Part of opening a dollar store is the planning for initial levels of inventory that will be displayed on the sales floor. Equally if not more important will be the plans for the follow-up orders of replenishment inventory that will be required to maintain adequate levels to sustain sales however.
If you are opening a dollar store be sure to invest in initial inventory levels that provide an adequate selection and that include all of the core required products to meet your customer needs. Also plan for the required follow-up replenishment orders of the fastest selling items in your store. Creating those orders requires that you have knowledge of exactly what is selling as well as the cash to purchase follow-up orders early in the start-up process.
Dont forget that you will sell out of some items very quickly after opening a dollar store. However other items with inventory levels of 36 to 48 each may have only sold one or two items during that same time frame. That is not to say that those higher remaining inventory items are not important. However while you will need to replenish fast selling items quickly you cannot count on the sales from the slower selling items to provide the cash required to make those follow-up purchases.
In fact you should expect to create replenishment orders before there is adequate cash inflow (Forget about using profits just after opening a dollar store. There likely will not even be enough cash from sales for the initial replenishment orders.) to cover the costs. Budget for and hold cash reserves to cover these follow-up orders. They are critical to your success.
Initial replenishment orders will be for the items that are most in-demand by your stores shoppers. These are the items that bring them into your store. If these items are not always available they will have less reason to return. As customer traffic diminishes so will sales. Dont allow that to happen to you when opening a dollar store. Maintain adequate inventory levels of the fastest selling items by budgeting the cash to reorder items as needed.
To Your Dollar Store Success!