Those opening a dollar store often select a format for their store without understanding all the consequences. For example they may be opening a dollar store with a dollar price point format and then find the tight profit margins are extremely difficult to handle. Yet making the decision to move to dollar plus store format isn’t accomplished as easily as most might think. It takes planning, marketing and money to make a successful major format change in the majority of situations. You must prepare your store, your employees and your customers to handle the change. In this article I will present 5 of the key actions to take if you thinking about changing the format of your dollar store.
· Know your competition. Knowing the competition is an important requirement for those opening a dollar store. It is just as important when changing your format. Your new format positions you differently in the marketplace, and your existing competitors take on a new meaning to your business. Aggressive dollar price point stores will become a magnet to your existing customers when it comes to the core dollar store merchandise they must have. Other businesses that weren’t previously competition will all of a sudden assume that role. Know your competition. Know the dollar store merchandise and the dollar plus merchandise they carry. Know their strengths and weaknesses.
· Treat the format change like you are opening a new business. Basically that is exactly what you are doing. Where shoppers could previously select any of the dollar store merchandise in your store and know it would cost $1.00 or less, that is no longer the case. Assumptions about your decision will abound. Some will assume you are just making more dollar store profits at their expense. Others will be upset at the impact this has on their budget. Still others will simply make the move to a local competitor with a store selling the dollar store merchandise they seek the dollar price point.
· Establish a comprehensive project plan for your dollar plus store format change. Changing format to a dollar plus store is a major undertaking. While all the steps required when first opening a dollar store may not be included, don’t underestimate the work involved. You will be locating some new dollar store suppliers. You will undertake a new marketing program. This is a major project that requires a documented plan of action. Track each of the actions to completion.
· Establish a ‘Grand Re-Opening’ date for your dollar plus store. This is your target for the entire transformation to be complete. With a date set, start planning the event itself. Just as your original grand opening was geared to let the community know about your dollar store, this event is to get the word out about your dollar plus store format change and all the benefits it will offer. Make the event exciting, and work again to attract as many prospective shoppers as possible.
· Invest in advertising and promotion to build your new business to profitability. It will take a well-planned marketing effort to successfully build sales and profits for your new business. Invest in advertising and promotional campaigns to make it happen. Make sure you remain competitively priced with your local competition. Leave some of the most popular dollar store merchandise at the dollar price point if possible. Build traffic and your sales will follow.
To your success when opening a dollar store!
Find out how you can open your own dollar store business. Article Source:http://www.articlesbase.com/small-business-articles/changing-your-dollar-store-format-is-a-major-project-1781828.html
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.