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One of the challenges that faces every dollar store business owner is finding the right merchandise. As costs escalate, less dollar price-point merchandise is readily available. Worse yet, most of the merchandise that is easily purchased offers tight, tight margins. Does this mean dollar stores are gone forever? What is a dollar store business owner to do? Fortunately there are still options available. Read on to find out some 4 options for you to seriously consider.

1. Remain at the dollar price point. This is still doable, but doing the same things you’ve always done, the same way you’ve always done them is just not the answer. You must get very aggressive in your buying practices. You must no longer allow slow-selling items to hang around. You must be willing to take some gambles on merchandise. You must be willing to invest more labor in sorting, testing and pricing incoming merchandise.

2. Change your store format to dollar increments. For example, change you dollar price-point store to a one-dollar and two-dollar store. Or even better, develop price ranges such as $1 through $5, $1 through $10, or even $1 through $20. There will be grumbling from existing customers, and you can expect that you will lose some of your steady shoppers. However, with an aggressive advertising and marketing program, you can rebuild you business in the new format. Remember; at these higher price-points the margins will be significantly better, and the average sales price per item will also grow.

3. Change the store format from a dollar store business to a discount store business. Lose the dollar format completely and begin to provide merchandise that is deeply discounted. You might consider maintaining some of the old staples at the dollar price-point just to keep current customers coming back. However, expect to lose many of your existing customers. Once again, if you have a very good location and the right demographics, a strong advertising campaign can be of huge help in rebuilding your business. This strategy can offer you significant margins, and even bigger average sales price per item.

4. Change the store format from a dollar store business to a specialty store. The actual specialty depends on your location, your historic store sales, and your desires. For example, maybe you have historically had excellent party goods and greeting cards sales. If your lease, store size, store demographics, and your personal interest support it, maybe changing to a party supply format would be the answer.

It is important to remember that this is like starting a whole new business again. It will take time, money and lots of work to make the change. Be sure you have the patience and resources to go from the dollar store business you own today to a retail business that very different. If you decide to hold true to the dollar store format be sure that you examine everything you are doing today. Cut costs everywhere possible, invest time in locating and negotiating pricing for merchandise. Above all don’t let sales decline too far while costs grow too big to make the needed changes in your operating procedures. If change is needed, make that change quickly.

To your dollar store business success!

Are you interested in opening you own dollar store? Check out “A Beginner’s Guide to Opening a Dollar Store at http://www.OpeningADollarStore.com

Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.

http://www.marketingsuccesscenter.com