Dollar stores like Dollar General seem to be everywhere these days, and they are only continuing to pop up more and more. They seem to sell things at the cheapest prices imaginable, so you may wonder how Dollar General is able to not only stay open, but make considerable profits. Unlike big box stores that give you countless options, Dollar General has limited selection, and there are never a lot of employees working in a store at one time. However, there are also some ways they trick you, so let's take a look at why the prices are so cheap at Dollar General.
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00:00The prices at Dollar General are often 20 to 40 percent lower than what you see at grocery
00:06stores and drugstores.
00:07Wonderful, but how do they do it?
00:09How does Dollar General get away with keeping their prices so very, very low?
00:14Let's dig deep and find out the secrets.
00:17Dollar General stores are often found in places that are commonly referred to as food deserts.
00:23That's essentially an area where access to healthy, nutritious food is noticeably limited
00:27by factors like poverty.
00:29It's no accident that you'll often find Dollar General in a rural area with no big box retailers
00:34or grocery stores within 15 miles.
00:37According to CNN, 75 percent of Dollar General's retail locations open in towns with 20,000
00:43or fewer residents.
00:45This prompts customers to make multiple visits, boosting the company's bottom line and allowing
00:49them to pass along savings to consumers.
00:52"...shop your new Dollar General store.
00:54Everyday low prices on everything you need."
00:58One thing that plays a big part in keeping costs down at Dollar General?
01:01The type of store it is.
01:03These traditional brick-and-mortar buildings are definitely not flashy.
01:07In fact, they're really quite bare-bones and simple.
01:10If you've ever been to a Dollar General, you know they're nothing too fancy on the inside
01:14either.
01:15Just rows of metal shelves, flickering lights, and aisle signs.
01:18No bells and whistles, no fancy decor.
01:21"...we got a lot on the list and not a lot of time, so let's make sure we're on the same
01:24page.
01:25Got it?"
01:26"...got it."
01:27"...what?!"
01:28The stores are approximately 7,300 square feet, considerably smaller than competitor
01:33Walmart, whose stores tend to be about 150,000 square feet.
01:37Thanks to this scaled-down presentation, it doesn't cost too much to open or maintain
01:41Dollar General stores, and owners tend to pay less on monthly rent.
01:46Just another way they can keep prices low for customers.
01:50Walk into Dollar General and you'll likely find only one or two cashiers up front, and
01:54maybe one person stocking shelves.
01:57There's never a greeter, nor are there any super-eager employees floating around just
02:01waiting to assist you.
02:03By keeping its employee base down, Dollar General can keep its operating costs low and
02:07pass those savings on to customers.
02:10Stores like Dollar General are focused on offering customers better prices and impressive
02:14deals, and that's why operational costs must stay low.
02:19Dollar General has its own private labels like the Clover Valley Food Line.
02:23These generic products are usually much cheaper than their brand-name counterparts, saving
02:27customers quite a bit of cash at the end of the day.
02:30Dollar General's Clover Valley brand has upwards of 40 product lines, including food and household
02:37products.
02:38The chain produces these products cheaply, and marketing costs are minimal or nonexistent.
02:42That all adds up to big savings for the retailer and customers.
02:47Dollar General sells small quantities of items to help keep costs low for consumers,
02:52and most consumers really appreciate the option to buy single-packaged items at a price that
02:56fits their budget.
02:57These single-packaged items are sometimes priced more affordable than a two-pack bought
03:02at a big box store.
03:03But pay close attention to the size of the product you're purchasing.
03:06Many products are slightly smaller in size than what you'll find at other stores, so
03:11do the math and make sure you're still getting a good deal.
03:14Smaller items may be cheaper, but that doesn't always mean you're actually getting a bargain.
03:18Every day is Dollar Day at the Dollar General store.
03:23Make it your last-minute place to shop for Christmas.
03:27Sometimes cutting out the middleman boosts a company's bottom line, and Dollar General
03:31has done exactly that.
03:33The company aimed to expand its private fleet of trucks in order to control shipping costs,
03:38improve delivery times, and push efficiency, all while ultimately offering shoppers big
03:43time savings.
03:44By the end of 2018, Dollar General expanded its private carrier fleet from 80 trucks to
03:50200 in just one year, lessening the impact of third-party carrier price spikes, which
03:55can take quite a bite out of a budget.
03:58Outsourcing transportation forces a business to rely on a third party and relinquish control
04:03of how much is spent on a fleet of trucks.
04:05By owning and managing their own fleet, Dollar General is able to control the entire transportation
04:10chain from warehouse to store, cutting additional costs that can be passed on to shoppers, something
04:15they're sure to appreciate.
04:17You can find some amazing deals by pairing Dollar General coupons with items highlighted
04:22in its weekly advertisement.
04:24Not to sound like a commercial, but it's actually hard to believe they offer prices that are
04:28this low.
04:29So how does it work?
04:31Coupon stacking is allowed for up to two coupons per item.
04:34That means one manufacturer's coupon and one Dollar General coupon can both be applied
04:38toward the purchase price of one item.
04:41But two or more Dollar General coupons can be stacked for most purchases.
04:45And if the coupon's value is worth more than the price of an item, the remaining value
04:49of the coupon will simply be applied to the total balance of the transaction.
04:53Just because I like big-name brands doesn't mean I want to pay big-time prices.
04:58I want the brands and the bargain.
05:00Since manufacturers reimburse Dollar General for the coupons used for its products, the
05:05company is able to pass those savings on to customers.
05:08Nice.