Everyone gets their cut

S

superstein61

AC Members
Dec 10, 2002
448
0
0
Pittsburgh
Visit site
Its interesting to look at the prices of this hobby and the markup. Now I am not saying this is bad - shoot everyone needs to make a living - but I love looking at how something that costs maybe $.50 can get marked up to over $5.00 at your LFS.

I say this because I had the chance recently to shop at a local Pet Wholesaler going out of business. They occupy the same building as a breeder I got my fish from. They only sold to pet stores in the area and stocked many popular brands.

They are having a quiet sale (basically anyone who visits the breeder has a chance to shop until they sell all their stuff in bulk). I was able to buy things at 50% off wholesale (which I figure is their cost).

So - just for some comparison purposes, here are a few things I bought. And if we assume that the 50% off of wholesale is what they bought the product for, then the company that makes it probably also had a similiar type mark-up on it as they need to make a profit as well.

I will list things in this order:

Product Name
1. The Price I paid (50% off wholesale - or lets assume the wholesalers cost)
2. Wholesale cost (what your LFS pays for it)
3. Cost if you bought from a major online store (I used fostersmith for comparison) (I would assume a major seller would buy direct from the company and not go thru a wholeslaer)
4. Approx cost if you bought form your LFS

OSI Spirulina Flake 1.09oz

1. $1.45
2. $2.90
3. $3.99
4. $5.00

OSI Brine Shrimp Flakes 1.09oz

1. $1.12
2. $2.25
3. $3.39
4. $5.00

150 Watt Heater

1. $4.30
2. $8.60
3. $15.99
4. $21.99

Wardleys Cichlid Bites 2.5oz

1. $1.10
2. $2.20
3. ?
4. $5.61

Wardleys Cichlid Ten Mini 1.1oz

1. $0.41
2. $0.82
3. ?
4. $4.90
 
Once upon a time I worked for a company that manufactured housewares. Someone explained to me once that products generally doubled in price every time they changed hands. What cost a vendor $1.00 to make we bought for $2, sold to the stores for $4 and retailed for $8. (Walmart could get it for $3.50 and sell it for $7, just because you couldn't afford not to do business with them).

Everyone takes a cut. Everyone also had transport, storage, and overhead costs that ate up a good piece of that cut. Profit margins aren't really all that high.
 
My LFS buys in Kribs for 84p and sells them for £3.50-£4.50. I suppose theyve got to account for fatalities, overheads and still make a profit though. Hmmmm...
 
My cousin knows a guy who owns a fish store and he said that for the price of the expensive fish, the guy buys them for like 1/3 of the price. Thats crazy.
 
Hey guys. This is America....it's the way it's done here. I owned a book store and got a 40% mark up(the norm for books) because what you didn't sell was returnable. Most businesses get 50-60% because they have to "eat" what they don't sell. Why should fish stores be any different? Don't forget, fish are also a perishable item. Places like Big Al's can sell cheaper because they buy and sell in bulk. Most "little guys" don't have the same option due to lower volume. I'd rather spend a little more at my LFS than only have PetSmart to deal with.
Len
 
You must log in or register to reply here.
AquariaCentral.com
Top Bottom