How to Cut Dollar Store Costs when Starting a Dollar Store Business
When starting a dollar store controlling dollar store costs is a top priority. Do everything possible to keep all costs inline. In fact, doing anything that can be done to reduce your costs is a wise move to make. Examine the big three; lease payment, payroll, and dollar store merchandise costs first. While each of these deserves focused attention, the most leverage is associated with dollar store merchandise. With such a huge volume of items being sold, every penny you can reduce this cost makes a huge impact to the bottom line of your business.
Reduce the cost of the merchandise purchased from your general merchandise suppliers. The best ways to do this are to be always on the lookup for closeout items. But don’t stop there. Many general merchandise suppliers will offer monthly specials that often include the hottest selling items in your store. You know these products will sell. So, stock up whenever they are on sale. Beware; often the most popular items sell out fast. Purchase as soon as you are notified of the sale pricing.
Start looking at the secondary market for dollar store product inventory buying opportunities. Many closeout and liquidation companies are buying dollar store merchandise for mere pennies on the dollar. They then turn around and pass the savings on to you. Imagine the impact of paying only thirty or thirty-five cents for items you normally pay fifty or sixty cents to buy. What a powerful impact this will have on your dollar store costs!
Make sure you know exactly the quality of the items you are buying. Don’t end up with customer returned merchandise when you thought you were buying new. Ensure that you understand the product mix being assembled before it is shipped to your store. After all, the last thing you want is one each of 20-item plus 3,500 each of one item.
When first starting a dollar store you will likely not have the time to hunt for these great buys on dollar store merchandise. Always remember, however, that they are out there waiting. As things begin to slow down and you get into a routinely after your grand opening, then invest the time to start looking. When you find the right deals they can literally take a store that has dollar store costs well in excess of profits and turn it around.
To your success when starting a dollar store!
Reduce the cost of the merchandise purchased from your general merchandise suppliers. The best ways to do this are to be always on the lookup for closeout items. But don’t stop there. Many general merchandise suppliers will offer monthly specials that often include the hottest selling items in your store. You know these products will sell. So, stock up whenever they are on sale. Beware; often the most popular items sell out fast. Purchase as soon as you are notified of the sale pricing.
Start looking at the secondary market for dollar store product inventory buying opportunities. Many closeout and liquidation companies are buying dollar store merchandise for mere pennies on the dollar. They then turn around and pass the savings on to you. Imagine the impact of paying only thirty or thirty-five cents for items you normally pay fifty or sixty cents to buy. What a powerful impact this will have on your dollar store costs!
Make sure you know exactly the quality of the items you are buying. Don’t end up with customer returned merchandise when you thought you were buying new. Ensure that you understand the product mix being assembled before it is shipped to your store. After all, the last thing you want is one each of 20-item plus 3,500 each of one item.
When first starting a dollar store you will likely not have the time to hunt for these great buys on dollar store merchandise. Always remember, however, that they are out there waiting. As things begin to slow down and you get into a routinely after your grand opening, then invest the time to start looking. When you find the right deals they can literally take a store that has dollar store costs well in excess of profits and turn it around.
To your success when starting a dollar store!
