It is one of the never ending challenges for those who open a dollar store! The challenge; building sales when the popular, hot selling dollar store merchandise typically yields very low profit margins. What can you do to reduce your cost of goods sold yet build sales? This seems like an impossible task. Yet there are actions to achieve just this goal. Sure it takes a little investigation, some time and effort, and lots of merchandising to accomplish. But the results of your hard work will be more dollar store profits from your business. Find out more in this article; 4 creative marketing tips to reduce your overall cost of goods sold.
Tip #1) Do not work to reduce the sales level of any dollar store merchandise carried in your store. Even the slim margin items have a place. Many of these are the very items that bring shoppers through the doors time and again. They are the consumables we all need and want. Be sure you don't place these items at the very front of your store. Place them in locations requiring shoppers to travel through your store. In this way they become a means of exposing shoppers to other products offering higher dollar store profits as well.
Tips #2) When you open a dollar store make it your practice to search out the items offering you higher dollar store profits. You will find these items scattered all over your store. For example, how about greeting cards and gift bags? Good quality cards and bags are available for very reasonable wholesale prices. In fact these are often among the most profitable items in your store.
Tip #3) Before you even open a dollar store start thinking about merchandising strategies to build sales of the high profits items you carry. Start aggressively promoting them to build sales. Make use of end cap displays, stand alone displays, and cash register areas to make them more visible. Modify your store layout if required - but get these items into the view of your shoppers. For example the majority of shoppers instantly turn to their right as they enter your store. Be sure greeting cards and other high profit party items are instantly in view.
Tip #4) If you open a dollar store start exploring methods for purchasing low profit margin dollar store merchandise on sale. There are many opportunities to add a few cents in dollar store profits on the popular, high selling items. The number of options is almost endless. Examine closeout suppliers for deep discounts. Many general dollar store merchandise suppliers offer weekly or monthly sales featuring some of these items. Don't forget to attend industry trade shows and take advantage of show specials for these items as well.
To your dollar store success!
About the author: Learn how you can Start your own Dollar Store Business at www.openingadollarstore.com. Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
Author: Bob Hamilton