Knowing how to successfully reduce freight costs is a required skill for every person who is about to open a dollar store. Freight costs add significantly to the cost of good sold. As fuel prices increase, freight costs tend to increase as well. Fortunately there are several steps that every business owner can take to help reduce freight costs for their business.
Consider getting an agreement from the wholesaler, distributor or importer where you are buying. Agree that freight charges will be frozen at a set percentage of the total order. The lower the percentage charged for the freight, the better for the entrepreneur. As most who open a dollar store know, always be willing to say NO to this agreement if freight plus merchandise combine to an unacceptably high cost.
Some who open a dollar store have been able to find other businesses that are willing to share trailers for long distance hauling. While this takes a little effort and some trust, it can save everyone involved big dollars. Take the initiative to make a few calls when you have the need to haul freight long distances.
Make sure that pallets are filled to the height of the truck. Much of the time there will be unused space on pallets being shipped long distances. Any empty space on a pallet is still being charged to you. Never pay for empty space. That is huge waste of freight money.
When you open a dollar store the cost of goods sold will become a major indicator of success. Set goals to that include continually reducing your cost of goods sold.Intelligently examine all of the costs related to items that you purchase for resale. Freight should be at the top of your list.
