As the owner of a dollar store franchise, you may benefit from your franchisor’s strengths in helping to negotiate competitive rates for retail space and select an optimal location. Explore what our dollar store franchises can offer and how they can support your investment. Read More »
Dollar stores operate as physical locations that sell a wide range of merchandise that appeals to budget-conscious consumers at all income levels. Products typically include consumables, housewares, and seasonal items. The success of dollar stores often depends on the location and the ability to maximize revenue per square foot.
When looking for a retail franchise business to open, you might first look to options with high-dollar products that you can sell for big margins. That’s one viable business model, but don’t overlook serving the lower end of the market, as well. With a dollar store franchise, you can aim to make your money on sheer volume rather than big margins. Doing a lot of business daily can allow this type of venture to bring in significant revenue despite the low price of everything on the shelves.
The Lonely Independent Road
If you try to start your own dollar store business without the support of a franchise, you may run into a couple of significant hurdles. First, you might struggle to find wholesalers who will offer you competitive prices on the items you’d like to stock. Without access to the proper purchasing accounts, sourcing products can get expensive – and you don’t have room to make costly purchases when you are selling things for a dollar.
Also, the task of building out your store may be more expensive when you do it alone. Remember, the franchise has already been through these steps, and the road they have paved for you is extremely valuable. And when you add in the advantage of a known name brand, there’s a compelling case to opt for franchising instead of operating independently.
A Great Experience
As you seek to stand out from other budget-oriented retail locations in your area, consider the value that can be offered by giving shoppers an enjoyable experience in your store. The products you sell are likely to be similar to other stores with low prices, so it’s hard to stand out on inventory alone. You can, however, work hard to train your employees to deliver great customer service while keeping the store neat and orderly. Hard work and attention to detail can go a long way toward making your store the one everyone wants to visit.
