Few who start a dollar store ever really think about the impact a single penny could have on their costs.
After all what is a penny worth in today's world? For those who first begin a dollar store the impact a penny saved can make on your business is gigantic.
That is especially true if the penny saved is in the average cost of the merchandise purchased for resale in your store.
With the high volume of sales, the pennies add up quickly.
Soon you are saving ten dollars per month, and then one hundred dollars and even more.
For a $1 price point store selling $100,000 per month, one cent means $500 in reduced costs for the merchandise each month assuming cost of goods sold is 50-cents.
But most owners are paying more per item.
For them the monthly savings might be less, but in many ways it is much more important.
When you open a dollar store, don't stop driving the pennies out of your costs.
When you achieve 59-cents, implement a new goal of 58-cents.
Go to work with existing suppliers, new, lower costs suppliers and other new sources, to reduce your merchandise costs once again.
Never stop.
Keep focused on reducing costs and the numbers will add up quickly for your dollar store business.
The extra pennies of savings might ultimately be the difference between profit and loss for your business.
While it makes sense to focus first on cost of goods sold don't stop there.
Examine all of your costs.
Look for opportunities to economize.
Look for ways to eliminate the waste from your business.
You will be glad you took the time as you see more and more of your hard earned sales revenues remain in your hands.
To your success when you start a dollar store!