The power of Pound Shops

There are now many 99p or £1 shops where everything in the store costs less than or equal to 1 pound. I love these shops, as they keep things cheap. Some things in the stores are poor quality and not worth buying at any price, but overall it is very good value for money. Always examine the quality before you buy.

As an example, you can buy a hammer for £1 in such a shop, but other shops can charge over £5 for the same thing. It might seem like a small amount to save, but these amounts really do add up and affect your net worth.

My local Woolworths closed down recently, and I was amazed by the speed in which a 99p shop was set up in that building. Woolworths had problems making money, but even though the new 99p store is selling things much more cheaply, they are making more money because they sell things the customer wants, i.e. cheap, useful goods.

I love a good bargain, and you can find many bargains in these £1 shops. Pound shops teach the skills of: finding a decent item at a good price, judgement, budgetting, planning, decision-making. Comparing items from different shops to strike a good balance between quality and cost is an important financial skill. This is later useful for things like selecting: houses, bank accounts, investments, business deals, mortgages, etc.