CBC Marketplace investigates if Dollar Tree truly offers the best deals, comparing prices with Dollarama and Walmart. Findings reveal that sometimes Dollar Tree prices are higher per unit, highlighting marketing tactics and the importance of careful comparisons.
A recent investigation by CBC Marketplace has revealed that prices at Dollar Tree are often the same or even higher than at Dollarama or Walmart when considering price per unit. This finding suggests that Canadians may not always be getting the bargain they expect when shopping at popular dollar stores. The investigation compared 17 everyday items across the three retailers, finding discrepancies in pricing, particularly when accounting for variations in product sizes.
For example, while Froot Loops at Dollar Tree cost $1.25 compared to $4 at Walmart and $2 at Dollarama, the Dollar Tree package contained only 87 grams, significantly smaller than the 345 grams at Walmart and 230 grams at Dollarama. This translates to a higher price per 100 grams for the Dollar Tree product. The investigation highlights the tendency of dollar stores to manipulate pricing perceptions through marketing and store layout. Professor Markus Giesler of the Schulich School of Business at York University points out that the way merchandise is presented is designed to encourage consumers to purchase more than they need. He warns that this can be a trap for unsuspecting shoppers, particularly those from lower-income households who may be more vulnerable to inflated prices. The investigation also found that while Dollar Tree advertises itself as a store with consistently low fixed prices, several products were significantly more expensive per unit compared to Dollarama and Walmart. These included items like Froot Loops, Pringles, KitKat, Whiskas Perfect Portion cat food, Starburst candies, Colgate toothpaste, and Crest 3D White toothpaste. However, the investigation also identified some instances where Dollar Tree offered better prices. Smarties and Lever 2000 body wash were found to be more affordable at Dollar Tree compared to their competitors. Despite these findings, experts like Professor Mark Lee of Ryerson University's Ted Rogers School of Management emphasize that shoppers often fall prey to the psychological anchoring effect of the dollar price point. Consumers may perceive a dollar as a minimal amount, leading to impulsive purchases and spending more than intended. The investigation concluded by noting that while Dollar Tree prices may not always be the most competitive, consumers continue to shop there for the perceived value and extreme deals. The availability of affordable pregnancy tests at both Dollar Tree and Dollarama, priced at $1.25 compared to Walmart's $8+, was highlighted as an example of how dollar stores can offer genuine savings on essential items
Dollar Tree Dollarama Walmart Price Comparison Consumer Deals Value Pricing Marketing Tactics
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