By rbhamil on May 9, 2009 in Merchandise | 1 Comment
In today’s marketplace locating the right merchandise at the right price is an almost overwhelming challenge. It seems like the price for almost everything is going up. Merchandise prices are increasing with the price of freight following close behind.
By rbhamil on May 9, 2009 in Tips/Steps For Success, Uncategorized | 2 Comments
Well here we are. The economy is spiraling downward. No-one seems to know when we will hit bottom. Customers aren’t spending money. Things are looking bleak indeed. That doesn’t necessarily need to be the case for your business.
By rbhamil on May 9, 2009 in Uncategorized | 0 Comments
Opening a dollar store business can be fun, exciting and challenging. It can also be a very rewarding time. There’s no feeling quite like seeing the store build-out or upgrades being completed and then the merchandise displays and fixtures being added.
By rbhamil on May 8, 2009 in Merchandise | 2 Comments
There are so many things a dollar store business owner must know. There are so many daily challenges that must be addressed. You must wear so many hats and deal with so many critical issues. Even when the unexpected occurs there are some fundamental requirements for success. One of the most important of those is inventory management.
By rbhamil on May 8, 2009 in Customer Service | 0 Comments
If you are in the process of opening a dollar store probably the furthest thing from your mind is those steps that must be taken to insure a successful future. You are in the midst of dealing with a million separate problems and issues that have the potential of stopping you from opening on time. Just as one problem is resolved another, even bigger problem appears.
By rbhamil on May 8, 2009 in Sales/Profits | 0 Comments
Are you opening a dollar store business? Before you allow the hustle and bustle of starting and operating your own business to get in the way, recognize the true measures of success for your business. While having fun might be important, there are several key measure of success that must be developed.
By rbhamil on May 7, 2009 in Management | 1 Comment
Today’s economic climate isn’t the right time to be taking high risk in your business. It is not the time to open a business of any type without thoroughly understanding the market, sales that can be expected, and start-up costs. It is a time to maintain a large reserve pool of cash to ensure your business will remain viable even if sales and profits fail to meet projections.
By rbhamil on May 7, 2009 in Management | 1 Comment
While most who are opening a dollar store expect January sales levels to be significantly lower than all other months. However this is also a time to complete many critical actions to prepare for an outstanding year ahead. With those lower sales levels comes the need to cut costs everywhere. Labor should be reduced to bare minimum levels during the month.
By rbhamil on May 7, 2009 in Promotions | 0 Comments
No matter how big or successful your business, it’s important to continuously focus efforts on keeping it healthy, growing and profitable. One of the surest ways to continue growth is with an effectively designed advertising program.
By rbhamil on May 3, 2009 in Sales/Profits | 0 Comments
In today’s economic times many retailers are facing the reality of lower sales. For those opening a dollar store, the same reality exists. The good news is shoppers are looking for great bargains, and a well-run dollar store is positioned to offer exactly the bargains they seek. It’s merely a matter of knowing exactly what your customers must have, and then locating those products at super-low prices. In this article I present 4 tactics for dealing with lower sales after opening a dollar store.
1) Fix the problems within your store. If sales are decreasing it is important to understand why. Don’t blame the economy. Start carefully examining every aspect of your business for signs of weakness. Focus effort on growing traffic to your store. Be sure you have exactly the items shoppers need whenever they enter your store. Look for ways to build the average sale size in your store. Be sure customer service remains an area of focus for your business in good times and bad as well.
2) Move your store to a smaller, lower-cost location. If you are in the position to exit your lease, then difficult times might be the right time to locate a smaller, better located and lower priced retail space. While there are costs associated with making the move, physically up and moving your business can be the right option. If you are opening a dollar store business in a new, smaller location expect that in addition to the obvious costs of preparing the new space and moving your equipment and inventory, there will be costs to promote your business so current shoppers know of the move. There will also be costs associated with replacing customers that are lost in the move.
Of course there can be many lease issues to taking this step. Before you give up on that option, be sure to meet with your landlord to discuss any options they might support. (For example, possibly they have a smaller space that could be traded.) Make sure this is the right move for the next several years.
3) Reduce the size of your existing store. If downsizing is the right answer and you are unable to move into a smaller location and you are still faced with a space that is really too big for sales, then consider adding a temporary wall to reduce the size of your existing retail space. You instantly reduce the amount of inventory and the staffing required in support if your store.
You do maintain the current lease payments, however. I suggest you work with your landlord for some relief as an option. Most landlords are aware and many are sympathetic to your plight. If you’ve established a good reputation as a tenant, you just might be surprised at the results of this discussion.
Don’t allow the new back-room space to become a catch-all for clutter. In fact you might want to liquidate excess fixtures and supplies as a means of generating some quick cash. Work your existing inventory down to the size of your new store. However be sure you maintain adequate supplies of the commodities and in-demand products your customers seek throughout this process. Adjust all spending to reflect the new, smaller store size.
4) Close your store. Certainly this option was never a consideration when you were first opening a dollar store. However, if all else fails closing your store might be the best option. There will likely be emotions associated with this decision. Do everything in your power to maintain a strictly business approach. If there are doubts about your decision seek counsel with your trusted advisors or bring in an expert to provide advice and options for your business. Once the decision is made that closure is the best option, proceed quickly. Schedule your closeout plans, and get started.
To your dollar store business success!
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