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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Retail stores run a certain margin on their products so if the price goes up it generally means their wholesale cost has gone up, they raise the price to retain the same margin or profitability. The price hike may include outside costs of doing business such as higher salaries for employees or increases in things like taxes. So just because inflation is at a certain percentage that doesn’t necessarily mean that the price on a given product would increase that amount
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