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With dollar store merchandise costs jumping ever-upward, those running a dollar store must continually identify and implement tactics to make product costs decrease. Whether it is actual cost reduction, eliminating slow selling products, or improving merchandise inventory turns, there is no longer room to simply ignore this top priority. In fact the best strategy is to move forward with several specific strategies all running side-by-side. In this article I present 5 simple dollar store merchandise buying and management tactics. Each of these tactics has a place in a well-rounded program. Tactic #1 - Spread dollar store merchandise It is possible to actually reduce the quantity of on-hand merchandise using this tactic. One of the easiest ways to implement is to go from 8” or 10” peg hooks as the standard in your store down by 2 inches. So the 8” peg hooks become 6” peg hooks and the 10” peg hooks become 8” peg hooks. These shorter peg hooks take fewer products. Your existing inventory will ‘spread’ out to cover more display area. The downside is, of course, the need for more frequent replenishment and facing up of merchandise. Tactic #2 - Face up displays in your store frequently Speaking of facing up, careful work to face up and pull merchandise forward on shelves and peg hooks is another tactic. The simple action of moving everything forward helps to hide the fact that not all shelves and/or peg hooks are entirely filled with merchandise. Those running a dollar store know this tasks needs to be done multiple times throughout the day to keep your store looking as full as possible even when inventory levels are down. Tactic #3 - Purchase inner cartons of slower selling or trial dollar store merchandise Stop buying cases filled with 144 or 288 or even more of slower selling or new merchandise. With your slower selling items, one full case may last for many months. With new items, there are those super slow sellers that you end up working to liquidate for what may seem like years. Reduce the risk by purchasing inner cartons whenever possible. These smaller quantities will provide just the right amount to place onto the sales floor without back stock. Tactic #4 - Practice smaller, more frequent ordering as your buying strategy Why purchase cases and cases of replenishment merchandise every month or so only to see a good portion of your inventory end up temporarily in the stock room? If you are running a dollar store why not order less merchandise, on a more frequent basis? Sure it does take extra time to develop many small orders. You will also need to work to keep freight charges to a minimum. Yet this allows all merchandise to go directly to the sales floor, thus reducing your total investment in inventory. This is a good trade off to make. Tactic #5 - Emphasize best selling departments If you are running a dollar store one of the areas of focus needs to be your top selling departments. While it is important to always work to improve your poorest performing departments, leverage the successful departments at all times. Never allow the best selling merchandise to run out. Promote these departments. Expand the breadth of the best selling items being offered. To your success running a dollar store! Opening a dollar store? Learn the secrets of an insider at http://www.openingadollarstore.com
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