What does it take to open a new dollar store?

What is it you want?

  • Merchandise for an existing store or stores?
  • Help setting up a new independent store?
  • Open an Overseas franchise “Online My Dollarstore” ?
  • Analysis of sales, and marketing operations?

What is next important?

The Products
  • High quality means repeat business
  • Wide variety means larger sales
  • Name brands mean more sales
  • Proper mix means more sales/profit
  • Good margins mean good profit
  • Single source means less work

Your New Store

My Dollarstore sales are way up!

Why My Dollarstore LLC ?

  • Being a volume distributor My Dollarstore passes on great pricing to its store owners.
  • My Dollarstore is committed to providing the assistance you need to tap into your share of this growing market.
  • Our name alone wins you a following of loyal customers who count on My Dollarstore to provide the products and service they need for their daily use.
  • My Dollarstore is the only corporation which provides everything you need to run a competitive My Dollarstore and have a online Wholesale Catalog with over 20,000 products.
  • My Dollarstore provides individuals who are ready to invest in a business of their own My Dollarstore business.

Independent My Dollarstore

What My Dollarstore offers to Independent Store owners:

What Size Store?

  • The amount of money you have, the desired income and the location will determine the size of the store.
  • If money is not an issue for you than and the location is right, than in general, the bigger the store the better, and more income you make.
  • We have seen successful stores from 1,000 up to 20,000 sq ft, however, most stores are between 4000 and 10,000 sq ft. (Stores over 10,000 ft require more management)
  • The over all trend is toward larger stores, and specialization.
  • However, if you are not experienced then it is better to have two 6000 ft stores rather than one 12,000 ft store

Why Bigger Is Better ?

Three main reasons to consider a larger store:
  • In general, the total overhead taken as a percentage of sales is less for larger stores, thus yielding greater net profits.
  • Larger stores carry a greater variety of products which will interest a wider variety of people, and which should also create larger My Dollarstore purchases per person.
  • Larger stores allow one or more sections of the store to specialize in items needed by the local community, such as a “mini party supply”, “mini stationary” or “mini toy” store within the main store.

What Areas Are Good?

Finding Your Own Store

  • Make sure the location is in a stable area.
  • Make sure that there is good traffic.
  • Have one to two good anchor stores that are doing retail business.
  • Watch the flow of people around the site your are looking at, to see if they will see your new store.
  • Talk to the small stores adjacent to the area you want to see how well they are doing.
  • What will bring people through your front door?

Why My Dollarstore?

For a small fee we provide:
  • Store layout and design for your site.
  • Startup inventory product mix.
  • Merchandise planning.
  • Merchandise Plan-O-Gram layout.
  • Startup and setup consulting
We also provide you with quality wholesale shelving and fixtures

Store Layout (Result)

Fixtures

Basic Items:
  • Your walls should be “Slat Board” or “Gridwall” so that you can use hooks to hang merchandise.
  • Shelving will be a combination of gondolas and wall units using: shelves, hooks and bins.
  • Counters for Cashier and Office area. (Cash wraps)
  • Greeting Card Racks, Sunglasses Display, etc.
  • Costs should run $3 to $7 per sq. ft.
Other Store Items:
  • Refrigeration units for drinks and some foods. (if applicable)
  • Safes, security cameras and recorders, telephones, fax, computer system, and more.
  • Signage, posters and in store displays.
  • Costs should add another $1- 2 per sq. ft.

POS/Management System

  • POS/SOS system is recommended for all stores over 2000sf. (Our system comes with over 100,000 items and their codes already entered.)
  • Our integrated Store Operating System (SOS) will handle the Point of Sale functions, track customers, handle debit/credit cards, track inventory, generate orders, incorporates a General Ledger, and integrates with more sophisticated Microsoft compatible accounting systems.
    – (And don’t forget that you will not have to enter all those thousands of products that we send you into your system if you use our POS.)

Other Important Items

that you must have startup cash for
  • Store Lease w/Common Area (2 mo. Minimum)
  • Employee Salaries (2 mo. Minimum)
  • Deposits and Insurance
  • Signs for the Store and Marquee
  • Advertising for the Grand Opening
  • Working Capital and Misc.

Training

My Dollarstore training
– Managerial for 2 people:
  • SOS / POS Management System
  • Basic My Dollarstore Business Model Development
  • Detailed Management and Operations
  • In Store and Classroom Training
– Cost will vary for additional attendees.

Example 5000’ Store 5yr Projections

Store Size: —– 5000 Sq. Ft. —– —– Average Sales/Customer Years 2-5: $8.65 —– —– —–
NOTE: Nothing in this projection shall be construed as a guarantee of sales or income. See Assumptions below.
Description %inc. Year 1 —- Year 2 Year 3 —- Year 4 —- Year 5 —- Totals
Income —-
Avg Customers/day 329 353 371 382 393 —- —-
Customers/year 1,18,350 1,27,080 1,33,560 1,37,520 1,41,480 6,57,990
Sales #### 100% $10,99,242 100% $11,55,294 100% #### 100% #### 100% $57,34,237 100%
Cost of Goods ($6,39,808) -60% ($6,59,545) -60% ($6,93,176) -60% ($7,13,729) -60% ($7,34,281) -60% ($34,40,539) -60%
Freight ($63,981) -10% ($65,955) -10% ($69,318) -10% ($71,373) -10% ($73,428) -10% ($3,44,054) -10%
Gross Profit $3,62,558 $3,73,742 34% $3,92,800 $4,04,446 $4,16,093 $19,49,639
Operating Expenses
Rent 2% ($90,000) -8.4% ($91,800) -8.4% ($93,636) -8.1% ($95,509) -8.0% ($97,419) -8.0% ($4,68,364) -8.2%
Utilities 1% ($7,200) -0.7% ($7,272) -0.7% ($7,345) -0.6% ($7,418) -0.6% ($7,492) -0.6% ($36,727) -0.6%
Insurance (Liability) 1% ($3,000) -0.3% ($3,030) -0.3% ($3,060) -0.3% ($3,091) -0.3% ($3,122) -0.3% ($15,303) -0.3%
Telephone 1% ($1,596) -0.1% ($1,612) -0.1% ($1,628) -0.1% ($1,644) -0.1% ($1,661) -0.1% ($8,141) -0.1%
Supplies 2% ($3,396) -0.3% ($3,464) -0.3% ($3,533) -0.3% ($3,604) -0.3% ($3,676) -0.3% ($17,673) -0.3%
Advertising 3% ($3,000) -0.3% ($3,090) -0.3% ($3,183) -0.3% ($3,278) -0.3% ($3,377) -0.3% ($15,927) -0.3%
Security 1% ($756) -0.1% ($764) -0.1% ($771) -0.1% ($779) -0.1% ($787) -0.1% ($3,856) -0.1%
——–
Legal & Accounting 1% ($1,800) -0.2% ($1,818) -0.2% ($1,836) -0.2% ($1,855) -0.2% ($1,873) -0.2% ($9,182) -0.2%
——-
Store Mgr./Owner 5% ($36,000) -3.4% ($37,800) -3.4% ($39,690) -3.4% ($41,675) -3.5% ($43,758) -3.6% ($1,98,923) -3.5%
Payroll 3% ($83,136) -7.8% ($85,630) -7.8% ($88,199) -7.6% ($90,845) -7.6% ($93,570) -7.6% ($4,41,380) -7.7%
Payroll Taxes @ 15% 15% ($14,296) -1.3% ($18,515) -1.7% ($19,183) -1.7% ($19,878) -1.7% ($20,599) -1.7% ($92,471) -1.6%
Worker’s Comp @ 3.0% 3% ($2,494) -0.2% ($2,569) -0.2% ($2,646) -0.2% ($2,725) -0.3% ($2,807) -0.3% ($13,241)
——-
Misc. Expenses 10% ($2,241) -0.2% ($2,465) -0.2% ($2,712) -0.2% ($2,983) -0.3% ($3,281) -0.3% ($13,683) -0.2%
——-
Total Operating Expenses ($2,48,916) -23.3% ($2,59,828) -23.6% ($2,67,423) -23.1% ($2,75,283) -23.1% ($2,83,422) -23.2% ($13,34,872) -23.3%
——-
Net Cash Flow $1,13,642 10.7% $1,13,914 10.4% $1,25,377 10.9% $1,29,163 10.9% $1,32,670 10.8% $6,14,767 10.7%
——-
Cumulative Cash Flow $1,13,642 $2,27,556 $3,52,933 $4,82,096 $6,14,767

Example 8000’ Store 5yr Projections

Store Size: —– 8000 Sq. Ft. —– —– Average Sales/Customer Years 2-5: $8.75 —– —– —–
NOTE: Nothing in this projection shall be construed as a guarantee of sales or income. See Assumptions below.
Description %inc. Year 1 —- Year 2 Year 3 —- Year 4 —- Year 5 —- Totals
Income —-
Avg Customers/day 464 499 519 535 551 —- —-
Customers/year 1,66,950 1,79,640 1,86,840 1,92,600 1,98,360 9,24,390
Sales #### 100% $15,71,850 100% $16,34,850 100% #### 100% #### 100% $81,29,428 100%
Cost of Goods ($9,01,094) -60% ($9,43,110) -60% ($9,80,910) -60% #### -60% #### -60% ($48,77,654) -60%
Freight ($90,109) -10% ($94,311) -10% ($98,091) -10% ($1,01,115) -10% ($1,04,139) -10% ($4,87,765) -10%
Gross Profit $5,10,620 $5,34,429 34% $5,55,849 $5,72,985 $5,90,121 $27,64,004
Operating Expenses
Rent 2% ($1,44,000) -9.6% ($1,46,880) -9.3% ($1,49,818) -9.2% ($1,52,814) -9.1% ($1,55,870) -9.0% ($7,49,382) -9.2%
Utilities 1% ($11,520) -0.8% ($11,635) -0.7% ($11,752) -0.7% ($11,869) -0.7% ($11,988) -0.7% ($58,764) -0.7%
Insurance (Liability) 1% ($4,800) -0.3% ($4,848) -0.3% ($4,896) -0.3% ($4,945) -0.3% ($4,995) -0.3% ($24,485) -0.3%
Telephone 1% ($2,556) -0.2% ($2,582) -0.2% ($2,607) -0.2% ($2,633) -0.2% ($2,660) -0.2% ($13,038) -0.2%
Supplies 1% ($5,436) -0.4% ($5,490) -0.3% ($5,545) -0.3% ($5,601) -0.3% ($5,657) -0.3% ($27,729) -0.3%
Advertising 3% ($4,800) -0.3% ($4,944) -0.3% ($5,092) -0.3% ($5,245) -0.3% ($5,402) -0.3% ($25,484) -0.3%
Security 1% ($1,200) -0.1% ($1,212) -0.1% ($1,224) -0.1% ($1,236) -0.1% ($1,249) -0.1% ($6,121) -0.1%
——–
Legal & Accounting 1% ($2,880) -0.2% ($2,909) -0.2% ($2,938) -0.2% ($2,967) -0.2% ($2,997) -0.2% ($14,691) -0.2%
——-
Store Mgr./Owner 5% ($36,000) -2.4% ($37,800) -2.4% ($39,690) -2.4% ($41,675) -2.5% ($43,758) -2.5% ($1,98,923) -2.4%
Payroll 3% ($96,992) -6.5% ($99,902) -6.4% ($1,02,899) -6.3% ($1,05,986) -6.3% ($1,09,165) -6.3% ($5,14,944) -6.3%
Payroll Taxes @ 15% 15% ($15,959) -1.1% ($20,655) -1.3% ($21,388) -1.3% ($22,149) -1.3% ($22,939) -1.3% ($1,03,090) -1.3%
Worker’s Comp @ 3.0% 3% ($2,910) -0.2% ($2,997) -0.2% ($3,087) -0.2% ($3,180) -0.2% ($3,275) -0.2% ($15,448)
——-
Misc. Expenses 5% ($3,153) -0.2% ($3,468) -0.2% ($3,815) -0.2% ($4,196) -0.2% ($4,616) -0.3% ($19,246) -0.2%
——-
Total Operating Expenses ($3,32,205) -22.1% ($3,45,322) -22.0% ($3,54,751) -21.7% ($3,64,496) -21.6% ($3,74,570) -21.6% ($17,71,345) -21.8%
——-
Net Cash Flow $1,78,414 11.9% $1,89,107 12.0% $2,01,098 12.3% $2,08,489 12.4% $2,15,551 12.4% $9,92,659 12.2%
——-
Cumulative Cash Flow $1,78,414 $3,67,522 $5,68,619 $7,77,108 $9,92,659