The Almighty Dollar Store

Dollar stores present a challenge to the value hunter. On the one hand, everything's a dollar, on the other - it's mostly junk. Dollar stores are constantly battling inflation, transportation, and other indices linked to selling large volumes of wares. It's common to find the prices creeping upwards as seen in the new names of many stores - A Buck or Two, A Dollar or So, Around A Dollar. For our lesson, let's look at the pure $1 or less store.

The dollar store gives shoppers a feeling of empowerment. It's rare that you can look into your shopping cart or basket and know exactly how much you'll be paying at the cash. The store also gives the illusion of a bargain. "Wow, it's only a dollar" is a potent catalyst for the impulse buy. Grown ups treat dollars the way kids treat pennies - individual units are disposible.

The value of things purchase at these stores comes from three sources:

Function
Quality
Appearance

At the larger, true dollar stores, value can usually be found in things that mimic items found in big box stores. For example, a Swiffer starter kit costs between $10-$15. You can the handle, cloth holder attachment, and a pack of wipes for $1/each at the dollar store. The item performs 90% of the function of the brand name (the broom doesn't telescope). Quality-wise, it's about 75% of the original. It will likely function for over a year with regular use. Appearance - 60% of the original. Function being the most important category for this item, twice the importance of appearance and quality, you're getting 300% more value from purchasing the dollar store version.

This same analysis can be applied on the fly to all items. Some things, like individual light bulbs, stationary, and toiletries are overpriced. Generally, things made of metallic foil are pure junk (if it looks like metal but is plastic - it's not valuable unless you really need it's function).

The best value tends to be on

(1) Things that mimic household products (like brooms, plant pots, hair brushes)

(2) Things that have a high markup in other stores (e.g. gift cards and gift bags)

(3) Heavy and big items

Because of how easy it is to go overboard at these stores, apply a sanity-check before getting in line at the checkout. Is that 2-pack of bar soap really a good value? If you actively look for value, you'll remain satisfied long after you've spent your dollars.