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Open a Dollar Store - Creative Buying Techniques

One of the biggest challenges facing those who you open a dollar store is to maintain low cost of goods sold. Merchandise prices are continually creeping upward. The same is true of freight costs. Yet for those who are firmly entrenched at the dollar price-point, there is no room to increase prices.

To become profitable, an entrepreneur who decides to open a dollar store must continually look for creative ways to cut costs without sacrificing the selection of merchandise that is being carried. While many creative ideas exist, this article focuses on buying liquidation merchandise. Specifically the strategy is to purchase the entire inventory of businesses that are closing.

The nature of all small businesses is that a certain percentage will be unable to continue operations. There are many reasons for this. However, the reality is that turnover does occur. When closure happens, business owners are often under great pressure to liquidate the inventory of their business as quickly as possible.

A win-win situation can be created when you offer to purchase and remove the entire contents of the liquidation. There will be costs associated with that approach, including:

Labor to pack, load, transport and unload the merchandise.

Damaged and shop-worn merchandise that comes with previously for-sale merchandise.

Costs associated with adding some unwanted items to your store inventory. (Merchandise that you do not wish to sell. Merchandise that is a duplication of merchandise that you already have in-stock. Etc.)

Freight or truck rental costs.

As a result of all of the above, the final price that is paid needs to be less than wholesale. It needs to be fair and equitable to all involved, but the store owner will receive less than wholesale in return for a quick and complete sale.

Buying liquidation merchandise requires knowledge of product values. If you open a dollar store, be sure that you are fully aware of product wholesale costs, and the costs that you will bear in buying the liquidation merchandise. When done correctly, this is a great means of reducing the cost-of-goods-sold for your store.

To Your Dollar Store Success!

Are you interested in Opening your own Dollar Store? Visit http://www.openingadollarstore.com to find out more!

Source: www.isnare.com