1 00:00:03,279 --> 00:00:06,240 Speaker 1: Welcome to Part Time Genius, a production of I Heart Radio. 2 00:00:11,640 --> 00:00:14,239 Speaker 1: I Guess what Will? What's that Mango? So, if you're 3 00:00:14,280 --> 00:00:16,360 Speaker 1: anything like me, you've probably noticed that there are a 4 00:00:16,440 --> 00:00:19,480 Speaker 1: lot of different dollar store chains out there, Like pretty 5 00:00:19,520 --> 00:00:21,960 Speaker 1: much everywhere you look, there's like a Dollar Tree or 6 00:00:22,000 --> 00:00:25,880 Speaker 1: a Dollar General or a Family Dollar. There's a five below. 7 00:00:26,000 --> 00:00:28,480 Speaker 1: I looked this up. There's a ninety nine cents only. 8 00:00:28,560 --> 00:00:31,200 Speaker 1: I mean, it's just dollar stores all the way down. 9 00:00:31,320 --> 00:00:33,600 Speaker 1: I feel like, you know, I feel like maybe I 10 00:00:33,680 --> 00:00:36,360 Speaker 1: haven't cataloged them quite as extensively as you have. I 11 00:00:36,360 --> 00:00:38,400 Speaker 1: had forgotten this was one of your hobbies. But but 12 00:00:38,560 --> 00:00:41,120 Speaker 1: I will acknowledge there are a lot of them. So 13 00:00:41,320 --> 00:00:43,000 Speaker 1: I looked into it this week, and it turns out 14 00:00:43,040 --> 00:00:45,800 Speaker 1: that even though the stores seem the same, each brand 15 00:00:45,840 --> 00:00:49,800 Speaker 1: actually targets a completely different market. So what does that 16 00:00:49,840 --> 00:00:53,199 Speaker 1: mean exactly? Dollar General A Friendly targets older customers in 17 00:00:53,240 --> 00:00:57,600 Speaker 1: more rural areas, so they've intentionally built their stores in 18 00:00:57,720 --> 00:01:00,680 Speaker 1: small towns with fewer than twenty people. And then on 19 00:01:00,720 --> 00:01:03,279 Speaker 1: the opposite side, you've got things like five Below and 20 00:01:03,400 --> 00:01:06,600 Speaker 1: it's target demographics teens and young adults, so you actually 21 00:01:06,640 --> 00:01:09,880 Speaker 1: find those in suburban shopping malls. Actually, when you mentioned 22 00:01:09,880 --> 00:01:11,920 Speaker 1: that the first time, I was I didn't remember that, 23 00:01:11,959 --> 00:01:14,360 Speaker 1: But now that you say that, I can picture these 24 00:01:14,400 --> 00:01:17,440 Speaker 1: being in shopping malls. So what about Dollar Tree and 25 00:01:17,440 --> 00:01:19,520 Speaker 1: what was that you said? Family Dollar? Like, I know 26 00:01:19,560 --> 00:01:21,880 Speaker 1: I've seen both of those around. What who do they target? 27 00:01:22,080 --> 00:01:25,040 Speaker 1: So what's weird is they're actually owned by the same company. 28 00:01:25,120 --> 00:01:27,960 Speaker 1: Dollar Tree bought Family Dollar back in two thousand fifteen, 29 00:01:28,040 --> 00:01:33,199 Speaker 1: for I believe it's a nine billion individual dollars and 30 00:01:33,440 --> 00:01:35,800 Speaker 1: a huge reason for that, biot was because Dollar Tree 31 00:01:36,080 --> 00:01:39,759 Speaker 1: caters to middle income shoppers and Family Dollar goes after 32 00:01:39,760 --> 00:01:42,920 Speaker 1: the lower income ones, and the company wanted both markets. Yeah, 33 00:01:42,920 --> 00:01:44,800 Speaker 1: it's funny, but I I feel like we do sort 34 00:01:44,840 --> 00:01:47,920 Speaker 1: of treat these dollar chains interchangeably, like they're just kind 35 00:01:47,920 --> 00:01:50,360 Speaker 1: of there. You You really would never guess that behind 36 00:01:50,400 --> 00:01:53,160 Speaker 1: the scenes they were playing this pretty intricate game with 37 00:01:53,160 --> 00:01:55,120 Speaker 1: each other, like carving up the market in the way 38 00:01:55,160 --> 00:01:57,600 Speaker 1: that they are. Yeah, there's actually way more going on 39 00:01:57,680 --> 00:01:59,920 Speaker 1: with dollar stores than people might guess from you know, 40 00:02:00,120 --> 00:02:03,360 Speaker 1: how they turn to profit, whether one dollar steaks are 41 00:02:03,400 --> 00:02:05,640 Speaker 1: really a good deal after all? So why don't we 42 00:02:05,680 --> 00:02:29,120 Speaker 1: dig in? Y he Their podcast listeners welcome to part 43 00:02:29,160 --> 00:02:31,799 Speaker 1: time genius. I'm Will Pearson and it's always I'm joined 44 00:02:31,840 --> 00:02:34,079 Speaker 1: by my good friend Manes Ticketer and on the other 45 00:02:34,080 --> 00:02:37,240 Speaker 1: side of that soundproof glass testing out his latest fine 46 00:02:37,320 --> 00:02:41,320 Speaker 1: from the dollar store. That's our friend and producer Lowell Berlante. 47 00:02:41,840 --> 00:02:43,919 Speaker 1: And what a fine this was. I mean, hold the 48 00:02:43,960 --> 00:02:45,560 Speaker 1: box up again, low I need to see it just 49 00:02:45,600 --> 00:02:49,160 Speaker 1: a little bit higher. So it's basically a Nettie pot, 50 00:02:49,200 --> 00:02:52,200 Speaker 1: except it's called a Yetti pot for some reason, and 51 00:02:52,320 --> 00:02:54,880 Speaker 1: on the front called it a little bit closer. The 52 00:02:54,919 --> 00:02:57,240 Speaker 1: front of the box shows a couple of what I 53 00:02:57,320 --> 00:03:01,400 Speaker 1: presume are meant to be yettis wearing a teapot up 54 00:03:01,440 --> 00:03:06,040 Speaker 1: its nose. It's it's kind of a weird, but I 55 00:03:06,040 --> 00:03:10,519 Speaker 1: would definitely pay two dollars for that twice twice as much. 56 00:03:10,919 --> 00:03:12,640 Speaker 1: So I definitely want to talk about some of the 57 00:03:12,680 --> 00:03:15,640 Speaker 1: other strange stuff that turns up, you know, at dollar stores. 58 00:03:15,680 --> 00:03:17,880 Speaker 1: But why don't we start by getting a sense for 59 00:03:17,960 --> 00:03:20,400 Speaker 1: just how big a success story dollar stores really are 60 00:03:20,880 --> 00:03:23,000 Speaker 1: so they don't get a ton of respect. But in 61 00:03:23,080 --> 00:03:26,320 Speaker 1: doing the research, Gate basically pointed out that they're kind 62 00:03:26,360 --> 00:03:29,040 Speaker 1: of the unsung kings of retail. Yeah, I don't know, 63 00:03:29,040 --> 00:03:30,600 Speaker 1: if this is true, but it feels like there are 64 00:03:30,639 --> 00:03:33,280 Speaker 1: more dollar stores now than there were when when we 65 00:03:33,280 --> 00:03:36,680 Speaker 1: were growing up. It's definitely true. So dollar stores have 66 00:03:36,720 --> 00:03:39,400 Speaker 1: been a fixture of American strip malls since the nineteen fifties, 67 00:03:39,760 --> 00:03:42,160 Speaker 1: but one of their biggest booms came during the Great 68 00:03:42,160 --> 00:03:45,320 Speaker 1: Recession of two thousand seven, and as the economy declined, 69 00:03:45,600 --> 00:03:49,200 Speaker 1: dollar stores sales went way way up, and it resulted 70 00:03:49,240 --> 00:03:51,240 Speaker 1: in this swell of like news stores opening up all 71 00:03:51,240 --> 00:03:54,560 Speaker 1: over the country. But the really surprising part is that 72 00:03:54,640 --> 00:03:57,960 Speaker 1: this popularity hasn't worn off like dollar stores just keep 73 00:03:58,080 --> 00:04:00,600 Speaker 1: on thriving. And in fact, between two thousand ten and 74 00:04:00,600 --> 00:04:04,800 Speaker 1: two thousand thirteen, the Family Dollar chain opened fifteen hundred 75 00:04:04,840 --> 00:04:07,520 Speaker 1: news stores, which is more than one a day for 76 00:04:07,680 --> 00:04:10,160 Speaker 1: four years in a row. Holy cow. And so I 77 00:04:10,240 --> 00:04:12,560 Speaker 1: was guessing insane. Yeah, I'm guessing it wasn't just a 78 00:04:12,640 --> 00:04:15,600 Speaker 1: Family Dollar doing this too. Yeah. So the other chains 79 00:04:15,640 --> 00:04:18,640 Speaker 1: like Dollar Tree and Dollar General they were expanding to. 80 00:04:19,240 --> 00:04:21,719 Speaker 1: Two thousand thirteen ended up being this banner year for 81 00:04:21,800 --> 00:04:24,880 Speaker 1: dollar stores, And in July of that year, so many 82 00:04:24,920 --> 00:04:27,360 Speaker 1: new locations open that it averaged out to one new 83 00:04:27,440 --> 00:04:31,440 Speaker 1: store opening every six hours all month long. That's interesting. 84 00:04:31,480 --> 00:04:34,280 Speaker 1: It does feel like too many dollar stores if we're 85 00:04:34,279 --> 00:04:38,560 Speaker 1: being so how many nights? You don't? You disagree strongly said, so, 86 00:04:38,560 --> 00:04:41,159 Speaker 1: how many are we up to now? So all told, 87 00:04:41,240 --> 00:04:43,440 Speaker 1: there are more than thirty thousand dollar stores in the 88 00:04:43,520 --> 00:04:46,240 Speaker 1: US right now, And according to Forest, that's more locations 89 00:04:46,279 --> 00:04:49,360 Speaker 1: than the six biggest US retailers put together. So that's 90 00:04:49,400 --> 00:04:55,240 Speaker 1: like Walmart, Walgreens, CVS, Costco, Kroger, and Home Depot that's 91 00:04:55,240 --> 00:04:58,000 Speaker 1: on this list here. So you know, the wildest part 92 00:04:58,040 --> 00:05:00,359 Speaker 1: is that analysts say new dollar stores will key popping 93 00:05:00,440 --> 00:05:02,719 Speaker 1: up like this for at least another three years before 94 00:05:02,760 --> 00:05:04,840 Speaker 1: the demand levels out. You know, I'm guessing a good 95 00:05:04,839 --> 00:05:06,919 Speaker 1: deal of that success is thanks to the strategy you 96 00:05:06,920 --> 00:05:09,000 Speaker 1: we're talking about at the beginning of the show, like 97 00:05:09,000 --> 00:05:10,919 Speaker 1: the way dollar store brands tend to divvy up the 98 00:05:10,960 --> 00:05:14,360 Speaker 1: market between themselves so together they've got a lock on 99 00:05:14,360 --> 00:05:17,440 Speaker 1: on really like every person who might potentially shop at 100 00:05:17,480 --> 00:05:20,039 Speaker 1: a dollar store. That's right, And and dollar stores really 101 00:05:20,080 --> 00:05:22,440 Speaker 1: do have a much more mixed income clientele than you 102 00:05:22,520 --> 00:05:24,920 Speaker 1: might guess, But that comes with some issues as well, 103 00:05:24,960 --> 00:05:26,960 Speaker 1: Like one of the big concerns with having a high 104 00:05:27,040 --> 00:05:29,800 Speaker 1: number of dollar stores is that the company's mostly targets 105 00:05:29,839 --> 00:05:33,920 Speaker 1: struggling communities when opening new locations, and as a result, 106 00:05:34,120 --> 00:05:36,880 Speaker 1: a single small talent or a city neighborhood can wind 107 00:05:36,960 --> 00:05:39,839 Speaker 1: up with three or four different dollar stores but no 108 00:05:40,000 --> 00:05:43,640 Speaker 1: actual grocery stores, which obviously is an ideal, since most 109 00:05:43,680 --> 00:05:46,839 Speaker 1: dollar stores don't carry fresh fruits or vegetables or meats. Alright, 110 00:05:46,880 --> 00:05:49,679 Speaker 1: so dollar stores can and do contribute to the problem 111 00:05:49,720 --> 00:05:52,800 Speaker 1: of what we call like food deserts. But but you're 112 00:05:52,800 --> 00:05:55,720 Speaker 1: saying that high earners shop at dollar stores too, Yeah, 113 00:05:55,760 --> 00:05:58,280 Speaker 1: and in much larger volume than you might expect. So 114 00:05:58,680 --> 00:06:01,240 Speaker 1: according to this two thousands sick Team report from Reuter's 115 00:06:01,800 --> 00:06:05,040 Speaker 1: twenty nine, of millennial households earning more than a hundred 116 00:06:05,040 --> 00:06:07,520 Speaker 1: thousand dollars per year say they shop at least one 117 00:06:07,520 --> 00:06:10,480 Speaker 1: of the big three dollar chains. So all together, these 118 00:06:10,480 --> 00:06:13,880 Speaker 1: schoppers make up roughly I guess of the total sales 119 00:06:13,920 --> 00:06:16,720 Speaker 1: from those three chains. And it's pretty shocking when you 120 00:06:16,720 --> 00:06:19,560 Speaker 1: think about it. But it also makes sense since everyone 121 00:06:19,800 --> 00:06:22,720 Speaker 1: you know likes a bargain. Yeah. Well, well, speaking of bargains, 122 00:06:22,760 --> 00:06:25,040 Speaker 1: that was something I wondered about this week, Like our 123 00:06:25,080 --> 00:06:29,000 Speaker 1: dollar store prices actually a good deal, So of course 124 00:06:29,040 --> 00:06:30,960 Speaker 1: we had to look into this, and it turns out 125 00:06:30,960 --> 00:06:34,320 Speaker 1: that no, they're really not, or at least not always so. 126 00:06:34,640 --> 00:06:37,960 Speaker 1: For example, dollar stores tend to sell milk in sixteen 127 00:06:37,960 --> 00:06:41,599 Speaker 1: ounce bottles for one dollar each, which does sound like 128 00:06:41,640 --> 00:06:44,279 Speaker 1: a steal, but at that rate, you're actually paying eight 129 00:06:44,320 --> 00:06:48,400 Speaker 1: dollars for a full gallon, which sounds like New York prices. 130 00:06:49,480 --> 00:06:51,600 Speaker 1: Maybe don't shop for milk at dollar stores. But what 131 00:06:51,640 --> 00:06:54,440 Speaker 1: about like the non perishable items, that kind of stuff 132 00:06:54,520 --> 00:06:56,400 Speaker 1: like you wouldn't really see the same kind of markup 133 00:06:56,440 --> 00:06:58,360 Speaker 1: on right, Well, it depends. I mean you you can 134 00:06:58,440 --> 00:07:00,400 Speaker 1: end up with the same type of despair atty when 135 00:07:00,400 --> 00:07:03,560 Speaker 1: you look at something like raisins or aluminum foil. Like 136 00:07:03,600 --> 00:07:06,040 Speaker 1: The trick in all of these cases is to offer 137 00:07:06,200 --> 00:07:10,920 Speaker 1: familiar products and slightly smaller packages, so most shoppers don't 138 00:07:10,920 --> 00:07:13,440 Speaker 1: spot the size differences or do an ounce to ounce 139 00:07:13,480 --> 00:07:16,400 Speaker 1: cost breakdown when they're in the aisle. But that said, 140 00:07:16,400 --> 00:07:20,120 Speaker 1: there are some dollar store products that are generally solid deals, 141 00:07:20,200 --> 00:07:24,000 Speaker 1: like toiletries paper goods, for example, and you can buy 142 00:07:24,000 --> 00:07:26,200 Speaker 1: a roll of wrapping paper or a giant tub of 143 00:07:26,280 --> 00:07:29,120 Speaker 1: cotton swabs for half the price that you would at 144 00:07:29,120 --> 00:07:30,960 Speaker 1: a big box store. So keep that in mind next time. 145 00:07:30,960 --> 00:07:34,720 Speaker 1: You love the idea of buying wrapping paper and just uh, 146 00:07:34,840 --> 00:07:36,880 Speaker 1: you know, putting it around cotton swabs. So it feels 147 00:07:36,920 --> 00:07:39,360 Speaker 1: like that makes a lot of sense to meaing. Yeah, well, 148 00:07:39,400 --> 00:07:41,720 Speaker 1: there's another dollar store perk that I learned this week, 149 00:07:41,760 --> 00:07:44,000 Speaker 1: because even though shopping at the dollar store may not 150 00:07:44,120 --> 00:07:46,440 Speaker 1: always give you the most bang for your buck, it 151 00:07:46,640 --> 00:07:49,200 Speaker 1: is a good way to satisfy your shopping craving on 152 00:07:49,240 --> 00:07:52,480 Speaker 1: a budget. So if you're someone who enjoys going shopping, 153 00:07:52,520 --> 00:07:55,400 Speaker 1: then you're probably familiar with the small rush of pleasure 154 00:07:55,440 --> 00:07:58,640 Speaker 1: that comes from just making a purchase, and you can 155 00:07:58,680 --> 00:08:01,960 Speaker 1: actually think your brain for that. So whenever we anticipate 156 00:08:01,960 --> 00:08:04,760 Speaker 1: a reward, which in this case would be buying something new, 157 00:08:05,160 --> 00:08:08,800 Speaker 1: our brains respond by triggering this kick of dopamine. So 158 00:08:08,880 --> 00:08:12,080 Speaker 1: for an average shopper, the more things you buy, the 159 00:08:12,160 --> 00:08:15,640 Speaker 1: more dopamine levels rise, which you know, I guess is 160 00:08:15,640 --> 00:08:19,160 Speaker 1: why some people become compulsive shoppers, right, Yeah, that's exactly right. 161 00:08:19,200 --> 00:08:22,040 Speaker 1: And so that's where dollar stores come in because for 162 00:08:22,080 --> 00:08:25,120 Speaker 1: most people, the pleasure we get from shopping doesn't always 163 00:08:25,160 --> 00:08:28,200 Speaker 1: scale with the amount of money we're spending. So instead 164 00:08:28,360 --> 00:08:30,960 Speaker 1: is that number of items that we might buy, so 165 00:08:31,080 --> 00:08:34,559 Speaker 1: each one translates into its own little kick of dopamine. 166 00:08:34,880 --> 00:08:36,920 Speaker 1: So the next time you feel the urge for a 167 00:08:36,960 --> 00:08:39,760 Speaker 1: shopping spree, you might want ahead your local dollar store 168 00:08:39,800 --> 00:08:41,640 Speaker 1: because you can fill the basket on the cheap and 169 00:08:41,679 --> 00:08:44,640 Speaker 1: still walk out feeling like a million bucks. I'm sure 170 00:08:44,679 --> 00:08:47,880 Speaker 1: that's exactly how it would play out. All right, Well, 171 00:08:48,000 --> 00:08:50,160 Speaker 1: now that we've talked a little bit about who's shopping 172 00:08:50,200 --> 00:08:52,120 Speaker 1: at dollar stores, let's look at some of the products 173 00:08:52,160 --> 00:09:08,520 Speaker 1: that are buying there. But first a quick break. You're 174 00:09:08,559 --> 00:09:10,520 Speaker 1: listening to part time Genius and we're talking about the 175 00:09:10,600 --> 00:09:14,319 Speaker 1: best and worst deals to be had at the dollar store. Now, 176 00:09:14,320 --> 00:09:16,480 Speaker 1: speaking of which, the time has come at last, Mango, 177 00:09:16,679 --> 00:09:20,720 Speaker 1: we need to talk about the one dollar steaks. I love, 178 00:09:21,000 --> 00:09:23,320 Speaker 1: like how offended you were by this, Like we were 179 00:09:23,320 --> 00:09:26,480 Speaker 1: talking about this beforehand. It just feels ridiculous, and it's 180 00:09:26,520 --> 00:09:28,160 Speaker 1: not like someone's actually gonna force you to eat what 181 00:09:28,280 --> 00:09:31,600 Speaker 1: it is. It's the principle of the thing, Mango. But 182 00:09:32,280 --> 00:09:34,040 Speaker 1: I feel like we should back up a minute because 183 00:09:34,080 --> 00:09:36,520 Speaker 1: some listeners out there might be a wee bit confused 184 00:09:36,520 --> 00:09:38,640 Speaker 1: by all of this talk of a one dollar steak. 185 00:09:39,000 --> 00:09:42,200 Speaker 1: So we mentioned earlier that dollar stores don't usually carry 186 00:09:42,280 --> 00:09:45,480 Speaker 1: fresh foods, but a growing number of them do stock 187 00:09:45,559 --> 00:09:48,600 Speaker 1: frozen foods now And one of the best or worst 188 00:09:48,640 --> 00:09:51,480 Speaker 1: deals is the one dollar ribby and the dollar Tree 189 00:09:51,559 --> 00:09:55,439 Speaker 1: freezer section. So these four ounds boneless beef steaks are 190 00:09:55,440 --> 00:09:59,240 Speaker 1: sold preseasoned in a brine, and they're what's called you know, 191 00:09:59,280 --> 00:10:01,600 Speaker 1: the util the cut I guess, which are the parts 192 00:10:01,640 --> 00:10:05,200 Speaker 1: of the cow used, and institutional kitchens. So the stakes 193 00:10:05,200 --> 00:10:08,559 Speaker 1: Dollar Tree cells are sourced from a company called Stampede 194 00:10:08,600 --> 00:10:10,800 Speaker 1: Meat Ink. I'm really jealous. I wish I had started 195 00:10:10,840 --> 00:10:13,719 Speaker 1: a company called Stampede Meeting. It's like the worst name. 196 00:10:13,760 --> 00:10:15,880 Speaker 1: It sounds like they sell steaks made from cows that 197 00:10:15,920 --> 00:10:20,560 Speaker 1: got trampled by bigger cows. Well, you never know, but 198 00:10:21,040 --> 00:10:23,520 Speaker 1: if you're feeling adventurous, you can buy one of these 199 00:10:23,520 --> 00:10:26,000 Speaker 1: one dollar steaks for yourself at any dollar Tree with 200 00:10:26,080 --> 00:10:29,280 Speaker 1: a freezer section. And if you read the reviews online, 201 00:10:29,280 --> 00:10:31,640 Speaker 1: a lot of people compare the meat to you know, 202 00:10:31,720 --> 00:10:34,199 Speaker 1: say rubber, or or maybe they just say it doesn't 203 00:10:34,280 --> 00:10:37,640 Speaker 1: cook that well. So I'm really curious. Now, so did 204 00:10:37,640 --> 00:10:40,360 Speaker 1: you find anyone who actually liked these one dollar sticks? 205 00:10:40,720 --> 00:10:43,880 Speaker 1: I did find one positive review but even then, the 206 00:10:43,920 --> 00:10:46,959 Speaker 1: one who actually bought the steak, she didn't like it. 207 00:10:47,600 --> 00:10:50,319 Speaker 1: So why is that? Why is that a positive review? 208 00:10:50,520 --> 00:10:54,160 Speaker 1: Well because her dog apparently did love it. So to 209 00:10:54,240 --> 00:10:57,559 Speaker 1: be fair, I did come across some surprisingly measured responses 210 00:10:57,600 --> 00:11:00,920 Speaker 1: from actual humans. So, for example, in two thousand and sixteen, 211 00:11:01,000 --> 00:11:03,760 Speaker 1: a TV station in Cincinnati held a taste test for 212 00:11:03,880 --> 00:11:07,640 Speaker 1: local firefighters. So they were asked to sample a butcher's cut, 213 00:11:08,000 --> 00:11:10,959 Speaker 1: a supermarket cut, and of course the one dollar ribbi. 214 00:11:11,520 --> 00:11:14,640 Speaker 1: And the reactions were mixed among the firefighters you might expect, 215 00:11:14,720 --> 00:11:17,640 Speaker 1: but some of the more positive views were it's not 216 00:11:17,840 --> 00:11:25,880 Speaker 1: terrible and I guess it was meat. Okay. So here's 217 00:11:25,920 --> 00:11:27,720 Speaker 1: another product you probably didn't know you could buy at 218 00:11:27,760 --> 00:11:29,480 Speaker 1: the dollar store, or at least I didn't know you 219 00:11:29,480 --> 00:11:31,920 Speaker 1: could buy it, And that's a home pregnancy test kit. 220 00:11:32,400 --> 00:11:35,600 Speaker 1: But unlike those one dollar ribbis, these pregnancy kits are 221 00:11:35,640 --> 00:11:38,720 Speaker 1: actually worth the money. In fact, the ones carried at 222 00:11:38,760 --> 00:11:40,880 Speaker 1: a lot of I guess the dollar tree stores are 223 00:11:40,920 --> 00:11:44,160 Speaker 1: the same kind used in most hospitals. Oh wow, I mean, 224 00:11:44,160 --> 00:11:46,000 Speaker 1: maybe this is a bit unfair, but I'd be so 225 00:11:46,120 --> 00:11:49,440 Speaker 1: hesitant to trust a one dollar pregnancy test. I mean 226 00:11:49,440 --> 00:11:52,600 Speaker 1: that that feels so cheap for that purpose, Like, how 227 00:11:52,600 --> 00:11:55,240 Speaker 1: could it actually be reliable? So I was wondering about 228 00:11:55,240 --> 00:11:57,480 Speaker 1: this myself, and it turns out the tests are are 229 00:11:57,480 --> 00:12:00,679 Speaker 1: actually pretty reliable, and that's because most Nancy tests are 230 00:12:00,679 --> 00:12:05,000 Speaker 1: made to detect just one specific hormone that's produced during pregnancy. 231 00:12:05,120 --> 00:12:07,520 Speaker 1: It's like a simple enough task that most kits can 232 00:12:07,559 --> 00:12:10,000 Speaker 1: pull it off regardless of the price. But you know, 233 00:12:10,080 --> 00:12:11,920 Speaker 1: that's not to say there aren't advantages to using a 234 00:12:11,960 --> 00:12:14,880 Speaker 1: more expensive test. You know, they can often detect lower 235 00:12:14,920 --> 00:12:17,719 Speaker 1: amounts of that same hormone earlier in the pregnancy, so 236 00:12:17,840 --> 00:12:19,680 Speaker 1: you know, a Dollar Store kit might not show that 237 00:12:19,679 --> 00:12:22,160 Speaker 1: the woman is pregnant until a little later in the pregnancy. 238 00:12:22,280 --> 00:12:24,640 Speaker 1: I do love how the steak is super shady, but 239 00:12:24,679 --> 00:12:27,960 Speaker 1: like the pregnancy tests, we feel like they're so trustworthy. 240 00:12:28,120 --> 00:12:30,400 Speaker 1: I guess it kind of balances each other out. Well. 241 00:12:30,480 --> 00:12:32,840 Speaker 1: What's funny is that, like one of the other items 242 00:12:32,880 --> 00:12:35,880 Speaker 1: that Dollar Tree carries that supposedly like this hidden gem 243 00:12:36,360 --> 00:12:39,280 Speaker 1: is their ovulation predictor, it actually has one of the 244 00:12:39,360 --> 00:12:42,800 Speaker 1: highest product rankings of all the Dollar Tree items. I 245 00:12:42,800 --> 00:12:45,720 Speaker 1: guess it's got four point six stars, and the customer 246 00:12:45,720 --> 00:12:47,520 Speaker 1: reviews say it works just as well as the more 247 00:12:47,520 --> 00:12:49,520 Speaker 1: expensive brands. I feel like we might just have to 248 00:12:49,559 --> 00:12:51,560 Speaker 1: take their word for that, But for now, I thought 249 00:12:51,559 --> 00:12:54,280 Speaker 1: we could switch gears and talk about something I've always 250 00:12:54,320 --> 00:12:57,760 Speaker 1: wondered about, which is how dollar stores actually make money. 251 00:12:57,920 --> 00:12:59,679 Speaker 1: I feel like it's just through something a lot of 252 00:12:59,720 --> 00:13:02,319 Speaker 1: stay can, pregnancy cuts, It's all there is. I mean, 253 00:13:02,360 --> 00:13:04,640 Speaker 1: I guess that is true, but I meant more like, 254 00:13:04,640 --> 00:13:07,520 Speaker 1: how do dollar stores turn a profit off of these, 255 00:13:07,600 --> 00:13:10,640 Speaker 1: you know, really inexpensive products. But before we get into that, 256 00:13:10,679 --> 00:13:27,080 Speaker 1: let's take one more quick break. Welcome back to part 257 00:13:27,080 --> 00:13:29,440 Speaker 1: time genius. All right, Mango, So, another thing I was 258 00:13:29,480 --> 00:13:32,120 Speaker 1: curious about this week is how dollar stores managed to 259 00:13:32,200 --> 00:13:35,840 Speaker 1: turn profits off of you know, these really inexpensive items. 260 00:13:35,880 --> 00:13:38,920 Speaker 1: Because I found some sales figures from a few years back, 261 00:13:38,960 --> 00:13:41,439 Speaker 1: and I was shocked to see that Dollar Tree makes 262 00:13:41,520 --> 00:13:45,120 Speaker 1: thirty five cents of profit for each dollar of revenue, 263 00:13:45,160 --> 00:13:47,839 Speaker 1: compared to twenty four cents per dollar that you know, 264 00:13:47,880 --> 00:13:50,720 Speaker 1: place like Walmart makes, which is surprising because you always 265 00:13:50,720 --> 00:13:53,200 Speaker 1: hear about how well Walmart negotiates down prices, you know, 266 00:13:53,280 --> 00:13:55,320 Speaker 1: just because of all the volume they sell. Right, So 267 00:13:55,640 --> 00:13:57,520 Speaker 1: it may be wonder like, is it just the high 268 00:13:57,600 --> 00:14:00,240 Speaker 1: sales volume at a dollar store that helps make up 269 00:14:00,240 --> 00:14:03,240 Speaker 1: for the low prices or is there more going on? 270 00:14:03,320 --> 00:14:06,080 Speaker 1: And what I found is that while volume does play 271 00:14:06,120 --> 00:14:08,640 Speaker 1: a huge part, a lot of what makes dollar stores 272 00:14:08,720 --> 00:14:12,040 Speaker 1: profitable is that they have this no frills approach to 273 00:14:12,200 --> 00:14:15,520 Speaker 1: the shopping experience. For instance, at a big box store 274 00:14:15,600 --> 00:14:18,720 Speaker 1: like a Walmart, you're looking at nearly two hundred thousand 275 00:14:18,800 --> 00:14:22,280 Speaker 1: square feet of shopping space. They're just enormous. But I meanwhile, 276 00:14:22,320 --> 00:14:25,920 Speaker 1: the average Dollar general is just over seven thousand square feet. 277 00:14:26,000 --> 00:14:28,280 Speaker 1: I guess that's a smaller box. It is. It's it's 278 00:14:28,320 --> 00:14:31,080 Speaker 1: a much smaller boxing. Maybe even if you're not good 279 00:14:31,120 --> 00:14:33,840 Speaker 1: at math, like that is a much smaller boxing. Not 280 00:14:34,000 --> 00:14:37,440 Speaker 1: only does the smaller footprint translate into lower leasing costs, 281 00:14:37,480 --> 00:14:39,440 Speaker 1: it also means that the dollar stores don't need to 282 00:14:39,520 --> 00:14:42,880 Speaker 1: hire as many workers. In fact, a typical dollar store 283 00:14:42,920 --> 00:14:45,600 Speaker 1: staff is made up of just eight or nine people, 284 00:14:45,960 --> 00:14:49,600 Speaker 1: while the average Walmart staff is closer to three hundred people. 285 00:14:49,960 --> 00:14:52,440 Speaker 1: So all of this together helps keep down the overhead 286 00:14:52,480 --> 00:14:55,200 Speaker 1: cost and that, along with the high volume of sales, 287 00:14:55,320 --> 00:14:57,440 Speaker 1: is why dollar stores are some of the most profitable 288 00:14:57,440 --> 00:15:00,520 Speaker 1: stores in the entire retail sector. Well, you know, since 289 00:15:00,520 --> 00:15:02,440 Speaker 1: we're talking about what sets dollar stores apart from the 290 00:15:02,560 --> 00:15:05,200 Speaker 1: larger cousins. I do want to highlight what is probably 291 00:15:05,240 --> 00:15:08,400 Speaker 1: my biggest beef with these, you know, quote dollar stores, 292 00:15:08,480 --> 00:15:10,600 Speaker 1: which is that, you know, somewhere along the line, most 293 00:15:10,640 --> 00:15:14,560 Speaker 1: dollar stores became dollar and up stores, like even cents 294 00:15:14,640 --> 00:15:17,400 Speaker 1: only stores now sell products for more than cents. So 295 00:15:17,920 --> 00:15:20,040 Speaker 1: now you can walk into dollar stores and find items 296 00:15:20,040 --> 00:15:23,240 Speaker 1: that cost to five and as much as ten dollars. Yeah, 297 00:15:23,280 --> 00:15:26,080 Speaker 1: more more like multi dollar stores, I guess, yeah, just 298 00:15:26,120 --> 00:15:30,520 Speaker 1: like regular stores, which feels like borderline false advertising, but 299 00:15:30,840 --> 00:15:34,280 Speaker 1: you know, it's becomfretty accepted at this point. So none 300 00:15:34,280 --> 00:15:37,160 Speaker 1: of the big dollar chains still charged just a dollar. 301 00:15:37,440 --> 00:15:40,480 Speaker 1: We actually looked into this, and it seems that, uh, 302 00:15:40,560 --> 00:15:42,800 Speaker 1: I guess, the one dollar pricing has been dollar Tree's 303 00:15:42,840 --> 00:15:45,800 Speaker 1: claim to fame for their entire existence. For the thirty 304 00:15:45,800 --> 00:15:47,760 Speaker 1: three years it's been in business, the company has always 305 00:15:47,760 --> 00:15:51,160 Speaker 1: stuck to its original policy. And you know that that's 306 00:15:51,400 --> 00:15:56,960 Speaker 1: despite like inflation, despite growing competition, uh, manufacturing costs, whatever, like, 307 00:15:57,000 --> 00:15:59,360 Speaker 1: despite all of that, Dollar Tree execs have kind of 308 00:15:59,400 --> 00:16:02,160 Speaker 1: stood by this one dollar policy for everything in their store. 309 00:16:03,160 --> 00:16:06,320 Speaker 1: I'm guessing there's there's a butt coming to this. Yeah. So, 310 00:16:06,400 --> 00:16:09,320 Speaker 1: so the company finally about to pressure from some of 311 00:16:09,360 --> 00:16:12,560 Speaker 1: its investors recently, and according to a company statement made 312 00:16:12,560 --> 00:16:16,600 Speaker 1: in March two, dollar Tree has now begun testing additional 313 00:16:16,640 --> 00:16:19,160 Speaker 1: price points in some of its stores. And you know, 314 00:16:19,320 --> 00:16:22,160 Speaker 1: if the move boost profits at the test stores, like 315 00:16:22,200 --> 00:16:24,400 Speaker 1: the investors hope it will do, then chances are will 316 00:16:24,440 --> 00:16:26,880 Speaker 1: likely be seeing you know, dollar plus items in all 317 00:16:26,920 --> 00:16:30,080 Speaker 1: their store shelves before the years out. Yeah so, so, 318 00:16:30,120 --> 00:16:33,360 Speaker 1: in other words, stock up on those one dollar ribbi's, right, 319 00:16:33,360 --> 00:16:35,440 Speaker 1: because you know they could be three dollar ribbis or 320 00:16:35,440 --> 00:16:38,400 Speaker 1: whatever the next few years. I mean, it is kind 321 00:16:38,440 --> 00:16:40,480 Speaker 1: of sad that like these may very well be the 322 00:16:40,520 --> 00:16:43,120 Speaker 1: final days of the last true dollar store if you 323 00:16:43,160 --> 00:16:45,120 Speaker 1: think about it, Yeah, it's the end of an era. 324 00:16:45,240 --> 00:16:47,280 Speaker 1: But if you're looking for something that you can still 325 00:16:47,360 --> 00:16:49,560 Speaker 1: get on the super Chief, we've got a boatload of 326 00:16:49,640 --> 00:16:52,560 Speaker 1: facts at very reasonable prices. So why don't we do 327 00:16:52,600 --> 00:17:05,160 Speaker 1: the fact off? Okay, so we started the show talking 328 00:17:05,160 --> 00:17:07,840 Speaker 1: about how dollar stores are pretty much everywhere these days, 329 00:17:07,880 --> 00:17:09,639 Speaker 1: and it feels like one is never more than a 330 00:17:09,680 --> 00:17:12,359 Speaker 1: few miles away at any given time, And it turns 331 00:17:12,400 --> 00:17:16,040 Speaker 1: out that's actually true. So Dollar General has over fifteen 332 00:17:16,080 --> 00:17:19,280 Speaker 1: thousand stores spread throughout forty four states, and according to 333 00:17:19,320 --> 00:17:23,480 Speaker 1: the company, that means the US population now lives within 334 00:17:23,600 --> 00:17:25,960 Speaker 1: just five miles of one of its stores. All right, 335 00:17:26,000 --> 00:17:27,520 Speaker 1: well here's a quick one. So when you're in the 336 00:17:27,600 --> 00:17:30,439 Speaker 1: big box stores, you really think of the tricks that 337 00:17:30,480 --> 00:17:33,199 Speaker 1: they use to get people to, you know, go for 338 00:17:33,240 --> 00:17:36,119 Speaker 1: the impulse buys or things like that, and actually dollar 339 00:17:36,160 --> 00:17:39,000 Speaker 1: stores use many of the same tricks. So, for example, 340 00:17:39,080 --> 00:17:41,680 Speaker 1: drug stores tend to put food and drinks up front 341 00:17:41,760 --> 00:17:45,120 Speaker 1: to act as these impulse buys, but the actual pharmacies 342 00:17:45,160 --> 00:17:47,600 Speaker 1: are tucked in the very back of the store, and 343 00:17:47,680 --> 00:17:50,919 Speaker 1: dollar stores act under the same principle. So food and 344 00:17:51,040 --> 00:17:53,280 Speaker 1: toys or stocked in the back of the store since 345 00:17:53,320 --> 00:17:56,080 Speaker 1: they tend to be the most popular items and sees, 346 00:17:56,160 --> 00:17:59,040 Speaker 1: the impulse buys go right up front near the registers. 347 00:17:59,359 --> 00:18:02,320 Speaker 1: So unfortunately, one place where dollar stores do different from 348 00:18:02,400 --> 00:18:06,360 Speaker 1: larger stores is that they typically don't offer employee discounts, 349 00:18:06,680 --> 00:18:09,560 Speaker 1: so unless a product is damaged or open on the shelf, 350 00:18:09,880 --> 00:18:13,760 Speaker 1: employees have to pay the full dollar like everybody else. Well, 351 00:18:13,880 --> 00:18:16,240 Speaker 1: paying full price is always a drag, but if you 352 00:18:16,320 --> 00:18:18,600 Speaker 1: ask some dollar store employees, they'll tell you that the 353 00:18:18,640 --> 00:18:20,639 Speaker 1: worst part of their job is having to deal with 354 00:18:20,640 --> 00:18:24,000 Speaker 1: the dreaded Hot Wheels toy collectors, and that's actually not 355 00:18:24,119 --> 00:18:27,960 Speaker 1: exclusive to Dollar stores either, So over zealous Hot Wheels 356 00:18:27,960 --> 00:18:30,680 Speaker 1: fans are actually kind of the bane of any retail 357 00:18:30,760 --> 00:18:33,200 Speaker 1: store that stocks them. Really, I don't get it. What's 358 00:18:33,200 --> 00:18:36,320 Speaker 1: so bad about kids who collect toy cars? So nothing 359 00:18:36,320 --> 00:18:38,639 Speaker 1: at all. It's actually the adults who collect toys that 360 00:18:38,680 --> 00:18:41,359 Speaker 1: are the problem. And there's a big community of adult 361 00:18:41,440 --> 00:18:43,879 Speaker 1: Hot Wheels fans out there, and they're kind of infamous 362 00:18:43,920 --> 00:18:47,160 Speaker 1: for well, I mean, you can call it their dedications. 363 00:18:47,160 --> 00:18:49,760 Speaker 1: So so Metal Fliss had a piece last year where 364 00:18:49,800 --> 00:18:52,119 Speaker 1: they spoke to a Dollar Tree manager named Nate, and 365 00:18:52,119 --> 00:18:54,840 Speaker 1: according to him, these so called Hot Wheels hunters will 366 00:18:54,920 --> 00:18:57,760 Speaker 1: quote scour the Internet and find out when stores are 367 00:18:57,760 --> 00:19:00,439 Speaker 1: getting shipments, then show up and demand I go to 368 00:19:00,480 --> 00:19:02,440 Speaker 1: find the one box of hot Wheels out of two 369 00:19:02,480 --> 00:19:04,600 Speaker 1: thousand other boxes so that they can be the first 370 00:19:04,600 --> 00:19:07,199 Speaker 1: to buy the I mean that does sound like a 371 00:19:07,200 --> 00:19:09,520 Speaker 1: headache for the employees, especially if these guys are showing 372 00:19:09,600 --> 00:19:11,760 Speaker 1: up like every week to do this. I mean, it's 373 00:19:11,800 --> 00:19:13,600 Speaker 1: more of a nightmare than that they fairly show up 374 00:19:13,680 --> 00:19:16,560 Speaker 1: every day. In a lot of cases, and so the 375 00:19:16,560 --> 00:19:18,879 Speaker 1: collectors who go to local stores every morning when it 376 00:19:18,880 --> 00:19:22,080 Speaker 1: opens are actually have a name, and and they go 377 00:19:22,240 --> 00:19:24,560 Speaker 1: by the name door Warmers. All right. Well, still that 378 00:19:24,600 --> 00:19:27,280 Speaker 1: fact is a nice reminder that dollar stores do indeed 379 00:19:27,320 --> 00:19:30,680 Speaker 1: stocks and brand name products like hot wheels. But one 380 00:19:30,720 --> 00:19:32,879 Speaker 1: thing you might not know is that some dollar stores 381 00:19:32,960 --> 00:19:36,240 Speaker 1: even have their own in house or private label brands. 382 00:19:36,320 --> 00:19:38,800 Speaker 1: And we usually think of these with the like big 383 00:19:38,840 --> 00:19:42,680 Speaker 1: box stores. But the most successful example is probably Dollar 384 00:19:42,800 --> 00:19:46,200 Speaker 1: General's line of healthcare products, which the company sells under 385 00:19:46,200 --> 00:19:48,840 Speaker 1: the brand name rex All. So it's a it's a 386 00:19:48,840 --> 00:19:51,159 Speaker 1: strategy that's paid off for Dollar General to like. The 387 00:19:51,200 --> 00:19:53,880 Speaker 1: rex All brand now accounts for more than two hundred 388 00:19:53,960 --> 00:19:57,920 Speaker 1: million dollars of the company's annual sales. Here's the weird 389 00:19:57,920 --> 00:20:00,280 Speaker 1: one I found. So the founder of Walmart one of 390 00:20:00,280 --> 00:20:02,679 Speaker 1: the founders of Dollar Tree both got their start in 391 00:20:02,720 --> 00:20:05,920 Speaker 1: business by running the same kind of chain store. Uh. 392 00:20:05,920 --> 00:20:08,080 Speaker 1: These were called Ben Franklin stores, and some of the 393 00:20:08,080 --> 00:20:11,160 Speaker 1: franchise stores are actually still around today. You can think 394 00:20:11,160 --> 00:20:13,160 Speaker 1: of them kind of as the prototype to dollar stores. 395 00:20:13,200 --> 00:20:15,280 Speaker 1: They had lots of different items like a general store, 396 00:20:15,320 --> 00:20:18,560 Speaker 1: but sold at discount prices, and these dollar and up 397 00:20:18,680 --> 00:20:20,800 Speaker 1: Ben Franklin Stores turned out to be a great way 398 00:20:20,840 --> 00:20:23,560 Speaker 1: for both Sam Walton and kr Perry to learn the 399 00:20:23,640 --> 00:20:27,240 Speaker 1: ropes of retail, and after cutting their teeth as franchise owners, 400 00:20:27,280 --> 00:20:29,960 Speaker 1: both men soon went on to establish successful chain stores 401 00:20:29,960 --> 00:20:32,240 Speaker 1: of their own. So the guys behind the most successful 402 00:20:32,280 --> 00:20:35,440 Speaker 1: big box chain and the most successful dollar store chain 403 00:20:35,560 --> 00:20:38,840 Speaker 1: both started in the same place. That's pretty wild. That 404 00:20:39,119 --> 00:20:41,359 Speaker 1: is a weird coincidence. So I think you deserve the 405 00:20:41,400 --> 00:20:44,000 Speaker 1: trophy this week, which I've subbed out for a one 406 00:20:44,080 --> 00:20:47,800 Speaker 1: dollar ribby Mango, just to bring it home nicely done. 407 00:20:49,080 --> 00:20:50,959 Speaker 1: I don't know if that feels like a victory exactly, 408 00:20:50,960 --> 00:20:53,159 Speaker 1: having to take his home. It's a victory. Well if 409 00:20:53,160 --> 00:20:54,640 Speaker 1: you if you don't want it, low lead and I'm 410 00:20:54,640 --> 00:20:57,040 Speaker 1: sure all right, Well that's gonna do it for today's 411 00:20:57,080 --> 00:20:59,879 Speaker 1: Part Time Genius for myself, Mango, Gabe, and Little Thing. 412 00:21:00,119 --> 00:21:08,960 Speaker 1: So much for listening. We'll be back soon with another episode. Kay. 413 00:21:17,160 --> 00:21:19,320 Speaker 1: Part Time Genius is a production of I Heart Radio. 414 00:21:19,600 --> 00:21:21,679 Speaker 1: For more podcasts from my Heart Radio, visit the I 415 00:21:21,760 --> 00:21:24,480 Speaker 1: Heart Radio app, Apple podcast, or wherever you listen to 416 00:21:24,480 --> 00:21:28,000 Speaker 1: your favorite show. H