There was a time when those starting a dollar store could almost place store size as a secondary consideration. With higher profits possible in years gone by, it was very reasonable for a person to open an extremely small store and make a comfortable living. But as the years have passed, the costs associated with the dollar store business world have changed significantly. Everything from merchandise and freight to payroll and rent or lease expenses have climbed significantly. Yet for many small store owners the profits have not kept up.
The result of this formula is lower profits, even for the very best of store owners. Fortunately there are some steps that can help to offset this in-balance. If you are starting a dollar store examine these powerful tactics before making your final decisions. They can help you achieve the success, sales and the profits you seek.
Tactic #1) Examine increasing the size of your dollar store business. While some may still encourage you to open a smaller store, the day of making an overwhelming success out of a 1,000 square foot store with ease have been replaced by growing store size, and better management requirements. Sure, it can still be done. However it requires a good manager. If you are still starting this does not mean you must open a 10,000 square foot store. It does mean you need to seriously examine store size as a key factor however.
Tactic #2) Maximize sales for the size of your store. No matter what the size of your store, the day of 4-foot tall fixtures, lots of open, unused space, and partially filled shelves are gone. Maximize the sales and your profits by filling your store with hot selling, in-demand products. Don’t allow portions of the sales floor to remain without dollar store merchandise displayed. Never allow displays to look half-filled. Start thinking about options to grow the height of displays of merchandise in your store. The goal is not to create a dark and dingy store with row after row stacked clear to the ceiling. However a fully stocked store will provide the opportunity to add to sales.
Tactic #3) Reduce waste in your dollar store business. Buy used fixtures when starting a dollar store. Do the same with basic equipment such as pallet jacks. There is no need to buy new. With so many retailers reducing or going out of business permanently there is an abundance of gently used store fixtures and equipment just a waiting a new home.
Tactic #4) Do it yourself. Don’t adopt the philosophy that you don’t have experience starting a dollar store so you can’t do anything. Assume all of the roles possible to reduce your start-up costs. Get the help you need where it is required. However there are many tasks such as assembling gondolas and stocking shelves that require minimal training.
Tactic #5) Negotiate for the best prices possible on everything. Don’t accept pricing as it presented to you. Ask about discounts and freight caps on merchandise. Do everything possible to cut costs and build profits for your dollar store business.
To your dollar store business success!
Post time: 10-12-2017