No half price sale at the dollar store.

Discussion in 'Homesteading Questions' started by Stickywitch, Feb 25, 2005.

  1. Stickywitch

    Stickywitch Well-Known Member

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    I should have figured something was going on when the merchandise volume just kept getting smaller and smaller. Our place just closed it's doors and went out of buisness. We are a small community. You would think that if anyone could use a dollar store, our area would be it.

    (A thought- Do you think that maybe everyone is paying with credit cards these days and is cash poor?)
     
  2. Windy in Kansas

    Windy in Kansas In Remembrance

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    (A thought- Do you think that maybe everyone is paying with credit cards these days and is cash poor?)[/QUOTE]

    Not everyone. However my daughter and son-in-law use them to delay their expenditures and to keep their interest bearing saving just a few days longer. Each month them pay them off without any penalty or interest charges. Some people do the same so as to rack up frequent flyer miles or cash back offers.

    Nope, not everyone abuses their credit with credit cards. However, sadly, I think the majority probably do.
     

  3. Donovan K

    Donovan K Well-Known Member

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    A thought- Do you think that maybe everyone is paying with credit cards these days and is cash poor?


    Hmm not sure what you are meaning here. cash or credit card, the store is getting their money that day (less a small fee the credit card companies charge the retailer). the only reason the store is closing is that is not making enough money to meet the demands on the corporation. DDR's (deep discount retailers) like Dollar General, Family Dollar, etc have a razor thin profit margin so it is not unusual for a high closure rate for locations that are not cutting it. Sorry you are going to lose your store. Guess the best news is that you can get in on some deep discounts as they clear out the store.
     
  4. Ken Scharabok

    Ken Scharabok In Remembrance

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    Many a retail company has run into financial difficulties by not culling out the bottom preforming stores - K-Mart comes to mind. As noted, the store was in all likelihood closed since the revenue didn't justify the expenditures. Part of that may have been an inability to hire good workers. Part of it may have been employee theft, such as putting a box of something out the back door and then loading it up after work. Part of it may have been a high rate of bounced checks or credit card fraud. Perhaps it was the location as local development moved the business district away from it. Perhaps a Dollar Store simply didn't fit the community. I suspect there were a whole lot of factors which played into the decision to close the store.

    Some chains like this don't have going out of business sales since it somewhat hurts their reputation. They would rather just close the doors and either transfer the stock to other stores or sell it to salvage jobbers.

    Retail is a cut-throat business.

    Ken Scharabok
     
  5. Quint

    Quint Well-Known Member

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    I've read that Family Dollar can build one of their stores for 80,000 dollars. I found that impressive.

    I've always sort of admired their and dollar general etcs business model. They sorta slip into the market cracks that Wal-Mart doesn't dominate and seem to make some pretty good money doing it. I know when I need a plastic bucket, a broom or little household things I'll usually just pop into Dollar General or Family Dollar. It beats driving an hour to Wal-Mart, parking in Timbuktu, spending 45 minutes wading through their monstrous store to buy one or two items. You can blow an entire afternoon trying to buy a bucket and broom. Their stores are just too big for me. It takes too long to get in and out. Once they went to the super Wal-Marts I quit shopping there.

    As for credit cards I use mine quite a bit. I use it at the grocery store, for gas, all sorts of places. Mostly for convenience and it helps me keep track of money better. I also have most of my bills autopay on my credit card. It is easier for me to pay one bill at the end of the month than sending in a dozen checks. Another thing I like about a credit card at the gas station is "pay at the pump". I save money that way. I KNOW that if I go in to pay for gas I'll have to get something to drink, some beef jerky, maybe a candy bar or 3, a newspaper, a magazine. Even just a drink and a snack can set you back 5 or 6 bucks really easy. I was finding I was walking out with an extra 10 bucks worth of stuff usually.

    My credit card company always sends a nice piece of schwag for using their card. Last year I got some T-Fal cookware. I pay the bill at the end of every month and don't rack up any interest. While it is the MOST dire of emergency measures, essentially the financial equivalent of the nuclear option, it is nice to have 100 thousand dollars worth of credit available. I cant ever conceive of a circumstance where I would use it but it is nice to know it is there.
     
  6. Beeman

    Beeman Well-Known Member

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    Chances are most people in your small community passed up that store to go to the large community for the bargains. Now that it's gone they'll miss the convenience and wonder why it closed.
    I don't know what you mean by the credit card question. The store gets their money whether you use cash, credit or debit. As a matter of fact they prefer plastic many times as it reduces the problems of handling cash.
     
  7. cheryl-tx

    cheryl-tx Well-Known Member

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    I think stickywitch may be referring to the fact that some of the 1.00 stores do not take credit or debit cards, cash only.
    2 of those type of stores here are the same, cash only and the dollar general takes cash or check only, no credit cards.

    Cheryl