The economics of dollar stores • Hacker News Board

Re: The economics of dollar stores

#101

Post by hn_throwaway_99 » Sun, Jun 27, 2021, 3:34 PM UTC

So if I can summarize the article, the economics of dollar stores are "sell things for more than it cost to buy them".

I mean, it seemed like the article wanted to have some nefarious take, but offering smaller quantities of items so people can afford them, even if the per-unit cost is higher, doesn't seem like some unexpected malicious intent. I mean, I certainly expect to pay more per gram if I'm buying a travel size of toothpaste vs. the 4 megatube family pack at Costco.

And the fact that the stores are oriented so the popular items are in the back - just like literally every grocery store in the country - is also unsurprising.

Re: The economics of dollar stores

#102

Post by paul_f » Sun, Jun 27, 2021, 3:36 PM UTC

lotsofpulp wrote: post #83

mrfusion wrote: post #58

Earlier quoted context omitted.

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

That might be one of the easiest use cases for me to justify spending more on quality, not that I would trust Amazon to sell quality, but from a reputable brand or retail store. I am assuming that a plastic spatula will degrade when heated up, and a lower quality plastic will have a higher probability of degrading and depositing plastic into the food being cooked, which then gets ingested of course.

It could be quite difficult to tell the difference between the two spatulas. They might be identical. Just because it costs more is no guarantee of higher qualify.

Re: The economics of dollar stores

#103

Post by joezydeco » Sun, Jun 27, 2021, 3:37 PM UTC

mkr-hn wrote: post #69

s5300 wrote: post #67

Earlier quoted context omitted.

Ahh. Does this mean that the meat that can be found in some dollar stores finds its way there as it's last stop before becoming animal meal? Does not surprise me one bit.

I think grocery store throw-aways are on a different supply chain. There are stores that sell the old bread from grocery stores. I assume there are stores for meat that's still good but past what the grocery stores stock.

The Dollar Tree in my town actually has expired bread products from Bimbo bakeries (Thomas' English Muffins, Brownberry, etc).

The english muffins are a pretty good deal for $1, considering it's $4+ in the stores.

Re: The economics of dollar stores

#104

Post by krm01 » Sun, Jun 27, 2021, 3:37 PM UTC

hn_throwaway_99 wrote: post #101

So if I can summarize the article, the economics of dollar stores are "sell things for more than it cost to buy them". I mean, it seemed like the article wanted to have some nefarious take, but offering smaller quantities of items so people can afford them, even if the per-unit cost is higher, doesn't seem like some unexpected malicious intent. I mean, I certainly expect to pay more per gram if I'm buying a travel si…

I too was under the impression that there was some kind of clever way these shops operate, based on the title. But the economics are exactly like any other shop.

Re: The economics of dollar stores

#105

Post by bradleyjg » Sun, Jun 27, 2021, 3:39 PM UTC

bumby wrote: post #100

bradleyjg wrote: post #54

Earlier quoted context omitted.

> 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 g…

It’s interesting as well that the policies used (e.g., mortgage interest deductions) are almost universally considered bad policy by most economists. It’s rare to find such a consensus in economics, yet it’s such a third-rail that politicians can’t touch it

It’s “worked” for a very long time. Greatest generation through even some older millennials have been able to treat their homes like a self filling piggy bank.

It’s natural that there would be a lot of denial that this can’t go on forever.

Re: The economics of dollar stores

#106

Post by pfdietz » Sun, Jun 27, 2021, 3:40 PM UTC

Scoundreller wrote: post #85

PopePompus wrote: post #77

Earlier quoted context omitted.

I've been struck by how ugly some stores catering to the poor are. Not ugly because they are cheaply decorated, but intentionally ugly, using things like black on yellow coloring for signage, etc. I guess it's eye-catching, but not in a good way.

Or maybe to signal "yeah, we can afford to shop here"? Like, my dentist's office is really nice. Not just clean, but very nice. I seem to be the only one in our family that realizes that we're the ones that paid for that. Better than charging the same amount for a dumpy office, but makes me wonder how much we've been overpaying. Even a fancy restaurant will follow the 5second rule in the kitchen, but it will be a nic…

> (I never understood granite countertops... they're porous! The last thing you'd want in a kitchen).

https://www.easternsurfaces.com/seal-granite-countertops/

Re: The economics of dollar stores

#107

Post by canadianfella » Sun, Jun 27, 2021, 3:41 PM UTC

Noos wrote: post #81

The article sort of conflates two different models. Dollar Tree is actual "everything in the store is a dollar" while Dollar General and Family General are mostly small retail stores that sell things at a variety of prices. They round prices to the dollar, but otherwise are traditional retail that just locates in unusual locations. Five Below is another "dollar store" in that blend, focusing mostly on goods for young…

Why didn’t you make “dvd/blu-ray” plural?

Re: The economics of dollar stores

#108

Post by lotsofpulp » Sun, Jun 27, 2021, 3:43 PM UTC

paul_f wrote: post #102

lotsofpulp wrote: post #83

Earlier quoted context omitted.

That might be one of the easiest use cases for me to justify spending more on quality, not that I would trust Amazon to sell quality, but from a reputable brand or retail store. I am assuming that a plastic spatula will degrade when heated up, and a lower quality plastic will have a higher probability of degrading and depositing plastic into the food being cooked, which then gets ingested of course.

It could be quite difficult to tell the difference between the two spatulas. They might be identical. Just because it costs more is no guarantee of higher qualify.

As goes with everything in life, nothing is certain. But I operate under the assumption that there is a higher probability that a reputable brand known for selling higher quality goods is actually selling higher quality goods and performing the necessary quality control measures to ensure it.

Of course, one also has to remain informed on which brands are decreasing their quality and cashing in on their reputation.

Re: The economics of dollar stores

#109

Post by PaulDavisThe1st » Sun, Jun 27, 2021, 3:47 PM UTC

paul_f wrote: post #102

lotsofpulp wrote: post #83

Earlier quoted context omitted.

That might be one of the easiest use cases for me to justify spending more on quality, not that I would trust Amazon to sell quality, but from a reputable brand or retail store. I am assuming that a plastic spatula will degrade when heated up, and a lower quality plastic will have a higher probability of degrading and depositing plastic into the food being cooked, which then gets ingested of course.

It could be quite difficult to tell the difference between the two spatulas. They might be identical. Just because it costs more is no guarantee of higher qualify.

Hence ... brands, and other forms of reputation generation and management. Sure, these things are never a guarantee of quality, but the brand owners want you to feel that they are.

Sometimes, too, they do turn out to be!

Re: The economics of dollar stores

#110

Post by failwhaleshark » Sun, Jun 27, 2021, 3:54 PM UTC

Don't even hate on my dollar stores (coworker made a mint on the Dollar Tree IPO... Grr!;)

Okay, good.

There have been numerous agenda (economic? class superiority?) articles about "dollars stores: bad." Somehow that they're racist or responsible for food deserts, poverty, crime, and your grandma yelling at the cleaning lady.