subject: 4 Compelling Reasons for Starting a Dollar Plus Store Today by:Bob Hamilton [print this page] In todays marketplace there are so many different forces tugging at those who are ready to open a dollar store. On the one hand there are big, national competitors that continue to firmly maintain a one-dollar format, and establish stiff competition in their chosen locations. On the other hand the cost of almost everything is going only one direction; upward. Yet as prospective owners examine dollar store merchandise costs and dollar store profits, the picture is not all rosy. If you are weighing your options about starting a dollar plus store or sticking with the dollar only strategy, read on. In this article I present 4 compelling reasons for starting a dollar plus store.
#1) Virtually all of the costs associated with dollar store merchandise are up. The merchandise itself is more expensive. Merchandise costs are up, and it seems like they continue to grow on almost a monthly basis. Freight hauling costs are up. Even the labor required to handle all the incoming freight and stock work are on the increase. Those higher prices create tight profit margins when you are forced to stop at the dollar price point.
#2) Pressure on dollar store profits is downward. As the cost of dollar store merchandise and freight hauling increase the downward pressure on profits increases. Where once you could depend on the higher volume of sales to help offset tight margins, many store owners are now facing the reality that they cannot sell enough at the dollar price point to make a reasonable profit. Some are finding expenses are so high they just plain can not sell enough to make a profit at all.
#3) Right now the quantity and variety of dollar plus merchandise is high. The good news for those starting a new retail business is that with so many retail businesses reducing inventory levels or actually just plain going out of business, merchandise is available everywhere. Closeout and liquidation suppliers have almost every dollar price point or dollar plus price point item you can imagine.
#4) Many dollar store merchandise suppliers have entered the over a dollar marketplace. Now those who are starting a dollar plus store can go to many of the proven, reliable dollar store suppliers for their dollar plus merchandise as well. With the extra margins these items offer, the ready availability and the extra dollar store profit potential, seriously consider adding dollar plus to the mix in your store.
To your dollar store success!
About the author
Learn how you can Start your own Dollar Store Business at http://www.openingadollarstore.com. Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
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