You've surely seen those "MOVING OUT SALE" banners plastered inside (and outside) budget shops such as ValuDollar.
Despite the proud announcements of "Fire Sale!" and "We Lose Money You Save!" in the form of red capital letters on bright yellow banners, we realise that these shops still exist in the same location a few months later.
In these budget shops, you will find food and everyday items at heavily discounted prices. A tin of potato chips cost as little as $1, compared to a price tag of $3.20 at major supermarkets. Branded chocolates and shower products are also some of the popular items among the crowd. It is not uncommon to see baskets loaded with 10 packets of Kit Kat to be given away as gifts.
But if every item is so cheap, how do budget shops manage to pay wages, rent, earn profits, and even expand to more outlets? Here are four reasons why budget shops can still thrive, despite their low, low prices.
1. OFF-BRAND PRODUCTS
This is when an item is imported from a cheaper country instead of its original country of origin.