What’s the Secret That Keeps Dollar Store Prices So Low?

Ever wonder how a dollar store can turn a profit with such low prices? A lot of it has to do with how those stores stock their shelves.

Dollar stores and others like it can be great places to pick up home items on the cheap but have you ever wondered how dollar stores can keep their prices so low?

Surplus Items

It probably doesn’t come as a surprise that dollar stores typically stock surplus items, items that are damaged or have a lack of freshness. Other items just come in smaller sizes and the stores keep a small staff to save on staffing costs. These are 13 holiday items you should buy at the Dollar Store.

Impulse Buys

Plus, dollar stores rely on people making impulse buys. Since everything is a $1, it’s easier for consumers to pick up additional items.

Overhead Costs

Dollar stores have expanded dramatically since the Great Recession to where there are more than 30,000 in the U.S., which is more than Walmart, Walgreens, CVS, Costco, Kroger and The Home Depot combined. Part of the secret to the rise of dollar stores is they have smaller square footages than other stores, which helps save on overhead. These are 17 things you shouldn’t buy at the dollar store.

Purchase Cost

Dollar stores buy a lot of inventory at a time so they can sell things cheaply. Much of the inventory dollar stores purchase cost less than a $1 because they’re damaged. But it’s buyer beware with items like toys, which can break easily at times.

These are 12 things Dollar Store employees won’t tell you.