Those running a dollar store are faced with many challenges. And every decision they make comes with both benefits and downsides. It is up to the owner to make the very best decision possible as they seek their own success with dollar stores. For example, the easiest way to guarantee there will always be merchandise available for shoppers is to not only fill the sales floor shelves, but to also add plenty of space for merchandise that is carried in inventory in the stock room. While this strategy does provide for greater chances of always having the products shoppers seek, it also comes with costs. For example, the size of the back stock area needs to be large enough to hold huge quantities of merchandise and there is extra money tied up in merchandise that is held for long periods of time.
There are extra labor costs associated with placing merchandise into the back stock areas. These include periodically inventorying that merchandise and then removing the merchandise from back stock and placing it on the sales floor and more. While these costs may outweigh the benefits of holding many less popular items in inventory there are situations where holding back stock makes perfect sense for those running a dollar store. Read on as I present several of those situations.
Core in-demand customer needs Success with dollar stores requires that you make sure the mix of merchandise you offer is focused first and foremost on providing the products shoppers must have on a regular basis. Hold a small safety stock reserve on these items is often the right decision.
Holiday merchandise Running a dollar store requires you to constantly be aware of the holidays and special events as they are approaching. You must then purchase popular sellers in advance. While holiday and event merchandise can often go right onto the sales floor, the quantities required to support the major holidays will mean placing some items into back stock. Make sure that merchandise is managed and ultimately placed onto the sales floor well in advance of the holiday.
Specially-priced, one-time buys One of the keys to success with dollar stores is to always be aware of what is happening in the marketplace. Always be on the lookout for deals being offered by your suppliers. Know when they are good deals and do not hesitate to make the purchase when the right opportunity presents itself. Excess merchandise can be held in back stock when the price is right.
Asset buyouts Those running a dollar store are continually looking for great buying opportunities. Those opportunities include being first in line when the right asset buyout opportunities arise. Get the word out that you are an asset buyer and that you pay cash. There will be calls.
To your success with dollar stores!
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