Why the dollar store isn’t always cheaper

Most of us assume that the dollar store always has the cheapest price, but when you calculate the price per gram, some products can actually end up being significantly more expensive.

Last year, CBC marketplace did an episode testing the prices of Dollarama and Dollar Tree and did a price-per-unit comparison of 17 everyday items where they found some surprising price variations for the same product.

For example, at Dollar Tree, Froot Loops cost $1.25 for a package of 87 grams, while Walmart sells a 345-gram package for $4 and Dollarama sells a 230-gram package for $2. When you calculate the price per 100 grams, the Dollar Tree product ends up costing more than both Walmart and Dollarama at $1.44/ 100 g, compared to $1.16/ 100g at Walmart and $0.87 at Dollarama.

Similarly, Crest 3D White toothpaste costs $2.17/ 100 ml at Dollarama, $3.49/ 100 ml at Walmart, and a staggering $6.25/ 100 ml at Dollar Tree.

When it comes to dollar stores, it's important to keep in mind that they often sell products at lower prices than other retailers because they use a variety of strategies to keep costs low. One of these strategies is to source products that are of a lower grade or quality than what you might find at other retailers.

For example, with food products like cereal, dollar stores may offer smaller package sizes with less product-per-package. Additionally, the ingredients used in these products may be of a lower quality or different brand than what you might find at a regular grocery store.

In the case of personal care products like toothpaste, dollar stores may offer a similar product with a lower concentration of active ingredients. This means that you may need to use more of the product to get the same level of effectiveness as a higher-priced version from a different retailer.

It's important to keep in mind that when you opt for the cheaper alternative to some items, you may end up having to buy the more expensive item anyway because the cheaper one doesn't actually work. For example, if you buy a cheaper cleaning product that doesn't effectively clean your surfaces, you may end up having to buy a more expensive cleaning product to get the job done.

However, it's worth noting that not all products at dollar stores are of lower quality. Some products may be overstocked or discontinued items that are being sold at a discount. It's always important to check the unit price and compare it to other retailers before assuming that a dollar store is always the cheapest option.

While dollar stores can be a great place to find deals and not everyone has the time or means to shop around at multiple stores, it's important to be aware of the potential trade-offs that come with buying lower-priced products. By understanding how dollar stores keep their prices low, you can make more informed purchasing decisions and get the best value for your money.