Fish Store Owners, I need advice.
- Thread starter JYoung
- Start date
pyton
New member
I am not an owner but I have been great friend with owners from Cali to New York.
When I was in California the best store said keep your rent low. That is your biggest overhead.
In another place I lived there were three main shops for saltwater. Now there are two and one of them is on the edge of going out of business.
The first one that was gone was very high tech and showcasing a lot of high tech products he used as a hobbyist.
The one that is on the edge of closing has horrible customer service. He still treats his business as a hobby and then raises his prices to cover his loss for friends.
The one that is standing tall started off from his garage. He slowly built everything and kept it low tech. His pricing on all his fish and supplies are simple and reasonable prices; two times the invoice plus $2 for the shipping. The only way this does not work is when the manufacturer has set pricing.
Tanks are sold at cost plus shipping to get people into the hobby.
Finally your tanks are HOLDING tanks nothing more, no reason to get $50,000 worth of tanks when $5,000 will do the same job.
I am sure there were others in this market but they came and went so fast no one remembers them. I can think of three of them now that I am talking about it.
Start small be smart and have great customer service.
When I was in California the best store said keep your rent low. That is your biggest overhead.
In another place I lived there were three main shops for saltwater. Now there are two and one of them is on the edge of going out of business.
The first one that was gone was very high tech and showcasing a lot of high tech products he used as a hobbyist.
The one that is on the edge of closing has horrible customer service. He still treats his business as a hobby and then raises his prices to cover his loss for friends.
The one that is standing tall started off from his garage. He slowly built everything and kept it low tech. His pricing on all his fish and supplies are simple and reasonable prices; two times the invoice plus $2 for the shipping. The only way this does not work is when the manufacturer has set pricing.
Tanks are sold at cost plus shipping to get people into the hobby.
Finally your tanks are HOLDING tanks nothing more, no reason to get $50,000 worth of tanks when $5,000 will do the same job.
I am sure there were others in this market but they came and went so fast no one remembers them. I can think of three of them now that I am talking about it.
Start small be smart and have great customer service.
smkooq
New member
Best advice so far was to start out in your garage.
Most of the advice on here will only work if you have an established business. With the overhead and profit margin of saltwater fish stores, unless you got deep pockets you will be lucky to be breaking even from the start. If you make enough from your store to cover your living expense and keep your business up then your doing amazing.
Only difference from leasing/buying a building and starting out in your garage is you won't have that store front. I can guarantee you though, that not having a store front won't be the reason you make it or break it either.
Just get in contact with sales rep from various distributors and start slow, no need to rush a store front.
Most of the advice on here will only work if you have an established business. With the overhead and profit margin of saltwater fish stores, unless you got deep pockets you will be lucky to be breaking even from the start. If you make enough from your store to cover your living expense and keep your business up then your doing amazing.
Only difference from leasing/buying a building and starting out in your garage is you won't have that store front. I can guarantee you though, that not having a store front won't be the reason you make it or break it either.
Just get in contact with sales rep from various distributors and start slow, no need to rush a store front.
C Dog
New member
I have no experience in this but I would start out in my garage as others have stated. Maybe even finish the garage to look nice on the inside and do something like this guy with the tanks:
http://www.reefcentral.com/forums/showthread.php?t=2196651
http://www.reefcentral.com/forums/showthread.php?t=2196651
potterjon
New member
I agree with this statement, you simply can't write a business plan without some of the much needed info that the wholesalers have. I was very serious about opening a store and simply decided they were too difficult to deal with and there was no way that I was going to hinge my future on them. They hold all the cards and you are subject their way of doing business. When I worked at the lfs we would get in all kinds of "substitutions" and fish that weren't ordered and of course it was all on credit and they overspent the owners limit every time. It was ridiculous.
I found most of them to be extremely rude. One of them actually said to me "spend $20k and the we will talk", what a joke. I would rather open a pizza shop or absolutely anything else.
elegance coral
They call me EC
Sounds to me like that shop needs to find a new wholesaler. There are lots of wholesalers out there. You do not have to deal with a company that treats their customers like that. I agree that there are some wholesalers that have "the big head", and act like they don't need your business. They are not all that way though. There are some very good wholesalers out there that bend over backwards to help you out.
Business is about building relationships. Both with your suppliers and customers. Build a good relationship with your suppliers, and you're half way there.
Peace
EC
stevedola
Master of my domain
I am not a owner/operator but:
I do not agree with the notion of no dry goods. These items keep people coming in. Salt group buys, bulbs,tests kits, glue, plugs, pumps, etc...all get people in the store because when a pump goes dead and you need one...the web is not going to be able to provide you with one that day...a LFS can. I dont suggest charging crazy prices because that will drive people away but for a small 5% price increase (from what the customer can achieve on web) you will get people in the store to browse the display tanks and buy a frag or 2. I also wouldnt suggest stocking every brand/model under the sun but offer to order the higher ticket products and having them in use on display for people to see in action.
Annual specials are a great way to get people in too. We have a store in the area that does semi annual invert group buy. They get people to order from their discounted listing of inverts preorder then have a stocked store for people to browse when they pick up their snails, hermits, shrimp etc...
I do not agree with the notion of no dry goods. These items keep people coming in. Salt group buys, bulbs,tests kits, glue, plugs, pumps, etc...all get people in the store because when a pump goes dead and you need one...the web is not going to be able to provide you with one that day...a LFS can. I dont suggest charging crazy prices because that will drive people away but for a small 5% price increase (from what the customer can achieve on web) you will get people in the store to browse the display tanks and buy a frag or 2. I also wouldnt suggest stocking every brand/model under the sun but offer to order the higher ticket products and having them in use on display for people to see in action.
Annual specials are a great way to get people in too. We have a store in the area that does semi annual invert group buy. They get people to order from their discounted listing of inverts preorder then have a stocked store for people to browse when they pick up their snails, hermits, shrimp etc...
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Disclaimer: I've never owned my own shop, but I did manage one as well as work in maintenance. So here's my two cents:
1. Plan on having a maintenance side of the business. In most cases, the maintenance side will carry the retail side financially.
2. Be diversified. Selling f/w fish or birds may not be your thing, but if it pays the bills and brings more customers into your shop... Make sure your f/w customers always have to walk past your s/w. Sell nano setups for little to no profit to get them started (and hooked). Your real profit margin is going to be on livestock. Dry goods/equipment is always minimal.
3. Be flexible with your hours. When you first start up, stay open 10-12 hrs/day, 7 days a week. Post a sign explaining that these are just "experimental hours" until you can figure out which hrs work best for your customers. Keep a log of how many customers come in and when. Soon you'll figure out which days/hours are slow and which will be busy. Use that info to determine your permanent business hrs, no matter how inconvenient that schedule might be for you. Be sure to give your customers plenty of (written) notice before switching over.
4. Be honest, always be polite. The hardcore reefers will figure out quick if you're full of ****. And that will damage your rep. So, if a customer says something you know (or think) is wrong, politely give advice. If it's a grey area, preface your advice by stating this is only your opinion. If the customer chooses to ignore your advice, respect his opinion and decision to do so. Some people just have to learn for themselves. And if it ultimately turns out you were right, the customer will remember it and will probably pay more heed the next time.
Good luck to you!
1. Plan on having a maintenance side of the business. In most cases, the maintenance side will carry the retail side financially.
2. Be diversified. Selling f/w fish or birds may not be your thing, but if it pays the bills and brings more customers into your shop... Make sure your f/w customers always have to walk past your s/w. Sell nano setups for little to no profit to get them started (and hooked). Your real profit margin is going to be on livestock. Dry goods/equipment is always minimal.
3. Be flexible with your hours. When you first start up, stay open 10-12 hrs/day, 7 days a week. Post a sign explaining that these are just "experimental hours" until you can figure out which hrs work best for your customers. Keep a log of how many customers come in and when. Soon you'll figure out which days/hours are slow and which will be busy. Use that info to determine your permanent business hrs, no matter how inconvenient that schedule might be for you. Be sure to give your customers plenty of (written) notice before switching over.
4. Be honest, always be polite. The hardcore reefers will figure out quick if you're full of ****. And that will damage your rep. So, if a customer says something you know (or think) is wrong, politely give advice. If it's a grey area, preface your advice by stating this is only your opinion. If the customer chooses to ignore your advice, respect his opinion and decision to do so. Some people just have to learn for themselves. And if it ultimately turns out you were right, the customer will remember it and will probably pay more heed the next time.
Good luck to you!
Susan Lohrer
New member
Some thoughts on running a business in general:
I own a home-based business (I edit novels, design books, etc., which I do online) and help my husband with his home-based business (a motorcycle shop, so his clients come to the shop). The success of both businesses depends completely on top-quality service at prices that fit the current market. It took us a while to get our prices up (we actually still get people deliberately overpaying), but we know now that customers are happy to pay the going rate to have their needs met (in the service industry, anyway).
Talk to your potential customers (which you're starting to do here, so good job). Do an anonymous demographic survey. Aim for at least 50 people's responses. Ask specific questions about their expectations of prices and services. Ask specific questions about their income. You may be surprised by their answers, and the survey will help you form a realistic business plan.
My thoughts as a customer:
I'll drive three hours to go to a good fish store with healthy fish, clean tanks, no bad smells, and dependable advice rather than going to the nearest (gross, smelly, diseased) LFS. I love that my favorite fish store is on Facebook, and I can ask questions, place orders, see pictures of fish and corals, right in my house.
My thoughts on dry goods:
I buy my salt at one of the big chain stores because the price is better, but if it were within about $5 of my favorite fish store's price, I'd buy it at my favorite store. I don't mind paying a little extra, but I don't want to be gouged, either.
My thoughts on equipment and supplies:
Give good advice about how to use that stuff (like plumbing parts or whatever), and don't try to stock things you'll have to keep in inventory for months on end. Do keep a few emergency parts like maybe some skimmers, pumps, powerheads, and heaters, to get people through a crisis.
The most important thing: continually review and revise your business plan.
Good luck!
I own a home-based business (I edit novels, design books, etc., which I do online) and help my husband with his home-based business (a motorcycle shop, so his clients come to the shop). The success of both businesses depends completely on top-quality service at prices that fit the current market. It took us a while to get our prices up (we actually still get people deliberately overpaying), but we know now that customers are happy to pay the going rate to have their needs met (in the service industry, anyway).
Talk to your potential customers (which you're starting to do here, so good job). Do an anonymous demographic survey. Aim for at least 50 people's responses. Ask specific questions about their expectations of prices and services. Ask specific questions about their income. You may be surprised by their answers, and the survey will help you form a realistic business plan.
My thoughts as a customer:
I'll drive three hours to go to a good fish store with healthy fish, clean tanks, no bad smells, and dependable advice rather than going to the nearest (gross, smelly, diseased) LFS. I love that my favorite fish store is on Facebook, and I can ask questions, place orders, see pictures of fish and corals, right in my house.
My thoughts on dry goods:
I buy my salt at one of the big chain stores because the price is better, but if it were within about $5 of my favorite fish store's price, I'd buy it at my favorite store. I don't mind paying a little extra, but I don't want to be gouged, either.
My thoughts on equipment and supplies:
Give good advice about how to use that stuff (like plumbing parts or whatever), and don't try to stock things you'll have to keep in inventory for months on end. Do keep a few emergency parts like maybe some skimmers, pumps, powerheads, and heaters, to get people through a crisis.
The most important thing: continually review and revise your business plan.
Good luck!
Down
New member
Unfortunately, anything that I could add as a potential customer has already been said. I will reinforce a couple points though:
1. I will drive WAY out of my way to solicit a business that has a reputation for providing great items and service. Location isn't that important IMO, ESPECIALLY if you're talking about an all saltwater (or even just all fish) store. It's niche enough that foot traffic isn't as much of a concern.
2. Customer first attitude goes a long way. If you're willing to chance losing a sale by advising me (as a customer) to not purchase something. it speaks volumes about your integrity. That breeds customer loyalty.
1. I will drive WAY out of my way to solicit a business that has a reputation for providing great items and service. Location isn't that important IMO, ESPECIALLY if you're talking about an all saltwater (or even just all fish) store. It's niche enough that foot traffic isn't as much of a concern.
2. Customer first attitude goes a long way. If you're willing to chance losing a sale by advising me (as a customer) to not purchase something. it speaks volumes about your integrity. That breeds customer loyalty.
Breez
New member
Keep your store clean, organized, and not crowded. If I don't feel comfortable walking around a store and finding things I won't go back. Also make sure you light your tanks! Even the ones with just fish. If your customers can't see what you're selling they won't buy it. You want to make the buying process as easy as possible for customers. If its too hard they can go somewhere else.
Monkeyfish
Active member
I did own an LFS.
1. Make a business plan.
2. Don't plan on getting rich.
3. DO plan on working hard.
4. Location is important not because of foot traffic (few people go out for a walk and decide to randomly buy a fish), but for customer parking and your lease. The store needs to be easy to get to, customers need a place to park and the lease needs to be reasonable (what's reasonable will depend on a number of factors). If you run your business out of your home/garage - customers still need someplace to park.
5. Keep regular, posted business hours and adhere to the schedule.
6. Expect three to five years before you earn back your initial investment (for a B&M store).
7. The most profit comes from livestock and maintenance. Dry goods are easily and cheaply purchased on-line. The only non-livestock items that are a must are frozen food and salt. These are guaranteed to sell if you price them fairly.
8. A frag tank is a must.
9. CUSTOMER SERVICE - Greet people, encourage them to ask questions and admit when you don't know the answer.
10. Have prices clearly listed.
1. Make a business plan.
2. Don't plan on getting rich.
3. DO plan on working hard.
4. Location is important not because of foot traffic (few people go out for a walk and decide to randomly buy a fish), but for customer parking and your lease. The store needs to be easy to get to, customers need a place to park and the lease needs to be reasonable (what's reasonable will depend on a number of factors). If you run your business out of your home/garage - customers still need someplace to park.
5. Keep regular, posted business hours and adhere to the schedule.
6. Expect three to five years before you earn back your initial investment (for a B&M store).
7. The most profit comes from livestock and maintenance. Dry goods are easily and cheaply purchased on-line. The only non-livestock items that are a must are frozen food and salt. These are guaranteed to sell if you price them fairly.
8. A frag tank is a must.
9. CUSTOMER SERVICE - Greet people, encourage them to ask questions and admit when you don't know the answer.
10. Have prices clearly listed.
