General Question

Steve_A's avatar

How does Dollar Tree make money?

Asked by Steve_A (5125points) May 30th, 2010 from iPhone

I was reading the IBD today and seen the Dollar tree in the top 100.It was 97 but still I did not expect to see it there.

So how do they make their money?

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15 Answers

lillycoyote's avatar

By selling cheap crap that costs 20 cents to make for a dollar.

DrasticDreamer's avatar

Not everything the Dollar Tree sells costs a dollar, some things are more.

Chongalicious's avatar

@lillycoyote Agreed. Bought a watch there for my bro… he broke it trying to strap the cheap thing on lmao

Steve_A's avatar

I figured as much just wondering there was other things they do.

Case closed I believe.

wilma's avatar

Everything at the Dollar Tree near me is a dollar. Some of the other dollar stores charge more for things.
They do sell an awful lot of cheap junk, but I find can good deals on some things I need. You just have to be careful.

lillycoyote's avatar

I do get some things at the dollar store. You just have to be careful. 1) If you buy something for a dollar that falls apart in 15 minutes you haven’t really saved any money, you’ve just wasted a dollar. And 2) some of the stuff is scary. I picked up some toy, some gelatinous rubbery thing filled with some kind of liquid and thought immediately. “Lilly, what are you doing? Put that down. You have no idea what that’s made of. It could have lead in it and god only knows what that liquid inside it is.”

jca's avatar

some things at the dollar store may be found for less than a dollar elsewhere, for example Walmart. one thing i can think of off hand is abrasive cleanser. i remember seeing in in dollar store for a dollar, i know at that time (not sure about now) it was like 79 or 89 cents at Walmart. so you have to be careful, just cause it costs a dollar and that may seem cheap does not make it such a good bargain.

also, they probably buy “odd lots” for pennies on the dollar, then they sell it to you for a dollar. that’s why the merchandise there is constantly changing.

AmWiser's avatar

Inferior products made for pennies, made by people earning inferior wages (made in China).

YARNLADY's avatar

@DrasticDreamer Nothing at the brand name Dollar Tree is sold for more than one dollar. there are many other dollar type stores that sell for different prices

They buy close out products, year old that didn’t get sold, and products that have a mistake in packaging, such as upside down printing, and products made by cheap labor, such as China and Taiwan.

JLeslie's avatar

Many of the items are overruns or items that never sold to retailers, they are sold for pennies because the manufacturer wants to dump the merchandise. Easter candy that did not all get sold to retailers and the season is changing. Discontinued flavors, fragrances, or colors of various products. Companies that went out of business, and old inventory is sold off.

in Tokyo they have 100 Yen stores. I thought it was funny

dealrrr's avatar

they buy bulk items from developing nations for 3 cents each and sell them to americans for one dollar.

perspicacious's avatar

By selling $.29 items for a dollar.

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Pandora's avatar

@DrasticDreamer You may be thinking of the Dollar Store. Its not the same as the dollar tree.
@Steve_A They make money not only by selling inexpensively made items but also by buying stuff in bulk from stores that close or factories that are closing and going bankrupt. So they really get it at way below cost. Many times below manufacturing cost as well and so by selling it at a dollar they still make quite a profit. Many people on a budget buy their soap, cookies, gift wrap items there. It is especially big with college students. You will find a lot of Dollar Trees near colleges and in Malls where young people with limited cash have to stretch it out.
They also have cheap little gift items that are great for gift bags in a kids party or knick knacks which is great for people who like to change the look of a room for very little cost.

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