Many of those running a dollar store make the assumption that other actual dollar stores are the only competition they face.
These owners fail to realize just how many other retailers have taken the step and now offer various dollar items to their customers.
For some owners this oversight may result in a lot of extra work, pain and suffering.
For left unrecognized, these other retailers can chip away at the dollar store sales.
The indicators will be there.
As their sales go downward, and expenses remain fairly level, there can be a collision on its way.
For those running a dollar store it is a collision which means there just are not enough sales and profits to cover the costs of operating the business.
It can mean a once profitable business is all of a sudden no longer making money.
But who are these unknown competitors? In this article I present some examples of the types of companies to consider.
The key action is to get out in the market and start investigating.
• Grocery Stores Many grocers have found adding a mix of dollar priced (or in some cases $1, $2, $3 and so on) items excites their shoppers.
These add-on purchases produce added sales for these stores.
They also help to bring shoppers back to shop more.
• Big Box Discounters Whether these are specialty companies or general merchandise retailers, adding a limited assortment of low-cost products can prove successful.
While these items certainly don't produce the same profit levels as standard products being sold, they do add to total sales.
• Factory Outlets While they may not always advertise as dollar items, many outlet stores add very low-cost items to the mix being presented to shoppers.
Once again this is not their core business, but it does add to sales.
If your store is close by, in some cases this will equate to lower sales for your business.
• New stores - greeting card stores, party stores, hobby stores, toy stores Do not wait for problems to arise before getting to know all of your competition.
Be broad in determining exactly which companies fall into the competitive arena.
Whether it is a dollar store, a company selling low-cost competing products or a larger retailer which has added a dollar department, all can affect your success.
Be aware of the marketplace.
Do not wait until dollar store sales begin to deteriorate.
These owners fail to realize just how many other retailers have taken the step and now offer various dollar items to their customers.
For some owners this oversight may result in a lot of extra work, pain and suffering.
For left unrecognized, these other retailers can chip away at the dollar store sales.
The indicators will be there.
As their sales go downward, and expenses remain fairly level, there can be a collision on its way.
For those running a dollar store it is a collision which means there just are not enough sales and profits to cover the costs of operating the business.
It can mean a once profitable business is all of a sudden no longer making money.
But who are these unknown competitors? In this article I present some examples of the types of companies to consider.
The key action is to get out in the market and start investigating.
• Grocery Stores Many grocers have found adding a mix of dollar priced (or in some cases $1, $2, $3 and so on) items excites their shoppers.
These add-on purchases produce added sales for these stores.
They also help to bring shoppers back to shop more.
• Big Box Discounters Whether these are specialty companies or general merchandise retailers, adding a limited assortment of low-cost products can prove successful.
While these items certainly don't produce the same profit levels as standard products being sold, they do add to total sales.
• Factory Outlets While they may not always advertise as dollar items, many outlet stores add very low-cost items to the mix being presented to shoppers.
Once again this is not their core business, but it does add to sales.
If your store is close by, in some cases this will equate to lower sales for your business.
• New stores - greeting card stores, party stores, hobby stores, toy stores Do not wait for problems to arise before getting to know all of your competition.
Be broad in determining exactly which companies fall into the competitive arena.
Whether it is a dollar store, a company selling low-cost competing products or a larger retailer which has added a dollar department, all can affect your success.
Be aware of the marketplace.
Do not wait until dollar store sales begin to deteriorate.
SHARE
