Dollar Store Franchise
Franchises provide a opportunity for business people, allowing them to own a piece of a business that is already a proven success. If you own a dollar store franchise, you’ll have the good fortune of capitalizing on an existing name that is already known and trusted by many. However, you’ll want to make sure your particular dollar store franchise is well run and well stocked, from the very first day it opens. Also, Dollar Store Franchises are more expensive than doing an Independent Dollar Store as is the case with Buckstore.
The power of your store’s good name and reputation only extends so far. Owning a recognizable franchise will draw customers to you a first time, but only great customer service, exceptional prices, and terrific merchandise will keep these customers coming back for more.
Dollar Store Merchandise is a leading resource for those entrepreneurs who own dollar store franchises, as well as those entrepreneurs who own only a single dollar store. Whether you’re in charge of one dollar store or 100 dollar stores, Dollar Store Merchandise has exactly the merchandise you need, located in one convenient, reliable, and well-known place.
For our customers who own many stores, we proudly suggest our Chinese imports. These imports, direct from China, are perfect for owners or managers in charge of stocking numerous stores. The minimum orders are too high for folks who only own a store or two, but they are ideal for owners of multiple Dollar Store franchises. To learn more about the amazing savings these Chinese imports provide, visit www.DollarStoreMerchandise.com, or call us toll free at 877-549-5210.
For those opening a new store, we highly suggest not going with the franchise model. The reason being that you can have financial liberty on all decisions and choose who you want to buy from, deal directly with the warehouses and vendors, and attend national industry dollar store trade shows on your own.
Once you are “in the loop”, all catalogs and industry related magazines will arrive to your store, and you will get newsletters as to what merchandise is hot and how you can deal directly with all the warehouses and vendors who will be needing your business. Franchises in the dollar store industry typically don’t work as they are very expensive and also require percentages as profits to the “mother franchiser”. There’s no reason you as a store owner should be giving away profits or a percentage of them as well as royalties if you can do everything directly. The dollar store business does not allow such margins. It’s better you use that hard earned money on advertising, to buy more merchandise, or even to doing radio ads and newspaper advertising in your local community.
The industry is divided into large corporations which are basically dollar tree and Dollar General at this moment and Dollarama in Canada. Everyone else operates as an independent entity and usually store owners have 2,3 or 4,5 stores or maybe even just one store. They do have the financial ability of paying their own bills and making decisions 100% with no master entity putting pressure on royalties, Color of uniforms, types of signage, or any rules and regulations to comply. Our suggestion, is that you operate as part of a co-op where everyone is part of a buying group and those wholesale prices get trickled down to everyone in the group. Large corporations have larger buying groups but at the same time they also have more overhead. They must maintain corporate offices, shares of stock exchanges and report to their shareholders annually accompanied by all the extra cost that is involved in running a large ship in corporate America.
Is it difficult then to operate a store in this manner?
Not at all, most dollar stores that are successful are actually independently owned and involve customers that are owner and operators and have just a single or maybe up to 10 stores only in their local area and close by surrounding areas.
Why don’t large corporations franchise their business model to other people?
It is a proven fact mathematically (and you can do your own numbers) that these corporations would charge franchisees a high percentage or even steep royalties for their business so they would never make it financially profitable for them or the customer. The dollar store industry has tight margins and it is very important that you as a owner / operator run your own expenses and overhead and pay for your own bills without any additional “extras”. The only expenses you should worry about are doing some advertising locally, attending tradeshows, which could at the end of the year be written off as a company expense against your profits and your annual filing of taxes for the corporation that you will be an owner of.
Are the prices large corporations pay for their merchandise in China and other countries lower than if I am just an owner operator?
Not necessarily. Globalization and technology has permitted small stores and large stores alike purchase almost at the same prices because there are now large buying groups and co-ops where they all work together and get the best price possible for everyone. There is also a large network of closeouts for products can be purchased at below market prices with the famous brand names involved too since there are local companies and factories that are over producing their products and must dump them into the market to the dollar store wholesalers and distributors spread out through the USA.
Conclusion, if you can run your own store, you will be much better off and with the money you save you can re-invest it in more merchandise and advertising or evn to expand your business to new locations too.
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The task of ordering this much inventory can be overwhelming for a first time retail business owner.