# Dollar stores: How do they do it? **URL:** \ **Category:** Factual Questions\ **Created:** [June 3, 2002, 5:41am UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101 "2002-06-03T05:41:18Z")\ **Posts on this page:** 14\ **Page:** 1
**Author:** ![pkbites](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pkbites/32/204_2.png) [@pkbites](https://boards.straightdope.com/u/pkbites)\ **Post date:** [June 3, 2002, 5:41am UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/1 "2002-06-03T05:41:18Z")
There are quite a few “Everythings a Dollar” type stores popping up here in Milwaukee. And while I admit some of the stuff they sell is crap, and other stuff is of “genaric” brand, there are a lot of good, name brand items in these stores. I’ve done some comparison, and found that some of the name brand items these dollar stores are selling (like razors, shampoo, mouth wash, etc) are being sold at 1/3 to 1/4 the cost of the exact same items at stores such as Wal mart (normally the low price champion). How are these dollar stores doing it? Is the mark up at others stores that damn high or what? ---
**Author:** ![Tranquilis](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tranquilis/32/3639_2.png) [@Tranquilis](https://boards.straightdope.com/u/Tranquilis)\ **Post date:** [June 3, 2002, 5:54am UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/2 "2002-06-03T05:54:59Z")
Most stores mark-up more than you’d expect… Many, many moons ago, I was a stock clerk at the National Five, Dime, and Dollar store in HdeG. We bought cheap stuff, or decent stuff from a discounter, and didn’t mark-up as much as the competitiors. We also didn’t get paid much, either. Mind you, we had plenty of stuff more than a dollar, so the name wasn’t _strictly_ true. One of the three store in that small chain is still open here in Newark. ---
**Author:** ![Lure](https://avatars.discourse-cdn.com/v4/letter/l/ba8739/32.png) [@Lure](https://boards.straightdope.com/u/Lure)\ **Post date:** [June 3, 2002, 8:14am UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/3 "2002-06-03T08:14:32Z")
Most of the low cost brand names are loss leaders.If you watch ads you can do as well at a bigger outlet.EX:last week Raley’s was selling Heinz 24 oz.catsup for 79c-at the discounter (if they had it) it was still 99c.Normal retail for this item is usually $1.25-$1.50. At Raleys they were displayed prominently-at the buck store you had to search thru dubious brand names to claim your prize-and a lot of people didn’t.Meanwhile while you’re in el cheapo you’ll probably by some off the wall canned goods or soap,etc. for the buck or 2 for a buck,that the store might have bought for a buck a case,since no other retailers could get rid of them. I’m not a brands name shopper by any means,buying a lot of house brands,but some things are so obviously inferior to thebranded product that they’re not worth any price.Ever buy canned green beans with the ends complete w/stems on them and tasting undercooked/overcooked?You won’t if you buy a major brand,but a good possibilty in the buck a whack store after you’ve claimed your cheaper brand name prize and continue to shop for other necessaties at the time. Another thing I’ve noticed is when these stores first open there’s a lot more name brand goodies to be had than in ensuing months.Just another bait and switch technique-reel 'em in then offer a different,tho still lower price than they’re used to paying,brand item.They’ll run ads like,the first 100,while supplies last,etc.Seems to work with a decent pc.of uniformed shoppers Some store brands can be good also,but it’s like playing russian roulette to find out.Don’t know how many house brand mayos or salad dressings I’ve just tossed because they couldn’t come close to a Best/Hellmans or Kraft taste or texture. Mostly.you get what you pays for,as Pappy told me.And sometimes you don’t even get that. Probably TMI here. ---
**Author:** ![Sakurako](https://avatars.discourse-cdn.com/v4/letter/s/85f322/32.png) [@Sakurako](https://boards.straightdope.com/u/Sakurako)\ **Post date:** [June 3, 2002, 8:21am UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/4 "2002-06-03T08:21:42Z")
Sorry to tell you, but most dollar stores use sweat shop labor in poor countries to bring you those items for cheap. ☹ Please visit [http://www.sweatshops.org/](http://www.sweatshops.org/) for more info. ---
**Author:** ![nightshadea](https://avatars.discourse-cdn.com/v4/letter/n/7ba0ec/32.png) [@nightshadea](https://boards.straightdope.com/u/nightshadea)\ **Post date:** [June 3, 2002, 9:08am UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/5 "2002-06-03T09:08:31Z")
Also some dollar stores buy closeouts from the larger stores/supply companies which is how they get some of the name brand items they have and some brands are just to get ya in the store and are whiile supplys last ’ for example thats why until they bought out a chain out west it was possible to get items from kroger in so cal But if youve ever heard of pic n save ect its the same idea My grandma jokes instead of ther dime store its the dollar store becuase of inflation ---
**Author:** ![KXL](https://avatars.discourse-cdn.com/v4/letter/k/e47774/32.png) [@KXL](https://boards.straightdope.com/u/KXL)\ **Post date:** [June 3, 2002, 11:44am UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/6 "2002-06-03T11:44:23Z")
How do they do it? VOLUME! ---
**Author:** ![Montezuma](https://avatars.discourse-cdn.com/v4/letter/m/3be4f8/32.png) [@Montezuma](https://boards.straightdope.com/u/Montezuma)\ **Post date:** [June 3, 2002, 2:12pm UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/7 "2002-06-03T14:12:14Z")
The dollar products are either foriegn versions of the american brand (The pound store near me has Arabic coke!) But what I don’t get is that the foriegn and american brands don’t always taste the same. A question as well, if you sell loss leaders how do you get rid of all that stock? ---
**Author:** ![Acsenray](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/acsenray/32/4519_2.png) [@Acsenray](https://boards.straightdope.com/u/Acsenray)\ **Post date:** [June 3, 2002, 4:45pm UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/8 "2002-06-03T16:45:02Z")
Don’t the manufacturers include provisions in their contracts with their overseas affiliates and franchisees prohibiting re-importation of good meant for overseas markets? There are often differences in the taste of brand-name products in foreign markets - there are a lot of reasons, predominantly, accommodating differing tastes and adjusting according to local availability of raw materials. ---
**Author:** ![clairobscur](https://avatars.discourse-cdn.com/v4/letter/c/839c29/32.png) [@clairobscur](https://boards.straightdope.com/u/clairobscur)\ **Post date:** [June 3, 2002, 5:03pm UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/9 "2002-06-03T17:03:46Z")
I believe this kind of shop, here, sell a lot of stuff imported from third-world countries (see the post above about sweat shop labor), stuff seized and sold for various reasons by the customs or other public agencies, stuff from companies which went bankrupt, and had to sell their remaining products at a very low price, etc… ---
**Author:** ![El\_Cheapo](https://avatars.discourse-cdn.com/v4/letter/e/8e7dd6/32.png) [@El\_Cheapo](https://boards.straightdope.com/u/El_Cheapo)\ **Post date:** [June 3, 2002, 5:32pm UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/10 "2002-06-03T17:32:27Z")
> [@](#): > > \*Originally posted by Lure \* > \*\*Meanwhile while you’re in el cheapo you’ll probably by some off the wall canned goods or soap,etc. for the buck or 2 for a buck,that the store might have bought for a buck a case,since no other retailers could get rid of them. > \*\* :eek: I have no canned goods or soap within me, nor has **Lure** ever been in me. ---
**Author:** ![Cat\_Fight](https://avatars.discourse-cdn.com/v4/letter/c/90ced4/32.png) [@Cat\_Fight](https://boards.straightdope.com/u/Cat_Fight)\ **Post date:** [June 3, 2002, 5:57pm UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/11 "2002-06-03T17:57:22Z")
I’m always amazed at how much work obviously went into some of the stuff at the $ store- painted flower pots, intricate little Asian-style dioramas. But, well, is that worse than paying the slave labour just as little and selling the wares for 500 bills and up? How do they make money? All I know is that every time I go in there for something practical- e.g. wrapping paper- I come out with all sorts of candies, knick knacks and coloured plastic kitchen supplies I never knew I needed. ---
**Author:** ![handy](https://avatars.discourse-cdn.com/v4/letter/h/b5a626/32.png) [@handy](https://boards.straightdope.com/u/handy)\ **Post date:** [June 3, 2002, 11:35pm UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/12 "2002-06-03T23:35:26Z")
What are the dollar stores called? There was a 99 cent store here but when I looked at it a couple weeks back, it changed to a 99c Plus store 🙂 ---
**Author:** ![pkbites](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pkbites/32/204_2.png) [@pkbites](https://boards.straightdope.com/u/pkbites)\ **Post date:** [June 3, 2002, 11:39pm UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/13 "2002-06-03T23:39:03Z")
> [@](#): > > \*Originally posted by handy \* > \*\*What are the dollar stores called? There was a 99 cent store here but when I looked at it a couple weeks > back, it changed to a 99c Plus store 🙂 \*\* “Dollar Bills” and “Dollar Tree” are the two that are spread around here. Every single item in these stores is $1, except for some candy which is 2 for $1. ---
**Author:** ![Lsura](https://avatars.discourse-cdn.com/v4/letter/l/7993a0/32.png) [@Lsura](https://boards.straightdope.com/u/Lsura)\ **Post date:** [June 3, 2002, 11:55pm UTC](https://boards.straightdope.com/t/dollar-stores-how-do-they-do-it/112101/14 "2002-06-03T23:55:41Z")
> [@](#): > > \*Originally posted by Sakurako \* > \*\*Sorry to tell you, but most dollar stores use sweat shop labor in poor countries to bring you those items for cheap. ☹ > > Please visit [http://www.sweatshops.org/](http://www.sweatshops.org/) for more info. \*\* **Sakurako** , it doesn’t have to be a dollar store to use sweatshop labor. I just want to make sure you’re aware that just because you buy something at a higher-priced store doesn’t mean that they aren’t produced at a sweatshop. And the reverse is also true - just because it’s at a dollar store doesn’t mean that it was produced in a sweatshop. Sorry for the hijack, folks.