Editing Variety store (section)

===Pricing and margins===
Some items are offered at a considerable discount over other retailers, whereas others are at the same price point. There are two ways variety stores make a profit:
* Buying and selling vast amounts of goods at heavily discounted prices provides a small [[profit margin]] multiplied by the sales volume.
* Pricing many items at prices that are higher than regular retailers. These goods are commonly bought by consumers who perceive them to be bargains based on the heavy discounts on other items in the store. In the case of fixed price-point retailers, this can be achieved by reducing the package size.<ref name="telegraph1"/><ref name="yahoo">{{cite news|url=http://uk.finance.yahoo.com/news/-1-stores-cost-yahoofinanceuk-1810927014.html|title=£1 stores can cost you more|work=[[Yahoo Finance]]|first=Amanda|last=Hall-Davis|date=21 April 2011|access-date=8 September 2013|archive-url=https://web.archive.org/web/20120415020155/http://uk.finance.yahoo.com/news/-1-stores-cost-yahoofinanceuk-1810927014.html|archive-date=15 April 2012|url-status=dead|df=dmy-all}}</ref>

Variety stores with single price points buy products to fit those price points (while making a profit) that are:
* [[generic brand]]s or [[private label]]s, often specially manufactured using cheaper materials and processes than usual.<ref name="telegraph1"/><ref name="yahoo"/>
* available through the [[grey market]].{{citation needed|date=September 2013}}
* bought at a [[closeout (sale)|closeout sale]], such as seasonal or promotional goods or bankruptcy stock.{{citation needed|date=September 2013}}
* sold in smaller unit sizes than elsewhere.<ref name="telegraph1">{{cite news|work=[[Daily Telegraph]]|url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9543609/How-Poundland-makes-its-millions.html|title=How Poundland makes its millions|date=14 September 2012|first=Harry|last=Wallop|access-date=8 September 2013}}</ref><ref name="yahoo"/>

Not all variety stores are "single price-point" stores, even if their names imply it. For example, in the United States, [[Dollar General]] and [[Family Dollar]] sell items at more or less than a dollar. Some stores also sell goods priced at multiples of the named price and, conversely, multiple items for the price. The discrepancy with the nominal price is also compounded if [[sales tax]] is added at the [[point of sale]].