Is the Dollar Store the best deal out there or is it all a lie?
Sometimes the dollar store can end up making a true difference, especially since it advertises itself as being extremely affordable. The allure of a single, low price point is powerful, making it feel like you can fill your cart without breaking the bank. For anyone on a tight budget, this straightforward pricing model seems like a dream come true, removing the guesswork from shopping. However, this appealing simplicity can sometimes mask a more complicated reality.
Despite their name, only a couple of these types of stores continue to charge only $1. The economic pressures of inflation and rising supply chain costs have made it nearly impossible for most retailers to stick to that magic number. While it was a brilliant marketing strategy for decades, the one-dollar price point has become largely unsustainable for the wide range of products these stores aim to offer.
The likes of 99 Cents and Dollar Tree still have this deal, but big-name dollar stores like Family Dollar and Dollar General have gone up in price a little bit. Dollar Tree, for example, famously shifted its primary price point to $1.25, a move that allowed them to keep offering a similar range of items. Meanwhile, stores like Dollar General and Family Dollar have always operated more like low-cost retailers than true “dollar” stores, with a variety of price points, though most are still under $10.
This does not mean that you should stop shopping there, but that you should reconsider the way you look at the dollar stores in your area. Instead of viewing them as a place where everything is automatically a bargain, it’s wiser to approach them as you would any other retailer: with a critical eye and a focus on value. Being a savvy shopper is the key to truly saving money, regardless of the store’s name.
Since their prices have also gone a little bit up, it means that for some items you are paying more than you should. The most common pitfall is the unit price trap. A product might seem cheap, but the package is often significantly smaller than what you’d find at a traditional grocery or big-box store. This “shrinkflation” means your cost per ounce, per item, or per use can be much higher.
Sometimes, it happens that even when you are only paying a dollar for something, you are overpaying! This sounds counterintuitive, but it’s all about the math. If you can buy double the amount of a product for $1.50 at a supermarket, that single dollar you spent at the dollar store wasn’t a good deal. It was just a smaller, more convenient purchase that cost you more in the long run.
These stores have the reputation of being affordable, but when you stop to think about it, you may be paying more in the grand scheme of things than you would if you got certain items at other stores! The trick is to differentiate between a low price and good value. Many items at dollar stores are specifically manufactured for that market, which can sometimes mean lower quality or smaller quantities. Your goal as a consumer is to identify which products offer genuine savings and which are just clever marketing.
Stay with us to discover all the items for which you are overpaying at the dollar store! Grab your phone’s calculator and prepare to become a more informed shopper. We’re about to delve into the specific products that seem like a steal but are actually draining your wallet, one dollar at a time.
Pain Relievers Are Pricier
Suppose you are in need of pain relievers and you are using the likes of ibuprofen or acetaminophen. In that case, you should turn your attention to places other than Dollar Tree, preferably to bigger stores like Costco or Target. Grabbing a small bottle from the dollar store is perfectly fine when you have an unexpected headache and it’s the closest option, but for stocking your medicine cabinet, it’s a costly mistake.
This is about how much you are paying per tablet, and then when you look at the grand scheme of things, you will be paying more than if you would get them somewhere else. The dollar store model relies on small package sizes to hit that low price point. For items you use regularly, like pain medication, buying these small quantities repeatedly adds up very quickly. It’s the classic trap of convenience over cost-effectiveness.
In the case of acetaminophen, you can get a pack of 40 caplets with 500 mg of active substance at about 3 cents per capsule, around $1.25 at Dollar Tree. This seems incredibly cheap on the surface, and for a travel pack, it might be just what you need. But for home use, this is where the math starts to work against you.
However, if you want to get more and have them last longer before you need to go get them again, you can find 500 caplet bottles at Target for only $7.99, or go even higher at 1,000 caplets at Costco for about $12.43. At Target, the cost per pill drops to just 1.6 cents. At Costco, it plummets to a mere 1.2 cents per pill. You’re getting more than double the value compared to the dollar store.
If we look at ibuprofen, you can get a 1,000-capsule bottle at Costco for $12.43, while if you were to get the same amount of capsules at Dollar Tree, you would have to get 25 packs of 40 pills, which will get you as high as $31.25. That’s a staggering difference of nearly $19 for the exact same amount of medication. You would be paying more than double for the illusion of a low price.
While the initial price of these pills seems low at the dollar store, they end up being more expensive in the long run. The same logic applies to many other health products, such as vitamins and allergy medications. Always check the pill count and do the quick math on cost-per-pill before assuming the dollar store has the best deal. For long-term supplies, warehouse clubs and big-box stores are almost always the winners.
Toothpaste ends up being a scam
There are a lot of best buys you can get at Dollar Tree, but when it comes to toothpaste, you should take your dime elsewhere. This is one of the most classic examples of how unit pricing can deceive an otherwise careful shopper. It’s not a scam in a legal sense, but it’s a financial trap for those not paying close attention to the details.
Sure, the $1.25 price tag is a deal, and it may be a great thing when you’re in need, but when at home, you need to think in perspective and get what will last you longer and be cheaper in terms of ounces. Dollar store toothpaste tubes are often much smaller than standard sizes, sometimes bordering on travel-size. You might be getting a well-known brand, but it’s in a package specifically designed to be sold for a low price, which means less product for you.
It may not sound like spending 34 cents per ounce at the dollar store is a lot, but when you compare it with paying around 27.6 cents at a store like Walmart for another brand of toothpaste, it can make a difference. Over the course of a year, those cents add up to real dollars that could have stayed in your pocket. The difference becomes even more pronounced when you look at store brands from major supermarkets, which often have an even lower cost per ounce.
In the end, to get to buy three tubes of 6 ounces that are going to last you way longer for only $4.97 at Walmart, while at the dollar store, you will need to pay way more to get to the same amount of product! Let’s break it down: a 6-ounce tube at Walmart might cost $1.65. To get that same 6 ounces from a dollar store selling 2.9-ounce tubes for $1.25, you’d need to buy two tubes (5.8 ounces) for $2.50. You’re paying almost a dollar more for slightly less toothpaste.
Not the steal you think it is: Soap
If you’re a fan of soap bars and Irish Spring is one of the types of soap you get, then you should not rely too much on the ones that you get from the dollar store. They are not as well priced as you may think. Much like with toothpaste, the packaging can be very deceptive. You see a familiar brand name and a low price and assume it’s a bargain, but the secret is in the size.
Indeed, in the grand scheme of things, when you buy more of them, you are going to pay less, so if you plan to stock up, you should avoid the dollar store. A single bar or a two-pack might seem cheap, but it’s when you compare it to the value-sized packs at other retailers that the true cost becomes apparent. This principle applies to both bar soap and liquid soap.
You can end up getting a better deal when it comes to them at warehouse stores, where you will be able to get more bars of soap for less, and you will also be getting more products. These stores excel at offering lower unit prices for items you use daily. Since soap has a long shelf life, stocking up is a smart financial move that pays dividends over time.
The Irish Spring soaps that you can find at dollar stores are 3.2 ounces, while the ones you can get from other big stores like Sam’s Club, Walmart, and even Costco are 3.7 or 4 ounces per bar. That half-ounce difference per bar might not seem like much, but consider a 20-pack from Costco. You’re getting a total of 10 extra ounces of soap—equivalent to three whole dollar-store bars—for a much lower price per bar. The same applies to liquid hand soap, where dollar store bottles are often 7.5 ounces, while larger 32-ounce or 50-ounce refill jugs from supermarkets offer vastly superior value per fluid ounce.
Save the cereal for other stores
When it comes to cereal, it is a good idea to get the small 3.5-ounce bags that you can find at the Dollar Store if you want to try more flavors, if you get bored of one type of cereal, or if you are not eating them that frequently. These small bags can be perfect for portion control, for packing in a lunch, or for a single person who doesn’t want a giant box going stale in the pantry.
That way you will have some on hand, and you will be finishing it faster even if you are a slow eater, and you will not end up having to throw out stale cereal like those family-sized packs. In this specific scenario, the dollar store offers a practical solution that minimizes food waste, which is a form of saving money in itself. It’s a niche use, but a valid one.
However, if you love one type of cereal or if you have kids around who love them as breakfast options, know that you will not be getting a deal at the dollar store. For regular cereal eaters or large families, buying these small bags is one of the most inefficient ways to purchase breakfast. The cost per ounce is significantly higher than buying a standard or family-sized box from a grocery store.
By comparison, you will be paying more since you will have to buy more often. The constant need to repurchase small bags will not only cost you more money but also more time and trips to the store. It’s the convenience fee you pay for not buying in a more economical size.
Much more, if you compare the 3.5-ounce bag of Honey Nut Cheerios that is $1.25 at Dollar Tree with the $3.49 for the 15.4-ounce box you can get at Kroger, you can see where you are losing money instead of saving them. Let’s do the math: the Dollar Tree cereal costs about 35.7 cents per ounce. The Kroger box costs only 22.6 cents per ounce. You are paying nearly 60% more for the same cereal just by buying it in a smaller bag at the dollar store.
Do yourself a favor and see what is best for you since you can get a much better deal for cereal at grocery stores. Always keep an eye out for sales and digital coupons at your regular supermarket, which can bring the price down even further, making the dollar store option look even more expensive by comparison. Off-brand or store-brand cereals from places like Aldi or Walmart also offer incredible value in larger boxes.
If anything, you can also get a great deal for cereal online. This variety pack from Amazon has been amazing for us whenever we have the whole family visiting!
Rice is better bought somewhere else
White rice is a pantry staple that you should not be missing out on since you can easily make or garnish meals with it. It’s versatile, has a long shelf life, and is a key ingredient in cuisines all over the world. Because it’s a foundational food item, getting the best price on it can lead to significant savings over time.
However, you should not get this staple at the dollar store since it is not the deal you think. You will end up paying more per pound, and if you are buying it frequently, it will end up adding up. A small, two-pound bag might seem convenient, but it’s an expensive way to buy a product that is sold much more cheaply in bulk at nearly every other food retailer.
Not to mention, at other supermarkets, you will be able to get a bigger bag instead of the 32-ounce ones you can find at the dollar store. A standard grocery store will carry 5, 10, or even 20-pound bags of rice. The price per pound drops dramatically as the bag size increases. A 2-pound bag (32 oz) at Dollar Tree for $1.25 works out to about 62.5 cents per pound. At Walmart or an international market, a 20-pound bag can often be found for under $10, which is less than 50 cents per pound.
If you eat rice frequently, you should rely on the pound rice bags instead of relying on the dollar stores. The same logic applies to other dry goods like dried beans and pasta. A one-pound bag of pinto beans at the dollar store is almost never cheaper per pound than a four or eight-pound bag from the grocery store. For these pantry essentials, buying bigger is almost always better.
Get your canned goods somewhere else
When it comes to canned foods, there are some staples that are easy to cook with, versatile, and healthy for you. Yet, there are some types that you should avoid getting from the dollar store. While the convenience of grabbing a single can is tempting, it’s rarely the most economical choice, especially for items you use often.
You should make sure that you find another place to get canned tuna. At the dollar stores, you will be able to get StarKist Chunk Light Tuna 5-ounce cans for $1.25 per can, while in bigger stores like Walmart, you will be paying $4.34 for a four-pack of 5-ounce cans. This means you’re paying $1.25 for one can at the dollar store, but only about $1.09 per can when you buy the multi-pack at Walmart. That’s a saving of over 12% just by buying in a slightly larger quantity.
Given how canned tuna has a long shelf life, you should not be worried about having too many of them, and you can easily save more money this way. Stocking up on multi-packs when they are on sale at a regular grocery store can lead to even more significant savings, making it a smart move for your pantry and your wallet.
Likewise, when it comes to veggie cans, you should check the prices at other stores since, in most cases, you definitely overpay for these at dollar stores. Canned vegetables are a prime example where regular grocery store sales almost always beat the dollar store’s everyday price. Supermarkets frequently use canned goods as “loss leaders” to get you in the door, with prices dropping well below one dollar.
The $1.25 can of corn you get at the dollar store is going to go for as little as 89 cents at Kroger or even less, for 50 cents at Walmart! This isn’t even a special sale price in many cases; it’s the regular price for their store brand. You’d be paying more than double for the exact same type of product. The same holds true for canned beans, diced tomatoes, and many soups.
Make sure you check prices before committing! The key takeaway from all of this is to become a unit price detective. Your smartphone’s calculator is your most powerful tool for saving money. Before you put an item in your cart, take ten seconds to calculate the price per ounce, per pill, or per unit. This simple habit will quickly reveal where the true bargains are.
There are many other dollar store products worth your money if these products cost more than expected! This article isn’t meant to discourage you from shopping at dollar stores entirely, but to empower you to be a smarter consumer. Items like greeting cards, party supplies, gift wrap, and some cleaning tools can be fantastic deals. The goal is to know when to buy and when to walk away. If you want to know what makes people so fond of this store, check out this article: I Only Shop at Dollar Stores—Here’s Why.
