Dollar Store Merchandise Buying Strategies When You Start a Dollar Store
One of the challenges faced by most new store owners is associated with the how to minimize the costs associated with the products they sell.
If you are about to start a dollar store this is going to become a challenge for you as well.
But it comes after a long series of other questions such as where to buy merchandise, what merchandise to offer for sale in your store, and likely how to insure the merchandise even arrives on time for your grand opening event.
It is then that you suddenly realize this is a high volume business with slim margins.
You realize one of the secrets to success is cutting your dollar store costs, especially those costs associated with merchandise you offer to your customers.
In this article, part 1 of a 2 part series, I present 3 potential solutions to this problem.
The more you of these actions you can apply to your business, the lower you may be able to drive the costs of merchandise.
· Negotiate for freight-free shipping.
From the very first order when you open a dollar store begin looking for suppliers that offer freight-free shipping.
That is right; while it will likely take some serious looking, there are still companies offering this option to you.
It takes some legwork, but your reward is paying no freight associated costs for the merchandise purchased from that supplier.
· Seek freight caps in exchange for minimum purchases.
When you start a dollar store seek freight-free shipment.
If you cannot locate freight-free start asking about freight caps.
In exchange spending a designated amount on merchandise your supplier freezes freight expense at a fixed amount.
Once again locating these companies will take legwork and investigation.
· Work with shippers to negotiate fixed costs.
Negotiate a fixed cost with a freight hauler.
Your store size will determine whether this strategy works for you or not.
Agree to always take 1 or 2 pallet spots on loads coming from the suppliers you use the most.
That way you always received the same rate so you can calculate that into your dollar store costs for merchandise.
Again - a little calling and negotiating is required.
But it can pay off with huge savings for your business.
These three options can save you significant money on freight shipment costs.
Don't get discouraged if you hear 'no' as you ask about them.
Just keep calling, attending trade shows, and soon you will have a small list of companies.
Always double check their merchandise costs against others.
There are some cases where it remains cheaper to buy from the low-cost supplier and pay freight.
To your success when you start a dollar store!
If you are about to start a dollar store this is going to become a challenge for you as well.
But it comes after a long series of other questions such as where to buy merchandise, what merchandise to offer for sale in your store, and likely how to insure the merchandise even arrives on time for your grand opening event.
It is then that you suddenly realize this is a high volume business with slim margins.
You realize one of the secrets to success is cutting your dollar store costs, especially those costs associated with merchandise you offer to your customers.
In this article, part 1 of a 2 part series, I present 3 potential solutions to this problem.
The more you of these actions you can apply to your business, the lower you may be able to drive the costs of merchandise.
· Negotiate for freight-free shipping.
From the very first order when you open a dollar store begin looking for suppliers that offer freight-free shipping.
That is right; while it will likely take some serious looking, there are still companies offering this option to you.
It takes some legwork, but your reward is paying no freight associated costs for the merchandise purchased from that supplier.
· Seek freight caps in exchange for minimum purchases.
When you start a dollar store seek freight-free shipment.
If you cannot locate freight-free start asking about freight caps.
In exchange spending a designated amount on merchandise your supplier freezes freight expense at a fixed amount.
Once again locating these companies will take legwork and investigation.
· Work with shippers to negotiate fixed costs.
Negotiate a fixed cost with a freight hauler.
Your store size will determine whether this strategy works for you or not.
Agree to always take 1 or 2 pallet spots on loads coming from the suppliers you use the most.
That way you always received the same rate so you can calculate that into your dollar store costs for merchandise.
Again - a little calling and negotiating is required.
But it can pay off with huge savings for your business.
These three options can save you significant money on freight shipment costs.
Don't get discouraged if you hear 'no' as you ask about them.
Just keep calling, attending trade shows, and soon you will have a small list of companies.
Always double check their merchandise costs against others.
There are some cases where it remains cheaper to buy from the low-cost supplier and pay freight.
To your success when you start a dollar store!