Opening a Dollar Store - Turn Suppliers Into Your Warehouse

Those who are opening a dollar store are alwaysdollar store in-stock inventory levels can be dropped
looking for operational strategies that help to reduceto critically low levels before reordering.
the cash invested in the start-up and ongoingEntrepreneurs who are opening a dollar store must
operation of their stores. An area of focus is oftenknow their shoppers. They must be able to anticipate
the merchandise inventory level that is maintained.their buying needs and their buying patterns. Then it
One strategy for reducing the amount of inventoryis possible to forecast sales of consumer goods and
that is maintained when opening a dollar store is toother staples. With that forecast in-hand work can be
use suppliers as your warehouse.completed to order critical products before they are
You must remain focused on maintaining minimumcompletely out of stock.
inventory levels. When opening a dollar store if theYou must have a good inventory system so that
right tools and systems are in-place suppliers canyou can tell at a glance if in-stock inventory levels
actually become the warehouse for your business.require replenishment. It doesn't matter whether you
This requires smaller and more frequent orders. Itare using a checklist, a Point-of-Sale system or a
also requires management that pays attention to thecomputerized order, inventory and sales system,
details and invests time on a more frequent basis.there must be easy access to current inventory
Inventory levels must be examined more frequently.data.
Orders must be written and transmitted moreYou must have suppliers that can be counted on to
frequently. The result can be a lower cashship promptly. You must also have freight carriers
investment in inventory when this is properlythat can be counted on to promptly deliver
executed.replenishment merchandise. Working with a freight
While this sounds simple it requires a great deal ofcompany that picks up merchandise from a
knowledge about the store, the desires of thedistributor on the east coast and then takes that
customers, and ongoing inventory levels. It alsomerchandise on a cross-country trip before returning
requires strong relationships with suppliers and withto your store which is also located on the east coast
freight companies that are used to transport goodswill not work. For this to work when opening a dollar
to the store. When all of these exist after opening astore the actual delivery time must be minimized.