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For those who own a dollar store, it’s easy to feel like everything is getting more expensive. Utility bills are on the rise, the cost of goods keeps climbing, and payroll expenses continue to increase. This never-ending cycle can be disheartening for small business owners who are trying to turn a profit while offering value to their customers. However, instead of succumbing to victimhood, dollar store owners can take action to reduce their cost of goods sold. Here are 7 proven methods to achieve just that:

1. Buy show specials at industry shows and events

If you own a dollar store, chances are you attend trade shows from time to time. While there, you’re probably looking for potential new suppliers or networking opportunities. What many don’t realize is that industry shows are also an excellent place to purchase merchandise. Top vendors often offer deeply discounted items as show specials.

2. Shop for new, lower-priced wholesale dollar merchandise suppliers

Don’t be too quick to abandon your best suppliers. Take the time to find vendors who offer the products your shoppers want at competitive prices before making the switch. Always conduct a test order or two before finalizing your decision. It would be a grave mistake to leave reliable suppliers only to find that your new ones can’t deliver on their promises.

3. Become a savvy bargain shopper

Take advantage of monthly sales, closeouts, and specials offered by your existing suppliers. When considering new general merchandise suppliers, factor in their monthly specials and sales while evaluating their overall performance. It’s often worthwhile to initially shop for sale items from new suppliers to test their reliability.

4. Ask your existing suppliers for referrals to low-cost, non-competing wholesale dollar merchandise suppliers

Many of your current suppliers will be happy to recommend other companies that offer non-competing products.

5. Purchase inventory from closing businesses

Keep an eye out for dollar stores, other retailers, or wholesale distributors going out of business. However, exercise caution when conducting these transactions. Make sure you know exactly what you’re receiving, and be prepared to pay immediately.

6. Focus on reducing freight costs

Start with the basics, such as shipping only full pallets. Consider establishing a contract with a regional freight forwarder or service, or a national freight hauler if appropriate. Look into the freight haulers used by your wholesale dollar merchandise suppliers as your first option. Always get a solid bidding before accepting any option. Don’t settle for ridiculously high freight costs – negotiate until they fall in line.

7. Strategically use liquidation and closeout companies

This approach involves two different tactics. Firstly, shop for new, mixed pallets or totes of wholesale dollar merchandise. Deals with these companies often come with additional discounts. Secondly, keep an eye out for closeout deals on shelf pulls, packaging changes, and other opportunities to offer extra value to your shoppers.

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Ihab Salloum