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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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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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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As you prepare and then start a dollar store be ready to face the challenge of building your sale levels ever higher. This is a challenge that will become a major focus from the moment you open a dollar store and hold your grand opening event onward. You must devise strategies to continually build sales for your business. If your actions require extra cash, then the funding must also be available. No matter what the actions, measure how they are doing, and never lose sight of the need for sales to move continually upward. Fortunately there are some actions that don’t require a huge amount of cash. They can be built into your daily operational processes and procedures when you start a dollar store. Yet these actions can contribute to sales growth for your business. In this article I present 4 actions to build sales when you open a dollar store.

Action #1) Carry all of the day-to-day consumables customer’s need

When you open a dollar store make sure you know the merchandise your shoppers need and then keep those items on display at all times. This is the merchandise that will continually bring shoppers back to your store. While items many vary somewhat by store location, they include paper products, household cleaners, health and beauty items and much more.

Action #2) Maximize end cap utilization

Leverage the end caps in your store to build sales higher. Keep them filled with hot new arrivals, special purchases and core merchandise. Always have your end cap displays organized and fully stocked with this type of merchandise. Don’t forget to make sure all end cap displays are properly signed with attention grabbing signage as well.

Action #3) Timely ordering of the right merchandise

It is important to know which items are selling most quickly in your store. Your on-hand inventory of those hot sellers and other core products can never be allowed to run out. That means you must order them in time to have replenishment stock arrive just in time to support your sales of these important merchandise items. Be sure to build this reordering practice into your weekly operational activities when you open a dollar store.

Action #4) Properly order and display holiday merchandise

One of the challenges for those who open a dollar store is projecting sales of merchandise for the holidays occurring throughout the year. This is especially true for the end of the year when sales can make or break your final profits for the year. Seek ordering advice during your first year of business. Be sure to document sales of the various items so you know whether to adjust your orders for the next year. Always schedule the arrival of your holiday merchandise inventory well in advance of the holiday. Place these items on display early on to maximize sales.

These actions will not only aid in growing sales for your business. They will also support your business as other sales growing actions are taken. Build each of them into your operational model from the day you start a dollar store on.

To your success when you start a dollar store!

4 Actions to Build Dollar Store Sales When You Start a Dollar Store is a post from: Opening a Dollar Store

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If you are about to start a dollar store likely one of your concerns is to have the right dollar store merchandise on-hand to keep your shoppers happy. Your hope is all products you offer will fly off the shelves as quickly as they are put on display. While this is a great goal, the reality is there will be some dollar store merchandise items that sell slowly or not at all. And while it will probably be only a few, there will be some that just seem to sit and collect dust. It is these super-slow and non-selling products that should be of concern.

These slow-selling and non-selling products take up space, you have money tied up in them, and obviously shoppers are telling you they are not of interest when they do not purchase. In this article I present some powerful ways to handle this problem. If you are about to start a dollar store it is important to take note. Implement these ideas to reduce and even eliminate the unwanted products in your inventory.

* Create a display spot for closeout sales.

One of the best actions you can take is to promote your slow-sellers and non-sellers at great prices. Create an end cap or other prominent small space and put them on display. Be sure to price these items so they are purchased. Your goal is to sell out and use the money to purchase hot-selling dollar store merchandise.

* Give bartering a try.

If you are about to start a dollar store then start thinking creatively. Try selling or negotiate trades with other businesses in the area. Possibly another dollar store or retailer will want your slow and non-selling items. In some cases they may be willing to pay cash. In others they may be willing to make a trade.

* Use other creative ways to liquidate slow-selling and non-selling dollar store merchandise.

o Sell lots on craigslist.com - pull together batches of products. List them for sale on craigslist.com. Try including a number of one product, or batches of assorted products. You will soon find the right combination to sell out.

o Offer larger quantities on eBay – whiles craigslist.com provides exposure to local markets, eBay can provide much broader exposure. Try the same as above. In one sale list a larger quantity of a single item. In another assemble an assortment and see what happens.

* Plan ahead for the holidays.

Don’t get carried away and as a result over-buy. Preplan and provide a good assortment of items for all of the major holidays and seasons. Start reducing prices on slow-sellers in advance of the actual holiday date so you are sold out when the holiday itself does arrive. Never store unsold merchandise from year to year. Slash prices so the items are always liquidated.

What to Do With Non-Selling Merchandise When You Start a Dollar Store is a post from: Opening a Dollar Store

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It never fails; the most popular, in-demand and fastest selling items seem to always invariably be wholesale priced for the most money! As a result those seeking success with dollar stores are always chasing ways to reduce the wholesale price tag of these dollar store items just a little. After all, with the high quantity sold, two or three extra cents earned per item can mean a lot of extra gross profit at the end of the day. Yet there are really few easy ways to force those two or three cents to become a reality. Many wholesale vendors are in the same boat as you. They are also pressured to even make a tiny profit on these popular merchandise.

If you are seeking success with dollar stores you must offer the high priced consumable products to your shoppers. In this article I present actions to help offset the high prices with added sales of more profitable merchandise.

* Shop for deeply discounted complementary dollar store items and use them as the profit generator. For example, while liquid dish detergent is in-demand, but offers only low profit margins, adding a colorful display of assorted sponges, scrubbers and brushes that you bought as a part of a closeout deal can make all the difference. When shoppers pick up their bottle of detergent many will also add a package of high profit margin sponges or scrubbers to their purchase.

* Achieve success by turning the high-priced consumable products into a drawing card to your store. Then once buyers enter motivate all shoppers to move throughout the other general dollar store merchandise you have on display. Do this by using rear walls, or far left-hand aisles toward the back of your store for consumable items. Shoppers will need to walk past many other products to get to their destination.

* Use all end caps and bulk displays to show off special buys and higher quantity orders of everyday products. End caps are prime sales area and they will provide outstanding results whenever proper merchandising techniques are used.

Achieving success with dollar stores requires lots of planning, hard work and a focus on customer shopping habits. Know the traffic flow in your store. Position consumables so shoppers following the traffic flow past many enticing products. Then watch as add-on sales of products offering you a better profit climb higher. It is the average of the consumables and the new, add-on items that will prove to be a formula for success.

How to Turn High-Priced Consumable Products into Profit Makers is a post from: Opening a Dollar Store

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Are you seeking success with dollar stores? Then you know one of the important steps is to always maintain a good supply of the most in-need consumable dollar store items on the shelves. You know that without exception, your shoppers must always be able to find these necessity items in stock whenever they are needed. In fact they may have made a trip specifically to purchase a must-have item at your dollar store. They need, and will purchase that item whether you have it available or not. So when the shelves are empty they will proceed down the street to another store to make their purchase.

These much needed products include household cleaners, health and beauty items, paper products and food items. Unfortunately these needed products are the very dollar store items that have you pulling your hair out because of wholesale pricing. They just don’t offer a reasonable profit margin for your business. In this article I example actions that will allow you to reduce you cost per item as well as total investment in these items, and yet maintain a supply for your shoppers.

1. Reduce the assortment of brands.

Success with dollar stores means you must offer in-demand products. They must always be available. Yet you don’t need to offer 3 or 4 different brands. Cut the selection in half. Offer only 2 options, and make them the lower wholesale priced brands.

2. Carry zero back stock.

Don’t buy for back stock. Purchase enough to fill the shelves and then add in a safety stock number to insure these dollar store items are available until the next wholesale shipment arrives. The only exception to this rule is when the wholesale pricing is so low that you want to purchase a huge quantity.

3. Ask for discounts every time you submit a wholesale order.

If you fail to ask – you are guaranteeing there will not be a discount. One of the keys to success with dollar stores is to work with vendors to understand the actions that will provide lower pricing for you.

4. Constantly seek out new, lower cost vendors.

These are items you will always carry. Search out lower priced vendors. While your search will result in many dead ends, when you do discover a wholesaler with the same products at lower prices the frustration was worth the reward.

5. Buy whenever these items are specially priced.

These are items you know will sell now and in the future. Take advantage of sale and special pricing whenever it is offered. Stock up on these merchandise, including back stock supplies. You are adding to profit margins when you do – that is what success with dollar stores is all about.

6. Look at closeout and liquidation suppliers.

Closeout and liquidation companies periodically offer larger quantities of these products at lower prices. When they come available you will have only a short time to make your purchase as often they sell out quickly.

7. Change brands whenever pricing is lower.

As noted above, just because you have always sold brand XYZ, maybe it is time to examine another brand. While offering the same brands is important, success with dollar stores demands you to make a profit.

Cut Costs and Still have the In-Demand Dollar Store Items Available is a post from: Opening a Dollar Store

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Finding you have made a buying mistake is one of the biggest disappointments faced by those seeking success with dollar stores. After all, each time you tie up money in a product that doesn’t quickly sell is bad news for your business. With the money sitting on the shelf, you can’t buy the best selling dollar store items that quickly turn back into cash. In this article I present 4 steps to take non-sellers out of your vocabulary. Make each of these a part of your standard operating methods.

1. Buy only dollar store items with a proven track record of sales.

Why gamble with unknown dollar store items? Achieve success by buying items with a proven record of sales. Then watch sales stay strong and never experience the frustration of trying to somehow liquidate a buying mistake. That means success will be your standard operating procedure.

2. Experiment small – and then decide about new items to carry.

Sure it is easier to generate one order for hundreds and hundreds of a single item. But what happens when those items do not sell? Be conservative and make smaller one-time experimental orders. Then follow up with a regular order once you know you have a winner.

3. Stack the deck in your favor by seeking and using customer input regarding new products they want to see in your store.

Your customers know what they like. Always solicit their inputs, and then listen. If everyone is asking for yellow marking pens, don’t go buy pallets of blue marketing pens. While the blue pens may sell, they likely won’t be selling nearly as fast as the yellow pens would have sold.

4. Watch the competition to identify potential hot, new dollar store items to add to your offerings.

Achieving success with this type of business requires that you know the competition and that you pay attention to that competition. One of the advantages from this can be identifying best selling products that you may have overlooked before. If they are selling well for a competitor, they are likely to sell for you as well. However, be sure to try a small test order to verify before needlessly sinking a huge amount of money into items that do not sell.

Success with dollar stores requires careful product buying and inventory management. There just isn’t room for buying mistakes that result in items sitting on the shelves for months on end. Follow these 4 steps to help eliminate wholesale buying mistakes.

4 Steps to Take Non-Sellers out of Your Vocabulary is a post from: Opening a Dollar Store

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A word to the wise; anyone who is about to start a dollar store should not assume they are the best source of decision making when it comes to the selection of dollar store items to be sold in their store. If you have not previously owned or managed a dollar store, you would be wise to seek expert help. Whether it is a for-hire dollar store expert, a training program, a recently released book, current store owners, or some other knowledgeable source, you need to make sure all of the merchandise you purchase will sell.

And this same philosophy should remain long after you start your business. Don’t experiment with huge orders of dollar store items with unknown sales potential for your store. Know your shoppers well. Align your buying to their specific needs and wants. Never accept buying mistakes as a part of your business. After all, buying mistakes are costly. In this article I review some of the reasons buying mistakes are a ‘No-No’ for every well run dollar store.

* Slow selling items take extra time to disposition. You will end setting up the displays, keeping it straight and organized, dusting the products and shelves, and adding new and different signage until the items finally sell.

* Long sitting items mean you lose sales of other merchandise in that shelf space. This is absolutely logical; if the precious sales space on your shelves is taken up by non-selling items, nothing else can be placed in that space. And of course that includes your latest order of the best selling items for your store.

* Slow selling items send a message to customers that you just have the same old unpopular items every time they come back. Shoppers are eager to see new, different merchandise every time they come to your store. In fact that is one of the biggest reasons they return. Seeing the same old display of the same old items they don’t want is a major turnoff to them.

* Slow selling dollar store items mean you have money tied up in items that are not making you money. With the tight margins you face, having any money tied up in items that do not sell is a major hit to the pocketbook.

When you start this type of business, it is important to stay aligned to customers. Carry only the merchandise they need and want. Don’t experiment with unknown products. If you decide to give something a try, be sure to try with a small order to make sure the items will really sell. Then follow up with a larger second order.

Buying Mistakes are an Absolute ‘No-No’ when you Start a Dollar Store is a post from: Opening a Dollar Store

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Cost reduction is a challenge faced by every person starting a dollar store. In fact it starts even before the store opens for business the first time. It starts as you work to shave cost from the store fixtures, equipment and merchandise you purchase to set-up your new store. But that is just the beginning. Every day is a challenge as you look for waste and cost reduction opportunities. One of the biggest and highest leverage cost reduction opportunities is associated with the products you carry in your store. In this article I present 4 merchandise strategy actions when starting a dollar store.

1) You must know what sells quickly, what sells slowly and what doesn’t sell at all. The time of allowing slow selling or non-selling products to sit on the display shelves of your store are long gone. In today’s marketplace there simply isn’t enough time, money or room to allow this type of merchandise strategy to exist when you start a dollar store.

2) Eliminate non-selling items as quickly as possible. There is no value to shelves and shelves of merchandise that simply will not sell. While it may be painful to watch as the price goes ever-downward, the losses associated with leaving the merchandise to sit are even higher. Not only are you losing money, but over time there is a negative environment created by leaving the dusty, unwanted merchandise sitting. Take your losses and move on.

3) Once the non-selling items have been trimmed from your inventory, start working on the slow sellers next. While the non-selling items are a priority, do not think the job is done. Once non-sellers are eliminate from your store’s inventory focus on selling the slower-selling items. A creative strategy may be all that is required. Start with prominent displays and great signage. If that doesn’t do the trick try small price drops. Consider featuring the slow-sellers as a part of a sidewalk sale, or inventory reduction sale. Try trading some of your slow selling products for slow sellers from a competitor.

4) When opening a dollar store be cautious about experimenting with new items. Clearly define your merchandise strategy for all new product additions. Complete your research. Start with small test orders. Watch the sales levels of new products to make sure they are worthy of being carried as regular inventory in your store.

To your success when starting a dollar store!

4 Merchandise Strategy Actions When Starting a Dollar Store is a post from: Opening a Dollar Store

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