Many that are starting a buck store don’t clearly understand what it will require to achieve dollar store profits for their business. Possibly they assume as sales grow so will profits. Or even they assume the important task would be to take the steps to starting a buck store and once they’re open and operating they’ll concern yourself with profits. Or even they’re afraid to manage the question head-on so that they ignore it completely. No real matter what the problem, it is critical to understand just what it will try bring your company to profitability.
Drive cost out from the dollar store merchandise you sell. There’s huge leverage connected with even the littlest reductions in your company cost-of-goods-sold. FBISD Skyward Just look at the huge level of merchandise sales your will make. Then imagine each of those items costing you simply a cent or two significantly less than now, and you start to see the ability this will have on your own profits.
Manage payroll carefully. After starting a buck store you will quickly see just how much impact payroll is wearing your dollar store profits. Manage your payroll well. In fact tie your payroll to store sales. Then as your sales grow, allow your payroll growth to also climb within your targets. If store sales decline (For example, in January.) your payroll should also decrease.
Reduce in-store inventory levels. Carrying unneeded merchandise in inventory costs you money. Yet failing to really have the right products available whenever shoppers enter your store also costs you in lost sales. Your challenge is to cut back inventory levels to the best possible level without impacting sales.
Match hours of operation to customer demands. Don’t waste your own time or payroll expense by holding your store open when customers rarely arrive. Don’t open too early. Don’t remain open too late. Find the total amount to meet the requirements of your shoppers. The exception, obviously, is when hours of operation are dictated as part of your lease.
Carry only merchandise shoppers want and need. Don’t ever allow your store to become cluttered with filler products that just don’t sell. Become aligned along with your shoppers; meet their needs and most compelling wants. After you have those items in-stock, try to find red-hot selling impulse items, and broaden the products offered to meet core consumption needs for the shoppers.