Are you learning how to start a dollar store? Well here’s one of the simplest, yet most power tips of all; never purchase merchandise if it cannot immediately go on display. After all, the products you place in the back stock area of your store are not seen and therefore cannot be purchased by your shoppers. In fact, in most cases the back stock products are hidden so shoppers are not even aware they are in your back room. As a result your money is tied up on items that sit and collect dust. These items are not making you money. Instead they are costing you money. This all probably makes sense to you. Yet how can you make sure you never have back stock? Start by establishing some rules regarding buying and then receiving freight. The buying rules need to focus on purchasing products once you reach a designated minimum inventory level. You will be able to establish this minimum once your store has been open for a short time. The minimum inventory level insures there will be products available until about the time the next replenishment order arrives. Those who know how to start a dollar store recognize the next piece of the puzzle is associated with freight handling. Establish rules about how long products are allowed to sit in the receiving area. Set realistic goals for receiving and stocking times; one-day seems like a place to start. Then hold yourself and your employees to hitting your goal. Within 24-hours all merchandise will be on the sales floor just waiting for the next buyer. Finally, set rules for back stock. While the goal of zero back stock is great, there are exceptions. For example seasonal merchandise may arrive well-ahead of the holiday. These items can go into back stock once smaller amounts are placed on the sales floor. In cases where you are able to make great one-time or sale purchases, there may also be a short time when excess merchandise will need to be placed in the back room storage area of your business.
To your success as you discover how to start a dollar store!