Monday, June 14, 2010

Cost-Of-Goods-Sold Decline is the Goal When Running a Dollar Store

Those running a dollar store are continually faced with a growing list of priorities. These priorities are all competing for the little available time a new owner has available. After all, there is a steady stream of shoppers throughout the day.

There are established vendors as well as new vendors there to sell their latest and greatest products. Dollar store merchandise is arriving and then waiting to go through the receiving and stocking process. The seemingly endless list of daily operational tasks just keeps growing.

With all the operational demands associated with owning and operating a dollar store staring a store owner squarely in the eyes, how can there be any time to deal with strategic actions?

For some the answer is there just does not seem to be any time. Yet some strategic actions must be handled if your store is to survive. Some make the difference between achieving profitability, or just staying in the red.

With so much riding on these most critical strategic actions, there is no excuse not to go to work on them.

One of these is cost-of-goods-sold (COGS) for the merchandise you sell. The impact associated with even a small reduction in COGS for the merchandise you sell can end up saving you thousands of dollars over a year.

With so much to gain, COGS reduction must be on every dollar store owner's agenda. But where can you find dollar store merchandise for less? There are several easy tactics to locate lower cost.

For example:

· Attend trade shows. Most vendors offer trade show specials. Save up and then take advantage of the best sales prices. Get there early and be ready to quickly make your buying decisions as the best items go fast.

· Become a sale shopper. Many of the better general dollar store merchandise distributors offer monthly sales. Sign up with several and take advantage of sale pricing on the core products your shoppers always purchase.

· Negotiate shipping costs. Look for vendors that offer all or part of the freight prepaid for minimum orders. Weigh the freight cost savings against the pricing to make sure this is the right decision. In other cases companies just seem to be able to negotiate better freight pricing. Include freight costs in your final buying decisions.

· Schedule your own freight. Make a few calls and see what you can do to reduce freight costs. It takes time and effort, but when you finally locate that special hauler who is most reasonable the savings will start to mount.

Those running a dollar store must never accept the status quo when it comes to the cost-of-goods-sold in their store. Look for new, creative tactics to shave even a few more cents off the prices associated with the products you sell. Over time those savings can make a huge difference in your business profits.

To your success when running a dollar store!

By : Bob_Hamilton

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