Why is the dollar store so popular?

Question

How do they sell their products for only a dollar? And how do the people who provide them with their products make money from a dollar?

Answer 1

Well pretty much the best way I can explain it to you is..... Most of the stuff that you see and can buy in Dollar stores is either going to go out of date soon, stuff that wouldn't sell in bigger stores, or stuff that was made just for the dollar store.

Answer 2

The dollar store is popular because it provides inexpensive goods. People like the idea of spending only a dollar. How can the dollar store sell products so cheaply? That is another question.

Generally, the dollar store can sell stuff for a dollar because it is not name brand. With many higher priced products, one is paying for the brand name. The brand name often signifies quality. Without the brand name, the quality of the product is in question. It is plausible to argue that many of the items sold in the dollar store may not be of as high a quality as the higher priced counterparts due to items being outdated, or made from cheaper materials. Thus, since production costs are lower, they can charge lower prices and still make a profit. Because everyone likes to get a bargain.

Answer 3

They sell inventory that retail stores couldn't clear in the retail stores. The retailers actually make money when they off load some of the products to the dollar stores.

For retailers, it's alot better to clear this inventory rather than slowing their business cycles, reducing and reducing cashflow by holding these inventory, not to mention paying taxes on them. This is why it is a lot better to sell this stuff at a discount to the dollar stores.

Answer 4

The dollar store is popular because many people don't have much money to purchase necessities. The company purchases bulk products made cheaply in third world companies, thus completing the cycle of movement of manufacturing out of the country, fewer manufacturing jobs in the USA and increased poverty, which in turn motivates even more people to purchase stuff in dollar stores.

Answer 5

Some dollar stores buy whole wharehouses for really, really cheap, so they aren't losing money by selling for a dollar.

Answer 6

because its cheap, and they usually find things that are from stores going out of business or things worth a dollar that other stores over price.

Answer 7

why....you silly wabbitt...
Dont you like to save a buck here and there? Sure you do and myself as well. You just have to watch for their little "Twix", where they sell cheap copies of good products and give imaginary savings. Alas....sad but true.