The laws of supply and demand also apply in this case. However, the dollar store wholesale price must remain low otherwise it wouldn’t make sense for dollar stores to buy these items. Wholesalers are focused on selling in bulk. It is also important to consider that as a retailer your average purchase price if you are selling for $1 should be around 0.60.
Goods must be relatively cheap, it can be painstaking for suppliers especially when you consider the quality, variety, and packaging. Stores demand quality as well as properly packaged products to attract customers. Balancing the quality and packaging of products against associated costs is challenging for manufacturers. Your costs for products can be .25 and they can be .85 but overall if your products for a dollar store are around 0.60 you are profitable.
Dollar store retailers are constantly looking for new products to stock up. It’s a great opportunity for suppliers who have excess inventory to release these products on the cheap. There is a huge benefit for suppliers to work with dollar stores including;
- They have huge buying power
- They can buy tens of thousand if not millions of merchandise
- The market is growing tremendously as the stores are very popular
There is an impressive supply network of suppliers offering over 20,000 unique products in the united states. Hence you have a huge number of suppliers to choose from. As a store owner, you have 100% control of your inventory. In addition, stores can order directly from manufacturers, however, ordering through wholesalers can assist in completing the orders which are suitable and convenient for the store owners. When new products are made available, wholesalers play a pivotal role in communicating to the store owners of their availability. This allows you stock up new products as quickly as possible.