How Dollar Stores Really Make Their Money

How Dollar Stores Really Make Their Money

Awesome Every year, dollar stores see higher and higher earnings, but how can a store that seems like it’s giving things away turn itself into a multi-billion-dollar enterprise? The answer is simple: that dollar isn’t always the great deal it appears to be. Here are their secrets.

Whether times are good or bad, you can still count on people to flock to dollar stores because they have the one thing everyone loves: convenience. Sales for Dollar General are always on the upswing, with the chain seeing an increase of 3.7 percent between 2017 and 2018, regardless of the state of the economy. Take it from Dollar General CEO Todd Vasos, who had this to say about their regular customers:

“We have seen no sign of trade out or trade up from our core customers. Even in a good economy, [they are] still looking for value and convenience.”

So, basically, no matter how much money people have, they still want something that bigger grocery stores can’t give them. Dollar stores are not just convenient because their items are cheaper, but also because there seems to be one on every corner β€” and that makes them perfect for a quick fill-in trip between your weekly grocery runs. These stores are also typically smaller than the ones in a big chain like Walmart, which means that you can usually get in and out with your emergency bag of dog food, a handful of snacks, or supplies for your kid’s art project in just a couple of minutes. The fact that most people are on to this, means dollar stores are always making money β€” even if customers buy just a few things.

Watch the video to learn how dollar stores really make their money!

#DollarStores #DollarTree #FamilyDollar

Convenience is key | 0:15
Location, location, location | 1:36
Getting those low-income customers | 2:47
Not always a deal | 3:29
The illusion of a discount | 4:23
Cheaply made items | 5:29
Design strategies | 6:46
Hiring few employees | 7:59
Private-label items | 8:50
Causing “economic distress” | 9:51

Thanks to source

Related posts

20 thoughts on “How Dollar Stores Really Make Their Money

  1. Which is the best dollar store?

  2. You talk like you know everything but you only get a 40% grade as most of what you say is B.S.

  3. i bought a fast charger for my phone at Dollar Tree , for only $1
    still running good since April 😊

  4. Dollar Tree is the only true dollar store I've seen in the last 30 years. Dollar General and Family Dollar are frauds full of shit priced way over a dollar, priced even higher than Wallmart.

  5. its simple dollar stores usually buy the leftovers of whole sale suppliers for like $0.10 and then resell for like $1.

  6. I like when they get overstock so I get a 22oz box of cereal for $1

  7. In dollar tree everything's a dollar

  8. Dollar General, Family Dollar and the 99 cent store are not really dollar stores.

  9. I smell Another Walmart add give back to the community wtf they might effect a suburb Walmart effects the whole city.

  10. Best post ever but nobody will care. πŸ€•

  11. I live in a mixed-income area, so there are dollar stores intermixed with Walmarts and Targets and many kinds of grocery stores (mainstream and ethnic). They can all coexist because the population density and diversity are there. I love that they ALL have the opportunity to thrive.

  12. about the add. your never secure.. your never secur unless you can be smart about being safe or walk with another person who can at least be a witness.

  13. also did you know dollar stores are built around low income areas?

  14. N R

    I'm probably one of the few people that can walk into a store and come out with only one or two things. Even when I was a member Costco I didn't by very much.

  15. I tell you how they make their money, its because they call it a dollar store but yet actually sell stuff for way more than a dollar. Went to my local dollar general the other day and even just canned food was almost $3.00 and bags of chips were 3-4 dollars.

  16. China buys your garbage, they manufacture it into crap and sell it back to you at the dollar store.

  17. If recession takes place it will be bankrupt

Leave a Comment

%d bloggers like this: