£1 stores - Just how do they make their money?

psd99 · 9 Mar 2011 at 08:57

so I was in a £1 or 99p store yesterday.

they had lots of stuff there such as deodorant, shower gels to sweets, crisps to garden stuff - the actual range they have is striking but how do these places actually make their money if all items are priced at £1?

Also for instance a bottle of shower gel say lynx shower gel is £1 in there but in boots it is £2.99. I notice that the packaging is much more shiny in boot etc
but surely the product is the same on the inside?

so what do you all think?

psd99 · 9 Mar 2011 at 09:00

meghatronic said:
They make more money per square metre than most other shops, probably including Boots. Low quality produce, high volume, high turn around.

cool that is mad!!!

psd99 · 9 Mar 2011 at 09:02

so is everything in that store a reject?

25% profit margin... they buy it for 75p and sell on for 100p?

psd99 · 9 Mar 2011 at 09:08

interesting ......

so the actual products themselves like say cans of lynx, toothpaste or shower gell
it is really the same stuff you can get in boots or superdrug?

Is there really any difference in quality?