[HN Gopher] The economics of dollar stores
___________________________________________________________________
 
The economics of dollar stores
 
Author : pseudolus
Score  : 233 points
Date   : 2021-06-27 10:54 UTC (12 hours ago)
 
web link (thehustle.co)
w3m dump (thehustle.co)
 
| brudgers wrote:
| To know me is to know I am cheap. All dollar stores are not
| equal.
| 
| Everything in DollarTree is $1.00. That's not the case with the
| other two big chains. Not by a long shot.
| 
| A few weeks ago I was thinking about DollarTree economics as I
| drove down the Susquehanna Valley.
| 
| Seems like it collects pretty valuable data about consumer
| preference and demand in the absence of differential pricing.
| Campbells condensed Chicken Noodle or Tomato? One eight inch
| chef's knife or one six inch knife or two four inch knifes?
| 
| When I buy a knife and a can of soup and three picture frames,
| that combination is informative for merchandising a Kroger or a
| Walmart. There's a long play there.
| 
| Particularly because I might use a credit card.
| 
| Dollar General and Family Dollar are traditional retailers with
| no aversion to gouging the locals. They are slightly larger gas
| station convenience stores without the environmental problems of
| gas tanks and the real-estate expenses of space for pumps and
| busy corner locations.
 
| hn_throwaway_99 wrote:
| So if I can summarize the article, the economics of dollar stores
| are "sell things for more than it cost to buy them".
| 
| I mean, it seemed like the article wanted to have some nefarious
| take, but offering smaller quantities of items so people can
| afford them, even if the per-unit cost is higher, doesn't seem
| like some unexpected malicious intent. I mean, I certainly expect
| to pay more per gram if I'm buying a travel size of toothpaste
| vs. the 4 megatube family pack at Costco.
| 
| And the fact that the stores are oriented so the popular items
| are in the back - just like literally every grocery store in the
| country - is also unsurprising.
 
  | krm01 wrote:
  | I too was under the impression that there was some kind of
  | clever way these shops operate, based on the title. But the
  | economics are exactly like any other shop.
 
    | ghayes wrote:
    | There's a good Planet Money on this from NPR. They imply that
    | the real profit is from not stocking fresh goods and other
    | items that 1) spoil, 2) have lower margins and 3) require
    | employees to constantly restock. So they basically sell high-
    | margin goods (negotiated in bulk) with absolute minimum
    | costs. That's it.
    | 
    | [0] https://www.npr.org/sections/money/2019/04/26/717665452/e
    | pis...
 
    | myself248 wrote:
    | I haven't RTFA, but it's always struck me as funny that some
    | of the items at the dollar store are 49C/ at the big box.
    | Stuff like hose clamps comes to mind. You can get quite
    | ripped off if you let yourself think "dollar = cheaper than
    | everywhere else".
 
  | amelius wrote:
  | Yeah, but the article provides relevant numbers.
 
  | grae_QED wrote:
  | I feel the same way. It feels like the article has some anti-
  | capitalism undertones. They are clearly trying to vilify dollar
  | stores. I think the author is butt hurt that "big dollar" is
  | taking advantage of poor people.
  | 
  | But in reality, dollar stores are what poor people want. If
  | they thought they were being taken advantage of or manipulated
  | then poor people wouldn't buy anything from dollar stores. They
  | want cheap stuff, and dollar stores provide just that.
 
    | MomoXenosaga wrote:
    | I often go to a "cheap shit by the container load" retail
    | chain called Action and they are always packed. And all kinds
    | of people go there- Dutch people are infamous for their love
    | of cheap and it's considered a point of pride. Capitalism
    | always wins.
 
    | equality_1138 wrote:
    | > feels like the article has some anti-capitalism
    | undertones...
    | 
    | What a knee-jerk sensationalist review of the article. It
    | makes a fair point about why some consumers like the stores,
    | and others welcome its convenience. Is that some major
    | controversy? In fact much of the article could be taken as
    | positive (pro-capitalistic) review of their strategy, a case
    | study in making lots of money the old fashioned way.
 
    | chillwaves wrote:
    | Even rich people shop at Walmart.
 
    | klyrs wrote:
    | > But in reality, dollar stores are what poor people want.
    | 
    | No, they really don't. They want high quality goods just like
    | everybody else. Poor people also want food with good
    | nutrition. But they aren't able to afford those things
    | because the modern interpretation of capitalism is "exploit
    | the poor to the maximum possible extent." You can be against
    | this without being anticapitalist.
 
    | LambdaComplex wrote:
    | > If they thought they were being taken advantage of or
    | manipulated then poor people wouldn't buy anything from
    | dollar stores
    | 
    | I've seen people (whether they be college students or just
    | people living paycheck to paycheck) talking about how they
    | only have e.g. $5 USD to spend on groceries for the next two
    | weeks (because that's how much they have in their bank
    | account, and that's when payday is).
    | 
    | If your choices are "something you can pay for at the dollar
    | store at a less-than-optimal unit price" or "something you
    | literally cannot buy because its purchase price exceeds the
    | number in your bank account" then you really don't have a
    | choice.
    | 
    | Poor people don't want dollar stores; they just want to
    | survive.
 
      | k2enemy wrote:
      | The article kind of contradicts itself by bringing up this
      | point, then later saying that people make a lot of impulse
      | purchases and the average trip costs $16. I don't doubt
      | that your anecdote is true, but it seems to not be the
      | typical case.
 
        | baobabKoodaa wrote:
        | That's not a contradiction. A store can have more than
        | one type of customer.
 
  | rootusrootus wrote:
  | I think it's useful information, even if it should be
  | intuitive. I know a number of people who shop at the dollar
  | store because they believe they're saving money. In particular
  | I think it's nice to shed some light on the special
  | arrangements the stores make with manufacturers to produce
  | products that _look_ like the equivalent of what you get in a
  | normal store but only cost a dollar, while in fact containing
  | so little of the actual product that they 're a worse deal.
 
| mkr-hn wrote:
| A dollar store owner explained it to me more or less as: they're
| the last stop before the dump. It's like how bill collectors will
| buy up debt a company has given up collecting themselves for
| pennies on the dollar.
 
  | s5300 wrote:
  | Ahh. Does this mean that the meat that can be found in some
  | dollar stores finds its way there as it's last stop before
  | becoming animal meal?
  | 
  | Does not surprise me one bit.
 
    | mkr-hn wrote:
    | I think grocery store throw-aways are on a different supply
    | chain. There are stores that sell the old bread from grocery
    | stores. I assume there are stores for meat that's still good
    | but past what the grocery stores stock.
 
      | joezydeco wrote:
      | The Dollar Tree in my town actually has expired bread
      | products from Bimbo bakeries (Thomas' English Muffins,
      | Brownberry, etc).
      | 
      | The english muffins are a pretty good deal for $1,
      | considering it's $4+ in the stores.
 
| Noos wrote:
| The article sort of conflates two different models. Dollar Tree
| is actual "everything in the store is a dollar" while Dollar
| General and Family General are mostly small retail stores that
| sell things at a variety of prices. They round prices to the
| dollar, but otherwise are traditional retail that just locates in
| unusual locations.
| 
| Five Below is another "dollar store" in that blend, focusing
| mostly on goods for young adults and teens. Originally everything
| was below $5, up to and including some video games and
| electronics like computer accessories or even drones.
| 
| It isn't too new of a niche, closeout retailers have often
| existed and its not uncommon with small businesses; ocean state
| job lot in the NE kind of exists with this model. I think what is
| unique is the small retail store model; dollar generals are as
| big as a walgreens or CVS, but stock a pretty full assortment of
| goods for the size. They are pretty impressive for being micro-
| super walmarts in a sense.
| 
| Dollar tree's are interesting because you can actually find books
| and dvd/blu-ray there. It's sort of a commentary on how tough it
| must be to be a creative when I can buy remnant books from A list
| authors sometimes; I've seen Jonathan Franzen, John Scalzi, Bill
| Mckibben, And Rod Dreher books end up in the dollar bin. There's
| also a staggering amount of generic animated dvds in the
| pixar/disney mode.
 
  | adventured wrote:
  | > It isn't too new of a niche
  | 
  | Definitely an old retail segment. Walmart's origins derive from
  | Sam Walton operating a Ben Franklin five-and-dime variety store
  | (a wholesaler dating to the 19th century), which was that era's
  | equivalent of a Dollar General store (including having spread
  | itself to 2500 locations all over the place). With him later
  | opening Walton's five-and-dime store.
  | 
  | Interesting representative story on the recent conclusion to
  | that chain:
  | 
  | https://www.mprnews.org/story/2015/10/20/ben-franklin
 
  | tshaddox wrote:
  | I remember Dollar General carrying cheap/generic brands growing
  | up, but when I went to one last year it seemed
  | indistinguishable in selection and pricing to a Walmart or
  | similar large chain grocery store.
 
  | RandomThrow321 wrote:
  | The article calls out the difference between Dollar Tree
  | (everything is a dollar) and Dollar General (low prices but not
  | necessarily a dollar) in one of the images.
 
  | canadianfella wrote:
  | Why didn't you make "dvd/blu-ray" plural?
 
  | bradleyjg wrote:
  | Paperback books that don't sell are discarded so as not to
  | compete with long tail purchases but hard cover books are
  | expensive enough in terms of production and distribution that
  | the end up getting discounted instead.
 
    | laurencerowe wrote:
    | That's definitely not true for all paperback books. I often
    | buy remaindered paperbacks at Dog Eared and Alley Cat
    | bookshops in San Francisco. You can tell they're remaindered
    | because they're marked with felt tip.
    | 
    | When I lived in the UK, Fopp was a great source for them
    | (along with discount films and music.)
 
      | bradleyjg wrote:
      | My knowledge of the subject goes back to a high school job
      | in a bookstore. Things may well have changed since then.
      | Back then we ripped the covers off mass market paperback
      | and sent them back to the publisher for a credit. The books
      | were supposed to be discarded but you did from time to time
      | come across a paperback book with no cover at a thrift
      | store or similar, so clearly that didn't always happen.
 
    | b3morales wrote:
    | Can you expand on this? Do you mean a paperback copy of a
    | book somehow competes with a later sale of the same book?
 
      | rrrrrrrrrrrryan wrote:
      | Yes - they don't want to flood the used book market with
      | paperbacks, which would compete with future sales of the
      | same title.
      | 
      | If you're a bookstore and a hardcover doesn't sell, you
      | have to return the whole book to the publisher. If a
      | paperback doesn't sell, you just have to rip off the front
      | cover and return that to the publisher.
      | 
      | https://en.m.wikipedia.org/wiki/Stripped_book
 
      | echelon wrote:
      | Supply and demand. If you decrease the supply, the small
      | existing demand will pay more.
 
        | Robotbeat wrote:
        | When suppliers destroy supply, it makes a good argument
        | for piracy
 
        | runj__ wrote:
        | I somewhat agree with you but I really do like some kind
        | of curation, even if that curation is done by the market.
        | There's nothing inherently good with a surplus of bad
        | goods. I'd prefer a copy of "The Library of Babel" vs.
        | all of the books inside of it.
 
  | mherdeg wrote:
  | Ocean State Job Lot is fun. Also in New England I _love_ the
  | Marden 's business model. As far as I can tell from the
  | advertising it really is a family business that's hit its
  | scaling limits at about 15 stores -- when you walk in you see
  | whatever remnant stuff a member of the Marden family thought
  | people would like to buy when they went shopping for remnant
  | inventory. Like they list the names of people who buy this
  | stuff on their web site: https://www.mardens.com/sell-to-us/
  | 
  | They even have a special type of store dedicated to flooring
  | and I feel like this reflects the family structure somehow
  | (like a niece or nephew is really into flooring or something).
  | It's just such interesting retail.
 
    | jsz0 wrote:
    | One thing I really like about Ocean State Job Lot is they
    | have a couple isles of really cheap fun timeless kids toys
    | that I remember playing with as a kid. I think for a lot of
    | lower income families it's probably one of the only times a
    | kid gets the thrill of walking into a store and selecting new
    | toys to buy.
 
  | wyldfire wrote:
  | > It's sort of a commentary on how tough it must be to be a
  | creative when I can buy remnant books from A list authors
  | sometimes; I've seen Jonathan Franzen, John Scalzi, Bill
  | Mckibben, And Rod Dreher books end up in the dollar bin.
  | 
  | Talented authors who drove retail bookstores to stock their
  | inventory. But when some of it didn't sell, the dollar stores
  | snapped it up for nearly nothing. IMO that's not a slight to
  | the authors. It's to their credit that the bookstores saw their
  | promise based on existing sales at the time.
 
| [deleted]
 
| streamofdigits wrote:
| Dollar stores are fascinating as they are the final piece of the
| puzzle in the long journey of organizing mass produced
| consumerist society. This started more than a century ago with
| the invention of (high end) department stores [0].
| 
| The end result is hardly satisfying (or stable): an unstopable
| stream of plastic pollution, toxic levels of sugar and a reliance
| on cheap labour in remote lands. All those factors are coming
| under scrutiny and pressure...
| 
| [0] https://en.wikipedia.org/wiki/Wanamaker%27s
 
| xyst wrote:
| dollar stores are essentially a predator on the lower to middle
| class; and marginalized communities. also these stores are
| notorious for only carrying highly processed items, not exactly
| the best diet to feed your family on.
| 
| also, for those $1 toys they sell I bet the source of manufacture
| is dubious at best. if the nike sweatshops are bad, I can't
| imagine the working conditions for a dollar store sweatshop are
| any better.
 
| dalbasal wrote:
| This is interesting. Well written/compiled. All sorts of things
| to be interested in.
| 
| One noteworthy point is how much frames matter. Adjusting
| quantity (eg small old spice bottle) instead of price makes a big
| difference in how things play out. It makes everything different.
| 
| Another point is returns to scale. Economies of scale are long
| known and highly observed. Things like "buying power," oligopsony
| and such were documented as Wal Mart came up. I think there's
| more to be said on this. Winner take most is a transformative
| curve. Where's it heading? Is it even bad that markets are
| structured this way?
| 
| I suspect this oligopoly's biggest long term competitor is
| AliExpress. As the author notes, the key element is being a good,
| opportunistic buyer of cheap goods. A lot of things come down to
| mail/delivery systems. I think we're at a point where actual
| delivery _infrastructure_ will start to be built. How it 's built
| matters.
 
| neilv wrote:
| > _Dollar stores do this by going after the stuff nobody else
| wants: surplus items, discontinued products, and old stock that
| didn 't sell well elsewhere._
| 
| My experience with Dollar Tree suggests additional methods:
| 
| * Smaller amounts of product in package (like the article
| mentions elsewhere).
| 
| * Substandard product. I've gotten everything from Sunbeam
| batteries, to name-brand envelopes that were obviously thinner
| than the same brand I'd bought elsewhere (to the point that my
| printer wouldn't even feed them), to criminally non-sticky fake
| "duct tape". I've also seen things that are obviously too small
| (lower cost to manufacture), like car window shades.
| 
| * Packaged food imported from outside the US, even with popular
| US branding on it.
| 
| * Prices in some cases the same or higher than another store
| nearby (e.g., $1.00 for a can of food available for $0.89 or
| less, within walking distance).
| 
| Before Covid, my favorite thing to buy there was Hefty brand zip-
| seal plastic bags. (I avoid Dollar Tree for things that go into
| or on the body, but the bags are fine for purposes like
| organizing non-ESD small parts, and providing some dirt and
| moisture protection of things in backpacks.)
 
| jffry wrote:
| Why is this "article" a bunch of images of text with charts
| interspersed?
 
| kcorbitt wrote:
| I absolutely love dollar stores. I recently needed to buy a set
| of crayons for my son and the options were $5 on Amazon, $4 at
| Target or $1 at the local Dollar Tree (and the pack had 36
| crayons, vs 24 from the other sources!).
| 
| They're not the right place for everything, but for kids' art
| supplies, cleaning products, party paraphernalia, seasonal decor,
| etc, they can't be beat. They seem to have a pretty strong stigma
| for some reason (seems like most professionals wouldn't be caught
| dead in one) but they shouldn't. Great place to shop!
 
  | herbst wrote:
  | You could just shop in China yourself (AliExpress)
 
    | GhostVII wrote:
    | Sure, and wait a month for an empty box to show up
 
      | herbst wrote:
      | AliExpress has escrow. You are essentially less likely to
      | be screwed than with Amazon (no escrow, and still many
      | shady sellers)
      | 
      | I also never had empty or wrong products show up, and I
      | shop nearly everything that is made in china anyway
      | directly from ali. And assuming it would happen, I just get
      | my money back thanks to escrow.
 
        | eisa01 wrote:
        | I was still screwed, couldn't get a refund on a 10 USD
        | USB-C headphone adapter that hissed with my iPad. They
        | claimed they couldn't hear it on the video I submitted,
        | and there was no possibility to protest or submit a new
        | recording
 
        | kube-system wrote:
        | I too have been screwed by Aliexpress escrow. It's
        | worthless and protects the seller first.
        | 
        | I got a combined shipment that was missing an item. I
        | sent a message telling them that one item in the shipment
        | was missing. They responded by saying that the tracking
        | number showed delivered, closed the case, and gave me no
        | way to respond.
        | 
        | I buy from Chinese sellers on eBay instead, their buyer
        | protection actually works.
 
        | allenu wrote:
        | I bought a couple of items there and they were great
        | deals. Tried buying a third item and it never showed and
        | the seller said to wait a bit longer and eventually it
        | went over the time limit to get a refund. Seller didn't
        | respond after that, so I've learned my lesson and won't
        | shop there anymore.
 
        | herbst wrote:
        | I got my money back each time so far if the item was
        | broken or different than advertised. No questions asked.
        | Prolly they are more careful with European customers?
        | Maybe because I spent relatively large amounts already?
        | No idea
 
  | melling wrote:
  | The article claims that Dollar Stores are more expensive. They
  | often sell smaller amounts to meet the price, but unit cost is
  | more
 
    | II2II wrote:
    | I agree with the claim that dollar stores are sometimes more
    | expensive, but asserting the unit cost is higher is an over
    | generalization.
    | 
    | One of the nice things about dollar stores, in my part of the
    | world, is they don't play games with sale prices. Sale prices
    | make it easy to cherry pick prices seen at other retail
    | chains once or twice a year then claim they are cheaper. In
    | many of those cases, the product is only cheaper per unit
    | because they force you to buy the product in larger
    | quantities (e.g. by taping or shrink wrapping multiple units
    | together). That may be fine if it is a product where you can
    | plan ahead, has a long shelf life, or is something you use in
    | quantity. It is not so great when it increases waste since it
    | is a "just in case" product or you won't be able to use it
    | before it expires. If your aim is to reduce waste (or
    | resources or money), you may be better off buying the product
    | when or as it is needed. At any particular moment in time,
    | the unit price at a dollar store may very well be lower than
    | that of other retailers.
 
      | pessimizer wrote:
      | Another result of this, especially with food, is that it
      | probably causes you to gorge in order to keep things sold
      | in too large amounts from going bad. Now you don't have
      | _any_ of the thing you like, so you go buy another
      | oversized package which will lead to you gorging again in a
      | week or two.
 
    | powerapple wrote:
    | That's not "expensive". _Expensive_ is that I need to pay
    | $1.99 for something and I have throw away half of it because
    | I couldn 't use it. I'd rather spend $0.99 for 1/3 the
    | quantity. I am spending less money after all.
 
      | DangitBobby wrote:
      | Which doesnt apply to deodorant, toothpaste, cleaning
      | supplies... or much of anything that Dollar Tree sells.
      | Unless you are throwing it away for some reason other than
      | that it went bad like you had to buy some because you are
      | traveling, in which case, you are not at all the normal
      | customer.
 
        | mywittyname wrote:
        | Sometimes it does. If you rarely use bleach, what is the
        | point of buying a 5 year supply for $X when you can get a
        | 2 year supply for $x/2?
 
        | jabbany wrote:
        | Bleach does go bad though... If left too long it will
        | decompose and lose potency... So not the best example
        | maybe...
 
        | scarface74 wrote:
        | The smell sizes are great for traveling.
 
      | mnahkies wrote:
      | I think this point is underappreciated. Sometimes it
      | definitely makes sense to pay more per unit/kg for some
      | item for a smaller quantity if otherwise you'd be throwing
      | out an excess
 
        | alkonaut wrote:
        | At some point I bought a sampler set of miniature
        | colognes from one of the big makers (CK I think).
        | Probably 5 x 5ml or something. Dirt cheap, and perfect
        | for traveling. Turns out 5ml of cologne is enough for
        | years and years if you use it rarely and sparingly (as
        | you should). The huge 50 or 75ml perfume bottles must be
        | one of the products most often thrown out without
        | finishing.
        | 
        | I bet CK thought these sampler sets would create
        | incentive to buy one of their larger bottles, not make
        | customers set for life on cologne.
 
        | grogenaut wrote:
        | the ones i got as gifts always evaporated before i used
        | them all.
 
        | celticninja wrote:
        | No sure they are thrown out due to the expense, I know I
        | would never throw one out. But I do end up with 3
        | different ones on rotation because I don't want the same
        | smell all the time. Smaller ones would certainly be
        | better for variety.
 
        | mnahkies wrote:
        | They effectively have no expiration date as well, so
        | there is no sense in throwing them out.
        | 
        | Personally I'm happy with my one scent though and will
        | just keep using that until it runs out
        | 
        | Really what I was getting at with my original comment was
        | more about food, and how it sometimes makes sense to take
        | the higher price with a smaller quantity, iff you don't
        | believe you'll be able to consume the larger quantity
        | before it expires
 
    | Spooky23 wrote:
    | Like any retailer, buyer beware!
    | 
    | Some things at dollar stores are great deals, many things are
    | not. You just need to know your prices.
    | 
    | "Dollar General" and "Family Dollar" stores tend to target
    | poorer buyers who make poor pricing decisions from many
    | points of view for a variety of reasons, ranging from poor
    | access to transportation to poor financial literacy.
 
    | dataviz1000 wrote:
    | I was thinking about this the other day. Instead of raising
    | prices on junk food, they are making the packaged size
    | smaller. This might not be a bad thing in the US because of
    | the obesity problem. Since people will be eating less
    | unhealthy food they might save on health care costs.
 
    | voisin wrote:
    | Could be that they lure people in with lower unit costs on
    | some key, easily comparable items, and then the customer ends
    | up buying a bunch of higher margin items too. That happens to
    | me often - go in for something I know is way cheaper than at
    | Walmart and directly comparable, and end up picking up a few
    | other things that may not be a killer deal but saves a second
    | stop at another store.
 
      | wombatmobile wrote:
      | That's called a loss-leader strategy.
      | 
      | It's the same strategy fishermen use when they invest a
      | small amount of money at the bait store before a fishing
      | trip. As you said, it's a lure.
      | 
      | The strategy is not exclusive to dollar stores.
      | 
      | > Like other retailers, a dollar store's interior layout is
      | set up so that commonly purchased staples like cleaning
      | supplies and milk are in the back of the store. This
      | requires shoppers to walk through other aisles, resulting
      | in impulse buys.
      | 
      | So, people's thoughts and decisions are affected by what is
      | immediately in front of their eyes, despite their
      | considered intentions arrived at through deliberation.
      | 
      | We all know that's true because it happens to us, and we've
      | all experienced forgetting something until we walk out of
      | the house, and then returning to inside the house or room
      | before we can remember it again. Our thoughts are
      | significantly dependent upon our circumstances.
      | 
      | What's surprising is that the full impact of our non-
      | independence of thought has not been well accounted for by
      | philosophers who speculate about the concept of free will.
 
        | the_lonely_road wrote:
        | I disagree with your characterization of this being non-
        | independence of thought.
        | 
        | You don't know what you don't know. It's not on your list
        | because you didn't want it when you went to the store.
        | You saw it, and now you know about it, and now you want
        | it, so you buy it.
        | 
        | I never understand people who try to make this seem
        | nefarious. You walk past 10,000 things you didn't think
        | about and don't want so you just walk past it without
        | picking it up. There obviously some small exceptions,
        | like filling the checkout lane with candy because they
        | know kids are going to harass the parents, but in general
        | it's about the first strategy. Show people things they
        | want that they didn't know they wanted when they walked
        | in so they will spend more money in your store.
 
        | wombatmobile wrote:
        | > You don't know what you don't know.
        | 
        | We all know and expect soda, chips, chocolate, and other
        | highly fattening snack foods to be in the store,
        | prominently displayed near checkouts, often advertised at
        | a discount on sale.
        | 
        | > It's not on your list because you didn't want it when
        | you went to the store.
        | 
        | Right. That's because in our considered state of mind, we
        | reject those dietary choices as unhealthy. And yet, we
        | end up buying it after we are exposed to retail layouts
        | that are designed by psychologists to maximise the profit
        | of the store owner.
        | 
        | > I never understand people who try to make this seem
        | nefarious.
        | 
        | What would you call it?
 
        | IncRnd wrote:
        | Nobody called it "nefarious shopping." It is called
        | "impulse buying," and stores are configured to maximize
        | impulse buys whether through candy at the checkout lane
        | or something else. Stores are arranged in the front
        | decompression zone, the front, the center, checkout, etc.
        | for this reason.
 
      | newsclues wrote:
      | Or perhaps some Dollar Stores also use liquidation
      | inventory to sell lower than normal prices?
      | 
      | Doubt that crayons are loss leaders.
 
  | Bostonian wrote:
  | I like them too, but the article notes that their prices per
  | unit are usually a bit higher than at other stores.
 
    | tjoff wrote:
    | I guess (we don't really have them here) that while they
    | might never be the cheapest option they will most often be a
    | cheap option.
    | 
    | And where every other store is cheap on some stuff and
    | absolutely ripping you off on others it is kind of nice to
    | know with greater confidence that you are not being ripped
    | off.
    | 
    | Also, if a 10x pack costs 90% of a 24x pack at the regular
    | store a dollar store might be decently priced for a 8x pack.
    | Which is fantastic if you only need and want ~5.
 
  | okareaman wrote:
  | They are great if you stay away from certain things like
  | batteries, which are usually drained or near dead.
 
  | mrfusion wrote:
  | Agreed. The cheapest I could buy a plastic spatula on amazon
  | was $7? Bought one for a dollar instead. Seems to work fine.
 
    | permo-w wrote:
    | $7? You absolutely did not look very hard. I just checked UK
    | Amazon and found them for PS1
 
      | mrfusion wrote:
      | I just checked again in America. The cheaper ones seem to
      | have very high shipping costs.
 
        | permo-w wrote:
        | I included shipping. Maybe American amazon is different
        | in some way
 
    | lotsofpulp wrote:
    | That might be one of the easiest use cases for me to justify
    | spending more on quality, not that I would trust Amazon to
    | sell quality, but from a reputable brand or retail store.
    | 
    | I am assuming that a plastic spatula will degrade when heated
    | up, and a lower quality plastic will have a higher
    | probability of degrading and depositing plastic into the food
    | being cooked, which then gets ingested of course.
 
      | kergonath wrote:
      | That's why I prefer wood ones. I can't say I ever bought
      | one at a pound store, but even a basic one for PS5 lasts
      | years.
 
      | paul_f wrote:
      | It could be quite difficult to tell the difference between
      | the two spatulas. They might be identical. Just because it
      | costs more is no guarantee of higher qualify.
 
        | lotsofpulp wrote:
        | As goes with everything in life, nothing is certain. But
        | I operate under the assumption that there is a higher
        | probability that a reputable brand known for selling
        | higher quality goods is actually selling higher quality
        | goods and performing the necessary quality control
        | measures to ensure it.
        | 
        | Of course, one also has to remain informed on which
        | brands are decreasing their quality and cashing in on
        | their reputation.
 
        | tshaddox wrote:
        | Buying from a brand with a reputation is very different
        | than assuming a more expensive item is higher quality.
 
        | gruez wrote:
        | Well GP was talking about amazon, so there's a fair
        | chance that the $7 was also low quality chinese junk,and
        | if you wanted higher quality stuff you'd need to shell
        | out $15 at least.
 
        | PaulDavisThe1st wrote:
        | Hence ... brands, and other forms of reputation
        | generation and management. Sure, these things are never a
        | guarantee of quality, but the brand owners want you to
        | feel that they are.
        | 
        | Sometimes, too, they do turn out to be!
 
  | dopidopHN wrote:
  | Your whole country is exotic to me, and I formed my opinion on
  | things as a old adult.
  | 
  | For me dollars store are the reliable place to buy toxic stuff,
  | cleaning supplies and in general non-food item.
  | 
  | I like that it's small and to the point.
  | 
  | The food there make me sad, though. It's almost exclusively
  | crap.
 
    | qPM9l3XJrF wrote:
    | My local Dollar Tree offers 12 eggs for a dollar, a loaf of
    | bread for a dollar, a decent sized bag of frozen berries or
    | vegetables for a dollar, 2 pounds of rice for a dollar, a
    | 26oz can of baked beans for a dollar. That's not exactly
    | crap.
 
    | myself248 wrote:
    | > cleaning supplies
    | 
    | Yikes! Cleaning supplies and medical stuff are things I will
    | _never_ buy from a dollar store. Most of the cleaning
    | chemicals have more fragrance than active ingredients, they
    | never work well but the place smells like you cleaned like
    | mad. I have to assume the medical stuff is just as poor
    | quality, but I have no way of assessing it.
    | 
    | It also bothers me that a lot of the cleaning products are
    | packed in bottles shaped like drink bottles; an illiterate or
    | merely distracted person could be in for a nasty surprise.
    | 
    | We agree on the food, for sure. It never _says_ it's expired,
    | but it tastes ten years old.
    | 
    | One thing I always get at the dollar store is lint traps. The
    | big box charges 3x the price for an absolutely equivalent
    | product. Lint traps and office supplies. I don't think I've
    | ever bought envelopes or binder clips anywhere else.
 
    | astura wrote:
    | My local Dollar Tree has excellent food - sure, no fresh
    | vegetables but there are staples plus name brands that costs
    | 2x-5x at the local grocery stores and other stuff that's not
    | even available at other stores (specifics off the top of my
    | head - Zapp's Voodoo Heat chips, I've never seen them
    | anywhere else besides the dollar store).
    | 
    | Obviously the stock is somewhat inconsistent.
 
    | busymom0 wrote:
    | > The food there make me sad, though. It's almost exclusively
    | crap.
    | 
    | It depends upon what type of food you are looking for. If you
    | are looking for branded things like pop, chips,
    | chocolates/candy etc, then they are very good deal.
 
      | IncRnd wrote:
      | That's a list of crap food, which might be what was meant.
      | However, if you compare the ingredient list for a seemingly
      | identical item, the ingredients (contents or quantity) will
      | many times differ between a dollar store and elsewhere.
 
        | taftster wrote:
        | "seemingly identical item" -
        | 
        | Can you give a more specific example of this? Like if
        | it's two different brands of "chicken noodle soup", then
        | I'd assume the ingredient list could/would change.
        | 
        | But are you saying that a can of Campbell's chicken
        | noodle soup in the dollar store is different from the
        | Campbell's can at Walmart? e.g. the same brand
        | ingredients change?
 
      | middus wrote:
      | I think that's what was meant with crap
 
        | InvaderFizz wrote:
        | I would have assumed the crap they meant the sad looking
        | meats and cheeses in the refrigerators.
        | 
        | Dollar Stores are hit and miss. I needed some emergency
        | earbuds for a trip. Wow, I didn't know you could
        | manufacture earbuds that sounded that bad, even at the $1
        | price point. I am by no means an audiophile either.
 
        | [deleted]
 
| [deleted]
 
| draw_down wrote:
| I think Dollar General is a little different because it's not
| really a $1-price store. As the name implies, it's a general
| store, with lower prices than a CVS or similar. You can get beer
| and stuff there, I don't think that tends to be the case in a
| Dollar Tree but i could be wrong
 
| atlanta90210 wrote:
| Family Dollar operates a store near me in Atlanta. Their parking
| lot is so filthy sometimes the neighbors organize to go clean it
| up.
| 
| It appears to me Family Dollar hates their customers given the
| food choices, the attitude of the employees and how they maintain
| their property. I avoid them all.
 
  | PopePompus wrote:
  | I've been struck by how ugly some stores catering to the poor
  | are. Not ugly because they are cheaply decorated, but
  | intentionally ugly, using things like black on yellow coloring
  | for signage, etc. I guess it's eye-catching, but not in a good
  | way.
 
    | Scoundreller wrote:
    | Or maybe to signal "yeah, we can afford to shop here"?
    | 
    | Like, my dentist's office is really nice. Not just clean, but
    | very nice. I seem to be the only one in our family that
    | realizes that we're the ones that paid for that. Better than
    | charging the same amount for a dumpy office, but makes me
    | wonder how much we've been overpaying.
    | 
    | Even a fancy restaurant will follow the 5second rule in the
    | kitchen, but it will be a nicer floor they're picking it off
    | of. (I never understood granite countertops... they're
    | porous! The last thing you'd want in a kitchen).
 
      | pfdietz wrote:
      | > (I never understood granite countertops... they're
      | porous! The last thing you'd want in a kitchen).
      | 
      | https://www.easternsurfaces.com/seal-granite-countertops/
 
| gumby wrote:
| The article itself is quite interesting: short, simple sentences
| and many colorful graphics. It looks like it could be from a
| middle school textbook. But the content itself is not simplistic.
| 
| Is it intended for a segment in which this is common?
 
  | [deleted]
 
| EGreg wrote:
| I am shocked that dollar stores exist in 2021 given all the
| inflation that occurred in the last few decades!
| 
| A testament to the world's supply chains and manufacturing
| automation :)
 
| justinjlynn wrote:
| Ah, I see, so they make quite a bit of their profit by selling
| smaller quantities of lower quality goods at higher per unit
| prices through framing the value proposition carefully and
| managing expectations to their benefit. Makes sense, given the
| markets they target, that they're exploiting the effects of the
| 'Boots' theory of socioeconomic unfairness and quite successfully
| too.
 
  | bradleyjg wrote:
  | Bodegas in NYC make no pretense about being a good deal. It's
  | understood that you are paying for convenience.
 
  | heresie-dabord wrote:
  | The data presented suggest that poor, uneducated (innumerate)
  | populations of consumers try to find most of what they need at
  | one store and do not calculate price per unit (PPU).
  | 
  | Or if the poor are aware of PPU disadvantages, they have a
  | sense that shopping elsewhere isn't worth spending more time
  | and energy.
  | 
  | So the $DiscountFranchise just needs to be able to locate
  | itself as close as possible to the socioeconomic-target
  | population.
 
    | baybal2 wrote:
    | Go and run around city looking for some widget. You will
    | spend more on fuel/public transport.
 
  | brtkdotse wrote:
  | In case someone wonders about Boots theory -
  | https://samvimesbootstheory.com/
 
  | chrbarrol wrote:
  | They also "bulk up" food products, for example introducing
  | filler into meat products such as water and salt [1] such that
  | they can sell a smaller amount of meat for the same price
  | without the consumer noticing.
  | 
  | [1] https://www.youtube.com/watch?v=ONOoKtAH53E
 
  | sfifs wrote:
  | There's a lot of equivalent store types in Asia. The Kirana
  | stores in India, the Sari-Sari stores in Philippines, the
  | neighborhood groceries in much of South East Asia etc. A very
  | similar dynamic applies - the shoppers buy several times a
  | week, maybe even every day because they're daily or weekly wage
  | earners.
 
  | kcorbitt wrote:
  | I realize the article mentions that sometimes happens, with
  | their example being a 0.8oz deodorant. But as a frequent
  | shopper it isn't my general experience. I often compare prices
  | and on a unit cost basis (so controlling for the sometimes
  | smaller dollar store quantities) you can almost always buy the
  | same brand from a dollar store for a steep discount compared to
  | a traditional supermarket or Target.
  | 
  | In general I feel like there's a tendency to view products
  | marketed at poor people as exploitative. That's sometimes
  | merited (payday loans!) but honestly, dollar stores are really
  | effective at providing a good product at a great price.
 
    | gambiting wrote:
    | >>That's sometimes merited (payday loans!)
    | 
    | That's also a very interesting discussion to have because
    | from what I understand, payday loans businesses exist because
    | the alternative is worse - people who are desperate will
    | always borrow money from someone, so it's better that they
    | borrow from a well regulated business rather than from the
    | "pay or we'll break your legs" kind. And then the 1000% APR
    | is argued that it's the actual cost of risk with these loans
    | since they default so often.
 
      | d0100 wrote:
      | Don't people in the US use credit cards? If you are going
      | to payback the money on your next payday, why not just use
      | the credit and pay it on your payday?
      | 
      | Do stores not allow split payments?
 
        | bradleyjg wrote:
        | People with bad/no credit can't get credit cards (except
        | secured cards, in which case you have to have the money
        | upfront.) The Venn diagram between patrons of payday
        | lenders and people with bad/no credit is a circle.
 
        | dazc wrote:
        | Also likely that such people who do have credit cards are
        | already maxed-out to their limit and paying the monthly
        | minimum?
 
      | fennecfoxen wrote:
      | At some point APRs really stop making sense for two-week
      | loans. It's easier to understand what people pay in three
      | parts: processing costs, a risk premium, and the lender's
      | margin. _Fordham Journal of Corporate & Financial Law_
      | estimated the margin at 3.75%.
      | 
      | The argument against payday lenders is a paternalistic one
      | with moralistic overtones, with all the potential flaws
      | that might entail.
 
        | pnutjam wrote:
        | Ever had a payday loan? I'm guessing no.
 
        | [deleted]
 
      | 41209 wrote:
      | The worse alternative is sleeping on the streets when you
      | can't pay your rent. While I do think payday loans are
      | evil, I recognize why they exist. I would prefer a much
      | more robust housing support system for lower income people.
      | Almost all of society's problems could be fixed with more
      | affordable housing. For example let's say you have abusive
      | parents, if affordable housing exist the moment you turn 18
      | you can up and leave. But now you have bizarro programs
      | which will stop you from attending college if you get
      | "affordable housing"( government subsidized). When I was
      | young I was able to find a $600 apartment, on the free
      | market. Now the same place is 1200$.
      | 
      | On the other hand, rent-a-centers are disgusting. I
      | remember when I was a kid I had calculated they wanted me
      | to pay something like $3,000 for a $500 laptop. But the
      | idea is you only need to give them $50 a week. I went and
      | saved my money and found the absolute cheapest laptop I
      | could, paying cash for it.
      | 
      | On a larger level, car loans are also extremely exploitive.
      | No one needs a car which cost more than $20,000, but all
      | these shiny ads show girls will swoon over you, men will
      | respect you, as long as you buy a car which is $75,000 +
      | tax and destination.
 
        | bradleyjg wrote:
        | > I would prefer a much more robust housing support
        | system for lower income people. Almost all of society's
        | problems could be fixed with more affordable housing.
        | 
        | > When I was young I was able to find a $600 apartment,
        | on the free market. Now the same place is 1200$.
        | 
        | The issue is that the overwhelming goal of politicians at
        | all levels is to increase the value of individually owned
        | residential units above the rate of general inflation.
        | This is far and away the most popular form of welfare and
        | impossible for any politician to oppose. It is also
        | diametrically opposed to affordable housing so any and
        | all affordable housing proposals are bound to be
        | ineffective bandaid proposals.
        | 
        | If we want affordable housing the only way to get it is
        | first lower the homeownership rate.
 
        | mastax wrote:
        | California has made huge strides over the past year to
        | legalize housing, so I have some hope that the winds are
        | changing.
 
        | bumby wrote:
        | It's interesting as well that the policies used (e.g.,
        | mortgage interest deductions) are almost universally
        | considered bad policy by most economists. It's rare to
        | find such a consensus in economics, yet it's such a
        | third-rail that politicians can't touch it
 
        | bradleyjg wrote:
        | It's "worked" for a very long time. Greatest generation
        | through even some older millennials have been able to
        | treat their homes like a self filling piggy bank.
        | 
        | It's natural that there would be a lot of denial that
        | this can't go on forever.
 
        | bumby wrote:
        | I think from the economist perspective, it incentivizes
        | the wrong behavior and ends up not helping those it was
        | supposed to help in the first place.
        | 
        | For example, the tax deduction incentivizes people
        | getting the biggest house possible to maximize the
        | deduction. It also disproportionately benefits the higher
        | income classes because they are able to afford more
        | expensive homes. So from a perspective of helping more
        | people become home owners it's bad policy. It's actually
        | better at helping people who already are in a class that
        | can afford homes just be able to afford more expensive
        | homes. From that angle, it never really "worked".
        | 
        | But so many people are accustomed to the benefit it's
        | virtually impossible to roll back.
 
        | PaulHoule wrote:
        | Depends. I got a car loan for a modest car with 0.7% APR,
        | I don't see a problem with that.
        | 
        | My mother-in-law leases a new Toyota Corolla every few
        | years; she gets trouble-free motoring at a reasonable
        | rate.
        | 
        | Myself I have no idea how many miles I am going to drive
        | next year (do I work from home? take the bus? do I drive
        | to Montreal or North Carolina a lot?) so I buy a similar
        | car and drive it into the ground.
        | 
        | Many of those luxury cars are leased, not loaned; the
        | headline number ($/month) looks low compared to a loan on
        | a modest car. You will probably need a lot of warrantee
        | repair (a Toyota and a Cadillac are quality cars in their
        | own estimations, but not in each other's; if you need
        | your car to start in the morning so you can get to work
        | pick the Toyota.)
 
        | 41209 wrote:
        | A Corolla is only $20,000, so that fits my point. But I
        | have seen tons of people buying cars they can't afford,
        | in order to impress people they don't like. The easiest
        | way to waste tons of money is by buying an overpriced car
 
        | mnahkies wrote:
        | I've never paid more than about 3.5k USD for a car. Not
        | sure what the second hand market is like in America but
        | in NZ and UK you can get great cars for a fraction of the
        | cost of buying new.
        | 
        | In terms of maintenance, I've had some that were
        | troublesome, and some that needed nothing, it's a bit of
        | a lottery in that regard. Most common problems are
        | solvable with a few hours on your back in the garage
        | though.
        | 
        | Possibly most interesting is that the value decay has
        | already taken place at this point. Eg: buy a car for 2k,
        | sell it 5 years later for 1.5k, as opposed to buying it
        | for 80k and selling it two years later for 40k
 
        | mkr-hn wrote:
        | The Cash for Clunkers program destroyed the used car
        | market in the US. It's slowly recovering as cars from the
        | 2000s and 2010s enter it.
 
        | eigen wrote:
        | the CARS program ran for 1 month in 2009. so it didnt
        | affect 2009 and later model years. it appears to have
        | increased new car sales in 2009 so it should positively
        | affect the used car market in later years as those new
        | cars moved to the used car market.
        | 
        | please explain how the used car market is "slowly
        | recovering" 11 years later.
 
        | mkr-hn wrote:
        | It took almost 700,000 of the most affordable cars off
        | the market. That plus the reliability of newer cars means
        | they stay with their original owners longer, so there are
        | fewer used cars on the market at prices people can
        | afford. Used car prices are still out of reach for too
        | many people even before factoring in things like
        | insurance and registration.
 
        | PaulHoule wrote:
        | The floor price of a car that passes inspection is about
        | what you say in the US but if you want a car for racing
        | on a frozen lake you can pay less.
        | 
        | The $3.5k car is going to need more than $0 a month in
        | repairs; the lease price includes that. If you like
        | fixing your own car, get joy out of a unique car, don't
        | mind owning three VWs and having one run at any time the
        | clunker can be a win. But if your clunker needs a $200
        | repair every month you might decide a payment and a
        | reliable car is better for you.
        | 
        | Infotainment systems are in reverse gear but people
        | underestimate the environmental and safety benefits of
        | newer cars. There was that time I rolled my fit. I got
        | lucky, but I didn't even feel pain and the back window
        | broke out so I even had an easy time getting out with the
        | car wedged in the roadside ditch.
 
    | justinjlynn wrote:
    | > buy the same brand
    | 
    | That doesn't mean they're the same product or quality,
    | however.
 
      | celticninja wrote:
      | I don't think a brand will change their recipe or reduce
      | quality of components, when simply resizing is easier.
      | 
      | If they wanted to do that then they would be better off
      | creating a different lower cost brand, rather than a new
      | manufacturing process for $ store items.
 
        | lotsofpulp wrote:
        | Brands will offer a cheaper quality product with a
        | slightly different model number in electronics though.
 
        | celticninja wrote:
        | Worth it on higher end stuff not on $ store items.
 
      | sfifs wrote:
      | This isn't correct. Big brands virtually never skimp on
      | product quality for smaller stores because it harms the
      | long term equity and value. They customize quantity.
 
        | jhbadger wrote:
        | At least clothing manufacturers do skimp on quality for
        | downmarket sales. It used to be that clothing at "outlet
        | centers" were literal overstock items, but as they've
        | become more popular, clothing makers now have cheaper,
        | lower quality clothing made especially for sale in
        | outlets.
 
        | raverbashing wrote:
        | These products are so well optimized now they're mostly
        | margin and packaging/shipping/handling cost.
        | 
        | I doubt your toothpaste tube cost more than $0.50 in
        | actual materials to make. And on a store this can go for
        | $3? $4? (from a quick look in Amzn - approx values the
        | cheapest one is $8 for 6)
 
        | sfifs wrote:
        | CPG industry margins are quite public as almost big
        | brands are owned by listed companies. They're not high.
        | The highest margin categories for big retailers i believe
        | tend to be clothing.
 
        | Scoundreller wrote:
        | They're not wrong about the big difference between
        | production cost and selling price. CPGs are basically in
        | a war with eachother over marketing and need to spend the
        | maximum amount possible to get you to but their $3
        | toothpaste over another CPG's $3 one and over a lower-
        | priced generic. If they could cut their marketing budget
        | in half, they would, but that would only work short-term.
 
        | arcturus17 wrote:
        | Toothpaste costs $6-$8 in Amazon US? Holy cow.
 
        | lotsofpulp wrote:
        | No, it is ~$3 for a standard ~5oz size.
        | 
        | https://www.amazon.com/Crest-Complete-Whitening-
        | Toothpaste-T...
        | 
        | Amazon is more expensive than Costco/Walmart/Target, but
        | especially so for dense, heavy items like liquids (or
        | toothpaste).
 
    | celticninja wrote:
    | Similarly in the UK, whilst there are certainly PS1 store
    | offerings from brand names which are smaller than their
    | traditional supermarket offerings, the vast majority of
    | products are end of line or bought up cheaply in bulk where
    | they otherwise we're not selling. I have had success in the
    | past finding items which I have resold on eBay for
    | significantly more because their true value is higher.
 
    | amcoastal wrote:
    | Definitely! Dollar tree is the place to get things like
    | dishes and cleaning supplies. You get the same bottle for $1
    | that is 1.88 at Walmart or whatever. I'll only buy things
    | that the dollar store I KNOW are cheaper though, sometimes
    | you'll think you're getting a deal and then the same product
    | at Walmart is 90 cents.
 
| rcpt wrote:
| Huh. Was expecting to come away from the article with "like
| McDonald's, they're basically a REIT" but I guess they make
| decent profit on that stuff.
 
| jjice wrote:
| I personally always considered the "general" stores, and
| considered Dollar Tree the main "dollar" store out of the bunch.
| I think these stores are super interesting though, because,
| growing up in a town with a Walmart and Target, there was no
| reason for me to go to a Dollar General. However, when my friends
| and I would go camping, the only store for miles and miles would
| be a Dollar General, and it was relatively booming. The stores
| aren't bad by any means, but limited and a bit more costly, but I
| get an odd feeling of coziness if they're the only real store in
| town.
 
| mixmastamyk wrote:
| One thing I noticed at our local 99 cent store, and didn't see
| mentioned in the thread... cashier wait times. There's a large
| number of customers of course and they keep costs down with fewer
| cashiers. So you are looking at twenty minutes standing in line
| for your $8 in goods.
| 
| I did this a few times and (combined with needing to drive there)
| and decided it was not really worth the savings from our
| quick/overpriced markets in walking distance, except in rare
| circumstances. YMMV.
 
  | LegitShady wrote:
  | a similar store near me replaced their 2 checkouts with 5 self
  | checkouts, and has one person nearby to help/monitor.
 
    | mixmastamyk wrote:
    | Funny, because our expensive store did that, but the dollar
    | store may not have the upfront capital for it.
 
      | LegitShady wrote:
      | I've seen some super large dollar stores that are making
      | lots of net profit. Just because the items are cheap
      | doesn't mean the net margin is small, because the items are
      | cheap to buy too, and they're chains that buy large
      | quantities often directly from a manufacturer to get the
      | best price they can.
      | 
      | I think it just depends on what the net improvement is. If
      | they had two checkouts before, that each required a person,
      | and they replace it with 5 checkouts that now require just
      | one person, the cost per person-checkout is 20% of what
      | they were paying before. The machines themselves might be
      | leased or otherwise amortized over significant periods
      | giving a cheap cost per year. If lines of people are
      | waiting for checkout that might mean a much improved
      | experience.
 
| spicyramen wrote:
| I do use Dollar store to buy stuff that is just pretty much
| disposable such as Balloons, birthday decorations among others. I
| can say that food is pretty bad and not healthy. Very similar to
| Iceland supermarkets here in UK
 
| hytdstd wrote:
| It's fascinating how the coverage map is so drastically different
| from the typical US population map. In particular, they
| completely cover the east half of the US, but not the west.
 
  | Mountain_Skies wrote:
  | Give them time. They will eat the entire country.
  | 
  | https://www.youtube.com/watch?v=DIqC5y1zm-4
  | 
  | There does seem to be an opportunity to bring the same type of
  | store to the western states but the low population portion in
  | the interior west might keep it from being economical to
  | operate distribution centers that incrementally cover over more
  | and more western territory. They'd need to invest in a
  | distribution network in the western states that were mostly
  | independent from the eastern ones. That might be too much risk
  | for their low margin business model.
 
  | vel0city wrote:
  | Uh, it seems like it tracks a US population map pretty well.
  | The Western half of the US is largely pretty sparse with only
  | pockets of densely populated cities.
  | 
  | https://commons.m.wikimedia.org/wiki/File:US_population_map....
 
  | Hinrik wrote:
  | Drastically different? It looks almost identical to a map of
  | the U.S. where each dot represents a town:
  | https://www.visualcapitalist.com/mapping-population-density-...
 
| Clewza313 wrote:
| 100 yen (approx $1) have long been huge in Japan too, and their
| business model is even simpler: most of what they sell is plastic
| and made to order in China in huge volumes. They have grocery
| selections too, but nothing that would require refrigeration or
| otherwise spoil quickly. And while hardly luxury, they're also
| not down-market in the way that Dollar X's in the US are, many
| are located in central business districts and there's no stigma
| to shopping in one.
| 
| https://en.wikipedia.org/wiki/100-yen_shop
 
  | tkgally wrote:
  | Daiso, the largest chain in Japan, designs a lot of their own
  | products, and the shear variety of some product lines is one of
  | the stores' attractions. Twenty years ago, before going back to
  | the U.S. from Japan for a family reunion, I bought fifty
  | folding fans, each with a different Japanesey design, at Daiso
  | as gifts. The relatives I handed them out to seemed delighted,
  | and they cost me only a buck apiece.
  | 
  | Until I started working from home last year, I wore a suit and
  | tie to my job in Tokyo. I have a collection of more than two
  | hundred ties, each one different, all looking reasonably
  | decent, bought for a hundred yen apiece at Daiso ten or twelve
  | years ago.
 
    | mcshicks wrote:
    | There are Daiso locations in the US (and I think many other
    | countries now), at least in California. They aren't as good
    | as the ones in Japan, and they have somewhat different items
    | in one location than another. But they do have lots of
    | interesting stuff, although most of it is $1.50 and up. The
    | tool section is pretty neat as well as their stationary
    | section.
 
      | proggy wrote:
      | As someone who's spent time between California and Japan
      | recently (2019-2020), I honestly think the differences
      | between a Daiso in the US (Los Angeles) and a Daiso in
      | Japan (central Tokyo) are very slight. I bought a lot of
      | little gifts for people from Daiso when I was in Japan, and
      | I've found that most of what I bought is also available in
      | the stateside stores. Most of the everyday goods
      | (household, serving ware, tools, cleaning, toys,
      | stationery, etc.) are identical, with only the food and
      | beverage section differing significantly. For instance, in
      | Japan there is a limited stock of local brands by the
      | register (somewhat marked up vs. the local combini). In
      | California, it's a very select handful of true imports, but
      | most of it are brands who are producing a local US variant
      | that Daiso doesn't have to ship through customs. And
      | interestingly, they stock some specialty Hawaiian drinks
      | like POG that you can't find easily in either California or
      | Japan.
 
        | mcshicks wrote:
        | Hey that could be. So yeah I didn't mean to imply the
        | goods were different, just less selection. I mostly go to
        | the ones in Oceanside and Keary Mesa, and the last one I
        | visited in Japan was in Fujisawa early 2019. I haven't
        | been to the one on Sawtelle in a while but I do seem to
        | remember it being bigger than the ones in San Diego.
 
  | riffic wrote:
  | Daiso has a presence throughout Los Angeles, and it is
  | definitely a different animal than your typical dollar store.
 
  | wirthjason wrote:
  | They are popular because they are good. The products have good
  | designs and reasonable quality, at or above the $1 level. The
  | stores are bright, clean, and the staff friendly.
  | 
  | My guess is that they have a much more integrated supply chain
  | than the stores in the US and can better understand what their
  | customers want/need.
  | 
  | There is an air of quality around Y=100 shop shop and a stigma
  | of $1 stores being junk. Any reasonable Okaasan takes it as a
  | badge of honor finding good stuff and bragging about it.
 
    | zdragnar wrote:
    | I used to have the same opinion of dollar tree and co, until
    | I met my wife, who shops there frequently.
    | 
    | Like any other store, there are certain things that you
    | should get elsewhere. However, I was genuinely impressed that
    | the quality of many things was quite a bit higher than what
    | the stereotype had led me to believe.
    | 
    | Edit: perhaps it is worth pointing out that she also shops
    | Wal-Mart and aldis, and buys only from each of the three
    | stores what the better deals are.
 
  | eloisant wrote:
  | I'm not sure about US dollar stores but there are really good
  | deals at Japan's 100 yen shops. For example simple plastic
  | boxes that cost 10 euros in France are at 100 yen in those
  | shops.
  | 
  | So in Japan it's not just for poor people, there are items
  | where it doesn't make sense to buy them anywhere else than a
  | 100 yen shop.
 
  | MeinBlutIstBlau wrote:
  | These dollar stores are located in many business districts.
  | Definitely not right on a main street, but within a nearby
  | vicinity (like 1-3 miles). At least they are in my state.
  | Dollar stores are never farther away than 10 miles max.
 
| kaptain wrote:
| It's expensive to be poor.
 
  | Liron wrote:
  | On the contrary, we should appreciate that every single item in
  | the dollar store is a marvel of modern economies of scale that
  | benefits all customers, poor ones most of all.
  | 
  | Show a modern dollar store to a Soviet Russian in 1989 or
  | anyone from 100 years ago and they'd go nuts.
 
    | thenanyu wrote:
    | You're never gonna get anywhere with that argument
    | unfortunately. The hedonic treadmill is too quick and
    | everyone you're responding to grew up taking all of these
    | modern miracles for granted. I remember what buying snacks
    | was like growing up in China in the early 90s.
    | 
    | You brought your own rice and a dude on the side of the road
    | would pop it for you in a lead pipe.
    | 
    | We shopped at dollar stores after landing in the US and it
    | was mind boggling.
 
| sabujp wrote:
| ahh dollar tree, where we go for birthday party favors for little
| kids
 
| MarkusWandel wrote:
| The different purchasing power of US$ and CAD$ killed the
| "everything in the store is a dollar" model in Canada at least a
| decade ago. But Dollarama, which is so successful that it has
| pretty much squeezed out the other dollar store chains, has
| really just established themeselves as the "everything store"
| below the Walmart tier without any particular price - just low in
| general. Metal foil cookware, kids' party supplies and certain
| kinds of candy/sweets (I love their weird brand chocolate bars,
| particularly the "Island Bar" (Bounty clone) and Duoletta (Kinder
| Bueno clone). Also if you're out cycling they're a good place to
| buy things like Gatorade or chocolate bars for a reasonable price
| in quantity 1.
| 
| And sometimes a totally ubiquitous store with a predicatable
| inventory of crappy-but-adequate stuff can be a real problem
| solver. For example, hit the road with the small children for the
| long drive to Grandma's, and half an hour out we find that we
| have the fruit, but not the knife to cut it with. No problem,
| next Dollarama is 25 minutes away, we'll just grab a knife there.
| $2! With sheath. Sure it doesn't stay sharp as long, but it
| totally did the job.
 
  | gotorazor wrote:
  | Dollarama is everything for $4 CAD or under. They don't
  | advertise this fact, but you won't find an item over $4.
 
| dukeofdoom wrote:
| Dollarama is by far the best one. Super popular in Canada. Things
| are around the $4 mark. Surprising good enough quality for some
| things. Clean and well organized store.
 
  | wenc wrote:
  | When I was younger, every single Dollarama item was priced at
  | exactly $1 before tax (prices inched up to $2 for some products
  | a decade after, but the majority of items were still priced at
  | $1). On average, the quality of most items ranged between
  | passable and decent. Most university students I knew bought
  | household items from Dollarama and for the most part it would
  | be fine. I find that Dollarama is just more mainstream in
  | Canada than dollar stores are in the U.S. You would find
  | Dollaramas in mall basements and other medium rent places.
  | 
  | The key was to have some idea of the quality floor of the
  | product one was buying. Winter mittens for example. Unless you
  | really try, it's hard to make winter mittens that suck --
  | there's just not that many ways to go wrong. I still have mine
  | from a decade ago and they're fine. I still wear mine in the
  | winter.
 
| failwhaleshark wrote:
| Don't even hate on my dollar stores (coworker made a mint on the
| Dollar Tree IPO... Grr!;)
| 
| Okay, good.
| 
| There have been numerous agenda (economic? class superiority?)
| articles about "dollars stores: bad." Somehow that they're racist
| or responsible for food deserts, poverty, crime, and your grandma
| yelling at the cleaning lady.
 
| june_twenty wrote:
| In the UK we have poundland which is the same idea. To be honest
| I love it. I get protein bars, chewing gum, cans of coke, milk
| and sweets cheaper than anywhere else.
 
  | xtracto wrote:
  | I have fobd memories of Poundland, 99c and Home Bargains while
  | living in the UK as a poor international student (poor meaning
  | I lived with a scholarship from my country).
 
  | robjan wrote:
  | From what I understand, a lot of the Poundland goods are grey
  | market parallel traded goods. e.g. Colgate toothpaste
  | manufactured in the UK but intended to be distributed in
  | Poland. The manufacturer often sells them at a lower margin in
  | lower income markets because some money is better than none.
 
    | jfk13 wrote:
    | Sometimes the foreign-language packaging of an otherwise-
    | familiar brand item makes this really obvious!
 
| WalterBright wrote:
| The article mentions they'll have to get creative when inflation
| makes the dollar worthless, or do a little rebranding.
| 
| Motel 6 did the same thing. I remember when the 6 meant six bucks
| a night. It was a great place to catch some Zs when on a road
| trip.
| 
| My dad said the "Nickle Bar" candy bar's size grew and shrank
| with the cost of chocolate.
 
  | [deleted]
 
| death_syn wrote:
| When the pandemic hit, I switched my shopping almost exclusively
| to Dollar General, because despite the slightly higher prices
| compared to Walmart (sometimes) and Aldi (almost always), the
| number of customers in the store was always pretty light at any
| one time. I did still have to go to one of those places for
| things I couldn't get there (premium cheeses, premium meats).
| But, that became a once a month outing at most versus my weekly
| shopping trip, which turned from 20-30 minutes to 10 minutes in
| total, with less exposure to other humans. I honestly believe the
| Dollar General may have saved my health as far as COVID exposure
| risk goes.
 
| supernova87a wrote:
| In the world where every store is trying to work you for whatever
| profit can be made, at least a Dollar Store is relatively
| transparent about what they're selling, and straightforward about
| it. And offering basics that people can afford.
| 
| I tried to find a plastic water spray bottle in Target, Walmart,
| etc. for spraying water on plants or like while ironing. Every
| option was a fancy-fied designer spruced up version for $8
| looking like it was aimed at the "Real Simple" market. I could've
| bought a spray bottle full of sink cleaner for $3 and emptied it
| out for the bottle, and saved money.
| 
| At least you can go to the $1 store and find this and not get
| ripped off under the guise of "style and design for the busy mom"
| at 10x what it should cost.
 
  | baby wrote:
  | Same for a plunger. Target only sold fancy ones.
 
| jessedrain wrote:
| I think the article oversighted that even dollar general has loss
| leader products. When I was a poor student, I remember
| practically living on $2 worth of 5-10 bananas and a gallon of
| milk everyday, it was the cheapest in my town and I looked.
| 
| You can be poor and still have a fair, unexploitative shopping
| experience at those stores.
 
  | notsureaboutpg wrote:
  | Well, you can only have that experience because someone else is
  | having an unfair, exploitative experience at the same store...
 
| mgh2 wrote:
| The article had good points, but it misses one opportunity for
| businesses that see value in this model: marketing exposure.
| 
| If I were someone who wanted to try a brand and do not want to
| pay big upfront, I will start here and then buy in bulk later if
| I am satisfied.
| 
| Yes, some established brands sells their leftover inventory
| (brand impression as a side-benefit), but I have also seen some
| unknown, generic brands start over at dollar stores and then
| disappear off-shelf.
| 
| My hypothesis is that they either failed, or were testing the
| market/demand (cheaper shelf space?) before selling to more
| traditional retailers, but I am not sure this is the case. Need
| an insider to understand the logistics.
| 
| Aside from that, there are some really good deals that gets rid
| of branding/bs, that adds cost to the price of the actual product
| itself - sometimes, with not much diff. in quality.
 
| NikolaNovak wrote:
| Interesting; most stores are similar or same brands in Canada vs
| USA (with noble exception of Tim Hortons). But we have Dollarama
| and Buck Or Two, whereas top US are completely different.
| 
| I wonder if it's because Canadian supply chain logistics tend to
| be different (Target famously flopped for not taking that into
| account), or some other factor.
 
  | nelblu wrote:
  | Dollarama also doesn't accept returns. Not sure about the US
  | stores, but that is another reason why they must thrive.
 
  | wffurr wrote:
  | Loonie Toonie was a pretty entertaining name for one. I didn't
  | get it at first when I visited.
 
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