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Ah, I see, so they make quite a bit of their profit by selling smaller quantities of lower quality goods at higher per unit prices through framing the value proposition carefully and managing expectations to their benefit. Makes sense, given the markets they target, that they're exploiting the effects of the 'Boots' theory of socioeconomic unfairness and quite successfully too.
Ah, I see, so they make quite a bit of their profit by selling smaller quantities of lower quality goods at higher per unit prices through framing the value proposition carefully and managing expectations to their benefit. Makes sense, given the markets they target, that they're exploiting the effects of the 'Boots' theory of socioeconomic unfairness and quite successfully too.
I realize the article mentions that sometimes happens, with their example being a 0.8oz deodorant. But as a frequent shopper it isn't my general experience. I often compare prices and on a unit cost basis (so controlling for the sometimes smaller dollar store quantities) you can almost always buy the same brand from a dollar store for a steep discount compared to a traditional supermarket or Target. In general I feel…
That's also a very interesting discussion to have because from what I understand, payday loans businesses exist because the alternative is worse - people who are desperate will always borrow money from someone, so it's better that they borrow from a well regulated business rather than from the "pay or we'll break your legs" kind. And then the 1000% APR is argued that it's the actual cost of risk with these loans since they default so often.
I absolutely love dollar stores. I recently needed to buy a set of crayons for my son and the options were $5 on Amazon, $4 at Target or $1 at the local Dollar Tree (and the pack had 36 crayons, vs 24 from the other sources!). They're not the right place for everything, but for kids' art supplies, cleaning products, party paraphernalia, seasonal decor, etc, they can't be beat. They seem to have a pretty strong stigma…
The article claims that Dollar Stores are more expensive. They often sell smaller amounts to meet the price, but unit cost is more
Earlier quoted context omitted.
The article claims that Dollar Stores are more expensive. They often sell smaller amounts to meet the price, but unit cost is more
Could be that they lure people in with lower unit costs on some key, easily comparable items, and then the customer ends up buying a bunch of higher margin items too. That happens to me often - go in for something I know is way cheaper than at Walmart and directly comparable, and end up picking up a few other things that may not be a killer deal but saves a second stop at another store.
It's the same strategy fishermen use when they invest a small amount of money at the bait store before a fishing trip. As you said, it's a lure.
The strategy is not exclusive to dollar stores.
> Like other retailers, a dollar store's interior layout is set up so that commonly purchased staples like cleaning supplies and milk are in the back of the store. This requires shoppers to walk through other aisles, resulting in impulse buys.
So, people's thoughts and decisions are affected by what is immediately in front of their eyes, despite their considered intentions arrived at through deliberation.
We all know that's true because it happens to us, and we've all experienced forgetting something until we walk out of the house, and then returning to inside the house or room before we can remember it again. Our thoughts are significantly dependent upon our circumstances.
What's surprising is that the full impact of our non-independence of thought has not been well accounted for by philosophers who speculate about the concept of free will.
I absolutely love dollar stores. I recently needed to buy a set of crayons for my son and the options were $5 on Amazon, $4 at Target or $1 at the local Dollar Tree (and the pack had 36 crayons, vs 24 from the other sources!). They're not the right place for everything, but for kids' art supplies, cleaning products, party paraphernalia, seasonal decor, etc, they can't be beat. They seem to have a pretty strong stigma…
Earlier quoted context omitted.
I realize the article mentions that sometimes happens, with their example being a 0.8oz deodorant. But as a frequent shopper it isn't my general experience. I often compare prices and on a unit cost basis (so controlling for the sometimes smaller dollar store quantities) you can almost always buy the same brand from a dollar store for a steep discount compared to a traditional supermarket or Target. In general I feel…
>>That's sometimes merited (payday loans!) That's also a very interesting discussion to have because from what I understand, payday loans businesses exist because the alternative is worse - people who are desperate will always borrow money from someone, so it's better that they borrow from a well regulated business rather than from the "pay or we'll break your legs" kind. And then the 1000% APR is argued that it's th…
The argument against payday lenders is a paternalistic one with moralistic overtones, with all the potential flaws that might entail.
I absolutely love dollar stores. I recently needed to buy a set of crayons for my son and the options were $5 on Amazon, $4 at Target or $1 at the local Dollar Tree (and the pack had 36 crayons, vs 24 from the other sources!). They're not the right place for everything, but for kids' art supplies, cleaning products, party paraphernalia, seasonal decor, etc, they can't be beat. They seem to have a pretty strong stigma…
You could just shop in China yourself (AliExpress)
Ah, I see, so they make quite a bit of their profit by selling smaller quantities of lower quality goods at higher per unit prices through framing the value proposition carefully and managing expectations to their benefit. Makes sense, given the markets they target, that they're exploiting the effects of the 'Boots' theory of socioeconomic unfairness and quite successfully too.
The data presented suggest that poor, uneducated (innumerate) populations of consumers try to find most of what they need at one store and do not calculate price per unit (PPU). Or if the poor are aware of PPU disadvantages, they have a sense that shopping elsewhere isn't worth spending more time and energy. So the $DiscountFranchise just needs to be able to locate itself as close as possible to the socioeconomic-tar…
Earlier quoted context omitted.
The article claims that Dollar Stores are more expensive. They often sell smaller amounts to meet the price, but unit cost is more
That's not "expensive". Expensive is that I need to pay $1.99 for something and I have throw away half of it because I couldn't use it. I'd rather spend $0.99 for 1/3 the quantity. I am spending less money after all.