Focus on Cost Reduction Before and After your Dollar Store Startup

Success after your dollar store startup is all about building dollar store sales ever higher.  At the same time your sales are growing dollar store costs need to be intelligently taken to ever-lower levels.  While every cost associated with your business must be carefully scrutinize, the greatest leverage comes when examining the biggest dollar store costs.  The top three for dollar stores are generally rent, payroll and cost-of-goods-sold (COGS) for the dollar store merchandise in your store.  Of these three, clearly the greatest leverage can be achieved from reduction of COGS.

In today’s economic environment dollar store startups cannot be tied to a single set of dollar store suppliers.  While you do need to maintain a solid relationship with your core suppliers, there is also a need to expand the total number of suppliers supporting your dollar store merchandise needs.  Take the initiative to examine every opportunity to reduce dollar store costs by locating and using new dollar store suppliers.

Continually be on the lookout for great deals on superior dollar store merchandise.  Don’t give up just because one dollar store supplier doesn’t happen to have the right merchandise or the right prices.  While it is a good idea to keep in touch with all solid prospective dollar store suppliers you locate, it is also important to move on in search of the best possible suppliers for your business.  Continually look for that one great buying opportunity that drives your dollar store cost of goods sold to new lower levels.  

There are many sources where you can learn about new potential sources of dollar store merchandise.  For example; subscribe to dollar discount supplier newsletters and magazines.  Attend industry trade shows every year.  Talk to other dollar store business owners.  Discover the dollar store suppliers they use and recommend.  Conduct Internet searches for potential suppliers.

As you discover new potential sources for the products your customers want and need be sure to invest a little time and effort to investigate just how good they are.  While performing due diligence can delay actually making your first purchase, avoiding even one mistake can save your company many thousands of dollars.  Once you’ve checked out your prospect, assemble a small test order.  After that order arrives and if everything looks fine, and then go ahead with a larger order.  Once again taking this cautious step can add time to the process.  Yet with so much at risk, isn’t it worth the time and effort?

To your successful dollar store startup!


By Anonymous

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