How can dollar tree afford to sell everything for a dollar. What is the catch behind their inventory?

Answer 1

The doallar tree has a speacial buy where they buy from the factory for cheaplikethey buy toys in like big prices they can't buy just one they buy big groups of things like let say they buy tooth paste 10 dollors a box ok and they buy 1 box for instance they get 100 bottles per box 10 cent a pice they sell it for a dollar and they make 0.90 cent a bottle that's how the dollar tree works

It's all about buying in bulk, as the user above me said. They aren't buying those products for $1 a piece...they are likely buying them buy the CASE for maybe 5-10dollars....so then they can sell each "item" at one dollar a piece.

Some wager that they are using "low quality" items - but this is not always the case! Since Dollar Tree does at times stock Colgate toothpaste, Suave hair style gels, shampoo, etc....granted though, they do have a lot of products labeled as "Distributed by Greenbrier" - noted on the back/labeling - Greenbrier is their private brand, usually these items are Made in China or other low-cost countries, where the workers are paid minimal (to our comparison...but comparable in salaries in our society) to mass produce the products.

Another thing to consider, most products sold in Dollar Tree Stores are of lesser quantity. They sell the "smaller" sizes of hair spray, hair gel, etc. And take for example, they sell Suave (a name brand) shampoo for instance, for 1.00, you can buy the same bottle at Walmart, for around 97cents.

It's all about convenience though, you save money by shopping there for most things, cause you don't have to drive around town battling traffic, and other shoppers and prices. At a Dollar Tree, you are guaranteed everything 1.00 (or less).