Living on $1.00

November 18, 2008 7:17:13 PM PST
The economic slump is forcing many people to watch every dollar. But some businesses are helping customers stretch those dollars farther than ever.Anchor, business at discount retailers is booming. Obviously, people are doing what they can to save a buck. But, marketing campaigns at places like the Dollar Tree and McDonalds are using dollar incentives hoping customers will end up buying more.

One buck will get you pretty far these days. Take McDonald's dollar menu, for example. The food chain has reported serving two-point-five million more customers per day this quarter than last year's.

Rita Torigen said, "You go to a regular restaurant, you're gonna have to spend so much money to go to the restaurant, where it's cheaper here."

The dollar tree is also seeing some gains. Their shares are up 54-percent this year.

"A penny saved is a penny earned."

Clifton Rossvanes visits the Dollar Tree twice a week. He says, shopping at places that offer the same goods at higher prices doesn't make sense.

Clifton Rossvanes said, "That is why we come here. To get the products that we need to clean up the house, garage or what not."

Fresno State Marketing Professor, Dr. William Rice says these days customers are getting good deals, but it's retailers who are profiting the most.

Dr. William Rice said, "And that's what they're hoping for is the avalanche that started by that one pebble of selling something for a dollar, you get a whole avalanche of involvement in purchasing by that person."

"You didn't go in to buy the Hanna Montana pen, but you saw it. So, you ended up buying more than you anticipated buying?"

"Yeah, and it was just a dollar."

Those dollars are adding up ... which is helping some retailers stay afloat.

Dr. William Rice said, "They know what they're doing. They're playing upon our feeling of saying this is the floor and I can deal with the floor I can deal with something that costs a dollar."

Experts say dollar menus and dollar stores for that matter, aren't going away anytime soon. Last I checked, shares at Dollar Tree went up two cents.

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