In todays tough economic times retailers are really stuck in a difficult position. On the one hand they must face a marketplace where shoppers are definitely less willing to part with their hard earned money. This behavior is reinforced as almost everywhere you look there is another economic doom and gloom statistic or report. On the other hand the costs associated with owning and operating a retail business are rocketing ever-higher. For those...more
Have you ever entered a retail store that seemed to be humming along smoothly. The shoppers were talking and laughing as they walked along making their selections. The employees seemed to be genuinely happy they were at work. The cash registers were ringing. That store seemed to be the perfect example of what great customer service is all about. It was almost as if there was some kind of magical formula for retail success. That formula resulted...more
The cruel reality when your own a dollar store is the margins are extremely tight. If you are to create dollar store profits you must be a good business person. You must understand how to manage inventory. You must know how to purchase wisely. You must know the drivers to increase dollar store profits. For example, it is a mistake to waste time and effort on actions that return a few dollars in cost reduction rather than actions that can yield thousands. In this article I address some of the key actions to deal with the tight margins that are a part of the business.#1) Inventory management is critical to success if you own a dollar store. Inventory management involves so many pieces. There is the management of order sizes. There is the management of existing inventory levels. There is the management of inventory down to the individual item stock number. Learn all about inventory turns, and then manage your business to maximize them. #2) Drive out cost at every opportunity. Building dollar store profits takes a laser focused effort on cost reduction. Once you meet one set of cost goals, establish new, even more aggressive goals and a plan for achieving the latest reductions. Start...more
Many who are opening a dollar store are so overwhelmed with all the details that they arent even concerned about whether or not to add outside display fixtures to their store. While this decision is relatively low priority, the power of outside displays is so great that they should be added. After all, if your lease allows them, simple rolling...more
Almost every entrepreneur who has opened a dollarstore has at one time or another considered adding a dollar plus section to their store, or even switch the entire store to dollar plus. Yet for one reason or another many just cant take the important step to actually take action. Some fear loss of shoppers to stores that retain dollar only...more
Many of us long for summer to return each year. The sunshine, warm weather, outdoor activities, vacations and so much more make it a special time of year. For those who operate a dollar store there are certain tasks that must be handled to make the summer selling season a success. These tasks range from preparing for the hot temperatures to ordering the right summertime dollar store merchandise that will add extra sales and profits, and so much more. In this article I present 6 tips to prepare for summer when you own a dollar store. Tip #1) Make sure the stores air conditioning and refrigeration systems are ready for the heat. Dont wait until the summer scorcher weather hits to make sure your store air conditioning works. What do you do with thousands of melted candy bars and other dollar store merchandise that melts if the air conditioning doesnt work? Write it off as a total loss! The same holds true of refrigeration and freezers. Make sure everything is in top working order. If you own a dollar store your risk isnt only ruined food and lost sales. You also risk waiting in a long line as service personnel try to keep up.Tip #2) Add sales by extending you store hours...more
When it comes to owning a dollarstore there are certain things that can not be denied. For example, a top location is better than a 2nd or 3rd tier location. Being well funded is certainly more likely to support success than being underfunded. If you...more
When opening a dollar store it is important to make sure all of the critical business requirements have been documented. For example, the total amount of funding must be calculated. Knowing this one piece of information allows you to move forward and...more
If you are about to start a dollar store one of the challenges you will face is determining exactly what dollar store merchandise to initially order for your store. Then there will be the challenges of decided which items to always carry, and which...more
One of the challenges faced by those who open a dollar store is deciding exactly the right dollar store merchandise to carry in their store. It is so easy to invest hundreds and even thousands of dollars in inventory that simply sells too slowly. On...more
Starting your own new business has many challenges, especially when its a dollar store. There are questions about the right format, which location is best, how big does the store need to be, what is the right time of year to open, where to find the...more
Starting your own business is filled with risks, challenges and unexpected problems. Yet for those who take action and actually start there own business there is the potential for so many rewards. Theres the pride of ownership. Theres the freedom...more