Many who are starting a buck store don’t clearly know very well what it will need to reach dollar store profits for their business. Possibly they assume as sales grow so will profits. Or even they assume the important task is always to take the steps to starting a buck store and once they are open and operating they will worry about profits. Or even they are afraid to Skyward FBISD face the question head-on so they really ignore it completely. No matter what the specific situation, it is crucial to know what it really will take to bring your organization to profitability.
Drive cost out from the dollar store merchandise you sell. There is huge leverage associated with even the tiniest reductions in your organization cost-of-goods-sold. Just look at the huge volume of merchandise sales your will make. Then imagine all of those things costing you just a dollar or two less than now, and you commence to see the ability this will have on your profits.
Manage payroll carefully. After starting a buck store you will soon see just how much impact payroll is wearing your dollar store profits. Manage your payroll well. In reality tie your payroll to store sales. Then as your sales grow, allow your payroll growth to also climb within your targets. If store sales decline (For example, in January.) your payroll must also decrease.
Reduce in-store inventory levels. Carrying unneeded merchandise in inventory costs you money. Yet failing to truly have the right products available whenever shoppers enter your store also costs you in lost sales. Your challenge is to reduce inventory levels to the best possible level without impacting sales.
Match hours of operation to customer demands. Don’t waste your own time or payroll expense by holding your store open when customers rarely arrive. Don’t open too early. Don’t remain open too late. Find the balance to generally meet the requirements of one’s shoppers. The exception, of course, is when hours of operation are dictated as a part of your lease.
Carry only merchandise shoppers want and need. Don’t ever allow your store to become cluttered with filler products that just don’t sell. Become aligned with your shoppers; meet their needs and most compelling wants. Once you’ve those things in-stock, look for red-hot selling impulse items, and broaden the merchandise offered to generally meet core consumption needs for your shoppers.