Remix.run Logo
hamdingers a day ago

Even if they accurately charged shelf prices, these places are still a ripoff targeting the vulnerable. The list price is low but the per-unit price is astronomical compared to grocery store prices.

kube-system a day ago | parent | next [-]

While that can be bad, sometimes you come out ahead after accounting for spoilage, time, and travel.

Sometimes I pay higher unit prices at a dollar store intentionally because they offer smaller package sizes not offered elsewhere and I only need the smaller amount. I could get a much better unit price at another store but would waste the rest of the product.

kotaKat a day ago | parent [-]

Speaking of travel, that's why I go for them.

If I'm going for a multi-day stay somewhere and I don't want to deal with annoying mini bottles of hotel soap, I'll just pop into a Dollar Whatsit for a small bottle of something suitable at my destination.

qingcharles a day ago | parent | prev | next [-]

I lived for an entire year out of just Dollar General and Dollar Tree. In some rough areas they are the only stores where you can buy groceries, so they have very clear monopolies. There are good value products, and like everything these days you have to use their apps to get the best offers. Also, the Dollar General app lets you check the price of everything before you take it to the counter. They regularly have items marked up at 1 cent.

raw_anon_1111 a day ago | parent | prev | next [-]

Saying it only targets the vulnerable because of high unit prices is like saying the local gas station is a rip off that only targets the vulnerable because prices are higher.

I lived in a city that’s in North Metro Atlanta (Johns Creek) where the median household income was $160K. There was a Dollar General right by a Publix. People still went in the Dollar General for little things where the small packages that you could buy was feature and not a bug.

We still stop by the dollar store for snacks sometimes because it is convenient just to get things to pack for a flight. It’s especially popular for tourists in Orlando where I live

pests a day ago | parent [-]

There is one near Naples in Florida I go to often just for the insane drink discounts compared to the Publix or Wawa or the Walmart Neighborhood Market thing across the street.

neilv a day ago | parent | prev | next [-]

The "dollar stores" vary.

I've been able to find good deals on some things at Dollar Tree. Usually the good deals were a smaller quantity of a normal-quality brand-name item. I mostly avoid the substandard quality items. But even sometimes substandard is OK if, say, you want to make your political demonstration sign on white foamcore (much cheaper than the art supply store, and you don't care if it's smaller, thinner, or outgassing) rather than on an Amazon shipping box.

There was a Family Dollar across from a large public housing project here, where I also went looking for deals, but the shelf prices looked like a convenience store. I didn't find out whether they were fraudulently charging even more at the register like this article describes. (I hope it closed because the residents knew there was an affordable Market Basket a 20-30 minute walk away, over the city line and train tracks, and they were able to get there and find the time for it.)

a day ago | parent | next [-]
[deleted]
analog31 a day ago | parent | prev [-]

>>> rather than on an Amazon shipping box.

My wife attended a political protest, and said she noticed signs made from my employer's shipping boxes.

neilv a day ago | parent [-]

That's great, and a mix of all kinds of signs is to great effect. (People from all sorts of demographics using whatever means they can to be heard.)

Sometimes the sign-makers are artistically inclined, and may have access to better materials.

The most memorable example was at the political demonstrations (and counter-demonstrations) leading up to the Massachusetts constitutional convention that legalized gay marriage. For the State House one I photographed (learning photojournalism on the side), the anti-gay-marriage people were mostly bused in, including a pair of angry-looking old nuns in black full habit, and handed out the same ugly stock sign. (There's an obvious joke that they couldn't find a graphic designer who was sympathetic to the anti-gay cause.) Separated from them, across a street was a huge counter-protest, with an ocean of all sorts of creative, colorful, and positive handmaid signs, held by generally good-natured and thoughtful looking people.

adrr a day ago | parent | prev | next [-]

Have you ever been to a dollar store? Its much cheaper for the same items than a regular grocery store. Also not everyone needs a Costco sized tub of mayo. You test it yourself go by a standard sized candy bar at safeway/alberstons and then at a dollar store. Bottle of coke. Birthday card. Better yet compare the cost spices. Try to buy bay leaves at regular grocery store for under $5.

hamdingers a day ago | parent | next [-]

Candy bars and soda sure whatever. Look at essentials. The dollar store near me charges $1.99 for 8oz of Tide, the Albertsons a single block further charges $9.99 for 84oz, the dollar store is over double the cost. It's the same story with soap, cleaning products, etc. A tiny container for cheap feels like a deal if you can't do the math, but it's not. Feel free to "test it yourself."

I'm lucky in that I have a real grocery store nearby to compare to. If you live in a food desert where these big chains have driven out all competition you wouldn't have a choice.

tyre a day ago | parent | next [-]

It's not only the math but access to cash. Families living paycheck-to-paycheck struggle to make long-term investments. Paying 5x for larger quantities may pay off in the long-term, but if you're struggling to make ends meet and stretch dollars today, it might be overwhelming.

pixl97 a day ago | parent [-]

>Sam Vimes ‘Boots’ Theory of Socio-Economic Unfairness

in action.

terminalshort a day ago | parent | prev | next [-]

And what's the problem with that? You get a discount for buying larger amounts of basically everything.

DangitBobby a day ago | parent [-]

Dollar stores are crowding out grocery stores in areas that only have the clientele to support one grocery store. They sell only higher margin, long shelf-life shit food, whereas real grocery stores have to carry produce which cuts into margins considerably cause it goes bad. So it's easier for them to stay open. And they create food deserts there. They are a fucking scourge for small towns.

raw_anon_1111 20 hours ago | parent | next [-]

I just replied to another comment. I lived in the most exclusive part of Atlanta for awhile where there was a Dollar Store right next to the Publix right next door to our $2500/month apartment.

https://www.yelp.com/search?find_desc=Dollar+Stores&find_loc...

Median home price - $700K

There are a lot of times you want smaller packages.

phil21 a day ago | parent | prev | next [-]

Sounds like the grocery stores were not serving their customer base well if they couldn’t compete with “overpriced” dollar stores.

Carrying cost of produce does not add up. If produce is going bad at that spoilage rate the store management fucked up and didn’t order the correct amount of product for the location. You can’t wish your way into a product mix.

Nothing was stopping grocery stores from identifying this need. Pretending your customer base is more affluent than it is sounds like a quick way to go out of business to me.

DangitBobby a day ago | parent [-]

Then feel free to explain the studies and articles online describing how dollar stores are fucking rural grocery stores.

phil21 a day ago | parent | next [-]

Explain why rural customers prefer the dollar store to the grocery store? Are they just stupid and don't know what's best for themselves?

Perhaps the rural grocers are not carrying the appropriate product mix for their current (new?) customer base, and are overvaluing customer service?

I don't like it - but I also spend time in rural communities and see why these places beat the local grocers. They offer better value for the dollar. Often they are indeed cheaper on a unit cost basis, much less overall per transaction.

It's sort of like folks screeching about "food deserts" in urban communities I've lived in, thus enacting laws forcing fresh produce be carried by the local convenience stores. That produce simply rotted on the shelves since - surprise! - the local business owners knew their customer base better than a bunch of do-gooder ivory tower academics did.

You can make some strong cases for Walmart putting Main Street rural America out of business using predatory pricing schemes and the like. It's a lot more difficult for dollar stores.

DangitBobby a day ago | parent [-]

They do not offer better "value on the dollar" they offer units that individually cost less but over a year of buying what you need to survive you pay more. That's how items are generally priced; smaller packages, higher unit price (as in, price per ounce).

You shouldn't say "screeching" if you want to be taken seriously, it makes you sound shallow and dismissive, incapable of understanding how your narrow outlook is not applicable in some situations.

Please, take even the most basic efforts to understand what people are talking about here instead of forcing me to shove information down your throat like you haven't learned how to use an internet search yet. You don't need my help, and nothing I can say will be more convincing than your own personal research.

mbesto 12 hours ago | parent | next [-]

> They do not offer better "value on the dollar" they offer units that individually cost less but over a year of buying what you need to survive you pay more. That's how items are generally priced; smaller packages, higher unit price (as in, price per ounce).

Does the consumer not have all of the information available to them to make the comparison of the per unit cost between a dollar general and a local grocery?

DangitBobby 5 hours ago | parent [-]

Is information availability the only constraint keeping people from making optimal choices?

21 hours ago | parent | prev [-]
[deleted]
terminalshort a day ago | parent | prev | next [-]

I don't see anything that says they are "fucking" them. I see plenty that they are out competing them. People get to choose to go to whatever grocery store they like.

DangitBobby 12 hours ago | parent [-]

Perhaps you you are motivated to believe that it's just "markets" at play. Monopolies and extortionate power don't exist, anyone who wins deserves to win, etc. Here is the top search result when I search for "dollar stores killing grocery stores" in Kagi.

> When dollar store chains open, it almost always cuts into the sales of local businesses. At first glance, it might seem like this is simply the nature of competition. But dollar stores use their hefty market muscle to make it virtually impossible for other businesses to successfully compete. With plenty of cash from shareholders and institutional investors, chain dollar stores have the resources to lose money indefinitely in a community until their competitors have folded.

> For many businesses, losing even a small percentage of sales can put the business at risk of failure. There are many types of businesses whose products overlap with chain dollar stores and that are therefore vulnerable, including hardware, small appliances, toys, reading materials, greeting cards, and health and beauty supplies. With dollar stores averaging around 10,000 square feet in size and sales of around $260/square foot, a typical Dollar General captures over $2 million in sales every year — and those sales are likely coming out of the cash registers of businesses already there.1

> This is an enormous problem for grocery stores in particular, which have razor-thin profit margins. Cutting into a grocery store’s sales even a small bit can endanger its survival. Food is what customers buy most often in dollar stores,2 making dollar stores a clear threat to grocery store survival or creation. And grocery stores’ profit margins are higher on items other than fresh produce — things like processed, prepackaged food and snacks — which is the bulk of the food that dollar stores sell. Peeling off just enough sales of packaged food can send a grocery store into the red.

> There are many examples of grocery stores that closed when a dollar store opened nearby...

https://ilsr.org/article/independent-business/17-problems/

qeternity a day ago | parent | prev [-]

How about you cite something.

DangitBobby a day ago | parent [-]

https://substack.perfectunion.us/p/dollar-stores-are-killing...

qeternity 5 hours ago | parent [-]

This does not prove, at all, what you are claiming.

DangitBobby 5 hours ago | parent [-]

K

adrr a day ago | parent | prev [-]

Source that they are replacing grocery stores? Dollar stores are closing and not expanding . 99 cents stores went bankrupt, rest have been closing hundreds of stores.

Also dollar stores carry produce just grocery at least largest ones do like dollar general. They are designed to compete against grocery stores and wallmart’s neighborhood markets.

DangitBobby a day ago | parent [-]

There have been a few articles about this over the past couple of years, usually in reference to one study or another. Here's one that references a USDA study:

https://substack.perfectunion.us/p/dollar-stores-are-killing...

ssl-3 a day ago | parent | prev | next [-]

There's variations in dollar stores, and in packaging, and deals, and everything else.

Let's play with Tide, and with Kroger and Dollar General just because those are the two retailers that are near to me. We'll do biggest and smallest, and start with the smallest.

---

The smallest bottle of original Tide that the Dollar General near me has is 34 ounces for $6.00: $0.1765 per ounce.

The Kroger near me has a similar, but lesser, bottle as their smallest offering: 32 ounce bottles for $5.99: $0.1872 per ounce.

Dollar General wins on smallest.

---

The biggest bottle of Tide at Dollar General is 115 ounces; regularly, $16.95 ($0.147 per ounce). On sale for $15.95 ($0.139 per ounce). With a $4-off digital coupon, $11.95 ($0.104 per ounce).

At Kroger: 132 ounces for $19.99 ($0.151 per ounce). (With a $5-off-of-$25 digital coupon if I feel like giving Proctor & Gamble even more of my money in one transaction.)

Dollar General also wins at biggest. They win at regular price, and today they also win at sale price.

shrug

---

Convenience also has a cost. For instance: I ran out of cat food on Christmas Day. Everything nearby was closed except for a Circle K, so I walked over there to see what they had. And they had cat food (of course they did). I bought the smallest container of Purina dry cat food I've ever seen for ~$9.

That was a lot of money for such a small amount of cat food, but I was happy to pay it. They had the right product in the right place at the right time. (And most importantly, the cat was happy.)

yunohn a day ago | parent | prev [-]

Did you know you can save even more buying B2B/wholesale?

Sometimes it is more about the upfront cost and/or resulting storage space needed, than pure price efficiency.

phil21 a day ago | parent | prev | next [-]

Spices might be the most universal ripoff anywhere in the US. You can get it so much cheaper either at ethnic stores, generic plastic bags at certain grocery stores in the ethnic aisles, or restaurant supply stores for spices that don’t have a short shelf life.

It’s so bizarre to me. At some point someone needs to do an in-depth expose on how this spice monopoly happened.

thfuran a day ago | parent | prev [-]

Spices are pretty much universally horribly overpriced at grocery stores.

throwaway98797 a day ago | parent | prev | next [-]

time value of money

we don’t complain that the per unit cost at target is higher than at costco

DangitBobby a day ago | parent [-]

Because it's very rare that Target crowds out the only Costco that sells produce in a 20 mile radius leaving only boxed shit food for people to buy.

IncreasePosts a day ago | parent | prev | next [-]

People usually understand this, but realize driving 10 minutes to dollar tree for a few items is preferable to driving 30 minutes to cheaper shop

mschuster91 a day ago | parent | prev | next [-]

> The list price is low but the per-unit price is astronomical compared to grocery store prices.

The problem is, so is material cost and handling effort. Say, a 2 liter bottle of soda compared to 10x 200 mL. Same amount of soda, but more handling required for stocking, inventory management (aka, make sure there is no soda expiring on the shelf) and finally scanning it over the cash register, and more packaging material.

Larger units of anything will always be cheaper than small units.

burnt-resistor a day ago | parent | prev [-]

Yup. Dollar General is worse than a convenience store like 7-11, it's an expensive inconvenience store.

And we need more local co-op grocery stores like Berkeley Bowl, the Davis Co-op, and ATX Wheatsville.

zdragnar a day ago | parent [-]

I have yet to visit a co-op that had cheaper than grocery store prices. Every single one focused on quality over cost savings.

phil21 a day ago | parent [-]

This was not always the case. 30 years ago the customer base for bulk co-op places were lower-middle class/poor folks who had a decent amount of financial acumen. You'd go there with your own containers and buy staples by the pound. Or special order that 50lb bag of oats or flour for 1/4th the per-lb price of the local grocery store.

They slowly morphed into bougie health nut/conspiracy hippie stores during my lifetime. Closest thing I've found to what I remember them being are food service stores which tend to require a business tax ID to buy from.