Dealing With Tight Margins When You Open a Dollar Store

There is one characteristic that puts some who openBuild inventory turns for your business. To accomplish
a dollar store way ahead of the others. Thatthat goal you must maintain the lowest possible
characteristic is associated with having a never endingproduct inventory to support your sales. You never
desire to reduce costs for their business. It is almost aswant to run completely out of a hot seller because
if they see any extra dollar store costs as evil. Theyyour inventory went too low. On the other hand have
fight to retain every penny possible as they manage100's of a slow seller remaining as another big
their business. They see cost reduction as both theshipment arrives is wrong as well. Work to manage
elimination of waste and the reward for excellence inyour inventory so the next replenishment order arrives
business management. In this article I present steps towith only 1-2 items remaining on display.
help you do exactly the same thing for your business.STEP #3) Become a bargain hunter.
These steps can drive out costs for your business.The greatest opportunity for dollar store cost reduction
STEP #1) Cost reduction must become your mission.is in the merchandise you purchase for resale. Work to
That is right - this is a very tight margin business. As abe on every suppliers list of stores that buy
result you must drive every penny possible out ofabandoned merchandise, package changes, closeouts
everything associated with that business. Be intelligentand overstocks. When the extra saving is offered
about cost reduction. Negotiate for lower dollar storetake advantage of the opportunity. Purchase during
costs. Always make sure to understand the impact ofmonthly sales. Purchase trade show specials.
those pennies before reducing. Look for creativeContinually look for and take advantage of lower
actions that result in lower cost without hurting anypricing.
other aspect of your business.To your success when you open a dollar store!
STEP #2) Become an outstanding inventory manager.