How to Start a Dollar Store

Posted on 09 June 2011

How to Start a Dollar Store

In today’s economy, many people see the benefit in learning how to start a dollar store. That’s because this industry is thriving right now. Whereas it used to be that only lower income families shopped at dollar stores, now it is mainstream and acceptable for everyone.

When thinking about how to start a dollar store, keep in mind that you have two primary options: You can purchase a franchise, or go it alone. The franchise route is fairly expensive, and you will likely have to give up a portion of your profits for as long as you are associated with the franchise company. On the other hand, there are some significant advantages to franchises, including:

  • A nationally recognized name (usually)
  • Startup assistance and training
  • A proven operating model
  • A steady supply of merchandise
  • Advertising support

The most difficult thing about starting a dollar store on your own might be finding a reliable supply of merchandise for your store. Locating reliable suppliers for the kind of merchandise you will carry can be a challenge.

The concept behind a dollar store is, of course, that every item in the store is priced at one dollar or less. This does not allow for a lot of profit margin on many items, but on some merchandise, you might be surprised how high the margins are.

What You’ll Need to Succeed

Your location is one of the most important factors when learning how to start a dollar store. You want your store to be easy to find, have a lot of available parking and have excellent drive by visibility. But you also need to make sure your dollar store is located close to where your primary customer base is. While many in the middle class now use dollar stores regularly, you will typically find them in lower to lower middle class areas of town.

When running the numbers on your dollar store concept, be sure to account for shrinkage in the form of theft as well as broken merchandise. The items you are selling are priced so low that when something breaks, even during shipment, it is often not worth the time and expense to get it replaced by the manufacturer – and most have a no-warrantee, no-exchange, no-refund policy anyway.

Some of the common merchandise you will often find in dollar stores include:

  • Food items
  • Toys
  • Health and beauty products
  • Household and kitchen items
  • Gadgets and automotive items

Keeping a constant flow of product coming to your store will be a big part of finding success in starting a dollar store. The good news is that your merchandise doesn’t cost nearly as much as most retail operations, so you will be able to afford to stock your dollar store floor to ceiling!

Employees at dollar stores are not typically paid very high wages, so you won’t spend a lot on labor, but it might be worth paying a little more for a staff that will treat your customers well. There is competition in the dollar store industry, and if you can become known as the friendly dollar store, you will have an edge. In any case, learning how to start a dollar store can lead to a prosperous entrepreneurial venture.

28 Responses to “How to Start a Dollar Store”

  1. great experience, dude! thanks for this great post on how to start a dollar store wow… it’s very wonderful report.

  2. You have a lot helpful ideas about the opening of a dollar store! Perhaps I should think of trying to do this myself.

  3. Pebbles says:

    Good job making it appear easy. Learning how to start a dollar store isn’t as complicated as I thought.

  4. Cady says:

    It’s about time someone wrote about this. With so many dollar stores you’d think there would be more info on how to start one!

  5. Tilly says:

    Woah nelly, how about them apples!

  6. Priest says:

    So true. Honesty and everything recognized.

  7. Coralyn says:

    Not bad at all flelas and gallas. Thanks.

  8. Morey says:

    This is the perfect way to break down this infomrtaion.

  9. Kalie says:

    I didn’t know where to find this info then kaboom it was here. Who thought learning how to start a dollar would be this easy!

  10. I could not have reported it any better to be truthful! Keep up the excellent work, as I shall certainly be a returning reader.

  11. Many thanks for spending some time to provide this document. This article has been very useful for me personally.

  12. Bodybuilding says:

    Hello you cos i very much like your great site, I wuold be very honored if you would ask me to publish a long review about your fine website on my would you allow me that?

  13. We would like to thank you just as before for the lovely ideas you offered Jesse when preparing her post-graduate research plus, most importantly, regarding providing many of the ideas in a blog post. Provided we had known of your website a year ago, we may have been kept from the nonessential measures we were having to take. Thanks to you.

  14. Lovely just what I was searching for. Thanks to the author for taking his clock time on this one.

  15. Thanks a lot for this post 😉

  16. Good post, I just IMd the link to a buddy who was doing a little research on this. Thanks again. It’s really helpful!

  17. good blog. helped me a lot to figure out how to start a business and make money.

  18. e-ticaret says:

    I will immediately take hold of your rss feed as I can not find your e-mail subscription link or newsletter service. Do you have any? Kindly allow me realize so that I may subscribe. Thanks.


Leave a Reply


Viral Marketing Loophole... Banks $67,540 In Just 30 Days - CLICK HERE!