5 Reasons to Move Forward Carefully When Changing Into a Dollar Plus Store
One of the biggest challenges for those with a dollar store business making the decision to change the format of their existing $1 store to a dollar plus store.
Possibly their sale levels have tapered off a bit.
Their profits have also likely taken a beating.
They feel they have taken cost reduction as far as possible.
So, they are looking to dollar plus as the solution to their problems.
However, it is important to proceed carefully.
Don't jump right in without carefully considering the 5 reasons to move forward carefully.
#1) While your sales and profits might be screaming for you to make this change, proceed with caution.
Although on the surface, making a format change may seem like a slam-dunk decision.
If you can maintain the same sale levels, your profits will explode to new levels; at least on paper, it appears that way.
Yet this move takes thought, planning and careful action or it can have disastrous consequences to your dollar store business.
#2) Examine the marketplace.
How many dollar price-point retailers are close by your location? Are their big national companies still at the dollar price point located near your dollar store business? If there are still sources of dollar price point merchandise close to your store, expect many of your shoppers to take simply their buying to those store.
That will be even truer if you have built yourself into a destination shopping point.
After all, even though your shoppers like your store, they can change and save money.
#3) Prepare for an aggressive marketing campaign.
In many ways changing to dollar plus is like starting over again.
The decrease in shoppers and dollar store sales may be shocking.
Don't sit back and wait for the recovery, start aggressively marketing your business.
Advertising should be preplanned.
Advertising costs should be built into your format change planning.
#4) Provide time for your current dollar store business shoppers to understand the format change to dollar plus store is coming in the near future.
While there are cases where waiting and then changing over without announcing or even informing your existing customers, there are many other cases where the best way to handle this transition is to break the news well in advance of the change.
Start with subtle communication and then let it build.
#5) Avoid instantly changing the prices of all dollar store merchandise that was sold previously for $1.
Many of your existing customers have grown to count on you to meet their needs and wants at only $1.
They will try to continue shopping with you, but for many the trip a few blocks down the street to still purchase those necessities at $1 will be worth it if you change too much too quickly.
The good news for those who transition their dollar store business from $1 to dollar plus store is the total number of transactions required to achieve the same dollar-store sale levels is decreased.
Yet the better you do at successfully transitioning your current shoppers to your new format the faster you will match and then exceed previous sales levers.
The same holds true for dollar store profits.
To your dollar plus store success!
Possibly their sale levels have tapered off a bit.
Their profits have also likely taken a beating.
They feel they have taken cost reduction as far as possible.
So, they are looking to dollar plus as the solution to their problems.
However, it is important to proceed carefully.
Don't jump right in without carefully considering the 5 reasons to move forward carefully.
#1) While your sales and profits might be screaming for you to make this change, proceed with caution.
Although on the surface, making a format change may seem like a slam-dunk decision.
If you can maintain the same sale levels, your profits will explode to new levels; at least on paper, it appears that way.
Yet this move takes thought, planning and careful action or it can have disastrous consequences to your dollar store business.
#2) Examine the marketplace.
How many dollar price-point retailers are close by your location? Are their big national companies still at the dollar price point located near your dollar store business? If there are still sources of dollar price point merchandise close to your store, expect many of your shoppers to take simply their buying to those store.
That will be even truer if you have built yourself into a destination shopping point.
After all, even though your shoppers like your store, they can change and save money.
#3) Prepare for an aggressive marketing campaign.
In many ways changing to dollar plus is like starting over again.
The decrease in shoppers and dollar store sales may be shocking.
Don't sit back and wait for the recovery, start aggressively marketing your business.
Advertising should be preplanned.
Advertising costs should be built into your format change planning.
#4) Provide time for your current dollar store business shoppers to understand the format change to dollar plus store is coming in the near future.
While there are cases where waiting and then changing over without announcing or even informing your existing customers, there are many other cases where the best way to handle this transition is to break the news well in advance of the change.
Start with subtle communication and then let it build.
#5) Avoid instantly changing the prices of all dollar store merchandise that was sold previously for $1.
Many of your existing customers have grown to count on you to meet their needs and wants at only $1.
They will try to continue shopping with you, but for many the trip a few blocks down the street to still purchase those necessities at $1 will be worth it if you change too much too quickly.
The good news for those who transition their dollar store business from $1 to dollar plus store is the total number of transactions required to achieve the same dollar-store sale levels is decreased.
Yet the better you do at successfully transitioning your current shoppers to your new format the faster you will match and then exceed previous sales levers.
The same holds true for dollar store profits.
To your dollar plus store success!
