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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Inflation doesn’t only affect the cost of goods purchased, but everything else in the supply chain. Literally every dollar the store spends is worth less than it used to be.
That means, rent costs more, payroll costs more, utilities cost more, insurance costs more…The list goes on. Inflation is felt in every single aspect of the economy, your wallet and dollar store pricing are nowhere near the end or beginning of the economics chart.
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