For those who own a dollar store there are times when it seems like everything costs more. Utility bills are higher, cost-of-goods-sold continue their unending climb, payroll just keeps going up. This never ending list can be depressing to the small business owners who are just trying to make a profit while providing value to their customers. But rather than sitting back and becoming a victim, dollar store owners can take steps to drive more cost out of the wholesale merchandise they sell. Read on for 7 proven methods to reduce cost-of-goods-sold in your store.

1. Buy show specials at industry shows and events

If you own a dollar store you likely attend a trade show now and then. You are probably there looking for potential new suppliers, or possibly a chance to meet others in the industry. However many don’t realize industry shows are also a great place to buy merchandise. Many shows have top vendors offering deeply discount items as show specials.

2. Shop for new lower-priced wholesale dollar merchandise suppliers

Do not leave your best suppliers too quickly. Make sure you find vendors offering the products your shoppers want at competitive prices before moving. Then always try a test order or two before making the final decision. What a mistake it would be to abandon your dependable suppliers only to find your new suppliers talk a good story, but do not deliver.

3. Become a bargain shopper

Purchase monthly sales, closeouts and specials from your existing suppliers. Then, when considering new general merchandise suppliers, add their monthly specials or sales to your base-line evaluation. It can often be worthwhile to shop new suppliers for their sale items initially to test their performance.

4. Ask your existing suppliers for low-cost, non-competing wholesale dollar merchandise supplier referrals

Many of your current suppliers will be happy to tell you about other companies providing non-competing products.

5. Purchase inventory from closing businesses

These can be dollar stores, other retailers, or even wholesale distributors going out of business. Be careful to check exactly what you are receiving. It is also important to be prepared to pay immediately as well.

6. Focus on freight cost reduction

Start with the basics such as making sure to only ship full pallets. Then examine establishing a contract with a regional freight forwarder or service, or a national freight hauler if appropriate. Look to freight haulers used by your wholesale dollar merchandise supplier as a first option as well. Always receive a solid bid before accepting any option. Do not position yourself for ridiculously high freight costs – keep negotiating until they fall in-line.

7. Start strategically using liquidation and closeout companies

Those who own a dollar store will find this includes two very different tactics. First of all, shop for new, mixed pallets or totes of wholesale dollar merchandise. It will generally be further discounted when dealing with these companies. Then look for closeout deals on shelf pulls, packaging changes, etc as a way of bringing extra value to your shoppers.

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