comic books or, more precisely, bound compilations of comic books. There's a comic-book store five minutes from my house. I often wonder if I should support it despite the fact that:
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The staff is surly and unhelpful.
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The store doesn't stock much of the stuff I like (I have esoteric tastes).
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The store charges full retail price.
If I shop online, I can find the titles I want, generally at a savings of 30%. In practice, I do a little of both. I make most of my major purchases online, but I buy some small stuff at the local store.
This issue is on my mind because I'd like to purchase a bike trainer, which would allow me to ride my bicycle indoors on cold, rainy days. Quality trainers aren't cheap. The model I want costs $300 at a local bike store. I can order it online for less than $250.
It's a tough decision. If the local shop were charging $270, I would buy it there without question. If the online merchant were selling it for $200, I would order it there without question.
I have a few other options, of course:
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I could buy a less-expensive model.
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I could be tough and bike outside in the winter weather.
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I could try to find a trainer on Craigslist.
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I could wait and save, watching for other opportunities.
All things being equal, I suspect most people would choose to buy locally. But each of us has a different price at which local is no longer an option. For some, this point is immediate: They'll always buy the cheapest option, regardless of other factors. Others -- and I know a few people like this -- will buy locally no matter the cost. Where is that point for you?
Other articles of interest at Get Rich Slowly:
"
Grocery store vs. farmers market: Which has the cheapest produce?" "
Why smart people make big money mistakes (and how to correct them)" "If personal finance is easy, why isn't everybody rich?"
