In this article I present 3 important ideas to consider for your startup. These are focused on the dollar store items you must locate and strategies to drive every possible penny for their wholesale cost.
1. Order your core wholesale dollar store items from general merchandise suppliers.
If you have located a reliable, competitively priced wholesale general supplier of dollar store items it may make a great deal of sense to maximize your start up order size. While the risks are associated with percentage of merchandise they can ship and their being able to comfortably handle a huge order, there are many important benefits available to you when they prove they can do the job. One of the biggest is the potential for lower freight cost associated with shipping one large shipment verses multiple smaller shipments for many different locations. Another is the simplicity of receiving the majority of your dollar store startup merchandise from one or two primary suppliers.
2. Add in specialty items as required to meet customer demand.
There will be gaps in the list of dollar store items furnished by only one or two primary suppliers. That is where specialty suppliers come in. They can fill gaps in certain types of merchandise needed for your startup inventory. Be sure to negotiate for free freight or freight caps and other concessions to keep your costs low.
3. Look seriously at closeout and liquidation buying opportunities.
Many dollar/discount store owners are recognizing the importance of continually reducing wholesale costs while providing the perfect products for the bargain buyers who frequent their stores. Not only are there buying opportunities to add new, different items to your inventory, but some of these companies are able to find products which remain competitive at dollar store pricing levels.
Everyone undertaking a dollar store startup needs to focus on starting with the lowest appropriate cost. Once your store is open for business this cost-cutting requirement does not go away. Always be logical in your decisions. After all buying low-cost wholesale dollar items which do not sell accomplishes nothing for your business. In fact, this approach can even hurt your business. On the other hand reducing wholesale cost by 1¢ on an item that flies off the shelf can mean more profit for you.