25 cent stores??

I've seen 99 Cent stores in the US. I've seen 100 Yen stores in Tokyo. But I have never seen a 2 Yuan (about 25 cents) store until one just opened in an empty commercial space down on the street. The store owners just slapped a sign over the previous owners sign, brought in their goods and started selling. It almost seems like a fly by night operation. It has all the same stuff you would find at a US 99 cent store, but for one quarter of the cost, just 2 Yuan! And they still can make a profit? I think the material alone is some of those goods, brooms, picture frames, tools, whatever, are worth more than 2 yuan. So after assembly and shipping, I think the cost has to be more than 2 yuan. I don't know how people can sell stuff so cheap. I assume it has to do with volume sales. A lot of people were flocking to that store to look for items. Though I did not see any problems with the store, some of my English students told me that these stores often do a kind of bait and switch. Once you go to purchase something, it may not be 2 yuan, but rather 8 or 10 yuan.