Posts Tagged ‘dollar store’
DollarDays Revamps Its Website!
Wednesday, April 23rd, 2008
Our friends at DollarDays International , a Web-based virtual warehouse, where small business owners and charities can find great deals on small business-sized orders for more than 25,000 consumer products, have redesigned their website to be more customer friendly. The new and improved features include allowing customers to find exactly what they’re looking for with greater ease as well as the ability to enlarge pictures to see exactly what the products look like. Early tests of the new site indicate that the average order has increased over 8%. At the same time new customer registrations have already almost doubled from 327 a day at the end of 2007 to 631 a day currently- a figure that is expected to continue to climb even faster with the new site.
Tags: Announcements, dollar store, DollarDays International, Rebecca Button, source, wholesale
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The Dollar Store Boom: How to Get in on the Ever-Popular Dollar Store Industry!
Thursday, January 17th, 2008
The popularity of dollar/99 cent stores has risen dramatically in the past few years, and there are several reasons for this. First, big box stores like Wal-Mart have successfully closed many local retail stores, due to the local store’s inability to compete over price and selection. This has left a gap to be filled by dollar stores - satisfying consumer’s needs to quickly buy convenience items without having to drive across town to the big box store, find a parking space and navigate their way through a warehouse-sized store. Second, name brand companies like General Mills, Proctor & Gamble and Colgate Palmolive are selling their products to dollar stores, where in the past they refused. Third, the quality of low-cost imported merchandise has increased considerably in recent years. Fourth, lower-income consumers and the elderly are many times forced to stretch their budget, making the neighborhood dollar store a natural place to shop.
Dollar stores have become so popular that it is now estimated to be a $40 billion a year industry, with an annual growth rate of 6.9%! It’s no wonder why more entrepreneurs are considering opening their own dollar stores to take advantage of this growing industry.
Important points to know before opening your own dollar store:
Location - A successful dollar store does well because it is in a convenient/heavily trafficked area and it’s in an area where their target audience lives or works. It’s doubtful a dollar store would do well at the end of a dirt road, or in posh Beverly Hills. The location of your store is of the utmost importance, and plenty of research should go into finding the perfect spot. Typically, dollar stores do well in a strip mall on a main road. It’s also important that your "dollar store/99 cent store" sign will be visible from the road. Also, remember that the typical dollar store consumer has a low or fixed income, so focus on towns where your target audience either works or resides.
Products - Getting customers in your store the first time is one thing, but getting them to be regular customers is what will prove to make or break your business. Show your customers that you have unique, quality, name-brand products and a great price and you’ll be sure to see them again and again. Always continue to bring in new merchandise, and stock plenty of name-brand merchandise. In order for your dollar store to succeed, your customers need to see that your products have value - not that they’re just cheap junk. Be selective in your products and try to think like your customers!
Advertising - Having a big, bold and prominent sign outside your building is the most important piece of advertising you can do. For dollar stores, most of the customers are either walking or driving by - so you need to grab their attention! You can also advertise in local newspapers (especially bargain pages), on restaurant placemats, in the yellow pages and even local TV commercials.
Calculating the investment needed to open a dollar store
The amount needed to open your own dollar/99 cent store will vary greatly depending on the area you plan to open your store, and whether or not you plan on buying or leasing your building. If we assume you are leasing the building, then it’s safe to say that you’ll need somewhere in the range of $50,000 - $100,000 in cash to get your dollar store off the ground. That includes rent, inventory, fixtures, signs, advertising, insurance, and working capital. Just be sure not to sacrifice the location of your store for a "great deal" on a building on the outskirts of town - that just won’t work for a dollar store.
Should you open a franchise store or own your dollar store outright?
There are really three ways you can choose to open up a dollar store: 1) buy into a franchise like Dollar Discount or Dollar Tree, 2) open your own store with the help of a turn-key company like OwnaDollarStore.com or 3) open a store all on your own. Working with a franchiser requires the most investment, but offers the least risk, while opening a store all on your own requires the least investment with the most risk. Working with an experienced turnkey company falls somewhere in the middle on both cost and risk. A turnkey company that is experienced with opening dollar stores basically helps you open your own dollar store - finding the perfect location, selecting the merchandise, choosing the store layout, etc. There is usually an upfront cost, but no monthly fees like with a franchise. Plus, you own your business outright.
What type of dollar store is right for you will depend on your available cash, as well as your experience in the retail industry.
Tags: Carrie Hinkel, convenience store, dollar store, franchise, ownadollarstore.com, Starting a Business, startups
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