This is part 2 of a two-part article series on preparing your first merchandise order before opening your dollar store business. In Part 1, we cover locating suppliers and completing the paperwork and other processes to complete your first order with the suppliers of interest. This article will discuss orders by department. Since the needs of each department are different, a summary of the general requirements will be included.
Departments that are always a concern when it comes to merchandise orders include health and beauty, food and snacks, household cleaners, and paper goods. The next level of departments include toys, stationery, parties, and cooking. Finally comes the balance of departments that include soft goods, pets, gift items, and hardware. While this list may vary slightly from location to location, it is a good rule of thumb to follow for initial dollar store business orders. Focus your initial purchase on departments in this order. Be sure to order for all departments, but keep in mind that buyers are likely to search for merchandise in the order listed above.
Health and beauty is a huge area, encompassing a multitude of products. They include everything from toothpaste to shampoos to combs and brushes. Also included are first aid providers, personal hygiene products, and hair items. Shoppers are always looking for brand name products in this product suite. They are also looking for a wide variety of products and product lines. Make sure your first order includes adequate quantities in a variety of styles. As customers learn about the large selection and name brands you offer, health and beauty should become one of your top selling departments.
Candy and snacks can be a great draw card that draws customers to your dollar store business time and time again. In fact, candy and snacks will be responsible for the highest sales per square foot of sales floor space for many in the dollar store business. It takes work to find sweets and snacks at a bargain price, but when you do, your customers will buy. The same goes for food products. There is a lot of work, but the resulting traffic from these products will make it worth the effort.
Party supplies is a big-selling department for most dollar stores. Always keep a good supply of matching party supplies. Greeting cards can also be a high-volume, high-margin category for your dollar store business. Once customers discover you have a nice assortment of everything they need for the holidays, they’ll return again and again throughout the year to stock up on supplies for their next party or event. Don’t allow yourself to overload the departments with the lowest demand by sacrificing those departments that will produce the highest sales. Do everything possible to ensure that you have a good variety of products in all departments of your dollar store. Place your replenishment order early to protect yourself from running out of critical items. You’ll be happy you did.
Here’s to the success of your dollar store business!