Hauler Bank
Hauler Bank
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4 Great Tactics to Reduce Dollar Store Merchandise Freight Costs
There’s nothing more frustrating than finding a great buy on dollar store merchandise and finding freight costs are so high they cause the deal to be unprofitable. When you open a dollar store it is important to be prepared to handle those situations when they arise. While walking away is certainly an option, there are other tactics to consider before you lose a deal that will please your shoppers and your bank account. In this article I present 4 great tactics to reduce freight costs. These tactics can reduce your freight costs for everyday orders, as well as for those special deals that arise from time to time.
Tactic #1) Start buying more from dollar store merchandise suppliers offering freight caps and prepaid freight. While there aren’t many wholesalers and distributors still offering this as a part of their sales program, they do exist. Focus your buying on these companies whenever possible. Since freight is part of the cost-of-goods-sold calculation for most who open a dollar store, take advantage of the opportunity to pay little or no freight and save.
Tactic #2) Locate and use a freight broker. Freight brokers can provide a valuable service to smaller retailers. They often work with smaller haulers and can locate last minute available space for your merchandise on trucks. Often there can be a reduced rate negotiated to completely fill the truck; especially at the last minute. When you open a dollar store those breaks in pricing can add up to big savings and lower cost-of-goods-sold for your store.
Tactic #3) Guarantee freight shipments at regular intervals. It is well worth your time to work with freight brokers and haulers to work out a program guaranteeing them you will take 1, 2 or even more pallet spaces on every load shipping on specified dates. To the trucking company this provides knowledge that every load on those dates will start with your agreed pallet space already filled. They can focus on filling the rest of the truck. For you there will often be a guaranteed rate for the designated space.
Tactic #4) Share trailer space with other companies. When you open a dollar store get to know the neighboring businesses around you store. Also get to know other dollar stores and discount stores in your area. Work with these retailers to share trailer space. While this can take some work, you can save a great deal of money for all involved by working together. That work will reward you as the cost of shipping your dollar store merchandise drops lower and lower.
To your dollar store success!
About the Author
Find out how you can open your own dollar store business.
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
