Improve Dollar Store Profits With This One Simple Tactic

Many who start a dollar store never stop to examine the dollar store profits they make on their dollar store merchandise until well after they are in business. Their store layout is based on what they or someone else perceive as the best for their circumstances. Yet in today’s competitive retail environment this may not be the right approach to maximize profits. Since profit is the number one motive for most business owners to start and operate their business, why not focus on profits as you prepare your store layout? If you are already in business, consider making tweaks in merchandise location to help grow sales of the highest profit items in your store. Just the one simple action of focusing merchandising on the popular, highly profitable merchandise in your store can have a huge impact on your business profits.

Start by evaluating the profitability of the merchandise carried in your store. Focus on the standard items you carry as a mainstay of your business. Examine the cost of goods for each item to determine where your greatest profits are generated. This will take some time and effort, but every good manager wants to know the cost of goods sold in their store.

You should work and rework your store layout to place the everyday items offering the highest profits right out where they will be seen. Place high profit departments like greeting cards and party goods in the line of travel immediately after customers enter your store. But there is more. In addition to prominently placing your highest profit items in their department, use end caps, bulk lobby displays, and proper signage to highlight them. Take the little steps to make shoppers aware these items are in your store.

Add hot selling, higher profit margin merchandise to your best selling impulse merchandise locations. This is another step that yields higher profits for your business. While not all merchandise fits this plan, rotating high profit margin items into impulse locations like around cash registers and in your store lobby adds variety to your store while generating extra sales and profits.

Don’t cut down on the consumables and other popular dollar store merchandise as a part of this strategy when you start a dollar store. Items used everyday may not provide high dollar store profits, but they do create traffic for your business. These are the items that people need and will come into your store time and again to purchase. Even though profit margins are tight, they must be in-stock to bring shoppers back more frequently.

The Advantages Of Online vs Conventional Shopping Stores

It is possibly to buy almost anything online and there are millions of people who shop online everyday and many of them buy a high majority of their household items online. This is because it can be convenient and cheaper to shop online than it is to shop in brick and mortar stores (offline stores).

Shipped On Time

Unlike most offline retailers, with an internet store you can sometimes choose to have your product delivered on a specific date. This works great if you want to buy a gift for someone. You can have it delivered on that special day. You can also easily order a gift for someone who lives in a different state or country and have it gift wrapped and shipped straight to them instead of buying something in the store and going through that whole process yourself.

No Pushy Salesman

When shopping online, you can browse different stores and products at your leisure. There are no salesman and women to follow behind you trying to push you into buying something you do not want or need. Sometimes we do want help to find a product but just as often we want to run in the other direction from a salesman who works on commission.

No Long Checkout Lines

In an effort to cut costs and save money one of the first things you will notice in offline stores is that they will only have a certain amount of cashiers working. This can mean long lines as you wait to cash out your purchases. During the holiday season these lines can have you waiting more than an hour to checkout as you jump from cashier to cashier trying to find the line with the least amount of people.

Online Only Deals

Some online stores will provide an online only deal which means that if there is an offline store, you will not be able to find the same item or find it for the same price. These deals have to be bought online or not at all.

Privacy

Although privacy is becoming a thing of the past as cameras are everywhere, you can still have anonymity when it comes to buying products that would otherwise be embarrassing in an offline store. Grandpa wants a pack of adult nappies? Well there is no longer a need to cringe your way to the front of the line as the cashier calls across the room for a price check.

Building Your Online Retail Store Franchise

As you may be aware, a franchise essentially enables other business owners to conduct business using your branded products, logos, and other materials. Chances are, if you are already an online entrepreneur, you may be wondering why you would want to pursue this type of business model online. In many cases, you might even feel that the internet allows you to do everything you need to do without needing to take on franchise partners.

Among other things, it is important to realize the difference between network or affiliate marketing and a franchise. When you offer an affiliate or network opportunity, there is often no proven track record of vending success. On the other hand, when you offer someone a franchise opportunity, you are giving them some assurance that you have a proven formula for financial successes. As a result, internet based business development may be better served if successful vendors begin taking advantage of the franchise model.

Consider that you will always need to find newer or better search engine optimization methods. Over the years, this has increasingly favored measuring how many other relevant sites point to yours. Even if you are spending $10.00 per domain name, and have dozens of them registered, chances are some of them are not as well developed as others.

On the other hand, if you own all of these domain names, you can resell, or rent them to franchise partners. They, in turn will have the responsibility of building their site according to your corporate specifications. Since they will be trying to make a profit, they will be motivated to give more time and attention to each domain name than you are able to.

Once the sites are built, you can also build a powerful set of linking structures to help everyone gain in search engine ranking. In addition, as more individuals land on each website, your franchise logo will gain more household recognition. This, in turn, will make it easier for each franchise participant to earn the trust of potential customers. As with non-internet based franchises, you will have an opportunity to see first hand why people will shop with a chain like Wal-mart as opposed to a less recognized department store.

You can also offer franchise applicants everything from drop ship services to internet marketing tips and pointers. As with a more traditional franchise, you can even charge a fees and commissions for the usage of your logo and branded literature on their website. That said, you will need to consult with a lawyer to make sure that you are in accordance with all state and federal guidelines.

Without a question, today the franchise model is useful for more than replicating a sandwich or golf club repair shop. It can be used for everything from electronic resales to the sale of home craft items. Chances are, if you give it some though, you can think of dozens of online businesses that are successful and replicateable in the franchise format. If you have already built a successful and profitable web based presence, you may even want to consider charging others a fee for using your proven successful methods.