99 Cents Only Stores

According to the store manager at a local 99 Cents Only Store I interviewed, you would be surprised at the kinds of people who shop at 99 cent stores. Saul told me: We attract customers from across the economic and social spectrum. Question: Why there is a market for the products? I think everyone is interested in finding a bargain. We offer bargains. We survive as a chain because we buy in bulk and sell in bulk. Question: How does this chain make a profit selling products for 99 cents? We buy in bulk. We buy at a discount. We pay cash to suppliers to get even bigger discounts. Once we own it, we sell it. This is a volume business. We don't have merchandise, change that, we don't want merchandise sitting on the shelves gathering dust. Our goal is to turn the inventory into cash as quickly as we can and that is part of the reason our company's financial statements are rock solid. We're the Southwest airlines of retailing. We do what other retailers wish they could figure out how to do and how to get away with it.

Question: What is the most commonly asked question? That's easy: "How much is this?" There are a few closeout items in the store that cost more than 99 cents, but those items are clearly marked. We do our best to make sure that the items that are more than 99 cents are separated from the rest of our inventory and clearly marked. Unfortunately, every day there is at least one disagreement at the cash register with a customer

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with a comparable footprint in terms of square footage. Question: What kinds of merchandise do you sell? We sell lots of things. We are known for selling household consumables. We sell health and beauty aids, tools, cleaning supplies, dishes, plates, towels, toys, canned food, and novelty items. We also sell stationary and school supplies, party supplies and baby products. Question: Are there real bargains in this store? Sure, we feature regularly available products as well as closeouts. The closeouts are often sold at bargain prices and the regular products are a bargain by most peoples' standards. Question: Who selects the inventory for the store? Fortunately, it is not me. Every time I predict a new product or a special buy closeout is going to fly off the shelf, it dies. Every time I think something new is going to crash and burn, it does just the opposite. The products we stock come from our local distribution center. The products carried by the local DC are selected by our buyers. They seem to have a knack for knowing what the customer wants, where we can get it, and how we can convince the seller or manufacturer to allow us to buy it, ship it, store it, deliver it and sell it and still make a profit even on a 99

Category: Business - 9