I’ve just finished In Cheap We Trust by Lauren Weber.

It’s a fascinating look at what most of us have probably felt at one time or another: a vexing pull between the extremes of thrift and consumer consumption.

It is particularly compelling as frugality and so-called “Recession Chic” are edging into the mainstream again. The book discusses why some groups are maligned as “cheap” and how the term itself has evolved.

I read it with an eye towards what the concept of “cheap” means for our small business (a “Mom-and-Pop” neighborhood grocery) and other independent retailers.

Our grocery store will celebrate its 1st year next month. We’ll make that milestone thanks to some decisions that directly relate to the concept of “cheap”. We made some of these decisions intuitively and some after great thought and focus.

For example, we realized early on that we couldn’t compete with grocery chains on price. We couldn’t “race to the bottom” with discounts. You simply cannot compete with volume and deep pockets of big box stores.

Nor did we want to attract the kinds of customers who were loyal only to price.

So, we don’t compete on price. We compete on value.

We define “value” a few ways. Service is paramount. Our store is modeled on one that existed in 1881. We strive to recreate a vital hub in the community and an experience. We know our core customers by name and know their dietary preferences. People come for the conversation. In modern life where do you find that kind of service?

Could we use improvement? Of course.

We are aggressively moving our product assortment to specialty food items unavailable elsewhere in the local market. These are premium food products with premium prices. But, unlike a hectic trip to a mega-retailer our customers are paying for quality food and value in the form of service and experience. For many, they are also paying for the walkable convenience.

I would caution other small retailers from trying to “compete with cheap”. It is a losing battle for two reasons. First, you’re competing with bigger companies with greater sales volume. Secondly, you compete against yourself. What does your customer do when you tell them you’ve stopped your special buy-one-get-one-free promotion? If they are price-only shoppers you’ll never see them again.

After reading In Cheap We Trust I felt really satisfied with our rule that nothing in our grocery is ever “on sale”. It’s not because I’m uninterested in getting a “bargain” (who isn’t trained to think this way?). Rather, it is because I agree with Weber’s words in the conclusion when she asks, “what kind of customer do I want to be?”

Personally, I’d like to be one who chooses to spend carefully, and with the greatest positive benefit to my community and world.