Dollar Tree’s Downfall | Don’t Name Your Business After This

There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this new series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!

CapForge Founder and Owner Matt Remuzzi reacts to Dollar Tree increasing their prices. 

Video Transcript: 

Business Advice Video: 

Dollar Tree says it’s raising its max price for items in stores to seven dollars. That’s a two-dollar increase over the current cap price. The higher-cost items will include food, pet, and personal care items. In addition, the base price for items will be raised from a $1.25 to a buck fifty. The move comes after the company announced plans to close about 600 Family Dollars stores in the first half of this year.

Matt’s Review:

Okay well, I mean I’d say I’ve always been a little suspicious of the idea of any business that named itself around a price point. There’s a pretty famous pizza-by-the-slice place in New York City 99 Cent Slice, well I mean that might work 10 years ago, even five years ago, even last year, but sooner or later the time is gonna come where they just can’t do ￠99 slices anymore unless they’re so small that you know they have to keep making them smaller and putting less ingredients to the point where it’s sort of ridiculous that what you’re still getting for ￠99 is worth buying. Dollar store obviously the same thing, right? 10 years ago, 15 years ago, even five years ago, there was lots of stuff you could sell at a dollar store that would be a dollar that would make sense. But inevitably inflation catches up with that and this is no different, right? Everything has gotten more expensive. If you’ve been to the grocery store lately you notice that things are a lot more expensive than they were even a year ago. So this is just a company keeping up with the times. Obviously, it doesn’t work great with their name but I think most people probably recognize that the cost of things is going up. And things that used to be a certain price are now more expensive. So I’m not surprised to see this at all. I think this is just the reality of pricing. It’s just more obvious when you’ve named your whole concept around a certain price point that has now changed. So it’s just more obvious there, but everywhere you go grocery stores, Walmart, Target, wherever, stuff is costing more. So I think that’s just inevitable.