Dollar Tree: Everything’s A Dollar But Not For Long

Your one dollar shopping is about to cost you more than a dollar.

The Dollar Tree is a popular destination in Grand Junction, Delta, and Montrose. Everything will cost you $1. Sometimes that is a bargain - and sometimes it's not. But, there's something satisfying about paying $1 for something you might expect $2 or $3 for at a regular store. You don't even care that you might be getting a smaller quantity or that the quality might be a little less.

Now there's word that Dollar Tree is doing a test in some stores across the country - with some products selling for an average of $1.25, ultimately going up to an average of $2.25 in the next five years.

The reason, of course, all has to do with profit margins.  As transportation costs and hourly wages continue to climb, profits are going to go down. Honestly, it makes sense that prices would need to go up. But, will higher prices reduce sales?

When it comes to shopping at Dollar Tree, it's not necessarily about actual value, but about perceived value.  As the perceived valued diminishes so does a customer's commitment to the store. The closer the price points come between Dollar Tree and other discount stores, the less motivation customers will have to make that extra stop - to save a buck.

For now, everything is still a dollar in Grand Junction, but only time will tell when that is no longer true.

[YAHOO]