- Dollar stores often charge more on a per-unit basis compared to other retailers, but they still offer value.
- A budget shopping expert explains the benefits for budget-minded shoppers.
One of the reasons why dollar stores can sell items for a dollar – or $1.25 – is by offering smaller quantities. They charge more on a per-unit basis, allowing customers to find products under $10. These chains often collaborate with consumer goods brands to create smaller versions of the same products found in traditional retailers.
While it may seem like a better deal upfront, customers end up spending more per ounce or per item for the same items. However, discount shopping pro Rebecca Chobat argues that this doesn’t mean consumers don’t benefit.
Chobat believes dollar stores are extremely helpful for people on a tight budget. Unlike other stores with higher prices and larger package sizes, dollar stores allow budget-minded shoppers to fill their carts with groceries and stay within their limited budget.
Chobat shares tips and tricks on her TikTok channel, @dollartreedinners, where she demonstrates how to buy and cook a week’s meals using $35 worth of groceries from Dollar Tree and Dollar General.
In one of her recent videos, she addresses the price-per-ounce dilemma. While wholesale clubs like Costco or Sam’s Club may offer the best price-per-unit, customers often have to buy more units, leading to potential waste if they don’t utilize everything they purchase.
Chobat highlights a scenario where someone with $20 can buy a 10-pound bag of potatoes for $7.50 or a five-pound bag for $5. Although the larger bag seems like the better price per pound, if the customer ends up throwing away half of it, they’ve essentially paid more for the same amount of potatoes. Chobat emphasizes the importance of avoiding unnecessary spending and waste.
She also mentions the advantage of purchasing smaller-sized items at a lower price. This allows customers to have a greater variety of items in their weekly shopping basket, compared to shopping at bulk retailers where they may only walk out with a limited number of items.
For cash-strapped consumers, dollar stores have become a popular option for buying groceries as food prices continue to rise in the US.
In addition to selling smaller quantities, dollar stores employ other strategies to keep prices low. This includes operating stores with a minimalist design that are cost-effective to build and maintain. They also stock a wide selection of store-brand goods, eliminating the need to pay extra for brand names and enabling them to negotiate prices with manufacturers.
Overall, these tactics allow dollar chains to offer items at 20% to 40% lower prices than other retailers.
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