With the number of dollar store merchandise items that are sold each day it is easy to forget about maintaining dollar store costs.Â After all, there is a lot of money rolling in, and it is important to quickly replenish inventory.Â Of course all the sales may seem to justify extra employees as well.Â Soon costs are out of control.Â When you open a dollar store donât allow this to happen.Â Maintain tight control over every dollar you spend to open, operate and grow your business.Â The better you perform this duty the more likely you are to achieve dollar store profits.Â In this article I will review 4 of the dollar store cost areas to most carefully manage when you open a dollar store.
#1) Cost of Dollar Store Merchandise
Dollar store merchandise costs are number one on the list for most who open a dollar store.Â Many start their business by paying a little extra and have plans to really improve margins once the grand opening is out of the way.Â Yet with all the customers, dollar store sales and the daily activities of owning a business this goal somehow gets put on the back burner.Â In the meantime there are sales, but little or no dollar store profits.Â Merchandise costs, including freight must be carefully managed right from the start.Â Set targets and continually reduce the dollar store cost associated with dollar store merchandise.Â Do not sacrifice product quality in your effort to save a penny or two.
#2) Cost of Lease or Monthly Rent
Letâs face it; retail space is expensive to lease.Â That is especially true when you seek prime space with lots of traffic exposure.Â Negotiating your lease may be stressful for some, but it must be done with an eye to making a success of your business.Â Do your research before entering lease negotiations.Â Make sure the space you identify is really right for your business.Â Then consider getting expert help with the negotiation.Â Do not sign a lease until it has been reviewed by your attorney.
#3) Cost of Labor
When you open a dollar store labor costs must be carefully controlled.Â While it is important to have the help to support your customers and the operation of a fast paced business, it is also important to hold tight to your sales dollars.Â Carefully examine the tasks that must be performed and then schedule the level of support to handle them.Â Remember to include you and your ability to multi-task into the formula early on.Â Then as sales and dollar store profits grow one option might be to reduce your workload by adding more support.
#4) Cost of the Unexpected
It seems like every new business has unexpected surprises to handle.Â For those who own a dollar store it might be unexpected rapid growth and the need for more dollar store merchandise.Â It might also be the opposite; not achieving dollar store profits as quickly as planned.Â It might be an unexpected major expense.Â It might be the need to delay the opening of your store because upgrades were not completed as planned, or merchandise failed to arrive in-time to stock the shelves and open.Â The list goes on.Â It is extremely important to maintain a cash reserve to handle the unexpected.Â Just as you negotiate hard for all of your planned dollar store costs the same holds true when handling the unexpected.Â Just because it is a surprise does not mean you should simply accept the first bid.
To your success when you open a dollar store!