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Old 11-13-2009, 01:34 PM
 
Location: Out of this world
277 posts, read 1,381,516 times
Reputation: 167

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Quote:
Originally Posted by kinkytoes View Post
I have a colleague who got soaked with a dollar store business. They lost lots of money. The advice they gave me based on what they learned is:
1. Negotiate the rent. Make sure you get a cheap rent and try to push down the price. Maybe you can get one month's free rent or something to get you started.
2. Put the store in an area with lots of foot/car traffic. Visit the location you want to rent and see how many people come by.
3. Put the store in a poor area. Apparently lower income people use dollar stores much much more.

Other than that, I don't see what's the big deal about a franchise other than the name and maybe they can get products cheaper. I don't think anyone can tell you want to do in that case. Do the math. Will you spend more to buy the products yourself or more for the franchise even though the supplies MAY be less expensive?

Great advice. Thanks, I will keep this in mind.
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Old 02-16-2010, 11:28 AM
 
1 posts, read 9,280 times
Reputation: 11
I own a dollar store plus and the biggest thing is negotiating your rent and make sure you sell more items besides dollar items because to survive in a high or medium to high rent area you are going to need to sell items for more than a buck.
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Old 02-16-2010, 08:50 PM
 
1,269 posts, read 3,513,925 times
Reputation: 797
Quote:
Originally Posted by Dbatiste View Post
Hello,

We are considering opening a franchise dollar store, but not sure which one would be the best pick. We see Liberty Dollar, Dollar General, Dollar Tree, Dollar Store and Family Dollar.

A friend of mine said we should not buy a franchise dollar store. He recommended we order suppies and products from a dollar store merchandise supplier, get a business license and rent a place on our own.

We've never owned a business, but are willing to learn. Is it that easy to open a dollar store? We were thinking the franchise would kinda guide us through the rough patches until we were stable.

Anybody own a dollar store or know about this business?
I live in Vancouver, BC and travel down to Seattle, Portland, SF for leisure quite often.
Dollar stores have a high rate of closures where I live, due to bad location, too many stores serving the same neighborhood, and poor selection of merchandise. You need high volume of sales to survive. The only winners are the wholesalers. I know someone who failed twice and has moved on.

Daiso is the chain that I like to shop in because their products are innovative, designed with practicality in mind, and cheap to replace. I don't know if you can find them outside Seattle & SF areas.
Daiso U.S.A (http://www.daiso-sangyo.co.jp/english/storeinfo/usa.html - broken link)

I would go with your friend's advice, unless you can find an
existing owner offering you cash to take over the store. lol
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Old 07-10-2010, 08:31 AM
 
Location: Out of this world
277 posts, read 1,381,516 times
Reputation: 167
Quote:
Originally Posted by dawgwalker View Post
I own a dollar store plus and the biggest thing is negotiating your rent and make sure you sell more items besides dollar items because to survive in a high or medium to high rent area you are going to need to sell items for more than a buck.

So rent is the biggest cost? Two more questions. I noticed most of the dollar stores cost about $30,000 to $100,000 depending on the size. Is that all up front cost? Or can someone do a payment plan?

Also, how does one sell items more than a dollar in a dollar store? Do you mean $2 items?
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Old 07-10-2010, 01:01 PM
 
93 posts, read 330,674 times
Reputation: 91
As a consumer, I can tell you, some places sell things for more than a dollar at a dollar store which pisses me off!

My fave dollar store is the 99 cent store. I would love more of them opening up.

My second fave is Dollar Tree, cause it's nicer.

Both of those stores have things that are a dollar or less.
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Old 08-26-2010, 02:29 PM
 
37 posts, read 71,560 times
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Seem like there is no a dollar store owner on this board
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Old 10-28-2013, 08:01 PM
 
1 posts, read 6,695 times
Reputation: 17
Default Dollar Store owner

I am a independent dollar store owner. I own my own buildings. I have done extensive research finding the best suppliers nationwide. To be a successful independent operator it is essential that you have someone on board who has at least some wholesale/Corporate buying experience. Success in this business begins and ends with stocking what the customers want, for the right price, and having it on the shelf when they look for it.

My stores are not totally dollar stores. We have a General Store concept. Selling Used items, country, and dollar items.
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Old 11-02-2013, 09:18 AM
 
1,475 posts, read 2,319,608 times
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Quote:
Originally Posted by Dbatiste View Post
We are considering opening a franchise dollar store...
I think it really boils down to what you are wanting to accomplish. Make sure that you are not just buying yourself a job. Some franchise offerings want their franchisees to be owner/operators. Which means many times you just make enought profit to pay yourself a small wage for working as the manager.

If you want to build a business with the opportunity to sell franchises of you own then you would need to do your own thing from scratch.
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Old 06-23-2014, 10:46 AM
 
1 posts, read 5,916 times
Reputation: 10
i think its very smart to start a business on your own, talk to CPA , good lawyer specialize in business and visit dollar tee store owner and ask them the question about the business and im sure the i will help you ,.
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Old 11-16-2014, 08:32 AM
 
1 posts, read 5,291 times
Reputation: 17
ive been in management for over 12 years, and Dollar or super Dollar stores is where its at (as far as building a good customer base and making a good profit and building that repeat customer relationship, customers like that old style motto, "there always right"). ive never started one but ive managed 3. heres a few tips that will help you after you get the store open.
#1. make SURE you have no internal theft or shrinkage, Internal theft= is employees stealing from you, this includes drinking a soda now and paying for it later that's still stealing.
#2. you are always gonna have external theft," external theft= is customers stealing from ya" in reality you want to catch them all right? sure you do ..... but choose your battles wisely, are you gonna stop the lady who has a cart full of product that shes gonna pay for but has just stolen 1$ stick of deodorant? are or you gonna stop the person that's coming in not buying nothing or buying a candy bar but stealing 3 or 4 items? you wanna catch the 2nd one right? of course you wanna and will eventually catch both but use wisdom on the internal and external theft, and MAKE sure that the rumor and word gets out there that you CALL THE POLICE on the thieves. that will help as a deterrent.
#3. hire a good person part time, that can work for 2-4 hours evening time, and use that person only for zoning or facing, zoning= means pulling the merchandise forward to the tip of the shelf and cleaning up the store, have this person start on one side of the aisle and work his or her way all the way down and around to the next aisle and then repeat putting things back where they go and zoning. TRUST me customers hate a messy and nasty store, and it doesn't take long to get it that way.
#4. you must have a good team and by team I mean an A+ crew.... and you HAVE to have a GREAT manager and that manager has to be a good leader, and your assistant must be able to follow but yet take the initiative and also lead by example at all times but especially when the managers not there. and the rest of the crew must always see the assistant and store manager as a team and on the same page, (if you disagree and fight and argue with one another do it in private not in front of the crew or customers, ALWAYS let the crew believe that the assistant and the Store Manager are on the same page and has each others back..... follow these tips and you will avoid ALOT of HEARTACHE and FALURE.
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