Many who’re starting a buck store don’t clearly understand what it will require to attain dollar store profits because of their business. Possibly they assume as sales grow so will profits. Or maybe they assume the important task is always to take the steps to starting a buck store and once they’re open and operating they’ll be worried about profits. Or maybe they’re afraid to manage the question head-on so they really ignore it completely. No matter what the specific situation, it is critical to understand exactly what it will try bring your organization to profitability.
Drive cost from the dollar store merchandise you sell. Skyward FBISD There’s huge leverage connected with even the smallest reductions in your organization cost-of-goods-sold. Just take into account the huge volume of merchandise sales your will make. Then imagine every one of those things costing you only a cent or two significantly less than now, and you start to see the energy this can have in your profits.
Manage payroll carefully. After starting a buck store you will soon see just how much impact payroll is wearing your dollar store profits. Manage your payroll well. Actually 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 must also decrease.
Reduce in-store inventory levels. Carrying unneeded merchandise in inventory costs you money. Yet failing to truly 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 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 generally meet the wants of your shoppers. The exception, obviously, is when hours of operation are dictated as an integral 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 with your shoppers; meet their needs and most compelling wants. Once you have those things in-stock, look for red-hot selling impulse items, and broaden the products offered to generally meet core consumption needs for your shoppers.