Many who own a dollar store are on the lookout for strategies to increase total dollar store profits.  For some the idea of becoming a dollar store merchandise wholesaler comes to mind.  They recognize they can not only increase their total business sales and profits, but they can also reduce the dollar store costs associated with the inventory carried in their dollar store itself.  Often other retailers are eager to get their hands on many of the unique items offered so they can in-turn resell them in their stores.  Read on for some of the most important consideration before taking on wholesaling from your dollar store business.

· Don’t mix up your businesses.  While you can use wholesaling as a means of reducing dollar store costs, this is a very different business from retailing.  There is a special set of skills required to negotiate prices on dollar store merchandise that still offer a reasonable profit when being sold wholesale.  There is also a need to go outside your store to get the word out about the items you have available at wholesale.

· Do not start wholesaling unless you can make dollar store profits on the items you sell. As noted above, you must be able to purchase dollar store merchandise at prices offering you a reasonable profit when the items are sold wholesale.  Negotiate for special volume discounts and sell only items you purchase at sale or discounted prices.

· Establish sales rules for your wholesale business. As you start wholesaling consider offering only case size sales.  Avoid selling all items with high dollar store costs so dollar store profits are maintained even when the products are sold wholesale.

· Use the added sales volume as a way to grow your purchasing power with your suppliers.  The result can be lower dollar store cost for the items you sell in your store as well as dollar store profits from your wholesale endeavor.

· Be sure you continually grow the number of wholesale customers for you business.  Send mailers to prospective customers with information about your new business.  Visit prospects in-person to tell them about your new business.

· Keep your wholesale effort under control.  It is important to remember that you still own a dollar store.  Don’t allow your wholesaling business to drain the time of you and your employees and the money that your dollar store cannot afford to lose. Make sure your dollar store does even better because of this effort.  Make sure you are actually making a profit from your wholesale business.

To your success when you own a dollar store!

Bob Hamilton