system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: how can the dollar store sell items for only 1$ while the same items are much higher elsewhere?

I always wondered if there is something wrong with those items? Maybe almost expired or damaged?
gpt
It's simple and yet not easy to understand. Take the entire stock of the dollar store and we find very few items valued $5-$10 and the majority at or around $1 price. Compare to other places inventory you will find that dollar stores inventory is a low dollar figure. This means that every space of rental property is cheap to stock and rotating inventory (assumed) along with smaller shelf space needed for these smaller items (assumed) allows greater selection. These stores rely on the consumer being able to afford more items more often, they reduce profit margins to increase customer volume. 

Or 7/11 has Twinkies for $1.29 with a profit of 35¢ and dollar store has Twinkies for $1 profit of 5¢. Dollar store sells five boxes of twelve each month 7/11 only two. $8.40 for 7/11 and $3.00 for the dollar store. Not great. But the dollar store customer buys 10-15 items and the 7/11 customer 2-5 items. Both models are successful by method, execution and market. They just see growth and profits different with either finding appeal in the eyes of different customers and business men alike.