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Once you’ve decided to open a dollar price point store, it may feel like there is no way to successfully make any format changes. Yet as you see so many customers shopping and buying products, and watch your dollar store profits dwindle away, you know there must be another way. There are options. First, if you feel you must stay at the dollar price point, focus on cost cutting. Not a single cost is safe when you undertake this effort. Look at opportunities to reduce every single cost in your business. Deep cost cutting can have amazing results when your dollar store profits are examined. On the other hand, if you’d like to test whether the dollar plus format is right for your business there’s no need to shut down and start all over. Why not conduct an experiment while you maintain your dollar format store? In this article I present 3 hot tactics to experiment with starting a dollar plus store. #1) Purchase mixed pallets of merchandise. Many closeout and liquidation companies offer lower cost mixed merchandise at deep discounts when you buy by the pallet. For a few hundred dollars you should be able to locate a few pallets that are filled with shelf pulls and overstock merchandise. Starting a dollar plus store can be done by enclosing a small area in your existing store for over your one dollar merchandise. Be sure you price everything so the items are a great bargain. Then watch as shoppers grab the items while shopping in your store. #2) Start noting the over a dollar items your shoppers are seeking. Then look to some of your regular dollar store suppliers for their over a dollar items to fill this demand. It’s important to individually price these items and then contain them in an area of their own so there’s no question that they are over a dollar. Be sure to place conspicuous signs for all to see as they enter the enclosed area. #3) Many of the daily consumable items and groceries are perfect to use as an experiment. Follow the same guidelines noted above. With the merchandise enclosed and kept separate from your dollar price point items there should be little confusion. Don’t forget the signage to point out items are over a dollar. Don’t forget to prominently price the items as well. Track sales of dollar plus separately to understand both sales levels and dollar store profits being generated. Experiment before you make the decision of starting a dollar plus store. This serves the purpose of allowing customers to ease into the over a dollar concept. It also provides a fairly safe way for you to test whether over a dollar will work for you. Don’t forget sales can decrease with over a dollar since in most cases you’ve gone from making a few pennies profit on an item to make dollars in gross dollar store profits. To your dollar store success! Want the best ideas to earn from your dollar store business? Check out "Tactics to Add Streams of Income to Your Dollar Store Business" at www.OpeningADollarStore.com.
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
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