subject: Dealing with Today's Economy When Owning and Operating a Dollar Store [print this page] Dealing with Today's Economy When Owning and Operating a Dollar Store
We've all heard the same reports on the economy time and time again. Those owning and operating a dollar store have been right in the middle of this storm. The stories of doom and gloom everywhere have proven true for some. Yet many others have held their own during these very tough times. In spite of the difficulties some have been able to make progress at growing sales. They have been able to locate the right dollar store merchandise to meet the needs of their customers. In this article I present some of the actions required to not only ride out the storm, but to be positioned for success in the future.
Carry the exact core dollar store merchandise to meet the needs of your customers. Those owning and operating a dollar store know this is an absolute must do. Shoppers desire to always find these mainstay products at the time they are needed. They don't accept excuses about the next order coming in a day or two. You must always have a supply on-hand.
Reduce inventory levels of all slower selling dollar store merchandise. A big, flashing caution sign should go off in your mind the minute you identify slow-selling merchandise. If the items are steady sellers it is fine to maintain a small inventory. However if sales have quickly dropped, reduce your inventory as quickly as possible. Then invest your money in products that sell.
Eliminate inventory of non-selling dollar store merchandise and do not bring them back into your store. Successfully owning and operating a dollar store requires that you recognize problems and mistakes, and then go to work to fix them. Non-selling merchandise is among the worst of all situations. Your money is tied up, shoppers have zero interest in the products, and as time passes the products show shop-wear or worse. Reduce the prices as low as is required and liquidate those items.
Broaden the selection of core products your customers must have. Whenever the opportunity present itself, expand the variety of mainstay products you offer. Use supplier sales and closeouts, and other special pricing to bring in new brands for your shoppers. Then as sales continue to grow broaden your selection even more.
Stay linked to the marketplace and to your shoppers. As customer tastes change you must respond. The best way to handle this is by soliciting shopper feedback about core products they could not locate, and new products they want to buy. Listen and then respond by bringing in small test orders of these items.
Re-set your store. Make sure to offer a variety of great buys for your shoppers. Invest the time to place these hot sellers on display in locations that will attract attention. Take advantage of core product one-time buys and specials to help keep cost of goods down. Stop tying up your money in frivolous dollar store merchandise that is just fluff - and does not sell well for the long-term.
To your success owning and operating a dollar store!
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