By rbhamil on Dec 28, 2010 | In How to Open a Dollar Store | No Comments »
With all the doom and gloom about today’s economic environment there’s no wonder every new entrepreneur is concerned about the chances of success for their new business. Yet if you select the right business opportunity and then take the right steps during the start-up, the odds of success are greatly improved. In fact you position your business on a much stronger path. While no-one can guarantee you success or even dollar store profits for that matter, taking the right steps sure helps. Read on as I present 6 keys to opening a dollar store done right.
Key #1) Don’t start without a well-thought out business plan. It’s amazing how many prospective business owners ignore the need for a complete, well thought out business plan. Remember that this is the road map to your success. Take the time to really think through all aspects of your business as you create your own business plan.
Key #2) Be sure you understand the financial requirements AND then be sure you have the finances in-place. One of the values of developing a business plan is it requires you to determine start-up costs, operating costs, project sales, projected spending and so much more. Make sure you are being conservative in your estimates. Error to the side of slightly understating expected sales while overstating expected expenses and operating costs. It’s better to have unexpected dollar store profits than to discover you are severely under-financed. Make sure the financing is in place before you start your business.
Key #3) Don’t underestimate the importance of finding the perfect location. In today’s environment more than ever location is important. Many feel location is the single most important factor in determining success. In today’s marketplace that couldn’t be truer. The good news is there are many prime locations just waiting for you. Take the time to thoroughly examine your location options and then really investigate the finalists to make sure you understand the strengths and weaknesses of your chosen location before ever signing a lease agreement.
Key #4) Management skills are important to your overall business leadership and success. Many think of a small business as being extremely simple and straightforward to run. Yet a successful dollar store takes all the same management and leadership skills to operate as any other successful enterprise. Make sure you have, or have access to, competencies to support every phase of your new business. If management isn’t your forte consider taking a business management class or two, or hire someone with the right skills to help while you learn.
Key #5) Be sure you carry the right products at the right price in your dollar store. Success is all about providing the exact products your customer need and want. Your profits depend on you locating exactly those products at a wholesale price that offers you profits. You will find your very business success is in carrying the perfect products that you paid the perfect price to buy for resale.
Key #6) Providing outstanding customer service is the cornerstone of every retail business. Make sure you have all the right customer service expectations and employee training in-place before you actually start business. Your reward for providing outstanding customer service to each and every shopper? Increased sales and dollar store profits.
To your dollar store success!
By rbhamil on Dec 24, 2010 | In Management, Merchandise, Suppliers | No Comments »
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.
By rbhamil on Dec 23, 2010 | In How to Open a Dollar Store | No Comments »
Many who decide to go into business for themselves quick become conscious of the fact that there is a much associated with the whole idea of opening and growing a business. They quick begin to search for the facts and data associated with their planned business enterprise. Those who decide to commence a dollar store are no different. They quickly realize success depends on learning everything possible about how to start a dollar store. And they need to know everything before they can actually begin the process to plan, prepare and launch their retail store.
In this article I disclose many of the critical pieces of information to collect as a part of the preparation and planning phase. Consider this data collection to be an investment in your future and the success of your store.
Optimum store size – Those who know how to start a dollar store recognize there are many factors to be considered. How much you have to invest, the local competition and demand, and the size of available space are some examples.
Cost to open and operate your chosen store - This is another critical piece of information. Be sure to gather as much detailed information as possible. Then make sure you are able to properly fund your new business venture. Not having adequate funding can spell the end of your dreams.
Reserve funding requirements - In addition to the funds required to prepare and then open your new business, there are also reserve funds to set aside in case the unexpected occurs. Almost every business owner can tell you stories about unexpected expenditures they faced at one time or another.
Key products to meet shopper needs - you must know your customers. You must know their likes and dislikes. You must know their needs and wants. Then you must always have those in-demand items in-stock and available for your shoppers.
Sources of merchandise - Those who know how to start a dollar store recognize that knowing what your customers need and want is only part of the challenge. You must also know the vendors who reliably supply exactly those products.
There are many other considerations for those who are about to start a dollar store. These include store layout, store safety and security, staffing, employee training, employee handbook, record keeping, operational guidelines, and more. Gather the required data. Then make sure to develop and execute a plan that assures your store will be a success.
By rbhamil on Dec 22, 2010 | In How to Open a Dollar Store, Store Appearance | No Comments »
Are you trying to understand exactly how to open a dollar store? If so you are probably working to gain as much information about the dollar discount industry as possible. You are likely examining everything you can locate about the specifics of preparing and then opening your store. One of the critical steps you may have discovered is associated with the final layout of the fixtures in your store. In this article I present 4 steps to executing the fixture layout for your store.
#1) Verify your previously-documented store layout and rules.
Do not order the gondola and other display fixtures for your store until you have carefully reviewed your layout plan. Check traffic flow. Make sure there are no safety issues. Look for dead-end aisles. Make sure your layout is designed to support the highest possible sales of merchandise. Make sure the layout supports your planned merchandise display by-department. Once you are satisfied everything is right, start calculating the actual number of fixtures and displays to order.
#2) Order the display fixtures required for your store.
With your calculations complete it is time to move on to the actually ordering of the display fixtures for your store. Do not take this step until you have adequate funding and a signed lease. Make sure there will be equipment and room for the incoming fixtures as they arrive. Be sure to have a crew ready for the arrival of all fixtures at your store. If merchandise is arriving, be sure it is not stacked in the sales area until the fixtures have been installed. Be ready and start installing them as soon after arrival as possible.
#3) Install your dollar store fixtures following the layout plan previously developed.
Finally; it is time to begin installing the fixtures. Gondola fixtures are somewhat heavy, cumbersome and almost impossible to move once they are installed and bolted together. Be sure to have adequate support to minimize the risk of someone being hurt during the installation process. Those who know how to open a dollar store never try to start this step until all flooring and wall changes have been made to store.
#4) Double-check the final display fixture layout following installation.
Here is your final check of the layout against the plan you have established. It is important to actually walk your way aisle by aisle through the store as well. Look for expected problems and issues with merchandise display and customer traffic flow. If you’ve met your rules and plans and everything else passes this final check, you can say you know how to open a dollar store; well at least this step in the process. You are now ready to start stocking the shelves with merchandise.
To your success as you discover how to open a dollar store!
By rbhamil on Dec 21, 2010 | In Merchandise, Sales/Profits | No Comments »
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!
By rbhamil on Nov 17, 2010 | In Uncategorized | No Comments »
Thank you to everyone who attended yesterday’s tele-seminar.
To listen, please click here.
By rbhamil on Oct 22, 2010 | In Uncategorized | No Comments »
Click on the link below to listen to the audio from our teleseminar from earlier today.
Dollar Store TeleSeminar
By rbhamil on Oct 21, 2010 | In Store Appearance | No Comments »
There is no way to deny the facts; most dollar stores have high traffic every day of the week. Sure some days may seem slow in relation to other days. However there is frequently a steady flow of shoppers even on those slower days. One of the consequences of having heavy traffic in your store is the wear and tear everything takes. Shoppers walk up and down every aisle. They stop and examine merchandise. Often they will change their mind about purchasing and place merchandise in the wrong locations. Yet the job for those running a dollar store is to make sure the store always looks as if it was just opened for business.
The challenge is to make the shopping experience great for every shopper no matter when they come into the store. In this article I present 3 ways for those running a dollar store to keep that just opened appearance.
1) Keep the sales floor clean and well organized. It is important for those who own a dollar store to make frequents walks through their store. These walk about trips need to occur at intervals throughout the store hours of operation. Be sure to clean, dust and organize the items on display. Remove the worst dirt from the floor as well.
2) Make end cap management a priority. End caps can be like gold to a retail business. Sure success requires those running a dollar store to make the right product purchases, and to always maintain the appearance of every end cap. Make end cap management a priority during your store walk about time. Dust, straighten and restock every end cap as required.
3) Restock empty shelves and peg hooks. Replenish the merchandise displayed on shelves and peg hooks whenever it is required. If you don’t have back stock on an item then simply pull the merchandise forward on the partially-empty peg hooks and shelves.
Put these three simple actions to work in your store. You will have a great looking store that is clean, well-stocked, and appealing to shoppers.
By rbhamil on Oct 20, 2010 | In How to Open a Dollar Store | No Comments »
Are you learning how to start a dollar store? Well here’s one of the simplest, yet most power tips of all; never purchase merchandise if it cannot immediately go on display. After all, the products you place in the back stock area of your store are not seen and therefore cannot be purchased by your shoppers. In fact, in most cases the back stock products are hidden so shoppers are not even aware they are in your back room. As a result your money is tied up on items that sit and collect dust. These items are not making you money. Instead they are costing you money.
This all probably makes sense to you. Yet how can you make sure you never have back stock? Start by establishing some rules regarding buying and then receiving freight. The buying rules need to focus on purchasing products once you reach a designated minimum inventory level. You will be able to establish this minimum once your store has been open for a short time. The minimum inventory level insures there will be products available until about the time the next replenishment order arrives.
Those who know how to start a dollar store recognize the next piece of the puzzle is associated with freight handling. Establish rules about how long products are allowed to sit in the receiving area. Set realistic goals for receiving and stocking times; one-day seems like a place to start. Then hold yourself and your employees to hitting your goal. Within 24-hours all merchandise will be on the sales floor just waiting for the next buyer.
Finally, set rules for back stock. While the goal of zero back stock is great, there are exceptions. For example seasonal merchandise may arrive well-ahead of the holiday. These items can go into back stock once smaller amounts are placed on the sales floor. In cases where you are able to make great one-time or sale purchases, there may also be a short time when excess merchandise will need to be placed in the back room storage area of your business.
To your success as you discover how to start a dollar store!
By rbhamil on Oct 19, 2010 | In Management | No Comments »
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.
