The Real Reason Why Everything at the Dollar Store Is So Cheap

Everyone loves shopping at the dollar store. Whether you prefer Dollar Tree or Dollar General and whether you’re stocking up on seasonal décor or kitchen staples, dollar stores are chock full of bargains you won’t find anywhere else.

But have you ever stopped to wonder why everything at the dollar store is so cheap? It’s not like these retailers can afford to sell merchandise and not make a profit. How do they charge so little and stay in business? The answer to this common question may surprise you.

1. Quantities might be smaller

Travel size beauty products

Travel-sized products | JulyProkopiv/iStock/Getty Images

When’s the last time you saw a store selling a single roll of toilet paper? Probably at the dollar store.

One reason that dollar store merchandise is so cheap is that they often sell smaller quantities than traditional retailers. That means you aren’t always getting the best deal — even if you’re only paying a buck.

It takes a bit of math, but calculating the price per volume can help you establish whether you should spend $1 on a small bottle of shampoo or $10 for the economy pack at your local warehouse club.

Next: Here’s how to get the most bang for your buck.

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