New York City dollar stores are a whole lot of fun. But how do they make money selling all that crap so cheaply? And are there really any good deals? Apparently so. From New York Magazine:
While half of Jack’s products inherently cost around $1 (frozen food, Hawaiian Punch), dollar stores are also quietly fed products manufacturers want to expose to a more down-market demographic. “Companies figure that customers aren’t going to overlap from department stores to dollar stores, so they sell the same product at both,” says one analyst. Of course, Jack’s vice-president, Ira Steinberg, can’t tell you who these manufacturers are. “Part of my agreement with national brands is that I don’t admit that I carry their brands.” The week we went, Jack’s had Black & Decker coffeemakers, Hormel salami, and Hamilton Beach blenders.
We always assumed there was something lame/broken/wrong/Tony Soprano stole it off a truck with the brand name stuff we saw at the dollar store. Guess not. The discount store profile is part of a larger series examining how businesses make money in NYC. Interesting stuff.—MEGHANN MARCO