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Dollar Tree raises prices for first time since opening 35 years ago

By Mike Thayer

Dollar Tree Raises Prices
Dollar Tree's price hike is a double whammy

I'm a Dollar Tree fan.  I like the fact that I can go into a Dollar Tree and find a bargain, such as over-the-door robe/coat hook for $1 rather than pay $7 for the very same thing at Ace Hardware.  But that hook is no longer available for $1, it now costs $1.25.  That's still a bargain!  The price increase has already gone into effect for a number of Dollar Tree stores to include the one I shop at locally.  The price increase is to be implemented by all stores nationwide by the end of the first quarter.  

But there's something else I noticed while shopping in Dollar Tree the other day.  Not only has there been a price increase, many of the products have been downsized.  Check out the laundry detergent for example.  What was available, a 64 ounce bottle of detergent for $1, is now a 42 ounce bottle for $1.25.  Still a bargain, but this isn't something mentioned in the price increase news.  It's not as blatant as a price increase, but downsizing product is another form of price increase, more subtle, but a price hike nonetheless.  Less bang for the buck, er, $1.25.

Will the price increase and product downsizing discourage me from shopping at Dollar Tree?  No, you can still find some great bargains there, especially on party supplies, holiday decorations and household items like cleaning supplies.  Dollar Tree has to keep up with inflation and rising costs just like any other business.  A 25% price hike may sound like a lot, but is it?  When I shopped there the other day and bought 12 items, it cost me an extra $3 over what I used to pay.  OK, but in comparing the Dollar Tree price to name brand items, Dollar Tree remains a bargain.

$pend Wisely My Friends...

Related: Shopping at Dollar Tree

Related: Don't pay too much for household cleaning products


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