Friday, August 6, 2010

How to Turn High-Priced Consumable Products Into Profit Makers

It never fails; the most popular, in-demand and fastest selling items seem to always invariably be wholesale priced for the most money! As a result those seeking success with dollar stores are always chasing ways to reduce the wholesale price tag of these dollar store items just a little.

After all, with the high quantity sold, two or three extra cents earned per item can mean a lot of extra gross profit at the end of the day. Yet there are really few easy ways to force those two or three cents to become a reality. Many wholesale vendors are in the same boat as you. They are also pressured to even make a tiny profit on these popular merchandise.

If you are seeking success with dollar stores you must offer the high priced consumable products to your shoppers. In this article I present actions to help offset the high prices with added sales of more profitable merchandise.

* Shop for deeply discounted complementary dollar store items and use them as the profit generator. For example, while liquid dish detergent is in-demand, but offers only low profit margins, adding a colorful display of assorted sponges, scrubbers and brushes that you bought as a part of a closeout deal can make all the difference. When shoppers pick up their bottle of detergent many will also add a package of high profit margin sponges or scrubbers to their purchase.

* Achieve success by turning the high-priced consumable products into a drawing card to your store. Then once buyers enter motivate all shoppers to move throughout the other general dollar store merchandise you have on display. Do this by using rear walls, or far left-hand aisles toward the back of your store for consumable items. Shoppers will need to walk past many other products to get to their destination.

* Use all end caps and bulk displays to show off special buys and higher quantity orders of everyday products. End caps are prime sales area and they will provide outstanding results whenever proper merchandising techniques are used.

Achieving success with dollar stores requires lots of planning, hard work and a focus on customer shopping habits. Know the traffic flow in your store. Position consumables so shoppers following the traffic flow past many enticing products.

Then watch as add-on sales of products offering you a better profit climb higher. It is the average of the consumables and the new, add-on items that will prove to be a formula for success.

By : Bob_Hamilton

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