A Guide to Business


eg: UK or Brides UK or Classical Art or Buy Music or Spirituality

Business & Money

Technology

Women

Health

Education

Family

Travel

Cars

Entertainment

Featured Sites

Opening A Dollar Store ~ Inventory Turns Are Important

View:

When opening a dollar store there are many indicators of success. They range from bottom line profit to undesired employee turnover. However one of the most important is inventory turns.

What are inventory turns anyway? This is simply a measure of the number of times that the full cost of the store’s inventory is sold. It is measured on an annual basis. For example, if after opening a dollar store the inventory for your store is maintained at $1,000,000, and annual sales are $8,000,000, then there are eight inventory turns per year for that store ($8,000,000 sales divided by $1,000,000 store inventory.).

When opening a dollar store, the goal is to maximize the number of inventory turns per year. The more inventory turns, the harder the money that is invested in inventory is working for you. A reasonable goal for a family owned store is to achieve six-to-eight inventory turns per year.

There are two strategies that work well for increasing the inventory turns for those who are opening a dollar store. Both need to be considered when looking at ways of achieving desired inventory turns levels. The first is inventory reduction and the second is increasing sales.

Increase inventory turns by reducing the inventory that is being maintained in the store. By carefully eliminating or at least reducing the inventory of items that sell slowly, the inventory turns number will increase. Care needs to be taken that inventory reductions aren’t so great as to impact total sales however. When you are opening a dollar store the worst thing that could happen would be to sharply reduce inventory without fully understanding the impact to sales.

When opening a dollar store inventory turns can be increased by increasing total store sales. The higher the sales level while maintaining the same inventory levels, the higher the inventory turns for the store. Care must be taken to ensure that inventory levels of core products be maintained at appropriate levels. As sales go up, expect core products sales to go up as well. Without consistently maintaining core products such as household cleaners, paper good, and health and beauty items sales will drop.

To Your Dollar Store Success!

Related Articles
Author
Most Popular

Bob Hamilton has sinced written about articles on various topics from Small Business, How to Sell on Ebay and Property Agents. Are you interested in Opening your own Dollar Store?Visit http://www.openingadollarstore.com to find out more!. Bob Hamilton's top article generates over 49500 views. Bookmark Bob Hamilton to your Favourites.

3 Month Old Baby Toys
So, compare the online offers and see which one suits you better. Do not stretch the repayment for more weeks as it involves burdensome penalties and interest payments