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Dollar Tree says US$1.25 price point to become new standard

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Re: Dollar Tree says US$1.25 price point to become new standard

#281
post #142
post #122

Earlier quoted context omitted.

(Not from around there) Costco demands higher quality ingredients? I thought it was a low-end cheap bulk/wholesale place?

Costco is known for less of a choice, but whatever choice there is you can trust it to be of a higher quality. When I go to Costco I definitely have my guard down and don’t vet and don’t scrutinize each product as much as i would do at other stores.

Be careful, though; this isn't necessarily the case on costco.com.

For example: https://www.costco.com/theradome-evo-laser-hair-growth-devic...

Re: Dollar Tree says US$1.25 price point to become new standard

#283
post #176

Earlier quoted context omitted.

> afford Afford is an elusive concept. Dollar stores are often more expensive per-unit, but cheaper per-package. If the shoppers had better access to financing, some might choose to take a longer trip to, say, Costco, and buy things at a cheaper per-unit price in a more expensive package.

Pretty sure the idea of financing groceries, or common daily/weekly expendables isn't a very good one.

Depends on the price, of course. Compare the per-unit prices, your warehousing costs, and the interest rate on the loan.

Re: Dollar Tree says US$1.25 price point to become new standard

#284

Earlier quoted context omitted.

> They do it because it’s literally all they can afford anything else. Dollar stores very often aren’t cheaper than other sources for similar products especially for grocery items (which they tend to have very limited selections of.) People that shop for groceries at dollar stores do it because: 1. They shop for other things at dollar stores (either for price, or for reason #2, or because its the only place close by…

Classic analysis by someone who seemingly has never been dirt poor. It may be tough to believe, but y'know what'd surprise literally none of the poors if you told them? That they pay more money for less product at the dollar store than elsewhere. Despite their limited ability, they ARE able to look at price tags in different stores and go "hey, wait a minute!" If you're dollar store level poor, it's expensive and str…

Dollar stores are a relatively recent phenomenon, a consequence of the destruction of local retail by various chains--first chain groceries, then Wal-Mart, etc. Dollar stores have slowly filled in the gaps left by the closure of local retailers and low-end chains like A&P. At first chains drove down prices, such as precipitous price declines brought by chain groceries, and then those Wal-Mart brought to everything else. But consolidation in the chain industry, including Wal-Mart displacing lower end chains and then slowly moving up market, left gaps, especially at the very low end. Dollar stores slowly filled in those gaps, but as they did so they ceased being literal dollar stores. And like any for-profit chain, they've begun using their market dominance to increase prices.

> Despite their limited ability, they ARE able to look at price tags in different stores and go "hey, wait a minute!"

Not really. Dollar stores have become so ubiquitous precisely because of their market dominance in areas without options--retail deserts, if you will. If you've really been dirt poor--and dirt poor outside the major cities and suburbs--you would know that driving 20-30 miles to the Wal-Mart two towns over, presuming they even have lower prices, can be cost prohibitive (especially when considering wear-and-tear and the risk of breaking down) when you're living day-to-day, even though in the long-term you end up paying more at the dollar store. Drive across the vast areas of rural and poor America and you'll see dollar stores in the most random and remotest of places; places that 10, 20, or 30 years ago had more options--you may even see their long shuttered remains somewhere nearby.

This is the classic dilemma the impoverished face, and have always faced--it takes money to make (or save) money. Yes, increases in prices at dollar stores will negatively impact alot of people. But when decrying the state of the nation you have to understand why that is and what it means. For example, before someone blames inflation, maybe they should look at profit margins. AFAICT, they've rose relatively sharply since COVID-19: https://www.macrotrends.net/stocks/charts/DG/dollar-general/... Indeed, the "narrowing" of Dollar Tree's earnings forecast mentioned in the article, from $5.40-$5.60 to $5.48-$5.58, is maybe better described as an upward adjustment. I suspect the price increase will help margins even further.

Re: Dollar Tree says US$1.25 price point to become new standard

#285

I don't think that people in this thread appreciate how prevalent grocery shopping in dollar stores is. In the US, half of shoppers buy groceries from a dollar store. They do it because it's literally all they can afford anything else. There are more dollar stores than Walmart, Starbucks and McDonald’s combined. "Kyle Dishman can’t afford to shop at the local grocery store anymore. Instead he goes to Dollar General,…

Maybe HN is richer than I thought, but I shop at Dollar Stores all the time and have a very good paying job. And I’m not alone, it’s not just poor people who shop there (go to the one in Daly City and see the clientele).

This thread comes across as incredibly out of touch. It’s like a bunch of upper middle class who imagine themselves lower middle class and anyone who shops at Walmart (yuck!) or Dollar Store must be destitute. Despite those stores being pretty average places to shop for most Americans.

You can get killer deals there. They tend to sell two different things:1) excess stock they got cheap and sell cheap and 2) normally high margin items for less.

Their health section is amazing compared to say CVS or Walgreens. We’re talking 80% cheaper for the same thing.

Not everything is cheaper but a lot of it is.

Re: Dollar Tree says US$1.25 price point to become new standard

#286

I don't think that people in this thread appreciate how prevalent grocery shopping in dollar stores is. In the US, half of shoppers buy groceries from a dollar store. They do it because it's literally all they can afford anything else. There are more dollar stores than Walmart, Starbucks and McDonald’s combined. "Kyle Dishman can’t afford to shop at the local grocery store anymore. Instead he goes to Dollar General,…

The big problem with this is that Dollar Stores generally don't have a produce section. Everything is in a box, bag, or can. This is not healthy. $40/week for a single person isn't an easy food budget, but I think could manage that at my grocery store. It's $5.71 per day for three meals. You really need to optimize for calories. Pasta, dried beans, potatoes, not much meat or dairy, even produce is a bit of a luxury.…

The dollar store I go to has a big frozen food section including frozen veggies which are as nutritious as fresh as far as I’ve heard.

Re: Dollar Tree says US$1.25 price point to become new standard

#288

Earlier quoted context omitted.

A 50lb bag of white rice can be had on Amazon for $88, which translates into roughly 1k calories/$1 delivered to your doorstep for free in two-three days. You can get similar calorie/$ value with pasta, peanut butter, oatmeal. No one who has $40/week to spend on food in America needs to go anywhere close to hungry if they don't waste their money and time driving to dollar stores to buy overpriced non-bulk groceries.…

Ok, so you now need: A credit card + bank account A stable address and room to store bulk stuff A place to get packages where they won't be stolen $88

You’re talking homeless which is a subset of poor.

Whenever someone says “the poor can do this” someone comes along to give an example of poor people who can’t. We get it, but there are plenty of poor who can do those things.

Re: Dollar Tree says US$1.25 price point to become new standard

#289

Earlier quoted context omitted.

Anyone who hasn't gotten a raise in the past year should get at least 6.2%, unless their employer is signaling to them that they value their contributions 6.2% less than last year. If you improved your skills at all, or took on additional responsibilities due to Covid 25% isn't at all a stretch, especially at dollar store wages.

> unless their employer is signaling to them that they value their contributions 6.2% less than last year Not getting a raise doesn't mean your employer necessarily values you less - it could just mean others value you less so your employer has less competition for you. Supply and demand. If nobody's buying hammers and the price of hammers goes down, that doesn't mean the value my hammer brings me has gone down, but…

Yeah, that sounds cool and all, but somehow I ended up with a job that pays over $100K a year, that makes me work for about 3 hours a week from home and has been paying me for years to do that. And I'm pretty sure my manager knows that.

If I were to quit, I'd end up with another job that makes me work for 30+ hours a week, for the exact same salary. And that's just one example. I know many more like that.

Your supply and demand can't explain that, yet it is my daily reality in a capitalist society. Capitalism is just another lie we tell each other to make each other believe we live in a just world.

Re: Dollar Tree says US$1.25 price point to become new standard

#290

Earlier quoted context omitted.

> unless their employer is signaling to them that they value their contributions 6.2% less than last year Not getting a raise doesn't mean your employer necessarily values you less - it could just mean others value you less so your employer has less competition for you. Supply and demand. If nobody's buying hammers and the price of hammers goes down, that doesn't mean the value my hammer brings me has gone down, but…

Yeah, that sounds cool and all, but somehow I ended up with a job that pays over $100K a year, that makes me work for about 3 hours a week from home and has been paying me for years to do that. And I'm pretty sure my manager knows that. If I were to quit, I'd end up with another job that makes me work for 30+ hours a week, for the exact same salary. And that's just one example. I know many more like that. Your supply…

How do you explain it? Do you think they pay you out of charity? Seems unlikely to me.
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