Many that are starting a buck store don’t clearly understand what it will require to reach dollar store profits for their business. Possibly they assume as sales grow so will profits. Or maybe they assume the important task is always to simply take the steps to starting a buck store and once they’re open and operating they will be concerned about profits. Or maybe they’re afraid to manage the question head-on so that they ignore it completely. No matter what the problem, it is important to know what it really will decide to try bring your organization to profitability.
Drive cost from the dollar store merchandise you sell. FBISD Skyward There’s huge leverage related to even the littlest reductions in your organization cost-of-goods-sold. Just look at the huge level of merchandise sales your will make. Then imagine each of those things costing you merely a cent or two less than now, and you commence to see the ability this will have on your profits.
Manage payroll carefully. After starting a buck store you will soon see simply how much impact payroll has on 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 must also decrease.
Reduce in-store inventory levels. Carrying unneeded merchandise in inventory costs you money. Yet failing to have the right products available whenever shoppers enter your store also costs you in lost sales. Your challenge is to lessen 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 requirements of your shoppers. The exception, of course, is when hours of operation are dictated as a 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 things in-stock, search for red-hot selling impulse items, and broaden the products offered to generally meet core consumption needs for your shoppers.