A Little About Adding Closeout Products When Opening a Dollar Store

With a constant increase in all the costs associated with opening a dollar store and then keeping it running on a daily basis, savvy store owners are looking for a better way.  They recognize there is some relief to the cap placed by offering only dollar merchandise and add in dollar plus products.  However even adding dollar plus merchandise still does not always allow for the profit levels required to comfortably keep going.  One option to add sales and profits is the addition of closeout products.  However, dealing in the closeout and liquidation playing field requires a bit of preparation.

It is important to learn the closeout business.  Just as you discovered when opening a dollar store business the closeout and liquidation business world has its own terminology, buying processes, and more.  Know what the terminology means when you are searching for items.  Learn the difference between new, customer returns, shelf-pulls, and damaged.

Deal only with dependable closeout or liquidation companies.  Do not allow some fast-talking salesperson on the other end of the phone to convince you to purchase a semi-load of widgets used in the building of some electronic gadget just because they are new and name brand.  Look instead for items people use every day. 

Seek out brand name products your customers will know and trust.  Do not be afraid to negotiate for better prices and lower freight costs.  Above all, do not hesitate to walk away from a so-called deal.  Sometimes what looks to be the best buy around turns out to be someone’s sales problem and all they want is to get the problem off of their hands – and into your hands.  Do not make it your problem by jumping to buy without researching the products and pricing.  Be sure your shoppers will be thrilled by the item before making your final decision.

You may be in the habit of purchasing most of your dollar merchandise from only one or two vendors, and taking your time to submit and approve orders. Be aware closeout products deals go quickly; especially the really good deals.  Once you make the decision to purchase, do so immediately.

If you are opening a dollar store, carefully consider the format you choose.  Do not limit yourself to just dollar-only, or dollar-plus.  Create a mix of dollar merchandise, dollar plus items, and closeout products.  Use the dollar and dollar-plus items to keep shoppers coming in time and again.  Then use the closeout items to add-on extra sales and profits for your business.