Here is a free download of the second Chapter of Bob’s new book “Opening and Operating a Dollar, Discount or Closeout Store That Excels in Today’s Tough Economic Times”. To download right-click the link below and select “save-as” or “save target as”. 

Todays Tough Times Ch2

Opening and Operating a Dollar, Discount or Closeout Store that Excels in Today’s Economic Times is a post from: Opening a Dollar Store

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Here is a special download for you.  It is the first chapter of Bob’s book “Opening and Operating a Dollar, Discount, or Closeout Store that Excels in Today’s Tough Economic Times”.

To download this free chapter, just click here.

Today’s Tough Times ~ Chapter 1 Download is a post from: Opening a Dollar Store

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One of the big fears for many dollar store owners is associated with the big-box competitors. In fact those who own a dollar store must take steps to maximize profits while facing the growing threat from these major players. One strategy to address this threat is to add the right $1 plus merchandise to the mix in your store. In this article I present a strategy to add profit, sales and to compete successfully with other stores all at the same time.

* Keep a good selection of core consumables at lower prices to compete head-on and to keep attracting shoppers back for return visits. If these items have historically been priced at $1 in your store do everything possible to maintain that pricing, especially if your biggest competitors continue to hold the line at that price.

* Be selective about what you purchase and where you purchase it. If you own a dollar store one of the keys to long-term success as a dollar store owner is to develop a reliable set of wholesale dollar merchandise suppliers. These suppliers need to deliver the items your shoppers seek at the time they are needed. The pricing needs to be competitive and quality cannot be sacrificed just to cut a penny or two off the wholesale dollar merchandise prices you pay.

* Add closeout and liquidation items to the mix when possible. If you are a dollar store owner you cannot afford to find one or two key wholesale dollar merchandise suppliers and then close your eyes to other buying avenues and opportunities. While your core suppliers are critical to success, you must be creative in your buying. Look to closeout and liquidation companies as one option for finding treasures your shoppers will scoop up when they arrive.

* Prominently display high-value items. When you own a dollar store your goals is to make sure every shopper sees the high-value products whenever they visit. Place these items on end caps and other high-traffic display areas in your store. They will purchase them. Seeing these items will also bring shoppers back to check for the next great bargain you have found for them.

If you own a dollar store it is important to never allow the competition to dictate your success. You must be on-guard and creative as you seek the best ways to win the race. Adding dollar plus items is one way to increase profits. Be sure to maintain a good selection of $1 items. In fact 65% or even more of the merchandise in your store might remain at $1. This balance opens the door for creative buying and superior merchandising. As a dollar store owner it is all about leveraging buying and merchandising to attract shoppers and build sales ever-higher.

Dollar Plus Items Can Be a Weapon Against Big Competitors is a post from: Opening a Dollar Store

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If you are about to start a dollar store, you are about to learn just how important capturing all of the dollar store sales possible will be to your ultimate success with dollar stores. In fact it takes a full set of marketing and promotional strategies to keep sales building ever-higher. Fortunately, some of the extra sales you can collect come from recognizing customer needs and wants. You must then carefully purchase the right wholesale products to keep shoppers spending in your store.

One example of buying the right wholesale products is the seasons of the year. With spring coming soon we will examine just how careful buying from your vendors can produce many extra dollar store sales opportunities.

Seasonal Items

Success with dollar stores requires offering a good selection of the right products for all seasons. Spring merchandise starts with gardening tools, products and supplies when you start this type of business. Next add in water toys, sand toys and other fun weekend trip items. Don’t forget the barbeque tools and supplies to round out your first spring selection of merchandise. Next add in Frisbees, yoyos, and toys and crafts for travel. All will help boost your store sales higher.

Holidays

Don’t forget the spring holidays. The level of your success rides on properly selecting the holidays you will be offering products to support. Likewise the final selection of products is the key to just how high your sales will be. Just some of the springtime holidays to examine include Valentine’s Day, Saint Patrick’s Day, Easter, and more.

In some locations shoppers will begin to visit your store first because they know you provide a good selection of the items they seek for the next upcoming holiday they will be celebrating. When you first start your business, be prepared; it takes time to build this kind of following. Start with a good selection of items to test your market. As shoppers make their purchases, ask what other items they would like to see you carry next year. Then add the most in-demand items mentioned.

Be sure springtime items arrive early. Shoppers will respond to a sunny day during the winter or early spring by making purchases of seasonal goods in anticipation of the daily sunshine they know will be coming soon. When you first start a dollar store those added sales will be appreciated as you work to achieve you own success with dollar stores.

Building Springtime Dollar Store Sales is a post from: Opening a Dollar Store

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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.

7 Tactics to Reduce Your Wholesale Dollar Merchandise Costs is a post from: Opening a Dollar Store

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Those seeking success with dollar stores know the frustration and even fear of having a major player in the industry decide to move close by. Some may decide their time is limited and they had better close shop and run. Others realize this is the perfect time to ratchet up the performance of their business. You can be competitive in most cases. You must realize the true nature of the situation and then take action to leverage the strengths of your business and to add in strengths where your big-time competitors cannot compete.

The following steps are merely the beginning of the efforts you must take to be successful in the long run while going head to head against the big players.

* Develop and execute a battle plan

This not the time to sit back and see what happens. Success with dollar stores when the competition moves in requires a carefully thought out and executed plan of action. Examine your current strengths and weakness and then repeat the same exercise with your competitor. Leverage your strengths to capture and retain shoppers. Then match the strengths of the competition. Finally, build strength where your competition is weakest.

* Mix your prices

If you are currently a $1 or 99¢ only store, then consider strategically adding some dollar plus items to the offerings available to your customers. Make sure these are items the competition does not already carry. Use the dollar plus items to attract and impress shoppers. Define your strategy for this move and then carefully execute it to stand apart from the competition.

* Carry the same core products as the big competitors carry

There’s no need to match them item for item. Rather, select a subset of the main products your shoppers purchase that are being carried by your competition and add them to the products you always have in-stock. Be sure to match their pricing as well.

* Add unique products

While it is important to have the products shoppers need and products your competitors carry, go one step further. Add in some of the most in-demand products which are not being carried by the competition.

* Exceed customer expectations

Achieving success with dollar stores requires you to know your competitors well. Look for their weaknesses in customer care and then build a customer service plan that leaves no doubt your store excels in this arena. Once shoppers have a great shopping experience in your store they will remember. Even when they test the major competition, they will be inclined to return to your store for the environment and customer care you provide.

Steps for the Little Guy to Take When Competing Against the Big Players is a post from: Opening a Dollar Store

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The world of business is dynamic indeed. For example; at one time five-and-dime stores abounded. Yet as costs rose, these stores no longer represented a viable retail business format. At some point it is likely the 99¢ store and $1 only stores may face the same reality. Just as the old five and dime stores went by the wayside, there will likely come a time when the 99¢ store or $1 only store format will become a dinosaur and parish. For those with an interest in the world dollar stores, there remains hope. Read on as I present the time is right to plan ahead for future changes.

Start now to eliminate every unneeded cost possible. In fact, over the coming years cost cutting may well become even more important than building sales. While you must have year-to-year sales growth, selling more of products you are losing money to sell makes no sense. Examine every cost associated with your business and start looking for waste. Set goals for the big three costs associated with your business. For most these will be rent, payroll and cost-of-goods-sold. Then put specific actions in-place to reduce these and more.

Start now to think about how to stay in business and to be profitable while doing it. Inevitably, those with a 99¢ store or $1 only store format will need to make a change. Start examining your options. Start preparing your business for change. Start taking the required steps to keep your business successfully humming alone.

As you examine options, don’t panic. There is time remaining. Carefully decide what you want the final format to look like. Then develop a plan to change. It might be a sudden complete change, or possibly you would like to slowly morph into a new format. There are many other options – all take time and planning to successfully execute. Your new format could be one of the following:

* $1 plus store

* Discount store

* Closeout store

* Specialty store – party store, for example.

* Sell your business now

* Some other option

You might even consider riding the 99¢ or $1 store format right to the very end and then close the store entirely.

Don’t hang on to a 99¢ store or $1 only store too long. After all, if you knew a train was coming down the railroad tracks at you, you would jump off the tracks. The cost train is coming; the only question is when it will arrive. By completing some simple planning and the making careful changes, your dollar store can evolve to meet the challenges of the future.

The Time Is Right to Plan Ahead for Future Changes is a post from: Opening a Dollar Store

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Success with a dollar store startup is not about luck. There is no rolling the dice and hoping for the best. Rather, starting a dollar store is about taking all of the right steps to stack the deck in your favor. It is about sticking with it until you have completed the right research to know your market, shopper demographics, products, costs, and more. If you considering starting a dollar store, read on. In this article I examine some of the most important actions to take as you prepare for a successful dollar store startup.

* It is important to have a roadmap

Know where you plan to go with your dollar store business right from the start. Then know what it will take to complete a successful startup. Finally, have a documented plan to follow once you open your store. The goal is to be positioned to successfully move down the right path and achieve your goals.

* Do not skimp on finances

Sure coming up with all the cash and financing can take a great deal of time, creativity and effort. On the other hand having the proper funding behind you when starting a dollar store not only provides a secure feeling, but more importantly, it gives you the financial resources to achieve success. Not having the right funding leaves you vulnerable to not having the ability to handle the cash flow needs of your business, and being unable to address an unexpected problem.

* Remember – location, location, location

The importance of location cannot be understated. Do your research. Do not simply accept a second-tier location because you have not found the best possible location. With so much at risk, it is often best to keep looking rather than accepting what you have found so far. Do not be afraid to ask a consultant or other expert to jump in and help with the search and the decision process. Take your time and find the perfect location for your business.

* Seek help when you need it

There are an untold number of potential roadblocks and challenges ahead. When you run into one of them do not allow things to get too out of control before you seek needed help and advice. You can look to a knowledgeable consultant or other expert. Just be sure your expert has training and experience to handle the issue at-hand.

Starting a dollar store can be an extremely exciting time. On the other hand, there are many challenges to be faced. Position your store for success by taking the right steps from the very beginning and onward.

Success With Your Dollar Store Startup Isn’t About Luck is a post from: Opening a Dollar Store

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It is that time of year once again. It is time to reflect on the year that has just ended. In your recap you are looking for the highlights as well as the lowlights. With this information you can begin to look ahead at the coming year. You can prepare to make next year even better than the year that is just ending. You can set your plans and priorities. In this article I present 8 steps to prepare your dollar store business for the future. Each step helps you provide a better foundation for improved performance. Make business reviews an annual event for your business and watch as the results roll in.

1. Start by collecting data about overall dollar store business performance during the past year. Use all you normal metrics such as store sales, sales transactions, refunds, payroll, etc. Then move on to examine department performance using the metrics you have defined. Don’t forget to also examine sales data by-day of the week and month of the year.

2. The next step is to conduct a thorough business plan review. With all of your business performance data collected, you can examine results against the plan you established. Then appropriately update your entire business plan so it supports your efforts in the coming year.

3. Look for the pieces of your business which have been the biggest success. One of the best ways to maximize business performance is by fully utilizing those areas which are performing well. Make plans to focus even more resources to leverage these into even bigger contributors to profit for your dollar store business in the year ahead.

4. During the past year there have undoubtedly been some great ideas collected for potential new ways to generate sales and profits. Pick the one or two top ideas and test them. If they work, add them to you business plans. If they don’t, go to the next one or two ideas and test them.

5. Get more involved in your community. Join a local business group. Look for other networking opportunities. Becoming actively involved is a great way to get the word out about you and your business. It is also a way for your business to give support to the local community.

6. Locate and leverage the knowledge of experts to help your business continue to grow. As your business grows you will face unexpected challenges. Often the best way to handle these is by turning to a seasoned expert for help. Make sure you locate someone who has hands-on dollar store experience.

7. Find solutions to problems which curtailed your business performance during the past year. Turn your problems such as weak performing departments into sales contributors. Examine why the problem exists, develop potential solutions, test and find the solution which best solves the problem for you.

8. Eliminate non-selling items. It is time to turn those non-selling, dust-collecting products into cash for your dollar store business. Reduce prices and prominently display the non-sellers in your store. Turn them into cash and use that cash to purchase items which do sell.

8 Steps to Prepare Your Dollar Store Business for the Future is a post from: Opening a Dollar Store

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Over the years many clear opportunities for cutting the cost of dollar store items have emerged. Those seeking success with dollar stores have been able to attend industry events to take advantage of closeouts, discounts and sales prices on the items they need for their store. They have been able to shop sales on a monthly basis with their primary general suppliers. Those seeking success with dollar stores who have been a little creative have even been able to negotiate and buy-out the inventory of closing businesses. Yet one step many overlook is actually the simplest.

In this article I will reveal a tactic that can end up having the best information about rock bottom prices coming right to you. In this article I present one simple move to cut the cost of merchandise for your business. While this strategy does require a little upfront work, it can return the effort you make by adding thousands and thousands to your bottom line over the years to come.

So what is this strategy? It is putting the internet to work for you. Conduct research into liquidation and closeout companies offering items appropriate for your store. As you locate these companies, sign up for their newsletters and updates. Then start scanning the offers as they roll in.

In some cases the products won’t match your needs. Possibly there is a quantity requirement that exceeds your needs. Or possibly the product is located too far from your store. Or there may be some other issue that eliminates it from consideration. But don’t give up.

In other cases the products will be a perfect fit for those seeking success with dollar stores and they will be available at prices your normal suppliers cannot beat. All you need to do is to take advantage of the offer before the items run out. And best of all, the products you will be able to purchase are often the very name brands your shoppers are paying much more to obtain.

Soon you will have many of the dollar store items you need in-stock and selling. The great news for your business is you will have paid less than normal to obtain the products. While there is some extra work and coordination required to maximize the impact of this strategy, the added profit margins will make the work worthwhile indeed. Most of all, this action can be a vital step for your business as you work to achieve success with dollar stores.

One Simple Move to Cut the Cost Of Dollar Store Items is a post from: Opening a Dollar Store

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