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$How do DOLLAR STORES make money$??

  Author:  30401  Category:(Discussion) Created:(6/20/2003 6:54:00 PM)
This post has been Viewed (12622 times)

I went to this new store that opened up that's called the Dollar Tree. And it's really neat because everything IS a dollar. It's not like Dollar General, where a few things are a dollar...but most things are not (although I do like Dollar General...because they have more selection) But what I was wondering is how do these stores make a profit? is it because they buy in bulk? but even then they would have to sale A LOT to make much money.. Does anyone know how these stores make money?

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Replies:      
Date: 6/20/2003 6:57:00 PM  From Authorid: 59965    Good question. I suppose it's because everythings a dollar and people tend to take advantage of that. So they buy a lot there.
Date: 6/20/2003 6:59:00 PM  From Authorid: 23075    I have a personal freindthat owns two dollar stores. I should ask him this when I see him tomorrow....now you've got me curious LOL  
Date: 6/20/2003 6:59:00 PM  From Authorid: 28848    We have a lot of Dollar trees around here. and they have just as much variety as dollar general, if not more. I think they buy wholesale, like a lot of retailers do. If you've notice, most of the products are not expensive items. Cheap plastic toys, kitchen gadgets, and mostly what-nots, ceramics etc. And I have been in the Dollar tree and witnessed people buying over a hundred dollars in products, so they do make a good profit.  
Date: 6/20/2003 7:00:00 PM  ( From Author ) From Authorid: 30401    oh, i see...that makes sense, i guess people just see that EVERYTHING is a dollar and go wild.  
Date: 6/20/2003 7:03:00 PM  From Authorid: 28848    yeah that's what I usually do..lol.  
Date: 6/20/2003 7:30:00 PM  From Authorid: 47699    You have to remember that most of the things they have there are surplus items so they get them for really cheap. They probably don't pay more than a quarter for a lot of things that they sell for a dollar. That's why you never really know what they're going to have from one week to the next. If they make fifty cents or more on everything that they sell and most people buy five or ten dollars worth everytime they go in, you can see how they make money. What amazes me is that some of them have enough money to pay the expensive rent at the mall. Well, they do so that just shows you that they're making money.  
Date: 6/20/2003 7:32:00 PM  From Authorid: 32193    oh, our dollar tree here isnt in the mall lol.. its in a little shopping area but we dont concider that a mall (its like near blockbuster and everything)  
Date: 6/20/2003 7:48:00 PM  From Authorid: 27046    My cousin was assistant manager in the one down the road from us. They can order in a case of 100 pairs of earrings for $8.00. In the end when they sell them all, they get $800.00. $792.00, there is your profit.  
Date: 6/20/2003 7:49:00 PM  From Authorid: 27046    scratch that, it's late I am tired, that was supposed to be they sell for $100 and your profit is $92, but you got what I meant..LOL  
Date: 6/20/2003 9:21:00 PM  From Authorid: 3125    Frank and Az already said what I would have said.   
Date: 6/20/2003 9:55:00 PM  From Authorid: 54987    Because they buy cheap... i.e. nearer to the amount the goods are actually worth. Most stuff, like the clothes are made in sweat shops in Asia for a weekly wage of a packet of cigs.  
Date: 6/20/2003 10:11:00 PM  From Authorid: 61966    They make alot of money when people find out everything is a dollar then they start buying a whole lot thinking its cheap but it adds up after buying a whole lot. My mom and I went there a few weeks ago to buy giftbags and we ended up spending 20 dollars on other things. It's really easy to spend money there. -BreathingBody  
Date: 6/20/2003 11:37:00 PM  From Authorid: 53052    umm they buy into a chain... and the chain buys millions of items at a large bulk rate and then the indvidual store buys those items...  
Date: 6/20/2003 11:46:00 PM  From Authorid: 61677    If you knew how much I spend in a dollar store at one time, you wouldn't even wonder how. lol I love the dollar store.  
Date: 6/21/2003 2:46:00 AM  From Authorid: 53909    I go to the Dollar Tree every now and then. Some of the stuff there are so cheaply made, in my opinon. But you can get some real great stuff there.   
Date: 6/21/2003 3:14:00 AM  From Authorid: 23129    i work at a dollar store and i agree with what i've seen cashiering. ppl always buy way more than they normally would because things are only a dollar. We get lots of customers so i guess that's what makes the money.  
Date: 6/21/2003 4:04:00 AM  From Authorid: 22852    that goes to show how much the other stores "Mark up" their stuff. plus the fact that a lot of the stuff at Dollar Tree is mistake items. Trust me they make money, we just had a new one open up by me too and that place is always packed.  
Date: 6/21/2003 6:47:00 AM  From Authorid: 60018    I always wondered that lol :P  
Date: 6/21/2003 9:52:00 AM  From Authorid: 30986    I know how, cuz I can't leave that place without spending at least thirty bucks. I know I'm not the only one, LOL!  
Date: 6/21/2003 9:55:00 AM  From Authorid: 30986    Another thing, they buy wholesale, you can bet that nothing in that store costed dollar tree, Inc more than about 80 cents each. They buy a lot of things by the gross.  
Date: 6/21/2003 10:39:00 AM  From Authorid: 5252    our store like there here is called GreenBucks, and my answer would be as everyone elses...  
Date: 6/21/2003 1:51:00 PM  From Authorid: 24732    Because a lot of time the things they sell aren't the lowest they could sell them for. They can lower the price slightly, make the claim how cheap the item is, and still reap the profit. They get a profit, but it's lower the other stores. But some items at dollar stores will be higher priced. They try to rip you off with candies and sodas in the front. Then there's the old trick of trying to sell Valentine's Day themed Lucky Charms in the middle of summer. I can't believe I bought two boxes of that junk!  
Date: 12/14/2004 5:44:00 PM  From Authorid: 37843    Hey, I kno this post is over a year old but check this link, it will tell you how the dollar tree makes a profit (make sure to read the comments)or at least it will give u a good laugh! ttyl, WP http://www.unsolvedmysteries.com/usm206388.html  

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