Title says it all basically. I understand that inflation is at around 7% give or take. But things that used to cost $1 is now at Dollar Tree / Dollar General / Etc for $1.25 meaning their profit margins are even higher now than they were before inflation, no?
I know dollar stores are actually a rip-off and you get less product for your dollar but everyone is meming about “The $1.25 Store” and I’m super curious how this works.
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Technically, a business can set its price at whatever level it wants, so inflation is really only an excuse. Additionally, 25¢ has the duel appeal of appearing like a minor increase (I mean, it’s only a quarter, right?) and raising profits by 25%.
There’s actually a lot more going on, but it’s mostly theory and analysis of how modern economics should/do function, so I won’t post a screed.
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