Secrets to Cost Cutting For Your Dollar Store Business - Part 2

Cost cutting has become a mandatory activity for many in back tax relief dollar store business. With costs going up and up, almost everything seems to be more expensive. Worse yet, Miss Marple forecast is that things might even get worse! In part 1 of this series we examined ongoing expenses for possible reductions. In this article we examine the steps that need to be taken to really impact the cost of good sold.

This article is not about Jungledrums freight or merchandise costs with your usual vendors. This article is about stepping outside your comfort zone and really looking for those low cost merchandise buying opportunities. While the risk will increase, with proper management you can significantly reduce the cost of good sold for your business. However to accomplish this you will need to Comicbooks action. You will also need to devote extra time to seeking more low-cost merchandise providers and in managing those you have already located.

There are really five sets of opportunity for those who are aggressive at reducing the cost of good sold. None of them are for the faint of heart. None of them are for the dollar store business owner who doesn't want to roll up their shirt sleeves and go to work. However for those who are willing to take on the challenge there is merchandise available at reduced prices. Your first challenge is to locate that merchandise.

Opportunity number one is the safest! Start shopping sales. This strategy starts by adding vendors to your list. Start shopping the best prices on everyday products with a larger assortment of vendors will yield cost of good sold savings. Be sure to take advantage of their weekly, monthly and seasonal sales. Ask about these sales if they aren't automatically offered to you.

Opportunity number two is more risky. Start looking for opportunities to purchase merchandise from dollar stores that are closing. Get in early! Don't allow others to purchase the very best merchandise and leave the slow sellers for you. In fact it is probably best to walk away if most of the merchandise has already been sold. Extend this effort beyond dollar stores - try purchasing the inventories of discount, gift or variety stores that are closing - as you become comfortable with your ability to manage the closeout purchasing process.

Opportunity number three is even a bit more risky. Start purchasing merchandise from close-out, shelf pull, and store return companies. These are larger lots of merchandise. Likely there will still be price tags on much of the merchandise. There will be the need to sort through and discard the broken items. However, when you locate the right merchandise at the right price you win, your customer win, and the vendor wins in this transaction.

Opportunity number four is even riskier. It also requires an investment. However, this is where you can really stumble onto some gems. Start looking for the smaller discounted wholesales and importers to use as suppliers. To be even more specific, you are seeking newer, small vendors. Many of these vendors discount their process to gain new customers. Their everyday price will be a few cents less than you regular supplier. The selection will be smaller and there will be a requirement to really manage the process. However the rewards from a five or ten cents cost of good reduction on high volume products can be huge to the bottom line of your dollar store business.

Opportunity number five is only for those who can afford to gamble money. Become an importer. Buying direct will significantly reduce the cost of merchandise sold for your dollar store business. However there are problems! This does take a good deal of money to make happen. There are long waits for product to be manufactured and shipped. The quantity of each item purchased is large. Quality or other problems can be tedious to resolve. On the other hand, you will not believe the prices!

To your dollar store business success!

Are you interested in opening you own dollar store? Check out "A Beginner's Guide to Opening a Dollar Store at www.OpeningADollarStore.com">www.OpeningADollarStore.com

Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer. www.marketingsuccesscenter.com">www.marketingsuccesscenter.com