Total Value Is the Key When You Buy Wholesale Items for Your Dollar Store
Many who are starting a dollar store automatically assume the best way to buy wholesale items is based solely on the wholesale price paid.
Using this theory, it is always best to pay 50¢ for an item versus the 57¢ charged by another vendor.
At first look this might make absolute sense.
Yet if you take the time to really examine the two products, an entirely different conclusion just might emerge.
It might become apparent that item #1 will offer your shopper smaller quantity, the package is not eye-catching or appealing to those who do actually look, and worst of all, about 50% of the print on the package is smeared and unreadable.
There are some locations where shoppers will happily purchase item #1, as long as there are no other options available.
Yet as you will find when starting a dollar store, in many cases there is fierce competition not just from other 99¢ and dollar stores, but from many other retailers as well.
What happens when your once happy shopper finds all of them are selling a product which seems to be superior (Larger quantity, more attractive package, and all of the print is readable.
) product? In many cases your shopper will stop purchasing that specific product from your store.
The shopper may continue to come in and browse, but those regular $1 sales are lost to your store forever.
Worse yet, your shoppers are now entering a competitor store to purchase the product.
This opens the door for your competitor to become the place your shopper purchases not only the one product, but many others as well.
It opens the door for a lost customer - all because you chose to buy wholesale items which were not competitive in your marketplace.
The best way to eliminate this scenario as something which could happen to you is: • Routinely shop the competition Begin the practice even before actually starting a dollar store.
Get to know your competitors, their products and the way their store is set apart from the crowd.
• Think: VALUE to customers when making buying decisions Whenever you buy wholesale items, be sure to focus on the value they offer your shoppers.
Think about quality and price.
But don't stop there.
If a product passes these tests then move on to examine quantity and overall appeal.
• Take the long term view when making decisions for your business When first starting a dollar store taking the long term view is likely about the last thing you are thinking about.
You are probably scrambling just to get your store open and operating.
Then after the doors open there is going to be a constant flow of short term issues to be addressed.
Never forget about the importance of establishing practices to continue long term business.
The goal is for your business to thrive into the future.
Using this theory, it is always best to pay 50¢ for an item versus the 57¢ charged by another vendor.
At first look this might make absolute sense.
Yet if you take the time to really examine the two products, an entirely different conclusion just might emerge.
It might become apparent that item #1 will offer your shopper smaller quantity, the package is not eye-catching or appealing to those who do actually look, and worst of all, about 50% of the print on the package is smeared and unreadable.
There are some locations where shoppers will happily purchase item #1, as long as there are no other options available.
Yet as you will find when starting a dollar store, in many cases there is fierce competition not just from other 99¢ and dollar stores, but from many other retailers as well.
What happens when your once happy shopper finds all of them are selling a product which seems to be superior (Larger quantity, more attractive package, and all of the print is readable.
) product? In many cases your shopper will stop purchasing that specific product from your store.
The shopper may continue to come in and browse, but those regular $1 sales are lost to your store forever.
Worse yet, your shoppers are now entering a competitor store to purchase the product.
This opens the door for your competitor to become the place your shopper purchases not only the one product, but many others as well.
It opens the door for a lost customer - all because you chose to buy wholesale items which were not competitive in your marketplace.
The best way to eliminate this scenario as something which could happen to you is: • Routinely shop the competition Begin the practice even before actually starting a dollar store.
Get to know your competitors, their products and the way their store is set apart from the crowd.
• Think: VALUE to customers when making buying decisions Whenever you buy wholesale items, be sure to focus on the value they offer your shoppers.
Think about quality and price.
But don't stop there.
If a product passes these tests then move on to examine quantity and overall appeal.
• Take the long term view when making decisions for your business When first starting a dollar store taking the long term view is likely about the last thing you are thinking about.
You are probably scrambling just to get your store open and operating.
Then after the doors open there is going to be a constant flow of short term issues to be addressed.
Never forget about the importance of establishing practices to continue long term business.
The goal is for your business to thrive into the future.
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