What Businesses Make

June 7, 2007 at 9:07 pm 1 comment

How It Works: When manufacturers and retailers want to ditch a large stock or some duds, they call Jack’s. While half of Jack’s products inherently cost around $1 (frozen food, Hawaiian Punch), dollar stores are also quietly fed products manufacturers want to expose to a more down-market demographic. “Companies figure that customers aren’t going to overlap from department stores to dollar stores, so they sell the same product at both,” says one analyst. Of course, Jack’s vice-president, Ira Steinberg, can’t tell you who these manufacturers are. “Part of my agreement with national brands is that I don’t admit that I carry their brands.” The week we went, Jack’s had Black & Decker coffeemakers, Hormel salami, and Hamilton Beach blenders.

Employees: 270.

Annual Revenue: $30 million ($6.9 million is profit) for its three stores.

Best Way to Make Money: It’s all about turnover. The store can sell a tractor-trailer of Mrs. Fields cookie packs in four days (that’s 162,000 cookies). Any item moves at the right price. “Lipstick that was a horror show at 99 cents, put it at ten for a dollar and you’ve got a crowd,” says Steinberg.

http://nymag.com/news/features/2007/profit/?feed=rss

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Entry filed under: Internet Startup.

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1 Comment Add your own

  • 1. Timothy Sykes  |  July 7, 2007 at 4:49 pm

    Love your site, u should promote it more! I’d like to send you a complimentary advance copy of my upcoming book, “An American Hedge Fund (due October 2007). It details how I turned $12k into $2 million and started a hedge fund. Its inspirational, realistic, aka NO BS, and the first of its kind since the hedge fund world is so secretive.

    Let me know if you if you’re interested!!

    Reply

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About Biz News

My Name is Bisi and this is my blog This blog features stories that I have read that I think are interesting . I usually bookmark the stories that I find interesting but they are getting too many . I have decided to catalog and share them on this site . I am not really promoting the site so you might have accidentally stumbled on it . Thanks for visiting .
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