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This is installment 1 of a 5 part series of articles that focus on reducing the costs associated with replenishment merchandise purchases for your dollar store business. There are many cost cutting actions that can be taken. In this series of articles we will focus on five that can have quick impact on the cost of good sold for your dollar store business. In this article we address the easiest of the options.

Opportunity number one is the easiest to execute! It does require extra time and a little legwork. Start shopping a huge number of merchandise wholesalers and distributors during their sales and price reduction events. That’s right, become a sale shopper! Many of these vendors offer weekly, monthly, seasonal and closeout specials as a part of their marketing strategy. Each offers a different type of merchandise. The bottom line is that if properly managed this strategy can significantly reduce the cost of good sold for your business.

To truly leverage the potential of this strategy you need to add reliable new vendors to your list. As you locate and then register your dollar store business with those vendors request that you be included in all advertising and notifications of specials. Then start shopping those sales for the best prices on everyday products. Reduce your freight costs by adding other everyday products to the order.

Sure there is extra work and you won’t have the luxury of doing things the way you have always done them. However the trade can be huge. One month vendor ‘A’ may have a huge health and beauty sale. That is where you shop for health and beauty products. The next month it might be a pre-holiday sale that includes gift bags and decorations at reduced prices from vendor ‘B’.

This buying strategy doesn’t come without overhead. It takes time to locate and then check references on new suppliers. It takes time to coordinate with new suppliers. It takes time to acceptable freight rates. Likely there will be a need to manage the pulling, palletizing and shipping timing since there are many other stores buying during these sales.

This strategy also mixes the product lines that you carry in your store. For most dollar store business customers this will not be an issue. Their concern is focused on getting the same quantity or quality. They will be unhappy only if either quality or package size has been sacrificed so you can save a few pennies. Give it a try!

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