No. of Recommendations: 14
On the subject of dollar stores, I just read through this collection of short excerpts from Macon Brock's 2018 business autobiography. Brock, who died in 2017, was the founder of Dollar Tree.
mastersinvest.com - Learning from dollar trees macon brockThere are some interesting nuggets in there, enough to make me consider finding a copy of the book:
I sent Alan Wood to New York with instructions to buy merchandise we could sell for one dollar, for two dollars, for three and five, and to bring back a sampling of good at each level. He returned, and we spread all the booty on a table and asked people in the office to pick out which items should go in each pile. They couldn't do it. Everyone was shocked.
Such are the deals that Dollar Tree provides its customers every day. They defy credulity. They seem to defy common sense. Yet the company's stores maintain one of the highest profit margins in the business.
That's the key to the company's success. We can absolutely floor our customers with the prices we offer and still generate a tremendous income. We don't have to make a killing on each item, just a healthy margin. Which is another way of saying we didn't get here by being greedy. We got here by being smart. 