Re: as always 2 sides this coin Mr. D.........

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Posted by m chambers on July 20, 2001 at 13:35:35:

In Reply to: Because breeders don't have to deal with the general public... posted by Mr. D on July 19, 2001 at 22:51:07:

i'm sure there are pet stores in this mode but a large percentage are not. They just DON"T know any better. How about the consumer that just plain don't want to spend the money. This is more of a percentile then a petstore trying to make a buck from drygoods. I will repeat the miss-understood of percentage of mark-up index in the retail pet market.
On a given day you can buy a 10 gallon tank alone for $6.50-$7.00 wholesale. Unless you have NO competetors around you might be able to sell this 10 gallon for $12.00 but in the years of my retailing you had to go with $9.98 or less. (this is all based on a privately owned retail shop ). So here we have a $3.00 profit. A lid of some kind , probably a screen, that runs at wholesale the same price and sells for the same. Here is another $3.00 profit. The biggest mark-up is the iguana itself. Wholesale any place around $1.50 to $3.00. It sells for $7.95- $12.95. Let's say at average price wholesale bought for $2.25 and average retail of $9.95. Profit of $7.70. let's do the math.
averaging wholesale: $6.50......tank
5.50......lid
2.25......iguana (shipping included ?)
total wholesale price of $14.25

averaging retail mark-up: $10.95......tank
9.95.......lid
9.95.......iguana
total sale of $30.85

a profit of.......$16.60.......oh..a lot of profit.
Now let's take out percentages of : salary/payroll, overhead expenses, utilities, unexpected problems, taxes. yada, yada.
So does the small retail stores make it ? Do they make a killing ? I think not. Most people that I know in the smaller retail pet business has to hold down another job to make ends meet. BEEN THERE.......DONE IT !!!!!!!!

M Chambers

: whereas the pet shops ordering iguanas are making a small profit from each lizard but also making an absolute KILLING on supplies. A new reptile owner, whether iguana, water dragon, uromastxy or anything else, will in most cases be easily convinced that whatever they are buying can be easily housed in a 10g tank with a heat rock and a basking bulb. That's $60 right there.
: Retail stores are in it for the repeat supply business. What better way to assure repeat business than to constantly misinform a new reptile owner?

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: i'm sure there are pet stores in this mode but a large percentage are not. They just DON"T know any better. How about the consumer that just plain don't want to spend the money. This is more of a percentile then a petstore trying to make a buck from drygoods. I will repeat the miss-understood of percentage of mark-up index in the retail pet market. : On a given day you can buy a 10 gallon tank alone for $6.50-$7.00 wholesale. Unless you have NO competetors around you might be able to sell this 10 gallon for $12.00 but in the years of my retailing you had to go with $9.98 or less. (this is all based on a privately owned retail shop ). So here we have a $3.00 profit. A lid of some kind , probably a screen, that runs at wholesale the same price and sells for the same. Here is another $3.00 profit. The biggest mark-up is the iguana itself. Wholesale any place around $1.50 to $3.00. It sells for $7.95- $12.95. Let's say at average price wholesale bought for $2.25 and average retail of $9.95. Profit of $7.70. let's do the math. : averaging wholesale: $6.50......tank : 5.50......lid : 2.25......iguana (shipping included ?) : total wholesale price of $14.25 : averaging retail mark-up: $10.95......tank : 9.95.......lid : 9.95.......iguana : total sale of $30.85 : a profit of.......$16.60.......oh..a lot of profit. : Now let's take out percentages of : salary/payroll, overhead expenses, utilities, unexpected problems, taxes. yada, yada. : So does the small retail stores make it ? Do they make a killing ? I think not. Most people that I know in the smaller retail pet business has to hold down another job to make ends meet. BEEN THERE.......DONE IT !!!!!!!! : M Chambers : : : : whereas the pet shops ordering iguanas are making a small profit from each lizard but also making an absolute KILLING on supplies. A new reptile owner, whether iguana, water dragon, uromastxy or anything else, will in most cases be easily convinced that whatever they are buying can be easily housed in a 10g tank with a heat rock and a basking bulb. That's $60 right there. : : Retail stores are in it for the repeat supply business. What better way to assure repeat business than to constantly misinform a new reptile owner?

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