[HN Gopher] Dollar-stores overcharge cash-strapped customers whi...
       ___________________________________________________________________
        
       Dollar-stores overcharge cash-strapped customers while promising
       low prices
        
       Author : bookofjoe
       Score  : 171 points
       Date   : 2025-12-07 14:37 UTC (8 hours ago)
        
 (HTM) web link (www.theguardian.com)
 (TXT) w3m dump (www.theguardian.com)
        
       | JSR_FDED wrote:
       | 23% of items are rung up at a higher amount at the register than
       | what it says on the shelf, yet North Carolina law caps penalties
       | at $5,000 per inspection, offering retailers little incentive to
       | fix the problem.
       | 
       | In other words, regulatory capture at its finest, over the backs
       | of the poorest in the country.
        
         | estimator7292 wrote:
         | America The Beautiful
        
         | itsdrewmiller wrote:
         | It's not regulatory capture unless the regulatory body itself
         | is controlled by shady grocers. This is just garden variety
         | insufficient regulation. Although if they inspected every day
         | it would probably still be profitable for the state.
        
           | lowbloodsugar wrote:
           | The rich own congress. At this point, it's all regulatory
           | capture.
        
             | raw_anon_1111 wrote:
             | While I agree, for the most part this comes under state
             | regulations. Especially red states are always trying to cut
             | taxes and the government at the cost of not having enough
             | inspectors.
        
         | gessha wrote:
         | What this calls for is an Amazon-style optimization of
         | inspections. Given X inspectors and Y locations, what is the
         | most optimal routing to optimize for coverage and penalty
         | collection?
        
           | mindslight wrote:
           | Amazon-style optimization? You mean they send three different
           | inspectors to the same store on the same day, each scanning
           | one third of the necessary items for the audit?
        
           | burnt-resistor wrote:
           | Offtopic, but I made the mistake once of buying groceries
           | from Amazon and they instead sold me a package of cheddar
           | cheese that was completely blue from mold. Some "quality"
           | inspections they got going don't bode well for public-private
           | "partnerships" that outsource essential government functions
           | to a corrupt third-party that's likely to be owned by a
           | craptastic private equity hedge fund.
        
             | adamsb6 wrote:
             | The error rate is nonzero, but in my experience Amazon will
             | make it right with little friction. A short chat is almost
             | always enough, no labyrinthine phone trees or escalations.
        
           | terminalshort wrote:
           | Better optimization would be to make everybody an inspector.
           | You catch a store doing it on video and report it to the
           | agency, you get 50% of the fine.
        
         | burnt-resistor wrote:
         | I don't know NC law. Does it have an "invitation to treat"
         | practice there where prices marked are a customer relations
         | issue rather than a legally-binding offer?
         | 
         | To attain change, enough people have to:
         | 
         | 1. Correctly identify the source of their misery, because it
         | ain't [insert scapegoats].
         | 
         | 2. Find others who agree with them.
         | 
         | 3. Make a plan for effective countering of 1.
         | 
         | 4. Use intestinal fortitude and endure temporary setbacks to
         | achieve 3. to overcome 1.
         | 
         | 5. Prevent 1. from ever happening again structurally,
         | culturally, and through vigilant participation.
         | 
         | The 0th problem is the political operating system is captured
         | by criminals and power has centralized grotesquely in ways that
         | defeat the fundamental function of separation of powers. All
         | elected officials corrupted by lobbyist bribes need to face
         | accountability and have a code of ethics and integrity, because
         | continuing down this path is the road to ruin.
        
           | dmurray wrote:
           | I don't think the laws of the specific jurisdiction matter.
           | In every US jurisdiction, the prices aren't completely
           | legally binding (what if the previous customer changed the
           | price tag?). In ~every US jurisdiction, if you systematically
           | show one price but charge customers another, that's an
           | offence.
           | 
           | So intent matters. What would decide an individual case is
           | not the exact characterisation of the laws on the books, but
           | how sympathetic a regulator or a judge is to the
           | supermarket's claim that these things just happen sometimes.
        
             | mindslight wrote:
             | If another customer changed the price tag, that would be in
             | the same category as if a person unaffiliated with the
             | store said "I'll give you a deal on this item for $10",
             | then pocketed the money while you walked out with the
             | (still not yours) item. This doesn't really have any
             | bearing on whether the owner of a store putting up a sign
             | with a specific price for a specific item that a customer
             | can directly take possession of constitutes a binding
             | offer.
        
               | dmurray wrote:
               | Sure, but it's in the same category as the owner putting
               | up a sign by mistake, or omitting to update a sign by
               | mistake. Or more realistically, an employee of the owner
               | putting up a sign even though the owner had instructed
               | him to put up a different sign.
        
           | joshuaissac wrote:
           | > NC law. Does it have an "invitation to treat" practice
           | [...] rather than a legally-binding offer?
           | 
           | Are there _any_ common-law jurisdictions in the world where
           | having products on sale in a supermarket is _not_ generally
           | considered invitation to treat but as an offer to sell?
        
             | dotancohen wrote:
             | What is an invitation to treat, and how does a store with
             | items on the shelf not constitute an offer to sell?
        
               | jkaplowitz wrote:
               | The invitation to treat is the store inviting potential
               | customers to treat (engage in commerce) with the store by
               | submitting an offer to buy the displayed items at the
               | listed price, which they usually do by bringing the items
               | to the register or (for more specialized purchases)
               | telling a store employee that they want to buy the item.
               | When the buyer makes the offer, the cashier accepts the
               | offer on behalf of the store by ringing up the purchase,
               | and the buyer performs their end of the contract by
               | paying the price, thereby contractually gaining ownership
               | of their purchase.
               | 
               | One reason it works this way is that treating displayed
               | items as an offer to sell would leave it unclear to whom
               | the offer to sell would be made. Clearly each item on
               | display can only be sold to one of the many shoppers who
               | sees it, so they can't all be offered the sale. There are
               | several other reasons too, like different customers being
               | offered different terms of sale based on loyalty program
               | membership, promotions, student or senior discounts, etc.
               | 
               | Here is the Wikipedia summary:
               | https://en.wikipedia.org/wiki/Invitation_to_treat
               | 
               | As the article says, the term in various US jurisdictions
               | may be slightly different, like invitation to bargain,
               | but the basic concept is the same. (I'm ignoring
               | Louisiana entirely, which has a completely different
               | legal tradition not derived from English common law.)
        
         | progval wrote:
         | Regulatory capture is when a large company encourages stronger
         | regulations that small competitors cannot afford to satisfy.
         | Here the issue is regulation that is too weak, not too strong.
        
           | thfuran wrote:
           | No, that's just one form of regulatory capture. If this
           | legislation is a result of lobbying from retailers opposing
           | imposing meaningful fines, particularly if the state of
           | things before its adoption was that penalties from failed
           | inspections were often higher, then this is regulatory
           | capture.
        
         | mystraline wrote:
         | > yet North Carolina law caps penalties at $5,000 per
         | inspection
         | 
         | So, have every agent in the state inspect them. Fine 5k.
         | Immediately inspect again, different goods. Fine another 5k.
         | Keep doing it opening hours.
         | 
         | Treat them like an inspection money pinata until they fix their
         | ways. State gets a big pile of money to do better, and massive
         | fines at 5k a pop for a few weeks punish the company and their
         | bottom line.
        
         | amarant wrote:
         | Say what you will about the EU, but they figured out how to
         | scale corporate fines correctly: max 10% of owning entities
         | annual income.
        
           | sneak wrote:
           | Why are fines capped?
        
             | j-bos wrote:
             | Maybe it's like unlimited PTO, without a cap nobody
             | actually uses it.
        
         | fencepost wrote:
         | Depending on how much independence the inspectors have they
         | could probably turn a heck of a profit per inspector (thus
         | being able to argue their continued existence to the
         | legislature).
         | 
         | Could an inspector manage two per day? If you figure the full
         | cost of each inspector is $150,000/year but dedicated ones
         | could do 8 inspections at $5k each per week, there's well over
         | $1 million/year per inspector (assuming not all inspections
         | would be the full fine, there's travel costs per inspector,
         | inspectors would have to spend some office/court time, etc.
         | that would bring it down from the potential maximum of
         | ~$1,800,000 each factoring in vacation and holidays).
         | 
         | Even Republicans could get behind it! "We're reducing the
         | direct budget of the department, but authorizing it to hire
         | additional inspectors in order to bring in additional revenue
         | that can be utilized to bring the budget to or above its
         | current levels." It's a cost reduction measure!
        
       | nlh wrote:
       | "In one court case in Ohio, Dollar General's lawyers argued that
       | "it is virtually impossible for a retailer to match shelf pricing
       | and scanned pricing 100% of the time for all items. Perfection in
       | this regard is neither plausible nor expected under the law.""
       | 
       | Sorry---what? Isn't that one of the fundamental basic jobs to be
       | done and expectations of a retailer? You put physical things on
       | display for sale, you mark prices on them, and you sell them.
       | When the prices change, you send one of your employees to the
       | appropriate shelves and you change the tag.
       | 
       | When on earth did we get into a world where that absolutely
       | fundamental most basic task is now too burdensome to do with
       | accuracy?
        
         | tokai wrote:
         | Just make the sticker price legally binding and this issue
         | would be solved with almost perfect precision.
        
           | mindslight wrote:
           | The sticker price is legally binding - it constitutes an
           | _offer_ , and the cash register surreptitiously charging a
           | higher price from what the customer has agreed to constitutes
           | _fraud_. The problem is that asserting your rights takes
           | time, resources, and energy that people shopping at these
           | stores generally do not have. The people that would have the
           | ability to push back instead just use their resources to move
           | on and shop somewhere else that isn 't immediately abusing
           | them.
        
             | gucci-on-fleek wrote:
             | > The sticker price is legally binding, as it constitutes
             | an _offer_
             | 
             | While I _wish_ that that were how things worked,
             | unfortunately, the US legal system disagrees [0].
             | 
             | [0]:
             | https://en.wikipedia.org/wiki/Invitation_to_treat#Case_law
        
               | dymk wrote:
               | That's about ads, not sticker price on the shelf, and
               | about a lack of obligation to sell at that price. It does
               | not say that it's alright to lie and charge a different
               | price at the register.
        
             | rtp4me wrote:
             | "The people that would have the ability to push back"...
             | 
             | And they can. Just bring it up to the cashier or managers
             | attention, and voila, they adjust the price. Please let me
             | know if you have had a different experience.
        
         | xrd wrote:
         | Dollar General: "people these days just don't want to work
         | (meaning, my clients don't want to do that work or pay lazy
         | genZers...)!"
        
         | jrmg wrote:
         | It's virtually impossible for them because they're not
         | considering hiring more people to do it.
         | 
         | Dollar General stores often run with one overworked staff
         | member doing everything in the store, from stocking to working
         | the register (which is why the register is unstaffed so much
         | and you have roam the store to find someone to ring you up...)
        
           | nkrisc wrote:
           | "Because of conditions of our own making, it is virtually
           | impossible to comply with the law, thus we shouldn't be held
           | accountable to it."
           | 
           | It's the same BS when Meta and others say they can't moderate
           | posts because there's too many.
        
         | jlund-molfese wrote:
         | I used to work at Best Buy replacing pricing stickers before
         | the store opened. We had a sheet of new stickers for changed
         | prices every time and had to scan every sticker in the store to
         | make sure they were all up to date.
         | 
         | It makes sense they're all switching to e-ink tags though,
         | probably saves a ton in labor and the occasional mistake.
        
           | spwa4 wrote:
           | That's because those stickers constitute an offer of sale for
           | a given price. If a customer comes in, takes the item, throws
           | down the cash to an employee and leaves, that's a 100% bone
           | fide legal sale.
           | 
           | That's also why messing with price stickers is a crime.
        
         | terminalshort wrote:
         | An easy test for this is how often the price at the register is
         | higher vs lower than the marked price. If it's close to 50%,
         | then ok, it's a mistake. But if it's higher...
        
           | Spivak wrote:
           | I don't think you would reasonably expect it to be close to
           | 50/50. Most price changes are increases and the mistake
           | theory basically boils down to the employees never updating
           | the shelf tags. Which I think is an extremely plausible
           | theory since the one employee at the store isn't paid enough
           | to bother. And who's even going to check that they updated
           | the tags? Dollar General isn't shelling out money for that.
           | 
           | There's another kind of store that's in a similar situation:
           | thrift stores and nearly all of them have also decided this
           | problem is too hard. Lots of items are marked with just
           | colors based roughly around their estimated value and the
           | store changes the price/color mapping occasionally.
        
         | adolph wrote:
         | > When on earth did we get into a world where that absolutely
         | fundamental most basic task is now too burdensome to do with
         | accuracy?
         | 
         | It always has been this way since barcoded stock keeping units
         | because of the problems identified by CAP Theorem [0]. Since
         | the price data of an object must exist in two locations, shelf
         | and checkout, the data is partitioned. It is also relatively
         | expensive to update the shelf price since it depends on
         | physical changes made by an unreliable human. Even if all
         | stores used electronic price tags there will a very small lag,
         | or a period in which prices are unavailable (or a period of
         | unavailability like an overnight closure).
         | 
         | It would be interesting to understand at what point of
         | shelf/checkout accuracy would lead to what increases in overall
         | prices [1]. That is to say that pricing information has a cost:
         | a buyer must bring the item to checkout to find out the true
         | cost in the case of authoritative checkout, or the clerk must
         | walk to each shelf in the case of authoritative shelf.
         | 
         | Once upon a time, each item in the store was labeled with a
         | price tag and the clerk typed that tag into a tabulation device
         | in order to calculate tax and total. The advent of the bar code
         | lead to shelf label pricing since the clerk needn't read a
         | price from each item, leading to the CAP Theory problem of
         | today.
         | 
         | I suppose that the future will bring back something similar to
         | individual price tags in the form of individual RFID pricing.
         | This way each individual item on a shelf can be priced in a way
         | that is readable by the buyer and the seller in the same
         | manner.
         | 
         | 0. https://en.wikipedia.org/wiki/CAP_theorem
         | 
         | 1. https://en.wikipedia.org/wiki/Pareto_efficiency
        
       | 1123581321 wrote:
       | This is poor behavior by the stores. The solution will be
       | conversion to eink shelf labels that sync like registers do.
       | Realistically, the fines will not be increased to the point where
       | increasing store staffing and training is cheaper. I don't know
       | where Dollar General is in this process, but many other c-stores
       | and grocery stores have implemented digital labels. Digital
       | labels come with the temptation to experiment with more dynamic
       | pricing which would also make it harder to shop on a budget.
       | However, high staffing or fines also increases prices. I wish we
       | had better retail in more of the United States, especially
       | needier areas.
        
         | morkalork wrote:
         | I am convinced the wallmarts in Canada are doing dynamic with
         | the eink price tags. I was in the same location twice in a week
         | to pick up snacks for a gathering and the price of chips were
         | 50% more on the Friday vs earlier in the week.
        
           | netsharc wrote:
           | Huh, with eInk prices, how do customers prove "Wait, the
           | price on the shelf was different!", the store can just change
           | the price as they go to double-check. As a customer you can
           | take a picture of the price, but then it'll be an argument of
           | "This picture is old/doctored/AI".
           | 
           | Of course the chances of this sort of scam happening are
           | probably not that high, but hey, considering the country is
           | rotting more and more, from the top...
        
             | gruez wrote:
             | >Huh, with eInk prices, how do customers prove "Wait, the
             | price on the shelf was different!", the store can just
             | change the price as they go to double-check.
             | 
             | Even with paper tags, the store can't get someone to change
             | the price while you're waiting at the cashier for a
             | "manager" to show up?
        
           | 1123581321 wrote:
           | I believe they may in the US, too. Anecdotally, I bought all
           | of the Dr Thunder Zero Sugar at one store twice, and they
           | bumped it about 20% for a few weeks after that. They didn't
           | change the other generic sodas' prices.
        
           | potato3732842 wrote:
           | Seems shortsighted for a retail business since people will
           | only need to get burned once or twice to stop showing up.
        
             | mschuster91 wrote:
             | For people to vote with their wallet, there has to be an
             | alternative. In "dead" markets where there is only one
             | realistic alternative, whoever holds the monopoly can do
             | whatever the fuck he wants, captive audience.
             | 
             | And no, it's not possible to compete as a startup against
             | Walmart or any other of the corporate giants (and not just
             | in retail, it's valid across industries) - alone because
             | the sheer scale of Walmart allows them to extort insanely
             | cheap pricing out of vendors. Walmart can sell for far
             | cheaper than any mom and pop store can acquire.
        
       | iinnPP wrote:
       | This happens at Walmart Canada all the time. The policy there is
       | to slash 10$ off shelf price (or free for anything 10 or less).
       | 
       | Since COVID, Walmart has stopped having immediate fixes of the
       | problem.
       | 
       | Since 2020, I have accumulated about $1200 in free merchandise
       | using the above. Almost always food.
        
         | paulcole wrote:
         | Publix in the southeast US will give you anything that rings up
         | wrong for free. I shopped there for 20+ years and only remember
         | getting a handful of things free.
        
       | modzu wrote:
       | what's the point of this hit piece? isnt that frying pan with a
       | sticker price of $10 and rung up at $12 still $50 anywhere else?
        
         | paulcole wrote:
         | Is it a hit piece if it's true lol?
        
         | jrmg wrote:
         | I don't think this is true. Even if pricing in the shelves is
         | accurate, in my experience Dollar General is typically a little
         | more expensive than a normal mid-range supermarket (or e.g.
         | Amazon) for most things.
        
           | modzu wrote:
           | then why do poor people shop there? is the idea dollar
           | general is strategically misleading them to see prices
           | advertised lower than a normal supermarket but in fact they
           | are higher? i didn't think the article was making that strong
           | of a claim at all. it seemed more like, operations are
           | minimal and staffing short (which in theory enables lower
           | prices) and they linked the staffing issue with simply just
           | not being on top of updating price changes on the shelves
        
             | jrmg wrote:
             | 1) Misleading advertising? Yes. Obviously this is true if
             | you accept both that their prices are generally higher, and
             | that they're advertising low prices.
             | 
             | 2) They're in more convenient locations - often on the
             | drive home already - and are smaller so are faster to get
             | in and out of when you're hurrying to or from work.
             | 
             | 3) If you're _not_ working, they're probably cheaper to
             | _get to_, especially if you can't drive, because they're
             | closer.
             | 
             | I'm not as up in arms about this as some - in some respects
             | this is just a new iteration of the corner store or bodega,
             | which have always been a little more expensive than
             | supermarkets (and often a little disorganized...) - but it
             | is the truth.
        
             | pilotneko wrote:
             | Dollar General and Family Dollar are smaller stores that
             | are generally the only option within a reasonable travel
             | distance. Here in the South, you might be able to catch a
             | bus to Wal-Mart, but it'll take 2-3X more time (1 hour
             | instead of 20 minutes), so people go with the closer option
             | even thought it is more expensive. No guarantees that Wal-
             | Mart will be cheaper either.
        
               | qingcharles wrote:
               | In Chicago they closed the Wal-marts leaving only the
               | Dollar Generals and Dollar Trees as the only walkable
               | stores.
        
             | pwg wrote:
             | > then why do poor people shop there?
             | 
             | While the typical viewpoint is that "poor people" shop
             | there, that's actually somewhat of a misnomer.
             | 
             | Most dollar stores in the US are located in rural
             | locations, and in part because a lot of rural population is
             | also "lower income" they get the appearance of "only the
             | poor shop there". But the part the folks who label the
             | stores as "for the poor" often overlook is the "ruralness"
             | aspect. That dollar store might only be a five to ten
             | minute drive away to grab something, meanwhile the Walmart
             | or Target or other, that likely has the better deal (the
             | 128oz of Tide for 9.99 vs the 8oz of Tide for $1.50) is a
             | forty-five minute drive away one way. So couple 1.5 hours
             | round trip commute, plus fuel costs for that 1.5 hours, and
             | you start to see why folks would more likely shop at the
             | dollar store vs. the store that actually gives them the
             | better deal overall.
             | 
             | That's partly the "magic" of the dollar stores for
             | corporate. They sprout up like weeds in rural areas much
             | like Starbucks sprout up on every corner in cities. And
             | they capture sales largely because by sprouting up like
             | weeds, they are a shorter round-trip drive to grab sometime
             | (esp. to grab those one or two things you forgot last
             | weekend when you /did/ make the 1.5 hour round trip drive
             | to go to the nearest Walmart for the better deals). These
             | store's sales largely come from the 7-11/Starbucks method
             | in the city: convenience.
             | 
             | And couple the above with the fact that in rural USA, there
             | is effectively zero public transportation and very little
             | in the form of uber/cab companies, and so if one does not
             | have a car, one may be stuck shopping at the dollar store
             | 5-10 minutes away even if one knows the stores are gouging.
        
           | jancsika wrote:
           | Could work like this:
           | 
           | 1. You help your friend wash the dishes and notice their
           | hefty, 5-quart stainless steel pot. You look it up on Amazon
           | and it's like $50.
           | 
           | 2. At $store, you see something that looks like that size and
           | style of pot, but for only $10. What a steal! It's even
           | _ultralight_ so it should be easier to load in the
           | dishwasher...
           | 
           | * _Several months later*_
           | 
           | 3. Your pot is all warped to hell, making it difficult to
           | cook evenly. But your friend's pot is probably fine for the
           | next few decades if not longer. (Note: if this were an oven
           | pan the warping would make it dangerous to use.)
           | 
           | 4. To add insult to injury, $store got two more of your
           | dollars just because.
           | 
           | I picked the 5-quart pot because I've seen one of these with
           | my own eyes.
           | 
           | In any case, OP would have been better off paying me $38 for
           | nothing but crushing their dream of buying a decent quality
           | $10 frying pan.
        
       | analog8374 wrote:
       | Happened to me yesterday. Haagendaz ice cream. $4 on the shelf,
       | $5 at the register.
        
         | spwa4 wrote:
         | If it says $4 on the shelf and you pay $4 at the register and
         | walk out with the goods, that's a 100% legal sale and not
         | theft. Not even if it was a mistake on the part of some
         | employee (and it's not the employee's fault either, by the way)
        
           | masfuerte wrote:
           | It literally is the employee's fault but they are not legally
           | liable for it.
        
             | spwa4 wrote:
             | An employee is generally only liable if they purposefully
             | sabotage their employer's business. So a mistake doesn't
             | cut it.
        
               | potato3732842 wrote:
               | And that's effectively an impossibly high bar in the
               | typical mundane cases though.
        
           | gruez wrote:
           | >If it says $4 on the shelf and you pay $4 at the register
           | and walk out with the goods, that's a 100% legal sale and not
           | theft.
           | 
           | Source? What happens if somebody stuck a $1 sticker on a ps5?
           | Does that mean you can walk out paying $1 for it, even if the
           | cashier corrects you? What if it's not something absurd but a
           | plausible good deal, like $50 off?
        
           | mminer237 wrote:
           | The store is under no legal obligation to sell it to you,
           | just like you're not obligated to buy it for that price.
           | Depending on the situation, that might be false advertising
           | they could get in trouble for, and obviously you're not
           | committing a crime if you don't know the real price, but if
           | someone says "oops, that's a mistake", and you take it anyway
           | and give less money, that is theft in most states.
        
       | firefax wrote:
       | I had a clerk flip out on me a while back at a Dollar Tree
       | because I wanted a charge for a dollar -- it rang up as 1.25.
       | They rolled their eyes and told me not everything is a dollar,
       | and I maintained that absent pricing stickers indicating
       | otherwise, the default is a dollar. When I pointed out another
       | way to look at it is it's a twenty five percent price
       | discrepancy, someone came out of an office and literally screamed
       | at me and chased me out of the store for "causing a problem",
       | telling me that if I'm going to cause problems, so will she.
       | 
       | I wasn't cursing or yelling, just calmly making the points I made
       | above as the employees took a dive bar approach to customer
       | service...
       | 
       | It doesn't surprise me at all that this kind of thing is
       | intentional -- they're banking on you not walking out without the
       | item having carried it to the checkout.
        
         | aimor wrote:
         | "the default is a dollar"
         | 
         | There is no default price.
        
           | firefax wrote:
           | It's called "dollar tree" for a reason, historically prices
           | were and are a dollar unless otherwise noted.
        
             | tokai wrote:
             | They went up to $1.25 in '21 I think. It was extensively
             | cover by the press.
        
               | firefax wrote:
               | >They went up to $1.25 in '21 I think. It was extensively
               | cover by the press.
               | 
               | I'd love to see a citation on that, since I _think_ you
               | 're mistaken -- there's plenty of things that are still a
               | dollar, mostly stuff like packages of napkins or plastic
               | cups, cards and other sundries.
               | 
               | (What was extensively covered was that they were no
               | longer a "everything is a dollar" store.)
        
               | bell-cot wrote:
               | Citations:
               | 
               | https://www.usatoday.com/story/grocery/shopping/2025/12/0
               | 4/d...
               | 
               | https://www.businessinsider.com/dollar-tree-raises-some-
               | pric...
               | 
               | https://www.the-sun.com/money/14719523/dollar-tree-
               | sneaky-co...
        
           | mistrial9 wrote:
           | I can't cite details, but I believe that case law has settled
           | this many times.. When a customer enters a commercial
           | business, there are implied contracts that are enforceable..
           | I am thinking of restaurants first. I believe it is the
           | responsibility of the goods and services provider to show
           | prices accurately and honor them, and variations of that are
           | well-understood in court. These kind of transactions are
           | common for thousands of years in the West.
        
       | hamdingers wrote:
       | Even if they accurately charged shelf prices, these places are
       | still a ripoff targeting the vulnerable. The list price is low
       | but the per-unit price is astronomical compared to grocery store
       | prices.
        
         | throwaway98797 wrote:
         | time value of money
         | 
         | we don't complain that the per unit cost at target is higher
         | than at costco
        
           | DangitBobby wrote:
           | Because it's very rare that Target crowds out the only Costco
           | that sells produce in a 20 mile radius leaving only boxed
           | shit food for people to buy.
        
         | neilv wrote:
         | The "dollar stores" vary.
         | 
         | I've been able to find good deals on some things at Dollar
         | Tree. Usually the good deals were a smaller quantity of a
         | normal-quality brand-name item. I mostly avoid the substandard
         | quality items. But even sometimes substandard is OK if, say,
         | you want to make your political demonstration sign on white
         | foamcore (much cheaper than the art supply store, and you don't
         | care if it's smaller, thinner, or outgassing) rather than on an
         | Amazon shipping box.
         | 
         | There was a Family Dollar across from a large public housing
         | project here, where I also went looking for deals, but the
         | shelf prices looked like a convenience store. I didn't find out
         | whether they were fraudulently charging even more at the
         | register like this article describes. (I hope it closed because
         | the residents knew there was an affordable Market Basket a
         | 20-30 minute walk away, over the city line and train tracks,
         | and they were able to get there and find the time for it.)
        
           | analog31 wrote:
           | >>> rather than on an Amazon shipping box.
           | 
           | My wife attended a political protest, and said she noticed
           | signs made from my employer's shipping boxes.
        
             | neilv wrote:
             | That's great, and a mix of all kinds of signs is to great
             | effect. (People from all sorts of demographics using
             | whatever means they can to be heard.)
             | 
             | Sometimes the sign-makers are artistically inclined, and
             | may have access to better materials.
             | 
             | The most memorable example was at the political
             | demonstrations (and counter-demonstrations) leading up to
             | the Massachusetts constitutional convention that legalized
             | gay marriage. For the State House one I photographed
             | (learning photojournalism on the side), the anti-gay-
             | marriage people were mostly bused in, including a pair of
             | angry-looking old nuns in black full habit, and handed out
             | the same ugly stock sign. (There's an obvious joke that
             | they couldn't find a graphic designer who was sympathetic
             | to the anti-gay cause.) Separated from them, across a
             | street was a huge counter-protest, with an ocean of all
             | sorts of creative, colorful, and positive handmaid signs,
             | held by generally good-natured and thoughtful looking
             | people.
        
         | adrr wrote:
         | Have you ever been to a dollar store? Its much cheaper for the
         | same items than a regular grocery store. Also not everyone
         | needs a Costco sized tub of mayo. You test it yourself go by a
         | standard sized candy bar at safeway/alberstons and then at a
         | dollar store. Bottle of coke. Birthday card. Better yet compare
         | the cost spices. Try to buy bay leaves at regular grocery store
         | for under $5.
        
           | hamdingers wrote:
           | Candy bars and soda sure whatever. Look at essentials. The
           | dollar store near me charges $1.99 for 8oz of Tide, the
           | Albertsons a single block further charges $9.99 for 84oz, the
           | dollar store is over double the cost. It's the same story
           | with soap, cleaning products, etc. A tiny container for cheap
           | feels like a deal if you can't do the math, but it's not.
           | Feel free to "test it yourself."
           | 
           | I'm lucky in that I have a real grocery store nearby to
           | compare to. If you live in a food desert where these big
           | chains have driven out all competition you wouldn't have a
           | choice.
        
             | tyre wrote:
             | It's not only the math but access to cash. Families living
             | paycheck-to-paycheck struggle to make long-term
             | investments. Paying 5x for larger quantities may pay off in
             | the long-term, but if you're struggling to make ends meet
             | and stretch dollars _today_ , it might be overwhelming.
        
             | terminalshort wrote:
             | And what's the problem with that? You get a discount for
             | buying larger amounts of basically everything.
        
               | DangitBobby wrote:
               | Dollar stores are crowding out grocery stores in areas
               | that only have the clientele to support one grocery
               | store. They sell only higher margin, long shelf-life shit
               | food, whereas real grocery stores have to carry produce
               | which cuts into margins considerably cause it goes bad.
               | So it's easier for them to stay open. And they create
               | food deserts there. They are a fucking scourge for small
               | towns.
        
             | yunohn wrote:
             | Did you know you can save even more buying B2B/wholesale?
             | 
             | Sometimes it is more about the upfront cost and/or
             | resulting storage space needed, than pure price efficiency.
        
           | thfuran wrote:
           | Spices are pretty much universally horribly overpriced at
           | grocery stores.
        
         | qingcharles wrote:
         | I lived for an entire year out of just Dollar General and
         | Dollar Tree. In some rough areas they are the only stores where
         | you can buy groceries, so they have very clear monopolies.
         | There _are_ good value products, and like everything these days
         | you have to use their apps to get the best offers. Also, the
         | Dollar General app lets you check the price of everything
         | before you take it to the counter. They regularly have items
         | marked up at 1 cent.
        
         | burnt-resistor wrote:
         | Yup. Dollar General is worse than a convenience store like
         | 7-11, it's an expensive _inconvenience_ store.
         | 
         | And we need more local co-op grocery stores like Berkeley Bowl,
         | the Davis Co-op, and ATX Wheatsville.
        
           | zdragnar wrote:
           | I have yet to visit a co-op that had cheaper than grocery
           | store prices. Every single one focused on quality over cost
           | savings.
        
         | IncreasePosts wrote:
         | People usually understand this, but realize driving 10 minutes
         | to dollar tree for a few items is preferable to driving 30
         | minutes to cheaper shop
        
         | kube-system wrote:
         | While that _can_ be bad, sometimes you come out ahead after
         | accounting for spoilage, time, and travel.
         | 
         | Sometimes I pay higher unit prices at a dollar store
         | intentionally because they offer smaller package sizes not
         | offered elsewhere and I only need the smaller amount. I could
         | get a much better unit price at another store but would waste
         | the rest of the product.
        
           | kotaKat wrote:
           | Speaking of travel, that's why I go for them.
           | 
           | If I'm going for a multi-day stay somewhere and I don't want
           | to deal with annoying mini bottles of hotel soap, I'll just
           | pop into a Dollar Whatsit for a small bottle of something
           | suitable at my destination.
        
         | mschuster91 wrote:
         | > The list price is low but the per-unit price is astronomical
         | compared to grocery store prices.
         | 
         | The problem is, so is material cost and handling effort. Say, a
         | 2 liter bottle of soda compared to 10x 200 mL. Same amount of
         | soda, but more handling required for stocking, inventory
         | management (aka, make sure there is no soda expiring on the
         | shelf) and finally scanning it over the cash register, and more
         | packaging material.
         | 
         | Larger units of _anything_ will always be cheaper than small
         | units.
        
         | raw_anon_1111 wrote:
         | Saying it only targets the vulnerable because of high unit
         | prices is like saying the local gas station is a rip off that
         | only targets the vulnerable because prices are higher.
         | 
         | I lived in a city that's in North Metro Atlanta (Johns Creek)
         | where the median household income was $160K. There was a Dollar
         | General right by a Publix. People still went in the Dollar
         | General for little things where the small packages that you
         | could buy was feature and not a bug.
         | 
         | We still stop by the dollar store for snacks sometimes because
         | it is convenient just to get things to pack for a flight. It's
         | especially popular for tourists in Orlando where I live
        
       | paulcole wrote:
       | > North Carolina law caps penalties at $5,000 per inspection,
       | offering retailers little incentive to fix the problem.
       | "Sometimes it is cheaper to pay the fines," said Chad Parker, who
       | runs the agency's weights-and-measures program.
       | 
       | Well, there's your problem.
        
       | paultopia wrote:
       | At a certain point we have to acknowledge that a huge share of
       | our economy is just raw predation.
        
         | swatcoder wrote:
         | We might also acknowledge that a pretty significant share of
         | people do know that already and just shrug their shoulders to
         | it, convinced that it's better to allow for that than do
         | anything about it.
         | 
         | There's been a lot of work put into distilling "free market"
         | into its most radical interpretation, and lots of people just
         | aren't open to bringing much nuance or pragmatism to bear upon
         | it any more. Many lessons learned painfully in late 19th and
         | early 20th century have been forgotten and the counterweight
         | and containment policies that they earned now tend to get
         | ignored or dismantled.
        
         | c-linkage wrote:
         | Always has been.
        
           | _DeadFred_ wrote:
           | It really wasn't this bad in the past on a whole. There were
           | plenty of bad actors, but EVERY actor wasn't bad.
           | 
           | Just look at food recipes American corporations feed to
           | Americans, and their different recipes for Europe that look
           | more like the American recipes circa the 1990s. Everything in
           | America is optimised to the max permissible bad action.
        
             | exasperaited wrote:
             | There is one overriding difference between US culture and
             | European culture (and to a fading extent, British culture).
             | 
             | In the EU and UK, shame still motivates better behaviour.
             | 
             | Every single problem the USA has comes down to the fact
             | that shame, in the USA, stopped functioning in the late
             | 1970s.
        
         | A4ET8a8uTh0_v2 wrote:
         | And somehow instead of trying to make it better, there are
         | never ending attempts to make it even worse somehow ( if some
         | of the patents are to believed ). I honestly sometimes wonder
         | if some of the stuff is not in place already only because
         | public reaction if all those were plopped in place in one go.
        
         | IncreasePosts wrote:
         | Well, why don't the ethical non-predators open up shops in
         | economically disadvantaged areas and offer non-predatory
         | prices? The margins must be huge if they really are predators.
        
           | smallmancontrov wrote:
           | The loot is already spoken for by complements and embedded in
           | real estate prices, stock prices, etc.
           | 
           | Hobbes arguments can rationalize any Nash Equilibrium.
        
             | IncreasePosts wrote:
             | Isn't it just the predators that care about stock price to
             | enrich themselves? Couldn't a co-op exist which offered
             | non-predatory pricing and didn't try to maximize their
             | stock price constantly? And real estate in destitute rural
             | areas is generally dirt cheap.
             | 
             | Of course this could be offered. But, no one wants to do it
             | because it's a thankless job. And if you're going to do a
             | thankless job, you'd probably rather get paid a lot of
             | money to do it than very little
        
               | smallmancontrov wrote:
               | You're ducking the argument. The loot from predatory
               | practices is quickly absorbed not just by the single
               | player perpetuating them, but by their complements in the
               | economic network -- complements which a competitor would
               | have to deal with on the loot-enriched terms, which turn
               | launders exploitation into a "necessity" and transforms
               | any charity into a weakness that will ensure your
               | replacement. That's what Nash Equilibrium is, and it's an
               | elementary result of game theory that Nash Equilibrium
               | can lie very far from the global optimum. Even the global
               | minimum can be a Nash Equilibrium. We should aspire to do
               | better.
        
           | conrs wrote:
           | Good question, was on my mind too. The problem I could see is
           | Walmart style - the predator will beat the prices of the non-
           | predator down until the non-predator goes out of business,
           | then raise their prices again.
           | 
           | They can do this because they are operating in other areas
           | with predatory prices, giving them the ability to operate at
           | a loss, and relying on the fact that at least some of those
           | areas are not being challenged by non-predators.
           | 
           | Everybody seems to be playing the game right in this
           | scenario. Interesting to try to come up with a good counter.
        
             | IncreasePosts wrote:
             | Does this actually happen? If a community opened up a co-op
             | shop that started eating into the revenue of a dollar
             | store, would the dollar store company try to fight back, or
             | would they just exit that market?
             | 
             | Yes, I guess well capitalize companies could offer
             | unrealistically low prices, but on the other hand, any kind
             | of co-op or community driven organization has the benefit
             | of not needing the margins. Dollar store investors are
             | there to make a buck, if their capital isn't getting
             | reasonable returns will ultimately exit the business and
             | move somewhere else.
        
               | conrs wrote:
               | Cooperatives do not get rid of the net negative cycle.
               | Ultimately whatever the benevolent entity ends up being,
               | it becomes a contest of who can bear to lose more money.
               | 
               | Cooperatives distribute the losses but it is still a
               | money pit.
        
         | potato3732842 wrote:
         | Yeah. Why do I have to pay a plumber to install gas appliances?
         | It's just a protectionist racket.
         | 
         | Point is, it's easy to screech "predation" or whatever but the
         | problem is that every one of these things has some
         | justification that can be used in the abstract.
         | 
         | It does legitimately cost more to run a store like Dollar
         | General than Walmart so the same can of beans has to cost more
         | on their shelf for the same margin.
         | 
         | How much more, how much is justified? I don't know.
        
           | paultopia wrote:
           | A justification for lying to poor people about the prices of
           | things they're trying to buy? Do tell.
        
             | potato3732842 wrote:
             | I know we're all idiots here because that's what easy tech
             | money does to people but retail margins are razor thin. You
             | can't just make thoughtless trite statements about what
             | they "should" do because a few percent here and there is
             | the difference between red and black and red means prices
             | go up. I'm sure they're happy to not invest in accuracy
             | when it makes them money but there's a pretty wide gulf
             | between being sloppy because it suits you and actively
             | making a business out of deceit.
        
       | _fat_santa wrote:
       | I experienced this first hand maybe a year ago when I randomly
       | walked into a dollar general to get something, their prices often
       | times are pretty close to the "regular" versions of the product,
       | but packaged specifically for dollar stores.
       | 
       | I get why people shop at them in rural places because that's the
       | only shop within 10-20 miles but in cities it makes no sense. Had
       | prices been 20-30% cheaper but in a smaller size it would still
       | be a ripoff but an understandable one, but often times I saw
       | products that were priced just 3-5% below their standard
       | counterparts while giving you maybe 30%-50% of the product.
        
         | itsdrewmiller wrote:
         | Every store has some stuff that is overpriced compared to peers
         | and some stuff that is underpriced. Dollar stores make their
         | money more on drastic understaffing (leading to the issue in
         | the article) and national scale than they do on being a
         | consistently worse value. They have the cheapest freeze dried
         | strawberries by weight you can get anywhere other than making
         | them yourself.
        
         | silisili wrote:
         | Same. My city has a Walmart, Publix, Food Lion, Kroger, and
         | Aldi. Yet they keep building dollar stores, I think there's now
         | 5 within 10 miles of my house. They all seem to do decent
         | traffic, which baffles me. The stores are a mess, items
         | disheveled everywhere, and rare to see more than a single
         | person working. Really depressing places, I cannot figure out
         | their appeal.
        
       | parpfish wrote:
       | an interesting contrast that i think about a lot:
       | 
       | - in rural america, there are dollar stores everywhere that
       | overcharge for small items. people treat them as a necessary evil
       | and begrudgingly shop there.
       | 
       | - in nyc, there are corner bodegas everywhere that overcharge for
       | small items. they are generally seen as beloved neighborhood
       | institutions.
       | 
       | so... what's the difference? corporate owned vs family owned?
       | length of time in community? presence of cute cat at the
       | register?
        
         | inglor_cz wrote:
         | Once upon a time I lived near the Prague city centre, and if
         | the intent of such a corner shop is to rip off tourists and
         | one-time visitors, the locals don't mind - at least as long as
         | cheaper alternatives off the most notorious areas exist and are
         | usable for them (Lidl etc.)
         | 
         | Quite to the contrary, the locals are sometimes happy to have
         | such overcharged options at hand, for example if they are
         | throwing a party and find out that they are short on
         | vodka+cigs, and it is 1 am and all the regular shops are
         | closed.
        
         | thenewwazoo wrote:
         | Bodegas charge you a little bit more because a real human owner
         | accepts the risk of serving a small community in exchange for
         | being part of that community, and you pay that extra in order
         | to make their existence possible.
         | 
         | Dollar Generals charge you a little bit more because a huge
         | chain has driven out all the competition and you have no
         | choice. The people who work there do not benefit from the extra
         | you pay, and the owners are not members of the community.
        
           | IncreasePosts wrote:
           | There was no competition in many places dollar stores
           | operate. They moved into those places specifically because
           | they were underserved by larger retailers.
        
             | sejje wrote:
             | I agree, at least in my area.
             | 
             | Two neighboring dollar stores just went out of business in
             | a town I commute through. The culprit? A new Harp's grocery
             | store a block away.
        
               | bombcar wrote:
               | The dollar store in my town is barely holding on - the
               | competition? A Walmart across the street.
               | 
               | The only thing keeping it afloat is literally balloons I
               | feel. Walmart doesn't sell helium inflated ones.
        
         | leipert wrote:
         | Probably ,,only store that's in my vicinity" in rural areas vs.
         | ,,if that bodega sucks, I go to another". So one is a necessity
         | which overcharges, the other a convenience which overcharges.
        
         | analog31 wrote:
         | In both cases they charge a little more because the next store
         | charges a little more too.
        
         | gessha wrote:
         | Because in NYC I pass by tens of the bodegas on the way to work
         | and I can shop at any one of them. I can also shop at Aldi's,
         | Trader Joe's, Costco, what have you.
         | 
         | You said it well yourself - "begrudgingly". With so many
         | options and price points, I don't have to begrudgingly shop at
         | bodegas. I do it happily if it serves my goal of getting a
         | single can of Coke. If I want to get a whole stack of them, I'd
         | happily get them at Costco. Options are great when you have
         | them.
        
         | gdulli wrote:
         | Minimum wage in NY is $15.50, in Kansas it's $7.25. The
         | overcharging in rural areas is not adjusted downward for lower
         | wages. But I wouldn't shop at a bodega and don't find it
         | virtuous there either.
        
         | woodruffw wrote:
         | This article is about something subtly different than
         | overcharging: it's about consumers believing that they're
         | paying one amount (the list/sticker price), and being charged a
         | different amount (typically higher in the company's favor) at
         | checkout.
         | 
         | In my experience, this doesn't really happen with bodegas: they
         | might be overpriced in the "this is a bad deal for milk" sense,
         | but they don't misrepresent their sticker prices to any degree
         | that I've ever experienced.
         | 
         | (But also, I don't think bodegas _do_ categorically overcharge
         | in NYC. I think they 're about the same as grocery stores, i.e.
         | there's a large amount of internal variation in pricing because
         | people generally don't want to make multiple bodega pit stops
         | just to save $2.00 on eggs.)
        
         | bluedino wrote:
         | Hey, Starbucks charges $3.50 for a cookie, I could buy 4 at the
         | local bakery or two at the farmers market for that much (and
         | get a better cookie).
        
       | ccamrobertson wrote:
       | One simple solution here (and for all sorts of legislated fines
       | and thresholds) would be to tie them to inflation; it looks like
       | the fine of $5,000 dates to the early 90s.
        
       | eudamoniac wrote:
       | As someone who typically only enters a Whole Foods or a Home
       | Depot for her retail experiences, the one time I entered a Dollar
       | General, I was struck by how depressing it felt. I would never go
       | back into one. Yes, I know how out of touch this sounds.
        
         | linsomniac wrote:
         | I think that's deliberate: you walk into a dollar store and
         | think "they aren't spending a dime on the shopping experience,
         | so they must be passing that dime onto me."
        
         | ghaff wrote:
         | I have a very, very convenient Walmart including a pharmacy so
         | I do go in from time to time especially for standardized
         | purchases. But I don't really like it. And I poked my head into
         | an adjacent Aldi once and retreated. Otherwise not really worth
         | the headache.
        
       | burnt-resistor wrote:
       | Dollar stores are the new neighborhood "outlet stores" compared
       | to outlet stores of yesteryear (remote locations for not much/any
       | savings). They're actually glorified convenience stores while
       | also not being proper substitutes for grocery stores in food
       | deserts. Most US grocery stores are also now rip-offs like
       | convenience stores were, while big box stores are somewhat
       | savings stores now... f'kin' turbo inflation.
       | 
       | I don't know about the feasibility of government grocery stores,
       | but I'm pretty sure the entire food supply chain would benefit
       | from massively changing to the employee-/customer-/supplier-owned
       | co-op model and get megacorps and private equity out of the
       | normalized deviancy of predatory money extraction for essential
       | goods and services.
        
       | danaris wrote:
       | "The reason that the rich were so rich, Vimes reasoned, was
       | because they managed to spend less money. Take boots, for
       | example. ... A really good pair of leather boots cost fifty
       | dollars. But an affordable pair of boots, which were sort of OK
       | for a season or two and then leaked like hell when the cardboard
       | gave out, cost about ten dollars. ... But the thing was that good
       | boots lasted for years and years. A man who could afford fifty
       | dollars had a pair of boots that'd still be keeping his feet dry
       | in ten years' time, while a poor man who could only afford cheap
       | boots would have spent a hundred dollars on boots in the same
       | time and would still have wet feet."
       | 
       | "This was the Captain Samuel Vimes 'Boots' theory of socio-
       | economic unfairness."
       | 
       | - Terry Pratchett, _Men at Arms_
       | 
       | ----
       | 
       | Dollar stores, even when they're _actually_ giving you low prices
       | (and not just charging $1 for 1 of something that you could get a
       | 3-pack of for $2 elsewhere), are often selling lower-quality
       | versions of the products they sell--sometimes versions
       | specifically made for them, but without any visible difference in
       | packaging.
        
         | phantasmish wrote:
         | > are often selling lower-quality versions of the products they
         | sell
         | 
         | Clothes brands do this too.
         | 
         | Clothes at the outlet store aren't the same as clothes at
         | Dillards, what's stocked at a struggling Macy's in a relatively
         | poor area may be different from what's available for the same
         | brand at Macy's in Manhattan, and all that may not be the same
         | as what's in their flagship stores.
         | 
         |  _Sometimes_ they make it semi-obvious provided you learn their
         | secret label language (Polo by Ralph Lauren, Chaps by Ralph
         | Lauren, Ralph Lauren Purple Label, and about a half-dozen other
         | major variants, for example). They do this so they can sell
         | shit to unsophisticated consumers at a large mark-up for the
         | name, riding on the reputation and clout of the good versions
         | of what they sell (elsewhere, at even higher prices).
        
         | tialaramex wrote:
         | Yes, being poor is expensive and people just don't seem to grok
         | that
         | 
         | Take energy. I'm not _rich_ but I 'm comfortable, my energy is
         | paid for in an efficient way, I can shop around easily for the
         | best rates for my lifestyle and so on. But if I had no money
         | they'll fit a pay-per-use meter, they charge more money to fill
         | that meter, if I can't fill it or forget to then the power goes
         | out - _and_ it 's inconvenient to use it.
         | 
         | Years ago now I had a dispute with the water utility. I refused
         | to pay, so, they eventually concluded that fixing their error
         | was too difficult so they just created a new account starting
         | from zero and wrote off all the costs for the disputed period
         | entirely. If I'd been poor, they'd have threatened to cut off
         | the supply (they're only threatening, fortunately it's not
         | actually legal here to cease supplying clean water to poor
         | people like they're not even animals) and sent scary people to
         | demand payment.
        
       | absoluteunit1 wrote:
       | Dollarama Inc. stock price is up 273% in the last 5 years.
        
       | potato3732842 wrote:
       | Listen, I know we all love to circle jerk about how dollar stores
       | are evil, but you can walk into just about any regional chain
       | supermarket and replicate the same exercise and get about the
       | same results.
        
         | woodruffw wrote:
         | Can you? I think the implicit counterclaim in TFA is that other
         | supermarkets/stores don't fail state pricing inspections nearly
         | as often. If you have evidence/articles showing that TFA has
         | cherry-picked dollar stores for criticism, that would be
         | helpful to share.
        
           | potato3732842 wrote:
           | I've got one local grocery store where the meat prices are
           | sometimes off and another where it's the bakery. The fact
           | that it seems to be confined to certain departments makes
           | think it has a lot to do with the quantity and quality of
           | labor being applied. And dollar stores being dollar stores
           | they apply the cheapest and they apply it sparingly. Not that
           | that excuses it but it at least explains it.
        
         | venturecruelty wrote:
         | What a rude, dismissive comment about a very real issue
         | affecting real people.
        
           | rtp4me wrote:
           | Sorry, real people who are on a real (strict) budget pay
           | attention to the price of goods when they shop. If you are
           | really hurting from a $3 overcharge, chances are you pay very
           | close attention to the register receipt and bring it to the
           | store's attention. Regardless of income, my wife and I
           | routinely scrutinize the register receipt. Force of habit.
        
       | jmclnx wrote:
       | I wish I could be surprised and I can see this happening in many
       | places. This type of 'fraud' was predicted when we allowed the
       | stores to stop marking items with the price.
       | 
       | Many places were I shop, hardly any products are lined up with
       | the price attached to the shelves, plus the descriptions of some
       | items are confusing due to the multiple names for the same thing.
       | 
       | Time to force stores to mark each item with the price once again.
        
       | exasperaited wrote:
       | Cash strapped, but also presumably more likely than the general
       | population to be innumerate or have dyscalculia or dyslexia.
       | 
       | It's the same bullshit that allows discount prices on Black
       | Friday or during January sales to be completely misleading.
       | 
       | In the UK we are much tougher on this kind of manipulative
       | pricing, but you still find manipulative things, like being
       | unable to find the price-per-100g on discounted items and
       | "clubcard" items, or bulk buys that end up having higher unit
       | costs and yet seem not to be errors.
        
       | securingsincity wrote:
       | Massachusetts has a quite prominent law against this.
       | 
       | "When buying groceries--food and non-alcoholic beverages, pet
       | food or supplies, disposable paper or plastic products, soap,
       | household cleaners, laundry products, or light bulbs--you must be
       | charged the lowest displayed price, whether on the sticker,
       | scanner, website, or app.
       | 
       | If the lowest price you saw for an item is $10 or less, and that
       | lowest price is not what you were charged or not what appeared on
       | the in-aisle price scanner, the first item should be FREE. If the
       | lowest price you saw for an item is more than $10, and that
       | lowest price is not what you were charged or not what appeared on
       | the in-aisle price scanner, you should receive $10.00 off the
       | first item."
       | 
       | https://www.mass.gov/info-details/consumer-pricing-accuracy-...
       | 
       | Not to say it's not happening in a Mass based Dollar Stores but
       | you could be walking away with a lot of free stuff and it would
       | be enough of a deterrent to stomp out the practice. I've had it
       | happen at grocery stores usually at their suggesting.
        
         | kube-system wrote:
         | I can't help imagining that the likelihood of successfully
         | arguing for a free product with a DG cashier is slim to none.
        
         | hippo22 wrote:
         | Unfortunately, this type of conflict can only be adjudicated by
         | courts, which low-income people don't have the time and money
         | for. You couldn't just walk out of the store with the items.
         | You'd need to either:
         | 
         | 1. Buy the items and sue.
         | 
         | 2. Take the items without paying, likely get the police called
         | on you, and defend yourself in criminal and civil court.
        
           | michaelmrose wrote:
           | If you walk out and it goes to court you will surely lose.
           | You may have started with the right to get it for nothing but
           | you cannot realize that right by force. Self-help is almost
           | always illegal in any case of disagreement between parties.
        
             | mynameismon wrote:
             | Yeah, but someone living paycheck-to-paycheck and shopping
             | at dollar stores is likely not someone who can afford
             | filing a lawsuit.
        
               | bombcar wrote:
               | If it's common enough it sounds like it could be some fun
               | pastime for lawyers.
        
           | mschuster91 wrote:
           | > Unfortunately, this type of conflict can only be
           | adjudicated by courts, which low-income people don't have the
           | time and money for.
           | 
           | Here in Europe, we have consumer protection agencies. Get
           | wronged? Shoot them off an email and they'll take care of it.
           | And overcharging at the cash register? That gets handled by
           | the responsible authorities. Again, call them, tell them what
           | happened and it can get real messy real fast.
        
             | zdragnar wrote:
             | We have such agencies over here as well. Most states have
             | some sort of weights and measures agency that handles
             | inaccurate price scanning complaints.
             | 
             | I can't say how effective they are at remediating small
             | figure issues, but no company wants to hear from them
             | regardless.
        
             | js2 wrote:
             | I was having trouble getting Verizon to unlock an iPhone
             | that had been purchased (not financed) from Best Buy and
             | that had been on Verizon's network for more than two years.
             | Verizon support said only BB could unlock it[^1]. I thought
             | that was poppycock. I filled out a form on the FCC's web
             | site just before midnight. By 8 AM, the FCC had forwarded
             | the complaint to Verizon. By 9 AM Verizon executive
             | relations called me. 30 minutes later the phone was
             | unlocked.
             | 
             | Which is all to say, for some things, the US also has
             | consumer protection and it's great when it works.
             | 
             | [^1]: Apparently only Apple sells unlocked iPhones. iPhones
             | purchased at other retailers carrier-lock themselves at
             | activation. At least on Verizon they're supposed to
             | automatically unlock after 60 days. When that doesn't
             | happen, you get stuck in Verizon's mindless customer
             | support swamp[^2,^3]. e.g.
             | 
             | [^2]: https://old.reddit.com/r/Bestbuy/comments/17ae8l2/ver
             | izon_sa...
             | 
             | [^3]: https://www.reddit.com/r/Bestbuy/comments/1buemp5/why
             | _is_it_...
        
               | raw_anon_1111 wrote:
               | I bet you didn't try that this year when every single
               | part of the federal government is actively trying to harm
               | people.
        
             | venturecruelty wrote:
             | We have those agencies as well. They've been steadily
             | gutted since their inception, and the courts (well, _the_
             | Court) don 't care.
        
               | zeroonetwothree wrote:
               | You may be referring to the CFPB but states tend to have
               | their own agencies that have nothing to do with SCOTUS or
               | the federal government.
        
               | venturecruelty wrote:
               | And yet, here we are, with the terrible state of affairs
               | for consumers.
        
           | jkaplowitz wrote:
           | Theoretically there is a third option, stay in the store near
           | the cash register and call the police to come deal with it on
           | the spot before the purchase. The problem is that they
           | probably won't bother coming, and if they do, they won't come
           | quickly enough to make it worth waiting for them given the
           | amount of money at stake.
        
             | sejje wrote:
             | Call the police to come deal with...mispriced items? That's
             | not the job of police, sorry. Not in the US anyway.
        
             | almostgotcaught wrote:
             | this is a tort not a criminal act - cops wouldn't/couldn't
             | do anything.
        
               | gruez wrote:
               | Not to mention that cops only have powers to arrest/issue
               | tickets, not to adjudicate disputes. This isn't Judge
               | Dredd where cops can mete out judgements as they see fit.
               | That's the whole reason why we have courts and judges.
        
         | cormorant wrote:
         | Not only that, but they post a sign about this at every
         | register. (That must be required.) So you can point to the
         | sign. I think a typical store manager would comply. Maybe I'm
         | not cynical enough.
        
         | doctor_radium wrote:
         | So this means I would get the app-only sale price, without
         | using the app?
         | 
         | While doing some research into state retail pricing laws a few
         | years ago, I discovered how tough Massachusetts is, being one
         | of the last holdouts mandating ticketing on all items, and only
         | relenting in exchange for price scanners every so many aisles.
         | Living in Pennsylvania and annoyed by stores tying their best
         | prices to their apps, I fancifully emailed Elizabeth Warren,
         | asking if she'd prod a friend in state government to consider a
         | legislative end run around apps. I had no idea such a law
         | really existed. "First in the nation" I expect. Wonder how long
         | it's been around?
        
       | regera wrote:
       | Dollar stores are private equity with a checkout lane.
       | 
       | In 2025, Dollar Tree sold Family Dollar to a group of private-
       | equity firms: Brigade Capital Management, Macellum Capital
       | Management and Arkhouse Management Co.
       | 
       | https://corporate.dollartree.com/news-media/press-releases/d...
       | 
       | It's a business model cosplaying as poverty relief while quietly
       | siphoning money from the people least able to lose it. They
       | already run on a thin-staff, high-volume model. That 23% increase
       | is not a glitch. They know their customers can't drive across
       | town to complain. They know the regulators won't scale fines to
       | revenue.
        
         | calmbonsai wrote:
         | Kudos! This is beautifully succinct, elegant, and accurate
         | writing.
        
         | sema4hacker wrote:
         | Has private equity ever done anything good for anyone outside
         | of the investors?
        
           | regera wrote:
           | Not yet. Sometimes employees if they get second bite of the
           | big apple. PE do well in capital-intensive sectors. I'm not
           | sure if their playbook fits the real needs of dollar stores.
           | Instead of focusing on things like debt and aggressive cost
           | cuts, most customers just want fair prices, stocked shelves,
           | clean stores, friendly cashiers and basic respect--things
           | that PE firms often ignore. In DFW, I was surprised to see
           | 1-2 person dollar stores!
        
           | jahsome wrote:
           | To me, that is an utterly hilarious question to be posing on
           | this website of all places.
        
             | excalibur wrote:
             | That's a good point. Private Equity is a fairly broad
             | umbrella term that encompasses a variety of investment
             | strategies and business models.
             | 
             | The type of Private Equity that most here are referring to
             | is the type that buys up existing businesses, squeezes as
             | much money as possible out of them, and throws their
             | desecrated corpses in the gutter. These "investors" are a
             | blight on society, this activity should be criminalized,
             | they should be in prison.
             | 
             | But there are a lot of well-meaning investors who do great
             | things for society that also get stuck with the same label.
        
           | chongli wrote:
           | Private equity are the crows of the economy. They pick off
           | weak / dysfunctional businesses and open space for fresh
           | competition (or for other markets to open up).
        
             | hellotheretoday wrote:
             | this would be somewhat arguable as okay except for their
             | introduction into categories like daycare, emergency rooms,
             | drug and alcohol rehab, care homes for the geriatric and
             | disabled, etc. things that probably shouldn't be profit
             | oriented to begin with yet are and are being snatched up by
             | private equity, worsening outcomes in basically all of them
        
               | luckylion wrote:
               | "shouldn't be profit oriented" is another way to say
               | "costs will quickly grow exponentially", because there's
               | absolutely no incentive not to let them.
               | 
               | Is anyone better off if elderly care becomes too
               | expensive to offer at scale?
        
             | venturecruelty wrote:
             | How do I travel to the alternate universe where private
             | equity apparently makes things better instead of worse?
        
             | VerifiedReports wrote:
             | Tell that to former JoAnn Fabrics customers.
        
               | pclmulqdq wrote:
               | They should have paid more for the fabric, I guess.
               | Private equity tends to loot things on the way down.
               | Joann was on the way out regardless.
        
             | darth_avocado wrote:
             | As far as I've seen that's as far from the truth as it can
             | be. They in fact consolidate terrible businesses, undercut
             | the good ones and drive them out of the market until only
             | they are left, after which point, they get even worse.
        
           | gruez wrote:
           | I'm not sure why private equity is singled out here, when
           | every time a public company does a bad (eg. Boeing), people
           | crow about how public companies only care about juicing next
           | quarter's earnings.
        
             | venturecruelty wrote:
             | Galaxy brain: both are bad, although at least a public
             | company is, ostensibly, trying to make a good or provide a
             | service (lol).
        
               | gruez wrote:
               | >although at least a public company is, ostensibly,
               | trying to make a good or provide a service (lol).
               | 
               | /s?
        
               | venturecruelty wrote:
               | No? Companies aren't about making things anymore, they're
               | about stock buybacks and making as much money as possible
               | while doing as little as possible (or selling our data).
               | That's why the refrigerators have ads and break after two
               | years. At least private equity is more honest about being
               | vulchers, whereas Kohler is going to look you dead in the
               | eyes and try to convince you you need a toilet with a
               | camera in it. What a joke.
        
               | gruez wrote:
               | >At least private equity is more honest about being
               | vulchers,
               | 
               | Again, what's the basis of this? Half the people in this
               | thread seem to take it for granted that PE is somehow
               | "worse" than public companies, but can't seem to
               | articulate why. The only legal difference between public
               | companies and "private equity" is that the former has
               | stricter reporting requirements and can be bought by non-
               | accredited investors. There's nothing about "ostensibly,
               | trying to make a good or provide a service" or whatever.
        
             | CPLX wrote:
             | Private equity is far worse. It means 100% ownership by a
             | group of sociopaths who are executing on a plan to extract
             | as much cash as possible quickly with no other goals at
             | all.
             | 
             | At least public companies have some diversity in ownership
             | and agenda.
        
               | gruez wrote:
               | >Private equity is far worse. It's mean 100% ownership by
               | a group of sociopaths who are executing on a plan to
               | extract as much cash as possible quickly with no other
               | goals at all.
               | 
               | ...as opposed to the average public company? An average
               | company might have more "average joe" shareholders
               | (almost by definition, because private equity is
               | typically off limits to non-accredited investors), but
               | outside of meme stocks, there's not enough of them to
               | make a difference. The rest of the shareholders (eg.
               | pension funds, insurance companies, endowments, family
               | offices) can be assumed to behave like ruthless
               | capitalists chasing the highest returns, regardless of
               | whether the company is public or not.
        
               | ksenzee wrote:
               | If you've ever spoken to employees of a public company
               | that was sold to private equity, you'll know how much of
               | a difference there is. It is a significant difference.
        
               | CPLX wrote:
               | > The rest of the shareholders (eg. pension funds,
               | insurance companies, endowments, family offices) can be
               | assumed to behave like ruthless capitalists chasing the
               | highest returns, regardless of whether the company is
               | public or not.
               | 
               | Right but they are seeking the highest returns as equity
               | holders typically, usually through things like stock
               | buybacks.
               | 
               | Private equity firms have much more devious ways of
               | looting the companies, like management fees, acquiring
               | other portfolio companies, and various other tricks.
               | 
               | If you've ever seen the Goodfellas scene where they bust
               | out the nightclub, that's quite literally their business
               | model.
        
               | rs186 wrote:
               | Let me explain this with a simple example:
               | 
               | * If a company controlled by PE goes bankrupt,
               | shareholders (PE) likely make a profit * But if a
               | publicly listed company goes bankrupt, shareholders lose
               | their money
               | 
               | In other words, PEs almost never lose money, so they
               | could extract the last bit of a company, even more short
               | sighted than shareholders of a public company
        
               | gruez wrote:
               | >* If a company controlled by PE goes bankrupt,
               | shareholders (PE) likely make a profit
               | 
               | That's not necessarily a bad thing, or sign of anything
               | sinister. If a business is failing, and you buy it for
               | pennies on the dollar, and despite your best efforts it
               | still goes under, so you liquidate it, you can still turn
               | a profit if the price you paid is lower than what you got
               | from liquidating it. That's not bad, because private
               | equity (or anyone else, for that matter) isn't expected
               | to operate as a charity. The only reason they're willing
               | to stump up the cash to buy the business in the first
               | place is the expectation that they'll make money. It's
               | also not bad for the original owners either, because the
               | fact that they hold to PE rather than someone else, or
               | liquidating it, suggests that the PE offered a better
               | deal than either.
               | 
               | >But if a publicly listed company goes bankrupt,
               | shareholders lose their money
               | 
               | Often times yes, but sometimes not, eg. hertz.
        
             | darth_avocado wrote:
             | The big difference is the extent to which PE will go to
             | juice the quarters earnings. Public companies cannot and
             | will not just fire all staff, fleece customers to the point
             | they won't return and take on debt that they have no
             | intention of paying back. PE will do all of the above and
             | more if it means they get their money. Which means, you as
             | a customer get screwed over more when PE is involved.
        
           | eagleinparadise wrote:
           | So I work in commercial real estate, obviously a large
           | private equity influenced industry. I've worked in REPE and
           | in other capacities.
           | 
           | There's degrees of PE. Some good, fine, and some worse.
           | 
           | Take real estate development. It's probably one of the
           | suckiest businesses to be in. I know 3 developers who have
           | committed suicide because when things go wrong, your entire
           | life collapses (you put up all your assets in order to obtain
           | construction loans). The litigation, brain damage, and risks
           | are enormous. Increasingly, the payoff is awful (due to
           | worsening legislation and NIMBYism and worse market
           | condiditions)
           | 
           | However, private equity in development I think is a good
           | thing. When there are investors willing to put this money at
           | risk, we get much needed construction of housing (see Austin,
           | TX where rents are falling off a cliff due to over building).
           | 
           | Now look at Los Angeles, which new permits are literally
           | almost non-existent because LA is one of the most hostile
           | places for developers. You can't make money in LA, so there's
           | no capital available.
           | 
           | Then you end up with "affordable" housing developers adding
           | the only supply at $600-900k/unit costs vs the market rate
           | developer at $300-600k/unit.
           | 
           | ----
           | 
           | On the other hand, "value add" private equity is much more
           | suspicious. It's more cut throat, easier to end up in crony
           | capitalist situations by operating with a "cut expenses,
           | provide less, make big bucks" model. The people in this world
           | are the kind of guys who have never done anything hard with
           | their hands other than gotten a sore thumb from pounding too
           | hard on their keyboards to adjust their excel model ("Mr. The
           | Model is Always Right") too hard all night long.
           | 
           | This is how we end up with old properties who get flipped 4x
           | each being sold with "upside the seller was too stupid to
           | take advantage of" and ending up in situations where tenants
           | get priced out due to private equity seeking infinite growing
           | returns. Oh and by the way, every previous owner did
           | "lipstick on the pig" jobs because why not try to save costs
           | and make your levered IRR 16% instead of 12%? You cannot show
           | that kind of return when you promised 18%... then it'll make
           | it harder to fundraise your next deal!
           | 
           | This isn't to say that "value add" is a dirty business. We
           | certainly need to balance the incentive to modernize and
           | renovate properties. An d developers overbuilding isn't
           | always a good thing.
           | 
           | So its nuanced. I think people need to fairly give credit
           | that there are both good and bad. The capital efficiency is
           | real and produces real world outcomes since there is a strong
           | financial incentive at the end of the door.
           | 
           | But financial incentives sometimes bump up to issues causing
           | harm in real life, which need to be recognized and called
           | out.
        
           | holysoles wrote:
           | In general I have a pretty negative view of private equity.
           | However I did see this awhile back that seems at least
           | partially positive: https://www.cnbc.com/2023/07/27/private-
           | equity-giant-kkrs-an...
        
           | WarOnPrivacy wrote:
           | > Has private equity ever done anything good for anyone
           | outside of the investors?
           | 
           | If it's not publicly traded, it's super secure from any
           | public accountability.
           | 
           | And while I'm increasingly hostile toward the shareholder
           | model, we do get one transparency breadcrumb from this (gov
           | managed) contrivance: The Earnings Call
           | 
           | Earnings Calls give us worthwhile amounts of internal
           | information that we'd never get otherwise - info that often
           | conflicts with public statements and reports to govs.
           | 
           | Like CapEx expenditures/forecast and the actual reasons that
           | certain segments over/underperform. It's a solid way to catch
           | corporations issuing bald-faced lies (for any press, public,
           | gov that are paying attention).                   AT&T PR:
           | Net Neutrality is tanking our infra investment         ATT's
           | EC: CapEx is high and that will continue
           | 
           | I'll bet 1 share that there are moves to get this admin to do
           | away with the requirement.
        
             | GolfPopper wrote:
             | > _If it 's not publicly traded, it's super secure from any
             | public accountability._
             | 
             |  _Under the existing legal and regulatory model_ , yes.
             | 
             | But what abusing that model long-term will eventually
             | result in government-level change that effectively bans the
             | existence of such exploits, wide-spread vigilantism, and/or
             | some sort of collapse.
        
           | xhkkffbf wrote:
           | Why is private equity different from any other form of
           | organization? Publicly traded companies are even more
           | addicted to getting revenue. Non-profits like universities
           | may not have shareholders, but somehow the price of tuition
           | keeps skyrocketing even faster than the prices at the dollar
           | stores. And it's not like the religious charities have been
           | pure.
        
         | lotsofpulp wrote:
         | > They already run on a thin-staff, high-volume model.
         | 
         | Like every other retail business not targeting the top 5%.
         | 
         | And Dollar Tree and Dollar General are both publicly listed
         | companies, not private equity.
         | 
         | Dollar Tree sold Family Dollar for $1B 10 years after buying it
         | for $8.5B, a pretty big loss. Dollar Tree's market cap is $25B,
         | so a pretty negligible part of the national dollar store
         | business is "private equity".
        
           | whynotmaybe wrote:
           | Costco
        
             | alephnerd wrote:
             | Costco's revenue comes from their membership fees _and_
             | their ability to strongarm suppliers to give them favorable
             | terms (eg. Costco is one of the largest alcohol importers
             | in the US and tends to strongarm LVMH).
             | 
             | I love Costco (I practically grew up at Costco as a kid),
             | but their ICP is not the kind of person who shops at Dollar
             | General or is on SNAP - it's very much targeted at the 50th
             | percentile income bracket and above [0].
             | 
             | And this is _why_ PE has taken over the dollar market
             | segment - because it 's a trash business that no one else
             | wants to service over the long term. PE is basically the
             | last resort if a business cannot raise capital from
             | traditional avenues, and leadership and investors want to
             | exit. For y'all graybeards think of "Sam Vimes Boots
             | theory".
             | 
             | Mine Safety Disclosures did a great overview on Costco's
             | operating model a couple years ago [1].
             | 
             | [0] - https://www.businessinsider.com/how-costco-sams-club-
             | shopper...
             | 
             | [1] -
             | https://minesafetydisclosures.com/blog/2018/6/18/costco
        
         | jmspring wrote:
         | The sad thing is, people in rural areas that depend on places
         | like Dollar General, and are getting fleeced blame everyone but
         | republicans and they are usually in red areas
        
           | antonymoose wrote:
           | I'll bite...
           | 
           | I live in a rural area with a Dollar General about a half
           | mile from my neighborhood. For staples, it's honestly fine.
           | You want a 6 pack and some hot dog buns because you missed it
           | in the Wal-Mart run the other day (15 miles away), it's
           | great!
           | 
           | You're not getting fleeced and if you are, the gas savings
           | alone more than make up for it (0.65 per mile per the IRS.)
           | 
           | For folks who depend on the local DG for, idk, clothes and
           | household goods it might be much worse, I don't shop for
           | those there ever, but on staples it'll do, especially given
           | the density of stores compared to major chains.
        
             | WarOnPrivacy wrote:
             | Being in a shopping rich area, I have some luxury of
             | choosing what I get where. DG is a good option for a small
             | list of items, about 1/2% of my shopping.
             | 
             | But it'd be awful if my best shopping option was 15mi away.
        
         | thanhhaimai wrote:
         | And this is exactly why I only shop at Costco. While other
         | retailers try to get me to buy more stuffs, Costco try to make
         | sure I'm satisfied enough that I'll renew my yearly membership
         | (their main profit source). The incentive structure aligns very
         | well.
        
           | Waterluvian wrote:
           | Buying in bulk is about having the ability to both afford
           | next week's food this week and have the means to store it.
           | Not to mention the annual subscription.
           | 
           | Responding to a comment about dollar stores preying on the
           | poor with, "that's why I shop at Costco" is... a choice.
        
             | joncp wrote:
             | ... and a car to haul all that stuff, and time to drive to
             | the nearest Costco.
             | 
             | It really is a luxury that a ton of people can't afford.
        
           | gruez wrote:
           | >While other retailers try to get me to buy more stuffs,
           | Costco try to make sure I'm satisfied enough that I'll renew
           | my yearly membership (their main profit source). The
           | incentive structure aligns very well.
           | 
           | This doesn't make any sense. Costco makes a profit on the
           | goods sold as well. They have every incentive to sell you as
           | much stuff as possible. That's why they also engage in the
           | usual retail tactics to increase sales, like having the
           | essentials all the way in the back of the store, and putting
           | the high margin items (electronics and jewelry) in the front.
           | They might practice a more cuddlier form of capitalism than
           | dollar general, but they're still a for profit retail
           | business.
        
             | xingped wrote:
             | I see you're not terribly familiar with Costco. Membership
             | fees account for the vast majority of net operating income
             | for Costco and they keep markups on items at no more than
             | 14% over cost (15% for Kirkland brand).
             | 
             | So yes, Costco does make most of its profit by ensuring
             | customers are happy and continue to renew their memberships
             | every year.
        
               | gruez wrote:
               | >Membership fees account for the vast majority of net
               | operating income for Costco
               | 
               | This is financially illiterate because you're mixing
               | revenue ("membership fees") with profit ("net operating
               | income"). While it might be tempting to assume that
               | membership fees is pure profit for them, it's not,
               | because people only buy memberships because they're
               | useful for something (ie. shopping at their stores).
               | Therefore you can't strip that out from the other costs
               | associated with operating a chain of warehouses.
        
               | s1artibartfast wrote:
               | It seems to amount to a similar principle, that their
               | business model depends on repeat customers, and would
               | fail if they lost trust.
               | 
               | I much prefer this to stores that are happy to burn
               | customers, never expecting to see them again.
        
               | gruez wrote:
               | >It seems to amount to a similar principle, that their
               | business model depends on repeat customers, and would
               | fail if they lost trust.
               | 
               | You think dollar general is making $37.9B (in 2023) of
               | annual revenue from one-off customers? Unless you're
               | operating a tourist trap, or some sort of business that
               | people only need a few times in their lifetimes (eg. real
               | estate agents), most businesses rely on repeat customers.
        
               | devilbunny wrote:
               | It's kind of a meme; Costco's profits are almost exactly
               | the same as their total revenue from membership fees,
               | which leads people to think that the warehouses run at
               | zero margin and the fees are their only profit source.
               | The fees certainly give them room to run the sales at
               | extremely low margins (though large grocers like Kroger
               | only have something like 3% margins), but it wouldn't
               | take a huge shift in purchasing patterns to change this
               | coincidence. If all the people who _don't_ use their
               | membership that much dropped them and those who use them
               | were all large-scale buyers, they would have to increase
               | their prices just to give themselves a bit of cushion.
        
         | expedition32 wrote:
         | Interesting. The Netherlands is no class society so rich or
         | poor nobody has any goddamn shame to stand in line at the
         | Action checkout if there's a good sale to be had.
         | 
         | Seeing people in BMWs at the Aldi parking lot. Strange country.
        
         | antonvs wrote:
         | > cosplaying as poverty relief
         | 
         | Does it really? Who says this, and who believes it?
        
           | WarOnPrivacy wrote:
           | >> cosplaying as poverty relief
           | 
           | > Does it really? Who says this
           | 
           | (search engine: 22 relevant results in 0.85s.)
           | we're here to provide affordable and convenient access to
           | name brands,         DG's private brands, nutritious foods,
           | household essentials and more.
           | 
           | ref: https://www.dollargeneral.com/hereforwhatmatters
        
             | gruez wrote:
             | >we're here to provide affordable and convenient access
             | [...]
             | 
             | You'd have to be incredibly naive to interpret that as
             | "poverty relief".
        
             | antonvs wrote:
             | > search engine: 22 relevant results in 0.85s.
             | 
             | Being able to understand what those results mean is the
             | important part.
        
         | dehrmann wrote:
         | > Dollar stores are private equity with a checkout lane.
         | 
         | Dollar Tree and Dollar General are publicly traded.
         | 
         | So Family Dollar might be the result of PE tactics, but the
         | other two aren't, and Dollar Tree sold Family Dollar because
         | they saw it as under-performing.
         | 
         | It's actually sort of weird Dollar Tree couldn't make it work.
         | I know the dollar stores all have somewhat different
         | businesses, but you'd think that Dollar Tree could have either
         | turned Family Dollar around or knew it was selling a loser (see
         | the market for lemons) to PE.
        
         | EnPissant wrote:
         | Then why doesn't some other established brand open in the same
         | area and undercut them?
        
       | seizethecheese wrote:
       | This comment section is full of allegations that dollar stores
       | are predatory, yet when I look up their operating margins they
       | are super low (4% for Dollar General, for example).
        
         | venturecruelty wrote:
         | Just because your margins are low doesn't mean you still aren't
         | screwing over poor people.
        
           | devilbunny wrote:
           | It's a bit like payday loans; they are a bad financial deal,
           | but the alternative is _no credit at all_ because the people
           | who get them are high-risk borrowers and the costs associated
           | with making and servicing a loan aren't radically different
           | for $500 or $50k.
           | 
           | Being poor is tough. But the low margins are a pretty good
           | indicator that the alternative to shady businesses is simply
           | not having businesses at all.
        
         | rtp4me wrote:
         | Yeah, queue the HN fake outrage about big companies and their
         | C-Suite who are billionaires on the backs of the little people.
         | So predictable.
         | 
         | Fact is, Dollar General and similar stores provide a real value
         | to people who live in rural areas. Yes, their prices may be
         | higher for some goods, but that is the price you pay for the
         | convenience they provide. People are free to drive another
         | 20mins to a WalMart or another store to save $0.50 for the same
         | can of corn or loaf of bred. And, people who are really on a
         | budget actually scrutinize the register receipts to make sure
         | they are paying the price listed on the shelf. They can
         | immediately bring up the discrepancy to the staff.
        
       | tgsovlerkhgsel wrote:
       | > listed on the shelf at $5, rang up at $7.65. Bounty paper
       | towels, shelf price $10.99, rang up at $15.50
       | 
       | I'm sure the US obsession with not putting the actual price (tax
       | included) on the shelf helps a lot with this. I would notice
       | quite quickly if a store would systematically overcharge me in
       | Europe. It'd be much harder in the US where I expect the price on
       | the shelf to not match the price at checkout.
        
         | venturecruelty wrote:
         | Those prices aren't because of tax; even the highest sales tax
         | wouldn't cause $10.99 paper towels to ring up as $15.50.
        
           | dotancohen wrote:
           | Yes, but the US consumers are conditioned to see one price
           | and pay a higher price. You and I might see +40% and think
           | "that's too high a percentage". Others see +something and
           | think "just like every other time". If they even look - I'm
           | sure these items are often in a cart with many other items.
        
             | pwg wrote:
             | The stores get away with it because even when ignoring the
             | fact that tax is added after, few of the shoppers in these
             | stores will remember the shelf price for a basket of 20+
             | items from the store. They might remember one or two, but
             | they won't remember (and therefore will not notice) enough
             | of the shelf prices to notice the systematic overcharge at
             | the register. In reality, a good number of the shoppers
             | likely don't remember any of the prices from the shelf
             | tags, and will not be mentally summing up what the final
             | price should be, so those shoppers won't notice the
             | discrepancy at all.
        
             | venturecruelty wrote:
             | I'm pretty sure the problem is "companies try to screw over
             | poor people", and not "the sticker price doesn't include
             | the tax".
        
       | DangitBobby wrote:
       | Have the fines pay out to customers that report and suddenly the
       | issue is gone.
        
       | cm2012 wrote:
       | Dollar stores have on average a 2% profit margin, just like
       | grocery stores. They are not the villains here.
        
         | bjackman wrote:
         | This is like cheating in a golf match against a professional
         | and then saying "I got the same score as my opponent, I am not
         | the villain here".
        
           | sejje wrote:
           | I don't think it is, so maybe you can help me draw the
           | parallels.
        
           | cm2012 wrote:
           | Do you think large dollar stores are faking or cheating their
           | profit margin numbers?
        
           | bombcar wrote:
           | Especially since it's advantageous to adjust suppliers that
           | you own to maintain tiny margins (who owns the land they
           | rent, for example)
        
         | dehrmann wrote:
         | Not charging the best-advertised price is dishonest. It might
         | also be in customers' best interest if the cost of keeping
         | consistent price data on low-margin items costs more than
         | whatever the inconsistency is. Or the answer might be that
         | dollar stores sell too wide of a variety too cheaply on too
         | low-margin product to play supermarket-style pricing games
         | effectively.
        
       | fencepost wrote:
       | I believe Michigan has laws on the books that should be the model
       | for this (the "Scanner law") - if you're overcharged at the
       | register and the sale is completed, you have 30 days to get the
       | price corrected _plus_ ten times the amount of overcharge
       | (between $1 and $5). Paying you the  'bonus' is optional, but if
       | they don't do so you can file a suit for the greater of your
       | actual damages or $250 (in small claims on your own or regular
       | court which allows up to $300 in attorney fees).
       | 
       | An alternative would be to force stores with mischarge rates
       | exceeding a specified level to close until they've completed a
       | full audit of all shelf prices in the store but in some areas
       | that could cause significant local hardship.
        
       | cluckindan wrote:
       | "Dollar General argued that when customers create accounts - for
       | example, by downloading the company's mobile app - they agree to
       | use arbitration to resolve disputes and forfeit the right to file
       | class-action suits. The judge agreed."
       | 
       | Let me guess, the mobile app provides discounts...?
        
       | itchingsphynx wrote:
       | In Australia, according to the Australian Competition and
       | Consumer Commission:
       | 
       | - _Businesses must communicate clear and accurate prices prior to
       | consumers booking, ordering or purchasing. They must not mislead
       | consumers about their prices._
       | 
       | - _There are specific laws about how businesses must display
       | their prices._
       | 
       | - _Businesses must display a total price that includes taxes,
       | duties and all unavoidable or pre-selected extra fees._
       | 
       | - _If a business charges a surcharge for card payments, weekends
       | or public holidays, it must follow the rules about displaying the
       | surcharge._
       | 
       | - _If more than one price is displayed for an item, the business
       | must charge the lowest price, or stop selling the item until the
       | price is corrected._
       | 
       | In practice, if the checkout price is more than listed price,
       | many retailers give the item for free. It doesn't stop dodgy
       | constantly fluctuating 'on sale' pricing...
       | 
       | https://www.accc.gov.au/business/pricing/price-displays
        
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