Most of those who open a dollar store immediately recognize the need to develop some success indicators for their business. After all simply watching the merchandise sales isn’t enough to provide the data needed to manage effectively. But what indicators do you need? Isn’t it just a matter of more money coming in than is going out each day, week or month? In this article I present some of the main indicators to consider for your stores:-
- Daily Sales – Be sure to capture not only daily sales, but also sales by cashier, by hour and by department for each day as well. Those who open a dollar store will soon find this information helps when planning staffing levels, future merchandise replenishment orders, and more.
- Monthly sales – By department, by cashier, and roll up by-hour sales to establish sales trends. Often there is also value in examining not only sales by-day by also sales by-hour-by-day.
- Dollar store costs – Examine all costs. Look for unexpected and unexplained changes. Don’t forget to really focus on merchandise costs. After all, reducing cost-of-goods sold will be one of your main actions.
- Returns, refunds, exchanges – While some dollar stores adopt the adage that it is only $1 and therefore no refunds are allow, many find refunds and exchanges are expected by customers. If you provide refunds, exchanges and returns, be sure to carefully track the numbers.
- Special merchandise problems – for example did one full product order of merchandise arrive defective? Did those items end up on the sales floor and result in customer complaints, refunds or exchanges? How did you take care of the problem?
- Top performing departments – Be sure top performing departments are properly supported with replenishment merchandise, proper maintenance, and occasional infusions of hot new items and impulse items as well.
- Top performing products – It is imperative that top selling items in all departments be properly merchandised. These items must remain in-stock and easily found to maximize sales.
- Payroll – You have control over payroll. Set goals that align to store sales and manage staffing to those goals.
This will get you started. The list goes on from there. Be sure you are examining each parameter that has an impact on your final success. Implement systems or software to make collecting the data trouble free. When you open a dollar store be sure to spend adequate time examining the data and establishing actions to continually drive business performance upward.