4 Critical Requirements of Dollar Store Suppliers

Locating and selecting dollar store suppliers is one of the most important tasks performed by those who open a dollar store. The very success of their business depends on finding the right products at the right price. Sure there are other important considerations such as supplier customer support and prompt delivery. The bottom line is making the final decision on suppliers takes time, effort and work. Then you realize this will be an ongoing challenge for as long as you are in business. As you work to grow your business and the profits you make, you'll be renegotiating with existing suppliers. You'll also always be on the lookout for new, better suppliers. In this article I present 4 critical requirements that your suppliers must meet.

#1) Focus on freight costs. While most who open a dollar store will only examine merchandise prices, that is a mistake. Shipping costs can add a major increase to your overall cost. Generally the closer a supplier is to your location the lower the cost of freight to bring dollar store merchandise to your store. Always look at all options including freight caps, and pre-paid freight when examining possible dollar store suppliers for your store.

#2) If they aren't reliable; keep looking. You must be able to depend on your suppliers to deliver exactly the products they offer, at exactly the price quoted, arriving at exactly the time they committed. While you won't know the real answer to this question until you are actually generating orders, there will be signs of a potential problem during initial discussions. Not being able to contact your representative, phone calls and emails that remain unanswered, slow deliver of committed samples and catalogs are some good signs there might be an issue.

#3) Customer service must be outstanding. You are the customer in the relationship. However the ones who are initially punished by poor customer service from your suppliers are your own customers. Then it ultimately comes back to you as you see sales plummet and profits diminish.

#4) Cost-of-Goods-Sold is the key to your success when you open a dollar store. Your dollar store suppliers must be competitive in their pricing. It's great that they make a profit, but you need to make a profit too. Don't rationalize that you can afford to lose money on several items just to keep your shoppers happy. Look for other suppliers of those products who offer the same products at prices that offer you a profit.

To your success when you open a dollar store!

Find out how you can open your own dollar store business.

Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.