I have noticed that the dollar tree is no longer a dollar. It is now the $1.25 tree, but not really. There are items ranging from about $5 down to $1.25, and the portions are incredibly small. Do you think the portions will continue to shrink or the price will continue to rise? Do you think it will first be the $2 tree or the single serving container tree?
I believe that Dollar Tree will make whichever decision it believes will make the most money, which will likely be a combination of the two options. Dollar Tree may continue to shrink the quantity of the packages, but they could increase the price at some point and increase the size. This would make sense, as people remember what size things used to be, so they will not be happy with paying $1.25 for a couple of chips or a swig of soda. I believe that sizes will trend down and prices will trend up over time. While many Dollar Tree items are already close to single serving containers, I believe that Dollar Tree will be Double Dollars Tree before Single Serving Container Tree, as I have heard rumors that Dollar Tree may raise its prices to $2, and since many items already cost more than $1.25, raising the minimum prices of items by seventy-five cents in five or ten years may not be a terrible option for Dollar Tree.
So much of their branding is focused around price, and since any decimal seems like bad branding to me, I imagine we will see a $2 Tree before we see Dollar Tree offering poor quantities only so that they can remain at low prices.