Extreme Value Stores: DG, FDO, WMT
Some say it’s due to offering lower prices than Wal-Mart. However, one can learn from these companies’ financial statements that the gross profit margins of extreme value stores are typically 5 to 10 percentage points higher than Wal-Mart’s. Why would anyone willingly purchase higher-priced products? Why don’t they go to Wal-Mart stores instead?
Well, contrary to common perception, the extreme value stores’ main selling point is not lower prices, but lower price points . What’s the difference between “price” and “price point”? A 3-oz bottle of Procter & Gamble (NYSE:PG) shampoo for $3 is a low price point, but a high price ($1/oz). A larger 14-oz bottle of the same brand for $10 is a high price point, but a relatively low price ($0.71/oz). P&G (and anyone selling its products) certainly is extracting a higher gross profit margin from the smaller 3-oz bottles, but some consumers prefer them.
You can observe that the most popular package sizes are typically smaller in Dollar General or Family Dollar than in Wal-Mart or Costco (NASDAQ:COST). What kind of customer is Dollar General trying to appeal to by offering smaller package sizes and thus “lower price points”?
If you are someone living from paycheck to paycheck, and probably a frequent user of payday loans, then I imagine you have something like twenty dollars in your pocket at the end of a work day, and your pantry at home is almost empty most of the time.
You are not likely to go to Wal-Mart to stock up a whole week of groceries. You don’t have enough money in hand, and it is probably not worth the gas to drive there every day to spend $10.
Instead, you walk into a neighborhood Dollar General to get what you need for today. You pick up a small tube of toothpaste. One dollar. Sound cheap? Not really. You could have saved money buying a larger tube, five times the volume, for three dollars from Wal-Mart. But you go for the smaller tube. You are attracted to the low price point, not the low price.
pay day loan retailer - News
If you are someone living from paycheck to paycheck, and probably a frequent user of payday loans, then I imagine you have something like twenty dollars in your pocket at the end of a work day, and your pantry at home is almost empty most of the time.
The storefront payday lending industry has been slowly bleeding over the last few years as states, until now the industry's major regulators, have enacted tougher laws designed to protect consumers from the controversial short-term high-interest loans.
About a mile west, an investor from Texas paid $1.05 million for a two-tenant retail building that houses a Starbucks and EZ Money Payday Loan store. The deals show the continued interest from nationwide investors in Kenosha County retail properties
A reality check on QC Holdings (QCCO), DFC Global Corp (DLLR) and The Cash Store Financial Services (CSFS). By John Udovich Obama's new consumer “protection agency” could mean more trouble for payday loan stocks like QC Holdings (NASDAQ: QCCO) and DFC
ZestCash, the latest in a line of start-ups that have emerged to disrupt the payday loan business, said it has gathered $73 millionin new debt and equity financing. ZestCash combines traditional credit scoring with machine learning and analysis of data
direct lender payday loans - De Team House
Payday loan on-line functions precisely like the loans that the customers can obtain from the retail loan establishments. They are short term loans that are designed to assist the customers at occasions of dollars emergency. Such loans support individuals if you have a shortage of dollars along with the next paycheck is just not coming anytime soon. As these loans have become on-line, it has become incredibly easy for the customers to apply for such loans. You will need to submit copies of identification and paycheck stub, a recent bank statement either by fax or by an email. Subsequent, the dollars will probably be directly transferred for your account when when the loan is approved. You can find some points to recall though applying for on-line payday loans. The loan on-line allow the customers to apply for loans anytime in the day. As opposed to the actual banks, you don’t have to worry about going for the bank on specified time only. The procedure of an online payday loan is incredibly short and easy. It takes only some minutes to fill it. payday loans You will need your employment details, bank account no. and reference facts. After the form is submitted, the lender might speak to you for authentication. When the loan is approved, the dollars is directly transferred for your account. The key difference in between the on-line payday loans and retail payday loans is the venue. It might be uncommon that the on-line payday loan you’ve applied for within the identical location as the consumer. Nevertheless they give you your necessary dollars. This really is the purpose why they charge such high interest rates than what exactly is permitted by the nearby jurisdiction. The sole advantage of using an online payday lender is the convenience of obtaining all the operate performed at your property and not entering the payday loan establishment. This method is more discreet. Most of the on-line payday lenders have the capability to rollover a loan at the finish in the term by deducting the amount in the interest from the borrower’s account at the finish in the term and renewing the loan for yet another term.