How Dollar Stores Really Make Their Money

How Dollar Stores Really Make Their Money

Every year, dollar stores see higher and higher earnings, but how can a store that seems like it’s giving things away turn itself into a multi-billion-dollar enterprise? The answer is simple: that dollar isn’t always the great deal it appears to be. Here are their secrets.

Whether times are good or bad, you can still count on people to flock to dollar stores because they have the one thing everyone loves: convenience. Sales for Dollar General are always on the upswing, with the chain seeing an increase of 3.7 percent between 2017 and 2018, regardless of the state of the economy. Take it from Dollar General CEO Todd Vasos, who had this to say about their regular customers:

“We have seen no sign of trade out or trade up from our core customers. Even in a good economy, [they are] still looking for value and convenience.”

So, basically, no matter how much money people have, they still want something that bigger grocery stores can’t give them. Dollar stores are not just convenient because their items are cheaper, but also because there seems to be one on every corner — and that makes them perfect for a quick fill-in trip between your weekly grocery runs. These stores are also typically smaller than the ones in a big chain like Walmart, which means that you can usually get in and out with your emergency bag of dog food, a handful of snacks, or supplies for your kid’s art project in just a couple of minutes. The fact that most people are on to this, means dollar stores are always making money — even if customers buy just a few things.

Watch the video to learn how dollar stores really make their money!

#DollarStores #DollarTree #FamilyDollar

Convenience is key | 0:15
Location, location, location | 1:36
Getting those low-income customers | 2:47
Not always a deal | 3:29
The illusion of a discount | 4:23
Cheaply made items | 5:29
Design strategies | 6:46
Hiring few employees | 7:59
Private-label items | 8:50
Causing “economic distress” | 9:51


  1. rayva1 on October 19, 2020 at 3:13 pm

    Dollar stores can’t beat Walmart.

  2. Xoxox Livelovelife24 on October 19, 2020 at 3:13 pm

    I understand that the shit there is cheap. But I think people could pick out what is nice for a dollar and what isn’t. And for the Aluminum foil argument yeah all the aluminum foil at Walmart might be 18 feet but what if that cost three bucks or some shit but at the dollar store you could buy two of those and get more for your money.

  3. Carl Thornton on October 19, 2020 at 3:14 pm


  4. Reyna Morgan on October 19, 2020 at 3:15 pm

    I work at a dollar tree there are times I wonder why some consumers buy 100 food items with some being canned food and i was talking to a customer and they also think some food a person should spend the extra dollar for some food such as produce at some other stores such as Walmart

  5. Minty Bear on October 19, 2020 at 3:16 pm

    Dollar Tree is the only one that has 1$ prices.I go to Dollar General too and I think it is pretty good. Some products I bought from Dollar General are pretty good and I often buy from the art/office supply section. Dollar Tree is fine too.

  6. Dynamac mc on October 19, 2020 at 3:20 pm

    There’s a DG right near an Ingles and it gets no customers and their still in business

  7. Exodus N on October 19, 2020 at 3:22 pm

    Makes sense that you get what you pay for, lower price equals less product. Certain things are awesome to get from dollar stores though. Got a $1 hammer that has lasted me 3 years

  8. Vernon Delap on October 19, 2020 at 3:24 pm

    My small ass hillbilly town has 3 of these stupid POS stores, Dollar Tree, Family Dollar, and a Dollar General. SMH, cant wait till they finally leave for good when they do

  9. Patti Scott on October 19, 2020 at 3:24 pm

    I buy stuff for crafting which is way awesome for budget. I’m good with it. I normally buy food at local groc stores
    My dollar tree is way busy too

  10. Mashed on October 19, 2020 at 3:26 pm

    Which is the best dollar store?

  11. Mamasita on October 19, 2020 at 3:27 pm

    PSA: to rich neighborhoods they got better stuff

  12. Are RAMI on October 19, 2020 at 3:27 pm

    My local dollar tree and dollar general are in shopping centers. One is next to the grocery store. Definitely not rural area in my case.

  13. Snipe M.D on October 19, 2020 at 3:27 pm

    6:54 I thought the woman in the blue sweater was the one speaking for a moment.

  14. Javier Rios on October 19, 2020 at 3:29 pm

    “Stuggling economically” why not just say broke (i wish i wasn’t broke)

  15. Hog A on October 19, 2020 at 3:30 pm

    there is a lot of misinformation in this vid…

  16. William Kalagayan on October 19, 2020 at 3:31 pm


  17. Canadian Outdoor Wonders on October 19, 2020 at 3:31 pm

    Surprised dollar tree doesn’t have there online games on portable video game system at the dollar tree

  18. Bookhardtsbooks on October 19, 2020 at 3:33 pm

    I’ve been using my $1 extension cord from dollar tree for 2 years and it hasn’t broken yet…

  19. Jodee Rochelle on October 19, 2020 at 3:33 pm

    Stop shopping at Dollar General!!! One every 7 miles apart.

  20. Margo The Parakeet on October 19, 2020 at 3:34 pm

    So I guess the Dollar Tree logo is the logo for Dollar General 💀

  21. Masterperch on October 19, 2020 at 3:37 pm

    Dollar general isn’t a dollar store…

  22. Crystals Abundance on October 19, 2020 at 3:40 pm

    The truth is items for the dollar store are of lower quality. An expert told me items have high levels of lead. I still shop there! Since there are no quality police guarantees at Walmart.

  23. Hare Krishna in the Movies on October 19, 2020 at 3:42 pm

    Electronic fever thermometer at The Dollar Tree: $1. Exact same thing at Walmart: $2.98!

  24. Betty Bell on October 19, 2020 at 3:42 pm

    There are certain things I always buy from dollar stores. My local Walmart is a nightmare to get in & out of. Most of the essentials I have had to hunt for (because of horders) I’ve found at dollar stores. Sometimes we buy the cheap stuff because we only plan to use it one time.

  25. weimermh1 on October 19, 2020 at 3:43 pm

    Sometimes you’re poor so you buy whatever or a dollar. Ok I have.

  26. Kithalie on October 19, 2020 at 3:44 pm

    Best dollar store is the ¢99 store, but sadly they don’t have that in Florida

  27. general_chiang45 on October 19, 2020 at 3:45 pm

    Everyone shown in this video does not portray these kind of stores actual customers 😂

  28. Womblast X on October 19, 2020 at 3:46 pm

    Our DG & grocery store aren’t that far from each other

  29. Laura Landon on October 19, 2020 at 3:47 pm

    Because your customers wages have not grown eek

  30. Jeffrey Hathaway on October 19, 2020 at 3:47 pm

    The narrator’s voice is so annoying I couldn’t even watch this after a few seconds!

  31. local Devil on October 19, 2020 at 3:49 pm

    When you only go to the dollar tree for candy for the movies

  32. ka rla on October 19, 2020 at 3:50 pm

    This is glorious, I’ve been looking for "does buying in bulk really save money?" for a while now, and I think this has helped. Ever heard of – Lanreenan Foremost Leverage – (just google it ) ? It is a great exclusive product for discovering how to find luxury or designer goods at wholesale or lower prices without the normal expense. Ive heard some pretty good things about it and my friend got cool results with it.

  33. Horsey Dreams on October 19, 2020 at 3:50 pm

    Who’s watching this during quarantine… and your for you page has weird stuff in it 😂

  34. Dorothy Huddleston on October 19, 2020 at 3:53 pm

    Dollar tree doesn’t pay employee enough true story $9.25 .. cashier no customer services , mangers angry mad . if you are cashier, clean bathrooms , clean floors , food put back on shelf’s, go get shopping carts . Too many customers shopping .. great buy’s love shopping $1

  35. Smokescreen Inc on October 19, 2020 at 3:54 pm

    Here in Canada, Dollar stores are everywhere, not just in poor communities. Dollarama is the big chain here!

  36. Tawania Olamiju on October 19, 2020 at 4:01 pm

    Use those digital coupons at Dollar General and Family Dollar, and those paper coupons at Dollar Tree.

  37. #!%?#!%? on October 19, 2020 at 4:01 pm

    COOL! 12 Bud Light for a buck and a quarter!? Color me there!

  38. Johnathan Wood on October 19, 2020 at 4:02 pm

    This video is totally inaccurate.

  39. Peter Bernardo on October 19, 2020 at 4:02 pm

    Why do people call Dollar General and Family Dollar dollar stores. They aren’t. Dollar Tree and Just A Buck are.

  40. Will Ganness on October 19, 2020 at 4:03 pm

    Many of their products are more expensive if you compare it to walmart or Costco. Thats the catch. Most of those canned goods are like 88c in walmart.

  41. Raad Shininy on October 19, 2020 at 4:04 pm


  42. Harriet Kaufman on October 19, 2020 at 4:06 pm

    I hate shopping so I love my dollar store

  43. Heriberto Rodriguez on October 19, 2020 at 4:07 pm

    This person doesn’t know what she’s talking about. I live in an upscale Suburban neighborhood, and there’s a dollar tree just half mile from my house right next to a Jewel Foods Supermarket market. Most people that shop at this store are upper middle class suburbanites. Dollar store locations has nothing to do with poor neighborhoods. If I spend a dollar for an item at Dollar tree then I know that I’m getting a dollar worth of an item. If I want to spend more for a higher quality item then I go downtown to Bloomingdale’s. It’s the same difference if you pay one dollar for less, at Dollar tree, then if you pay more money for more at Walmart.

  44. Angel Blohm on October 19, 2020 at 4:07 pm

    WalMart has been one to purposely put competition out of business. In my area, there are as many dollar stores as grocery stores and WalMarts.

  45. on October 19, 2020 at 4:08 pm

    *The 99$ only store is now 99 lies for 2.99* 😒

  46. Gedalia Miller on October 19, 2020 at 4:09 pm

    wait they j switched to dollar treee not the samee

  47. The Low Quality Collector on October 19, 2020 at 4:10 pm

    three things wrong with this video

    1. dollar tree’s are almost always by grocery stores

    2. dollar tree is the only one that sells thing for a dollar

    3. most of the people going to these places are barely able to afford gas so their not gonna care if the item is long lasting (I know from experience).
    PS the lady eating mayo was gross

  48. Ob Bop on October 19, 2020 at 4:10 pm

    The Founders told We, the People what must be done when tyranny rears its ugly head. Corporate entities can be as tyrannical as government. Especially when government is intertwined with the corporations politicians and bureaucrats adore. Corporations are the entities hiring departing political and bureaucrats at huge wages, not the masses of common folks. Government constantly shows We, the People where their loyalties lay; the money purveyors and I do not mean individual tax payers.

  49. Nissan Skyline GT-R V-spec II Nur R34 '02 on October 19, 2020 at 4:12 pm

    3:03 That late reaction

  50. Christopher Skipp on October 19, 2020 at 4:12 pm

    As the American middle class becomes extinct, dollar stores, at least initially, will not run out of business. Of course, in the process, they drive out local businesses and long-time local owners who have been there years. Dollar stores and Wal-Marts serve our Chinese masters well, no?

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