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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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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One of the challenges faced by those seeking success with dollar stores is finding the right deals to keep shoppers excited and always buying more and more from your store. On the other hand it is important to also make a profit. And of course the lower the price you pay for dollar store items, the more potential you have for higher profits. You must be a bargain hunter to find those extra savings that will make you extra profit margins. In this article I reveal some of the best sources to help reduce your cost of goods for the merchandise you carry for resale.

* Buy sale deals

Success with dollar stores hinges on finding the best pricing on the items your shoppers must have. What better way to find these bargains than to take advantage of the periodic sale deals offered by major suppliers? Whether it is weekly deals, monthly deals, or closeout deals, look to your primary suppliers for their best pricing.

* Coop with others for quantity purchases

Other discount retailers in your area may be open to the idea of sharing orders of the products that are most in-demand. They will do this to shave cost from these products. Start meeting others and search out those who are serious and can come up with cash to invest for their products.

* Attend industry events to take advantage of exclusive event deals

One of the actions leading to success with dollar stores is to stay close to the industry. One of the best ways to do that is by attending industry events and shows. Often there are opportunities to learn more about existing operational methods as well as new methods. Quite often there will also be major suppliers from around the world in attendance. They offer event special pricing on many of the items they sell.

The list of options for finding great prices also includes buying existing business inventories, buying dollar store items at auction, and buy liquidations and closeout. It is really only limited by your imagination. The point is in almost every case you will save money on the dollar store items you purchase for resale in your store. Just think; if you save money on the items you purchase for resale in your store, that savings equates to added profits for your business. How’s that for moving one step closer to success with dollar stores? There is a caution however! It is to be sure all products you purchase are hot sellers that move quickly.

Be a Bargain Buyer to Sell to Dollar Store Bargain Buyers is a post from: Opening a Dollar Store

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Dollar stores are like magnets for bargain hunters looking for a good deal. But with these hard economic times, even those with higher incomes are frequenting these stores to look for a good deal. While these types of stores in the past may have had a reputation for selling inferior goods, these days the products they sell are different. Frequently they include wholesale remainders; this makes them equal in quality to those sold in many drugstores and supermarkets.

You can also find some products you might not usually expect to find in dollar stores. However, not everything sold in these stores goes for a dollar. But you can save as much as 70% when compared to prices found in regular retail stores. While the majority of products in these types of stores are off-brand items, you can sometimes find familiar brand name products as well. Take your time and carefully search each aisle for these brand name gems.

Most stores offer a broad range of in-demand general merchandise. Some of the best products to consider buying from will include cleaning supplies, snacks, beauty products, gift wraps, kitchen products, school supplies and containers. Apart from being wholesale remainders, many of the products these types of stores sell are leftover inventories of once-trendy products that fell out of favor with buyers. To get even more savings, it is important to be sure to comparison shop. You will discover even among dollar stores there can be wide variations in prices. Put in a little work and you just might find the same item for a lower price elsewhere.

There are also certain products you should not buy from dollar stores. For example, it is important to check product size before purchasing toys that are too small to be safe for the youngsters in your family. If you shop carefully, however, you can save a lot of money by buying from dollar stores.

Save Lots of Money by Buying From Dollar Stores is a post from: Opening a Dollar Store

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Those starting a dollar store often worry about how they will locate just the right dollar store suppliers for their new venture. They realize that success on their business in many ways comes down to having the right suppliers on their side. These suppliers must have the right products. The products must be of acceptable quality and they must be readily available to meet the demands of store customers. These store suppliers must provide excellent customer service, and quick turnaround on questions, orders, and problems. Finally the price for merchandise must be right to allow for a reasonable profit.

But where are these acceptable suppliers that will help achieve success with dollar stores to be found? Read on for help getting started in your search. In this article I present proven places to start looking for the right dollar store suppliers to support your business.

#1) Dollar store trade shows

These types of trade shows are an excellent source of potential suppliers. You can meet the suppliers, view their products and gain an understanding of their operational processes. It is important to remember that all trade shows are not created equal. Make sure to investigate and plan to attend trade shows with suppliers close to your store location. Make sure to also examine the number of suppliers scheduled and make sure they can meet your product needs.

#2) Supplier catalogs and directories

There are number of catalogs and directories filled with potential suppliers. Some cost money. Others are free. Make sure to investigate each potential supplier carefully before turning over any money to them.

#3) Introductions from existing suppliers

Better suppliers realize their success depends on your success with dollar stores. As a result they will often be willing to help make introductions to non-competing suppliers. They know your store must be properly stocked with a wide range of items. If they don’t carry an item, why not help a good customer out with a recommendation?

#4) Introductions from industry merchandise sales representatives

Many dollar merchandise sales representatives represent multiple wholesale merchandise companies. They will be happy to introduce you to any/all of the companies they represent. It is just a matter of asking.

#5) Internet searches

Here is an inexpensive, fast and often very productive way to locate potential new suppliers. Complete 3-4 searches using different terms. You will be amazed at the pages and pages of prospective suppliers sitting before you. Screen carefully and you may just have your next supplier.

To your success with dollar stores!

Where to Meet New Dollar Store Suppliers is a post from: Opening a Dollar Store

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Those running a dollar store are faced with many challenges. One of the biggest challenges is to keep shoppers coming back to their store time and again. Fortunately there are actions that contribute to achieving exactly that result. In this article I present 4 steps resulting in customers coming back time after time. Each of these steps has a place in your overall program to generate new customers and to keep those you have coming back for more.

Step #1) Request feedback concerning products and the overall shopping experience. If you are running a dollar store it is important to be armed with customer feedback. As a result you must always be soliciting that feedback. When feedback is given treat it as a gift and then take action on those feedback items which are communicated time and again.

Step #2) Provide multiple opportunities for the feedback to occur. The best way to gather the greatest amount of feedback is by providing multiple opportunities for customers to provide their thoughts and ideas. Train employees on the sales floor to solicit feedback as a part of offering to help shoppers. Place a small suggestion box in a prominent location. Train and expect cashiers to solicit feedback from all who make a purchase. Include feedback requests as shopping bag inserts. Make it easy for shoppers to provide the feedback you need.

Step #3) Look at your competitors. One of the best ways to bring shoppers in more frequently is to examine the competition. Look for their strengths in the areas that matter to shoppers. Product variety, merchandise display, customer service, and the store environment are all examples. Look for the best and then make it your mission to become even better. Make your store the place shoppers want to come for their dollar store merchandise purchases.

Step #4) Never compromise on the appearance and environment in your store. Running a dollar store can be a challenging task. In some cases there are so many tasks tugging at you that you must allow some to remain unaddressed. One area where this can never happen is regarding your store’s appearance and the shopping environment you create. Always maintain a clean, straightened, and well-stocked appearance. Work to make the shopping experience inside your store so pleasant that shoppers always want to come back. Make it so positive that while there they are in no hurry to leave.

To your success when running a dollar store!

4 Steps Resulting in Customers Coming Back Time After Time is a post from: Opening a Dollar Store

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Who could have ever imagined all of the seemingly trivial questions facing those who are running a dollar store? Answers are needed for everything from how much cash to keep in reserve for daily cash register set-up and change to what products to place on end cap displays throughout the store. One area of concern that raises many questions is around increasing total sales and profits. That is where questions about adding vending machines, ATMs and the like arise.

In fact when you specifically look at the small amount of space required to install a small gumball machine, toy bouncing balls vending, and machines offering mystery prizes of all types, you must ask if this might be a very good addition to the mix in your store. In this article I we examine vending machines in more detail.

* Small space requirement

The amount of floor space required by most vending machines is very small indeed. Even some ATM machines can take less than 10 square feet of floor space. With the small space requirement the question really comes down to the amount of demand there will be. After all, a small area with zero sales does you no good at all.

* Low overhead required for cleaning and management

While it may takes many hours to keep all of the aisles and displays in the sales area of your store clean, straightened and stocked, there is very little overhead required to maintain the area occupied by vending machines. You will need to sweep, dust, clean glass and periodically refill most machines. Beyond that little is required.

* Small investment possible by sharing profits

If you feel adding a small number of vending machines to a high-traffic area in the front of your store might be a good opportunity you should consider sharing the profits with someone else to begin. They own the machine, machine maintenance, inventory and refilling. You receive a percentage of sales for providing the floor space. Once the idea proves itself you can then consider buying your own machines.

* One more way to make a last minute sale to departing shoppers

As mentioned previously, those running a dollar store should try to place machines in high traffic areas close to the front of their store. Then look to the vending machines as a means of collecting one last sale as shoppers are exiting the store.

To your success when running a dollar store!

Should You Add Vending Machines When Running a Dollar Store? is a post from: Opening a Dollar Store

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For those who start a dollar store there is a need to know the nitty-gritty essentials associated with the inventory and inventory management of the dollar store items they sell. This includes specific details about which dollar store items to carry, how much of each of those products to purchase, and even how much of everything to carry in-stock at any given time. Each of these is a challenge in its own right. Put them all together and you have a management test indeed. In this article I focus on one of the most challenging questions. That question is how much back stock to maintain when your start a dollar store.

The very first rule to establish for your new store is to keep inventory to a bare minimum. You must never lose sight of the fact that items held in back stock cannot generate sales and they cannot make you money. In fact they are costing you money as long as they remain in the stock room and have not sold.

Never allow the dollar store items to get mixed up. Never stack two different products on top of each other or one behind the other. With so much at risk you cannot afford to misplace a carton of any product, especially when it is no longer on the display and available for sale in your store.

Clearly label every single carton being stocked. Or, remove all items from their shipping cartons and boxes. As noted there is simply too much to lose when products in stock is improperly managed. Make it absolutely clear what each carton holds as well as the quantity to be found inside the storage carton.

Set up a process to routinely check all dollar store items held in storage when you start a dollar store. Don’t wait until annual inventory taking to determine the exact items sitting in back stock. Establish a routine where all back stock merchandise is inventoried at least once per month; preferably more frequently. Then double check the sales floor quantities and move as much of each back stock item to the sales floor as possible.

Move all items to the sales floor quickly. The best situation is to place 100% of incoming merchandise directly onto the sales floor. If you must hold excess items in back stock make sure to cut the length of time to a minimum. Do everything possible to quickly create end caps, bulk displays and regular aisle space to display your stored products.

Back Stock Fundamentals For Those Who Start a Dollar Store is a post from: Opening a Dollar Store

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There are some real pros and cons to making lay-away services available to your shoppers when you start a dollar store. In this article I cover some of the biggest pros and cons to consider before making your decision.

Here are some of the pros – in favor of adding layaway services:

* When you start a dollar store you are often seeking any/all potential strategies to build not only customer volume, but also customer loyalty. In most marketplaces the competition has not considered, nor will they follow-through with adding layaways as an option. This is a real opportunity to differentiate your business from the rest.

* And of course those extra customers and the resulting sales can mean extra profits for those who start a dollar store.

* Providing layaway service will be a much appreciated benefit of shopping at your store for many. The primary demographic you support includes bargain hunters, and many of your shoppers are on fixed budgets. Thus having a little time to make payment on their purchases works well.

On con side, there are many considerations including:

* There are labor costs associated with properly running a layaway program. Not only are there the normal costs associated with ordering, receiving, displaying and selling dollar store items. There are also costs associated with properly packaging, labeling, storing, maintaining and retrieving merchandise as they work their way through the layaway process in your store.

* Adding layaway services adds a degree of complexity to inventory control. In fact for this to work properly inventory control is essential.

* And of course, as more and more layaways are being held, there is more and more of your money tied up in dollar store items. For some who open a dollar store this extra cash requirement can place a big strain on reserves.

* And of course a percentage of the merchandise placed on layaway will not be sold. Some shoppers will change their mind, others will have a change in circumstances, and finally some will just not follow through as they commit.

Carefully consider both the pros and the cons before making your final decision about providing layaway as an option in your store. You may want to try layaway for only the Christmas holidays the first year. Use this as a test to determine whether layaways are right for your business. Make sure you are making a profit even after the extra work associated with providing layaways.

Should You Offer Lay-Away Services When You Start a Dollar Store? is a post from: Opening a Dollar Store

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Success with dollar stores is more challenging than ever in today’s business environment. There is no room for errors of any type. Costs must be controlled like never before. Actions must be taken to keep the bargain hunters coming into your store happy. One of the biggest challenges is controlling costs associated with the merchandise you offer for sale. While driving for cost savings on these products is more critical than ever, there are also cost controls required around the amount of inventory carried at any one time.

In this article I present some of the actions for you to take to ensure you have the right inventory of dollar store items to support your current sales levels. After all product inventory levels do require adjustment as sales move up or down if you are to achieve success with your business.

Success with dollar stores requires you to properly stock the shelves with critical dollar store items. These are the items your shoppers must have to meet their basic needs. These are the items you cannot afford to be without at any time. They must be in-stock and ready whenever your shoppers arrive to make a purchase. If a loyal customer cannot locate the products they must have, then they will move on to a competitor’s store.

Carry proper levels of inventory to meet both monthly and long-term sales for your store. Be sure to carefully match the on-hand inventory of merchandise to your current sales levels. Then as sales begin to climb, your choice will need to be increasing inventory levels appropriately or to add more frequent replenishment orders. Either way, you need to add inventory to meet the new levels of demand.

Develop a process for instant generation of replenishment orders of dollar store merchandise. If you happen to have a Point-of-Sale System this is a very easy challenge. If not, be sure to track department sales and then manually inventory key products as well as the hottest selling items in your store. Then you will be positioned to submit the right orders to meet shopper buying habits.

Never lose sight of the fact that success with dollar stores does require careful inventory management. This is an ongoing requirement to achieve success. In fact the best practice is to examine the inventory of your store on a weekly basis. Then use the data to generate the appropriate merchandise orders for your dollar store.

Carry Appropriate Inventory to Support your Dollar Store Sales Levels is a post from: Opening a Dollar Store

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