Posted on: 14-01-05 04:00:58
Hi freinds. I am intrested in opening a Dollar store in Mississauga/Brampton area. Max. Investment i can arrange is 80k. What is the mimimum requiremant for a good dollar ????. what are the profit margin?? I am looking for a Income level of around 2000-3000 CAD/Month which is based on the assumption that I & my wife will be working there. No outside employee. What about good corner store?
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Driller the thriller
Try to find out on net with different sites for Franchises.
I am providing you one link, you can try on that also.
http://www.quickiestores.com/
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Rabyte
In dollar stores your success depends on the supplier. If you are given a suitable rate then you can make money. Search the free resource, internet.
As far as my study goes, and it could be different from others' views, the gross profits in Dollar stores are in the range of 35%. Usually the rent, utililities etc. make up about 15-18% leaving a net margin of anywhere between 17-20%, which does not include owners wages.
To make $3000 pm,or 36K, you will need a turnover of about 225K or say a sale of about $600 per day, just to feed yourself. In case you keep another employee, the sales will have to be more accordingly.
to achieve a sales of 225k per annum, I assume you will need to have an inventory of about 40-45k based on a inventory turnover of 2 months. A working capital (cash) of about 20k would be needed and initial set up expenses for a good store would be about $80 psf.
Now you can perhaps work out the possibility of opening a store. Justg remember, banks might finance the fixed assets, but not inventory in the initial period.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
this is the first time im visiting this site,,and i could see your business interest..anyway i have already talked to dollar store people and have the booklet and info which they have send me,,if u want i can send them,,,
the investment starts from 40 k to 100000 k ++
Regards,
jenny
According to internal studies done by the bank. Dollar store rarely get closed and has the least risk where as restaurant has highest risk of getting closed. So getting loan wont be a problem.
