6 Critical Cost Cutting Steps When Opening a Dollar Store in Today's Economy

We all know the sad truth about the economy. For many retailers the results of tight money, tight credit, ever-higher unemployment and a general uneasiness had been slowed sales. For some it has even meant total closure of their businesses. While these times can be the perfect opportunity for those who own and operate a dollar, discount variety store, there are critical steps to take to ensure success in the year ahead. In this article I present critical cost cutting steps when opening a dollar store. In reality these very steps should be considered by all retailers as a means of increasing inventory turns and decreasing inventory investment.
1) You must know your store sales patterns. Where do the majority of your customers go as they enter your store? What products draw the most attention? What products sell in the highest volume? Build on this knowledge by never allowing those items to run out. Broaden your offerings in the most popular products categories. Providing a variety of options and complementary products can go a long way in building sales.

2) You must know what sells quickly, what sells slowly and what doesn't sell at all. As mentioned above knowing the products that sell best in your store can be one of the keys to growing sales - even in tough economic times. However it is equally important to understand which products are slow sellers. These are products that should become your focus. The best options are to build sales of these products with better placement and signage, or to reduce total quantities on-hand. Products that are not selling also need to become your focus. It's time to either build sales or eliminate those products entirely.

3) Reduce overall inventory in your store. Keep you store looking fuller by spreading merchandise, reducing the depth of items carried, and by trimming down to the sure-sellers. In today's economic environment opening a dollar store can prove to be more challenging. Certainly inventory management takes on a much more important role.

4) Eliminate items that are not selling. Don't leave your money tied up in merchandise that does not sell. Do everything possible to build sales. If that doesn't work, now is the time to eliminate those products from inventory entirely.

5) Once the non-selling items have been trimmed from your inventory, start working on the slow sellers. That's right while you may have been able to carry slow moving merchandise before; it's time to move it out. Once these items are gone, don't reorder. You need to keep your money invested in the products that customers want and need. Keep your money tied up in products that will make you a profit.

6) When opening a dollar store be cautious about experimenting with new items. While it may have previously been a good decision to bring in new items just to see if they'd sell, times have changed. Be sure every item you add to inventory is a proven seller for others. In today's environment that means you must know the needs of your customers. Then stock only the merchandise that meets those needs.

To your dollar store business success!http://ezinearticles.com