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Average % Margin made by LFS's?
Posted: 24 Dec 2004, 15:44
by JonS
Just really interested what sort of margins a LFS would make on goods?
I guess different on different things i.e Fish, Dry Goods, Food etc
Anyone know?
Posted: 24 Dec 2004, 18:55
by stina
On fish they have minimum 100%
Posted: 26 Dec 2004, 23:10
by JonS
thought it must be something high like that. Obviously other things like equipment will be much lower.
Thanks
Posted: 27 Dec 2004, 00:07
by Robert Leonard
When I sell angels I get a $1-$1.25. They resell them for $4-$6. Hth
Posted: 27 Dec 2004, 00:43
by pleco_farmer
In DC metro area, markup is typically 200%. So, retail on fish is three times wholesale price. Therefore, I usually deal to 33% of retail for tank-raised. With the exception of L-046, which I dole out on an individual basis to LFS when they have a known buyer and we split the sale, I get it, and sometimes more.
Another approach is to check out his wholesale price lists, reminding the buyer that losses will be zero, acclimation is simplified, and there is no shipping charge. No LFS owner will turn down a match on a wholesale price, if the stock is going to sell.
Also, one of my customers loves to advertise fish as tank-raised. He believes that is it a big positive from an enivronmental point of view. Might be something to work with...
Posted: 27 Dec 2004, 00:55
by Shane
Barbie could speak best to this issue, but 200-300 percent is probably average.
1,000 Corydoras in Leticia US $7.00 (just common spp. from the Amazon)
Per Cory in Bogota (exporter) about 7 cents
Per Cory in Miami (importer) 25-40 cents
Your petstore?
-Shane
Posted: 27 Dec 2004, 02:10
by Barbie
Retail markup will depend on a few different factors. Dry goods are usually not marked up more than 50% above wholesale. Fish can be anywhere from 100-300% markup. Neon tetras tend to die easily (in a retail type sitation), cost 33-50 cents each depending on size, and are regularly sold for 1.49 to 1.99, depending on how good they come in. Plecos on the other hand are rarely marked at even a full 100% margin at the store I work in. I sell them quickly, so it doesn't tie up potential profit making money to stock them that way. If we lost many of them, that margin would have to be adjusted, obviously.
Competing with online companies that sell dry goods (Drs. Fosters and Smith orders are literally shipped directly from a Central Pet warehouse), can be very difficult. Our shop specializes in hard to find fish, and good information. It's not a bargain discount bin, but my wages, the rent, the power bill and any losses have to be offset somewhere.
Does that answer any of the questions you needed?
Barbie