Can you be frugal and yet be okay with paying more sometimes?

I like to call my wife and I frugal. We always look for the best deal, frequent thrift stores and consignment shops, and don't spend money on fancy gadgets that we don't need.

However I don't like to myself cheap. When we need a new appliance for example, I'll gladly spend a little more to get something a higher quality. When buying things like coffee and pet supplies, there are some really friendly local small businesses that I like to go to. Yes, I'm paying a little more but I'm getting a better product than I would at the grocery store and supporting a small business.

Anyone else?