He added that the company hadn't decided whether to change its name if prices were raised. But other discount chains have weathered price increases without adopting new names.
When Motel 6 opened in 1962, it cost $6 to rent a room for a night. Today, rooms start at $29.99, but the company has stuck with its easy-to-recognize name.
"People get used to it," said Laura Rojo-Eddy, a spokeswoman for Motel 6, which has more than 900 locations. "Even though the price is no longer $6, we've maintained the positioning of the brand, which is to have the lowest price of any national chain."
For DJ Thergood, who was picking up snack items at a 99 Cents Only in Silver Lake recently, the retailer's potential price increase "always seemed like it was inevitable."
Still, you know the economy is hurting "when things at the 99-cent store cost $2," said Thergood, 32, an Echo Park artist.
Linda Harris, a high school teacher who was shopping Tuesday at a 99 Cents Only in Montebello, was less bothered.
"I'd rather see them raise the prices on things I want to buy rather than stock lower-quality items," Harris, 58, said.
To keep customers from balking, 99 Cents Only would need to communicate price changes "in a way that doesn't feel disingenuous," said Marshal Cohen, chief industry analyst at market research firm NPD Group.
"If they market it and position it right, they can do it as, 'This is for you,' " Cohen said. "They can wean customers in on the concept."
One benefit of increased prices, he said, would be a wider array of products, making 99 Cents Only more of a one-stop shop. With prices as they are, customers still have to go to grocery stores and other retailers to get products that simply can't be priced at 99 cents or less.
"There are a lot more products that fit outside a dollar than inside a dollar," Cohen said. "They've got to recognize that they need to raise the bar."
The chain might have no choice: Despite hard economic times that are driving many consumers to scale back their spending and look for bargains, 99 Cents Only this month reported a loss of $1.5 million, or 2 cents a share, for the fiscal first quarter that ended June 28.
For now, those abundant 99-cent deals can still be had. But Jeff Gold said although that concept had worked well for the last 26 years, going forward "we have to be focused on what's going to be best for our company and our customers."
