As the girl at the register was ringing her up, she said "would you like to purchase a bottle of Gatorade for a dollar, it's our item of the week?"
My gf bought it.
It's only a dollar but let's dig a little deeper.
According to Wikipedia, Dollar Tree has 4,009 stores. Dangerous to assume, but I assume all of the stores are taught to do this. So let's look at some numbers. I am obviously guessing here as I don't know the exact numbers, but let's be conservative...
Average 300 sales a day (probably low, I've been in there when it has been jam packed)
1,202,700 sales a day total
80% - Amount that the up sell is asked (962,160)
20% - Amount of people that take the up sell (962,160 x .20 = 192,432)
192,432 take the $1 up sell
10% - Profit margin (I'm sure it is a little higher)
Total - $19,243.20 extra per day buy asking a simple question that takes 10 seconds to do.
Say they are open 360 days a year...
That's an extra $6,927,552 per year!
Not too bad for just asking a question.
- They asked it at the right time. My gf was in buying mode and was ready to pay.
- I can only assume they have a different item every week since they said "it's out featured item of the week. Now in the dollar store not that big of a deal since next weeks item will be a dollar as well. But what about other businesses, they can have different items at different price points.
- They actually are using a simple technique that is adding millions a year to their business. It's simple and yet not a lot of businesses are doing it.