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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
by krm01 5y ago
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 5y agoThere’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/episode-909-dollar-stores-vs-lettuce https://www.npr.org/sections/money/2019/04/26/717665452/epis...
- myself248 5y agoI haven't RTFA, but it's always struck me as funny that some of the items at the dollar store are 49¢ 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".