Grad School Case Study: 99 Cent Store Success
Have you ever wondered how The 99 Cent Store started and how the company actually makes money by charging so little? How does the company survive? Is the company even making a profit?
I recently learned more about the history of the company and wanted to share it with you. Dave Gold, the founder of The 99 Cent Store, decided to start this store after he found that bottles of wine sold better at 99 cents rather than 98 cents or 89 cents. After researching more about Dave Gold, I learned that he teaches some great leadership lessons by how he runs his company.
Everyone thought Dave Gold was nuts when he decided to start his store in 1982. People thought he was crazy to actually name his store “The 99 Cent Store.” What would he do if things didn’t go well and he was forced to raise the price? Mr. Gold didn’t listen to his doubters and thought it would be a fun challenge and decided to take the risk.
It turned out that he made the right decision since there are now 276 outlets nationally with no debt and a stock that grew 800% from 1996 – 2003. Isn’t that amazing! I love the determination of this man and how he did not let other people impact his dreams and goals.
What roadblocks are holding you back from your dreams and goals?
Sometimes, You Have to Make Your Own Path!
Dave Gold realized that value mattered more than price to customers and he designed very attractive stores. He also tried to make the process as easy as possible for his vendors. Mr. Gold lives by the Golden Rule of treating others the way you want to be treated.
He creates loyalty within his company by providing great benefits for his employees and promoting executives from in-house rather than hiring from outside the company. His customers are also very loyal because the company makes sure to serve its customers by opening 15 minutes early and closing 15 minutes late. He also has never allowed any kind of negative signs like “No shoes, no service” or “We don’t make change,” but only positive signs saying “Come as you are” or “We gladly make change.”
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Lessons from the 99c Store
I think the most important thing leading to the success of this company was the positive culture Dave Gold created. He was very laid back and liked to have fun. Can you say that about yourself, your co-workers and your boss? Companies and management are under major stress these days due to the loss of so many jobs and our unstable economy.
I wonder what would happen if bosses started to relax and have fun at work?
Do you think if bosses became more laid back that employees might be happier, more productive and more loyal?