In today’s tough economic times retailers are really stuck in a difficult position. On the one hand they must face a marketplace where shoppers are definitely less willing to part with their hard earned money. This behavior is reinforced as almost everywhere you look there is another economic doom and gloom statistic or report.
On the other hand the costs associated with owning and operating a retail business is rocketing ever-higher. For those who are focused on dollar store profits, this combination is tough to take. However, with a little creativity there are ways around some of the issues. To find out more read on as I present a creative solution to one of the biggest cost factors facing dollar stores.
What is that creative solution? It is purchasing your dollar store merchandise from closeout and liquidation suppliers. These companies can provide almost every imaginable item for prices that will help send your dollar store profits soaring.
Now this option doesn’t come without costs and risks of its own. While you are paying pennies on the dollar for the dollar store merchandise you obtain, you must be ready, willing and able to handle these extra costs and risks. However, there are dollar store profits to be made by intelligently pursuing this strategy.
Since many shelf pulls and overstock items come in mixed cartons and shipping containers, receiving them when they arrive at your store takes a great deal of time and labor. Rather than just checking off the item number on the side of box, you will actually need to count, sort and double check the items as a part of the receiving process.
Items that are pulled and sold to you may show signs of handling and in some cases they may show shop wear. In some cases this may be from excessive customer handling, and in others it may because items were used for display. This damaged and shop worn merchandise needs to be inspected. There will be cases where the items simply cannot be resold.
Since these items are often sold in bulk, you may receive a mixed lot that includes hundreds of a single item. While this will be great news in some cases, the items will take months, or even years to sell in others. When this does happen remember that you only paid pennies for the stock. There will still be room for great dollar store profits even if it does take a little time to move the entire shipment of dollar store merchandise. Price it to move in your store. Consider wholesaling part of the shipment to other discounters as a means of reducing the time even further.
Using liquidation and closeout merchandise as a means of cost reduction for your dollar store merchandise can be very rewarding indeed. It is very possible to significantly reduce your total store cost-of-goods-sold while adding items that would never be available to shoppers through any other means. There is extra work, and it does take a certain amount of specialized knowledge to learn the ins and outs of the process. Move ahead with caution as you come up to speed. Then seriously consider adding liquidation and closeout merchandise to you business. Your dollar store profits can be very positively impacted by making the right moves.