robdog696
Member
You're right about everything you said. I just want to give you two examples though. Where I live there are two LFSs. Both are successful in different ways.
1. This store is not much to look at. He carries the same fish all the time. But I know if I buy one of those fish it is eating spirulina and is ick free. I'm taking no chances buying from him. He has an office in the back, where he invites all his regular customers to sit and converse. Many bring him breakfast or lunch or stop by just to say hi. He carries only soft corals, and he keeps a good supply of the things HE uses in his aquariums in stock. You will not find much of a variety in his store. He holds 75% of the service contract for the area, however. And he only has one full time employee. He does well for himself.
2. This store is my favorite place to go after dinner with the girlfriend. She gets to hold a puppy. I get to stare at fish. The employees are nice to the point of annoyance sometimes. Prices are reasonable. A new fish order comes in every Friday. But a lot of this store's merchandise "slips through the cracks". With the amount of profit he loses on unhealthy fish, too many employees, and not enough service contracts he barely takes home a profit.
Where do I go more? Store 2! Where do I spend more money? Store 1! So, my point is not that there isn't money in retail. My point is that, as you said yourself, the retail gives you the opportunity to buy wholesale for your service clients.
In the end, you have to do WHAT WORKS FOR YOU. If you can't keep a tang healthy in your own aquarium then it's probably best not to try to sell them. But if you can keep fifteen tangs happy and healthy in your own aquarium then that's a wonderful variety you can offer your customers, because you don't have to worry that if you can't sell them within a week you will start losing profit. Retail is tricky. A good example. I asked the owner of store #1 why he won't carry some corals I like. His response was as simple as this. 4 corals at $35 (his cost) that he sells for $50 each nets him a profit of $60. If just one of those corals dies before he can sell it, he just lost $35 and is now only making $45, for a new net profit of just $10. If two corals die he has now lost money.
Not trying to be a fatalist, just explaining that investing too much money in retail can prove hazardous if you don't have the service income to back it up. I wish you the best of luck! You sound like you have a passion for this and will do well no matter how you decide to go about it!
1. This store is not much to look at. He carries the same fish all the time. But I know if I buy one of those fish it is eating spirulina and is ick free. I'm taking no chances buying from him. He has an office in the back, where he invites all his regular customers to sit and converse. Many bring him breakfast or lunch or stop by just to say hi. He carries only soft corals, and he keeps a good supply of the things HE uses in his aquariums in stock. You will not find much of a variety in his store. He holds 75% of the service contract for the area, however. And he only has one full time employee. He does well for himself.
2. This store is my favorite place to go after dinner with the girlfriend. She gets to hold a puppy. I get to stare at fish. The employees are nice to the point of annoyance sometimes. Prices are reasonable. A new fish order comes in every Friday. But a lot of this store's merchandise "slips through the cracks". With the amount of profit he loses on unhealthy fish, too many employees, and not enough service contracts he barely takes home a profit.
Where do I go more? Store 2! Where do I spend more money? Store 1! So, my point is not that there isn't money in retail. My point is that, as you said yourself, the retail gives you the opportunity to buy wholesale for your service clients.
In the end, you have to do WHAT WORKS FOR YOU. If you can't keep a tang healthy in your own aquarium then it's probably best not to try to sell them. But if you can keep fifteen tangs happy and healthy in your own aquarium then that's a wonderful variety you can offer your customers, because you don't have to worry that if you can't sell them within a week you will start losing profit. Retail is tricky. A good example. I asked the owner of store #1 why he won't carry some corals I like. His response was as simple as this. 4 corals at $35 (his cost) that he sells for $50 each nets him a profit of $60. If just one of those corals dies before he can sell it, he just lost $35 and is now only making $45, for a new net profit of just $10. If two corals die he has now lost money.
Not trying to be a fatalist, just explaining that investing too much money in retail can prove hazardous if you don't have the service income to back it up. I wish you the best of luck! You sound like you have a passion for this and will do well no matter how you decide to go about it!
