Marketing Currents - Business and Marketing Current Events

The dollar store is officially dead


Dollar Tree, the last of the big dollar-store chains selling items for $1 or less, on Tuesday said it was officially “breaking the buck” by adding $1.25 and $1.50 price points in some stores.

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Discussion Questions:

  1. What is pricing?
  2. Why is pricing an important function of marketing?
  3. How do you think Dollar Tree can make money only selling items for $1.00?
  4. What is branding?
  5. What is differentiation?
  6. Why is offering products only for $1.00 important to the company’s branding and differentiation strategies?
  7. Why do you think Dollar Tree is increasing price points to above $1.00 in some stores?
  8. Why do you think they are only increasing price points in some stores and not all of them?
  9. How do you think consumers will respond to the price increase?
  10. What does this mean for Dollar Tree moving forward? Be prepared to discuss your answers in class.
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.