But lately, the company just can't get a wide- or attractive-enough selection of goods that it can turn around and sell for such a low price, Gold said. According to the Bureau of Labor Statistics' inflation calculator, 99 cents in 1982 has the same buying power as $2.26 in 2008.
Those challenges led Schiffer to tell analysts in a conference call this month that a price hike possibility was "definitely on the table." He said the chain was looking at experimenting with its prices but hadn't set a timeline for implementing any changes.
"Finally management has started to think outside the box," said Joan Storms, an analyst who follows the chain for Wedbush Morgan Securities in Los Angeles. "Some relief on the 99-cent price point will provide more stability for their business."
By capping prices at 99 cents plus tax, the chain has had to play around with the quantity and size of its goods, which can confuse customers, she said.
For example, when eggs became too expensive, 99 Cents Only temporarily began offering six-packs instead of a dozen to keep prices under a dollar. The company also reduced the size of its milk cartons and stopped selling items such as peanut butter and cooking oil on a regular basis.
"What's the point -- why not sell a standard size and price it accordingly?" Storms said.
Over the years, 99 Cents Only has made some changes to its pricing model.
At first, the chain sold every item for 99 cents or groups of items for a total of 99 cents. Last year it added "variable pricing," meaning products were sold at different prices -- which, of course, didn't exceed 99 cents.
But selling items for a dollar or more is another matter for the company, where the number 99 has become a source of pride. On its website, the chain boasts, "Still nothing over 99 cents, ever!" and says its stores are open until "9 p.m., nine days a week."
The company even does 99-cent-themed promotions, such as selling iPod Nanos for 99 cents to the first nine customers in line at the recent grand opening of its Redondo Beach store (the next 99 customers could purchase a scooter for 99 cents).
"The number 99 is a magic number -- deviating from that is something we absolutely are not taking lightly," said Jeff Gold, who began working for the company when he was 14. "I find significant discomfort emotionally about considering making the change."
