Many who are starting a dollar store soon begin to ask themselves whether it is even worth the effort to carry high demand dollar-store merchandise.
After all, while there is huge demand, much of this merchandise offers little if any dollar store profits to their business.
And isn't profit what it's all about? If you are facing this dilemma, then read on as we examine the other side of this question.
Many of the most in-demand and highest volume products such as paper goods, household cleaners, health and beauty items, and more directly contribute little to dollar store profits.
These are the day-to-day necessities that bring shoppers back to your dollar store business frequently.
If you aren't providing a good assortment that is always available, shoppers will choose to shop elsewhere.
It is a balancing act to maintain adequate inventory levels to meet demand while also focusing attention on the tight margins.
On one hand, not maintaining adequate supplies of the in-demand merchandise will result in lost sales and lost customers.
Because not having these day-to-day necessities such as paper goods, household cleaners, shampoos, toothpaste, and hand soap when they are needed drives shoppers to your competitor.
However, the other side of the equation is most dollar store business owners cannot afford to tie all their money up in merchandise offering little profit.
Sure, these products drive dollar-store sale levels, but there must be a way to balance this and also make sales of items offering reasonable profits as well.
Well there is a way.
Start by looking for local wholesalers that can provide some or all of these items to you.
Often, the price paid locally will be less than your costs for the products, plus shipping.
Remember, even adding a penny or two to the bottom line can be significant during the course of a year.
Purchase extra quantities of these necessities each time your general merchandise suppliers offer these items at a reduced price.
Once again, the savings may only be a nickel or a dime, but they add up to sizable profits over the course of a year.
Manage the dollar store merchandise in your store to maximize exposure to high-profit items.
Move these daily necessities toward the back or side walls of your store.
Then carefully use end caps and other displays to promote high profit merchandise and impulse items that shoppers will pick up as they go and return from making the daily necessity selections.
To your dollar store business success!
After all, while there is huge demand, much of this merchandise offers little if any dollar store profits to their business.
And isn't profit what it's all about? If you are facing this dilemma, then read on as we examine the other side of this question.
Many of the most in-demand and highest volume products such as paper goods, household cleaners, health and beauty items, and more directly contribute little to dollar store profits.
These are the day-to-day necessities that bring shoppers back to your dollar store business frequently.
If you aren't providing a good assortment that is always available, shoppers will choose to shop elsewhere.
It is a balancing act to maintain adequate inventory levels to meet demand while also focusing attention on the tight margins.
On one hand, not maintaining adequate supplies of the in-demand merchandise will result in lost sales and lost customers.
Because not having these day-to-day necessities such as paper goods, household cleaners, shampoos, toothpaste, and hand soap when they are needed drives shoppers to your competitor.
However, the other side of the equation is most dollar store business owners cannot afford to tie all their money up in merchandise offering little profit.
Sure, these products drive dollar-store sale levels, but there must be a way to balance this and also make sales of items offering reasonable profits as well.
Well there is a way.
Start by looking for local wholesalers that can provide some or all of these items to you.
Often, the price paid locally will be less than your costs for the products, plus shipping.
Remember, even adding a penny or two to the bottom line can be significant during the course of a year.
Purchase extra quantities of these necessities each time your general merchandise suppliers offer these items at a reduced price.
Once again, the savings may only be a nickel or a dime, but they add up to sizable profits over the course of a year.
Manage the dollar store merchandise in your store to maximize exposure to high-profit items.
Move these daily necessities toward the back or side walls of your store.
Then carefully use end caps and other displays to promote high profit merchandise and impulse items that shoppers will pick up as they go and return from making the daily necessity selections.
To your dollar store business success!