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If you are looking to start a new business in the “dollar store” retail industry here in the Philippines… you came to the right place! This business (like any other) is about profitability. Therefore, keep in mind some crucial ingredients to put in your recipe for success.
Location is “key” for a successful retail venture. Always consult with your local commercial real estate agent and get the proper demographics on available store locations. Cover your bases and ask for statistics on successful businesses in the area. Do your homework. Find the best possible operating scenario. There are many strategies. Open your store in a large development. Get next to a high profile chain store and piggyback off the heavy traffic. Be the only game in town! Once you find the right spot, negotiate the most advantageous payment possible. Your location and operating cost will determine your dollar store’s success and ability to turn a profit!
Dollar Store Business Model
You got the keys to the perfect location. Next, you need to determine the business model. The most popular is the dollar only store, dollar variety store, or dollar general store. It is challenging to open a true dollar store in the current economic climate. Therefore, entrepreneurs are opening the hybrid dollar store (dollar variety).This model has all the excitement of a true dollar store. The store typically sells 50% of the items for $1 dollar. The rest of the items are “value” priced. In this model, stores have latitude to bring a larger variety of merchandise and offer more value to the consumer. Everyone wins! The customer gets more value while the storeowner turns a higher profit.
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3 comments:
Well written article.
that's a good idea very innovative you should update this info in the future
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