Posted by:
mchambers
at Sun Jul 6 11:01:52 2003 [ Email Message ] [ Show All Posts by mchambers ]
( late on this thtread but ) > till you have a retail store of the monies are made and or spent and in consideration of this ornginal post : I had one of the biggest pet stores in the Kansas City area that had a total of 60 somewhat stores and other mass-merchant/ chain pet stores from 1990 untill 1999. We were a full line pet store with me being a reptile breeder of over 35 years. I bred for my own store and also bought from other breeders ( which even though they all knew me, many would not sell to other pet stores ). I also had to buy from various importers to keep up the supply and demand. You may want to look at it this way: if I didn't sell various herps rather captive bred or not, other stores would. Other stores may or may of not given out the knowledgement of care and other factores of the reptiles they were selling . I couldn't lose money because hey, I was in the business. Some of the captives that I had to buy were at times no better then some imports or wild caught animals.
Our reptile department was the most visited area of our 10,000 square foot business. Our reptile sales which included livestock and reptile supplies was up to 1/4 of our total sales. I have not seen a straight reptile store and or reptile stock and supplies store make it unless it was already an establish business or well known. I have never seen a full line reptile store make it unless it was a well thought, sink your money into, somewhat expensive operation.
Some one else on this thread has reported the monies involved on a retail business pertaining to a reptile store and or pet store. I will repeat and or maybe add some to this : our rent was $6,500 per month, our employees numbered at around 9- 12 on the average. We paid well beyond the national average wage. Our utilities averaged around anywhere from $1.400 to over $2,000 per month. We had to pay un-employement benifits on employees, employees tax, property taxes, ceratin permits involving livestock, sales tax ( state and federal ) workmans comp. , of course insurance and in our case on top of insurance a 5 million dollar umbrella policy in case of a accidental death in or around our premises that included our parking lot, and all of this is not even up to buying goods and animals yet. Any profits that this store made after paying all of the above had to be in reserve in case: a hot water heater went out, our air condition went out, emergency problems, some building problems not always covered by insurance, theft and shoplifting including employees, losses that is not related to the above, commonary maintence, and no doubt some that I have not remembered, forgotten.
Now on sales and buying: there is a " wheel " of profit margin. I have tried to explain this before on this forum of several years ago and to many people that know me. I have and have had people trying to tell me that a retail pet store is ridiculously priced on goods. If you are thinking this, go up there on the above and re-read it !
Profits of margin :
If you buy something for $1.00 and sale it for $2.00 you are making a profit of $1.00. Right ! WRONG ! Out of that $1.00 you are trying to pay all of the above. YOU CANNOT PAY FOR ALL OF THE ABOVE WITH THIS KIND OF PROFIT IN A RETAIL STORE ! So in order to pay all of the above with an operation like mine , you ( me ) had to make at least $2.00 profit and if you are lucky try for a $3.00 profit which was hard to do and within the supposedly $1.00-$2.00 or $3.00 profit pay for all and have a very smalll percentage outside of operations cost and overhead cost.
NOW READ MY TYPING:> you can only make that $2.00 to $3.00 profit if the market can bear it and in most places it cannot bear it ! Why ? Due to this original post, and compitetion.
I am not addressing the other issue of a bad retail petstore, etc. on this thread. Because I'm directing to only the $ of operations of a retail pet store and why so many people are not correct on the profit making of such business.
Chambo
[ Hide Replies ]
- Herp shops vs, "Basement breeders" - addictedtoherps, Tue Jun 10 17:38:16 2003
- RE: Herp shops vs, "Basement breeders" - buddygrout, Thu Jun 12 22:04:09 2003
- RE: Herp shops vs, "Basement breeders" - bast, Sun Jun 15 21:13:47 2003
- RE: Herp shops vs, "Basement breeders" - Katrina, Fri Jun 20 18:02:51 2003
- RE: Herp shops vs, "Basement breeders" - electricbluescat, Sat Jun 21 20:27:49 2003
- RE: Herp shops vs, "Basement breeders" - sschind, Sun Jun 29 10:39:35 2003
- RE: Herp shops vs, "Basement breeders" - WingedWolfPsion, Sun Jun 29 16:23:07 2003
- RE: Herp shops vs, "Basement breeders" - Kikai, Sat Jul 5 09:16:51 2003
- RE: Herp shops vs, "Basement breeders" - WingedWolfPsion, Sun Jun 29 16:20:05 2003
 RE: Herp shops vs, "Basement breeders" you have no idea.... - mchambers, Sun Jul 6 11:01:52 2003- trying to do things right... - bgexotics, Wed Jul 16 10:20:41 2003
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