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The economics of dollar stores

thehustle.co

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Re: The economics of dollar stores

#51

Post by sfifs »

raverbashing wrote: post #49
sfifs wrote: post #42

Earlier quoted context omitted.

This isn't correct. Big brands virtually never skimp on product quality for smaller stores because it harms the long term equity and value. They customize quantity.

These products are so well optimized now they're mostly margin and packaging/shipping/handling cost. I doubt your toothpaste tube cost more than $0.50 in actual materials to make. And on a store this can go for $3? $4? (from a quick look in Amzn - approx values the cheapest one is $8 for 6)

CPG industry margins are quite public as almost big brands are owned by listed companies. They're not high. The highest margin categories for big retailers i believe tend to be clothing.

Re: The economics of dollar stores

#52

Post by kube-system »

eisa01 wrote: post #40
herbst wrote: post #31

Earlier quoted context omitted.

AliExpress has escrow. You are essentially less likely to be screwed than with Amazon (no escrow, and still many shady sellers) I also never had empty or wrong products show up, and I shop nearly everything that is made in china anyway directly from ali. And assuming it would happen, I just get my money back thanks to escrow.

I was still screwed, couldn’t get a refund on a 10 USD USB-C headphone adapter that hissed with my iPad. They claimed they couldn’t hear it on the video I submitted, and there was no possibility to protest or submit a new recording

I too have been screwed by Aliexpress escrow. It’s worthless and protects the seller first.

I got a combined shipment that was missing an item. I sent a message telling them that one item in the shipment was missing. They responded by saying that the tracking number showed delivered, closed the case, and gave me no way to respond.

I buy from Chinese sellers on eBay instead, their buyer protection actually works.

Re: The economics of dollar stores

#53

Post by atlanta90210 »

Family Dollar operates a store near me in Atlanta. Their parking lot is so filthy sometimes the neighbors organize to go clean it up.

It appears to me Family Dollar hates their customers given the food choices, the attitude of the employees and how they maintain their property. I avoid them all.

Re: The economics of dollar stores

#54

Post by bradleyjg »

41209 wrote: post #33
gambiting wrote: post #22

Earlier quoted context omitted.

>>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 worse alternative is sleeping on the streets when you can't pay your rent. While I do think payday loans are evil, I recognize why they exist. I would prefer a much more robust housing support system for lower income people. Almost all of society's problems could be fixed with more affordable housing. For example let's say you have abusive parents, if affordable housing exist the moment you turn 18 you can up and…

> I would prefer a much more robust housing support system for lower income people. Almost all of society's problems could be fixed with more affordable housing.

> When I was young I was able to find a $600 apartment, on the free market. Now the same place is 1200$.

The issue is that the overwhelming goal of politicians at all levels is to increase the value of individually owned residential units above the rate of general inflation. This is far and away the most popular form of welfare and impossible for any politician to oppose. It is also diametrically opposed to affordable housing so any and all affordable housing proposals are bound to be ineffective bandaid proposals.

If we want affordable housing the only way to get it is first lower the homeownership rate.

Re: The economics of dollar stores

#55

Post by vel0city »

hytdstd wrote: post #8

It's fascinating how the coverage map is so drastically different from the typical US population map. In particular, they completely cover the east half of the US, but not the west.

Uh, it seems like it tracks a US population map pretty well. The Western half of the US is largely pretty sparse with only pockets of densely populated cities.

https://commons.m.wikimedia.org/wiki/File:US_population_map....

Re: The economics of dollar stores

#56

Post by [deleted] »

fennecfoxen wrote: post #27
gambiting wrote: post #22

Earlier quoted context omitted.

>>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…

At some point APRs really stop making sense for two-week loans. It's easier to understand what people pay in three parts: processing costs, a risk premium, and the lender's margin. Fordham Journal of Corporate & Financial Law estimated the margin at 3.75%. The argument against payday lenders is a paternalistic one with moralistic overtones, with all the potential flaws that might entail.

[deleted]

Re: The economics of dollar stores

#57

Post by herbst »

eisa01 wrote: post #40
herbst wrote: post #31

Earlier quoted context omitted.

AliExpress has escrow. You are essentially less likely to be screwed than with Amazon (no escrow, and still many shady sellers) I also never had empty or wrong products show up, and I shop nearly everything that is made in china anyway directly from ali. And assuming it would happen, I just get my money back thanks to escrow.

I was still screwed, couldn’t get a refund on a 10 USD USB-C headphone adapter that hissed with my iPad. They claimed they couldn’t hear it on the video I submitted, and there was no possibility to protest or submit a new recording

I got my money back each time so far if the item was broken or different than advertised. No questions asked. Prolly they are more careful with European customers? Maybe because I spent relatively large amounts already? No idea

Re: The economics of dollar stores

#58

Post by mrfusion »

kcorbitt wrote: post #2

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…

Agreed. The cheapest I could buy a plastic spatula on amazon was $7? Bought one for a dollar instead. Seems to work fine.

Re: The economics of dollar stores

#59

Post by arcturus17 »

raverbashing wrote: post #49
sfifs wrote: post #42

Earlier quoted context omitted.

This isn't correct. Big brands virtually never skimp on product quality for smaller stores because it harms the long term equity and value. They customize quantity.

These products are so well optimized now they're mostly margin and packaging/shipping/handling cost. I doubt your toothpaste tube cost more than $0.50 in actual materials to make. And on a store this can go for $3? $4? (from a quick look in Amzn - approx values the cheapest one is $8 for 6)

Toothpaste costs $6-$8 in Amazon US? Holy cow.

Re: The economics of dollar stores

#60

Post by mnahkies »

celticninja wrote: post #41
alkonaut wrote: post #34

Earlier quoted context omitted.

At some point I bought a sampler set of miniature colognes from one of the big makers (CK I think). Probably 5 x 5ml or something. Dirt cheap, and perfect for traveling. Turns out 5ml of cologne is enough for years and years if you use it rarely and sparingly (as you should). The huge 50 or 75ml perfume bottles must be one of the products most often thrown out without finishing. I bet CK thought these sampler sets wo…

No sure they are thrown out due to the expense, I know I would never throw one out. But I do end up with 3 different ones on rotation because I don't want the same smell all the time. Smaller ones would certainly be better for variety.

They effectively have no expiration date as well, so there is no sense in throwing them out.

Personally I'm happy with my one scent though and will just keep using that until it runs out

Really what I was getting at with my original comment was more about food, and how it sometimes makes sense to take the higher price with a smaller quantity, iff you don't believe you'll be able to consume the larger quantity before it expires

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