Stephen Dubner

A charming house is often, in fact, a small house. Trader Joe's reportedly puts a great deal of effort into scouting, sourcing, and producing food that their customers truly love, but they also pay a lot of attention to package design and descriptive salesmanship. They publish an old-fashioned newsprint bulletin, the Fearless Flyer, with in-depth descriptions of new products.

A charming house is often, in fact, a small house. Trader Joe's reportedly puts a great deal of effort into scouting, sourcing, and producing food that their customers truly love, but they also pay a lot of attention to package design and descriptive salesmanship. They publish an old-fashioned newsprint bulletin, the Fearless Flyer, with in-depth descriptions of new products.

When you walk into a Trader Joe's, there's a playful vibe, as if to say, hey, you're just buying food. Food is delicious, so enjoy yourself. There's also an artsy vibe, a writerly vibe, more so, oddly enough, than in a typical bookstore. These details, as casual as they might seem, would also appear to be strategic.

When you walk into a Trader Joe's, there's a playful vibe, as if to say, hey, you're just buying food. Food is delicious, so enjoy yourself. There's also an artsy vibe, a writerly vibe, more so, oddly enough, than in a typical bookstore. These details, as casual as they might seem, would also appear to be strategic.

When you walk into a Trader Joe's, there's a playful vibe, as if to say, hey, you're just buying food. Food is delicious, so enjoy yourself. There's also an artsy vibe, a writerly vibe, more so, oddly enough, than in a typical bookstore. These details, as casual as they might seem, would also appear to be strategic.

In a 2011 interview with the LA Times, Joe Colombe said that when he started Trader Joe's in the 1960s, he was inspired by an article he read in Scientific American about the huge spike in Americans attending college. I felt this newly educated class of people would want something different, he recalled, and that was the genesis of Trader Joe's.

In a 2011 interview with the LA Times, Joe Colombe said that when he started Trader Joe's in the 1960s, he was inspired by an article he read in Scientific American about the huge spike in Americans attending college. I felt this newly educated class of people would want something different, he recalled, and that was the genesis of Trader Joe's.

In a 2011 interview with the LA Times, Joe Colombe said that when he started Trader Joe's in the 1960s, he was inspired by an article he read in Scientific American about the huge spike in Americans attending college. I felt this newly educated class of people would want something different, he recalled, and that was the genesis of Trader Joe's.

Why did he choose Pasadena as the first store location? Because, he said, Pasadena is the epitome of a well-educated town. Trader Joe's is for overeducated and underpaid people, for all the classical musicians, museum curators, and journalists, he said.

Why did he choose Pasadena as the first store location? Because, he said, Pasadena is the epitome of a well-educated town. Trader Joe's is for overeducated and underpaid people, for all the classical musicians, museum curators, and journalists, he said.

Why did he choose Pasadena as the first store location? Because, he said, Pasadena is the epitome of a well-educated town. Trader Joe's is for overeducated and underpaid people, for all the classical musicians, museum curators, and journalists, he said.

This suggests that from the very beginning, Trader Joe's understood cream skimming, targeting a certain kind of customer and letting the rest slide by. As for the underpaid part of Cologne's equation, that would appear to be outdated.

This suggests that from the very beginning, Trader Joe's understood cream skimming, targeting a certain kind of customer and letting the rest slide by. As for the underpaid part of Cologne's equation, that would appear to be outdated.

This suggests that from the very beginning, Trader Joe's understood cream skimming, targeting a certain kind of customer and letting the rest slide by. As for the underpaid part of Cologne's equation, that would appear to be outdated.

An analysis by the research firm AgData found that Trader Joe's stores today are located in counties with higher household median income than any other grocery chain, including Whole Foods, and about $10,000 higher than the U.S. median income. But, and this seems to be another key component of Trader Joe's success, they also value frugality.

An analysis by the research firm AgData found that Trader Joe's stores today are located in counties with higher household median income than any other grocery chain, including Whole Foods, and about $10,000 higher than the U.S. median income. But, and this seems to be another key component of Trader Joe's success, they also value frugality.

An analysis by the research firm AgData found that Trader Joe's stores today are located in counties with higher household median income than any other grocery chain, including Whole Foods, and about $10,000 higher than the U.S. median income. But, and this seems to be another key component of Trader Joe's success, they also value frugality.

As Michael Roberto found, they usually set up shop in the cheaper parts of the expensive areas.

As Michael Roberto found, they usually set up shop in the cheaper parts of the expensive areas.

As Michael Roberto found, they usually set up shop in the cheaper parts of the expensive areas.