<a href=showthread.php?s=&postid=7492169#post7492169 target=_blank>Originally posted</a> by clownfish75
HI
I would think that the retailer is pulling your chain, if a wholesaler payes $4 then the retailer is paying at least $8-10 per fish, if you create the price disparity it keeps all your customers happy, if you sell to boht at the same price you are cutting your own throat in the future.
I have had black ocellaris into america for $16US so i think you guys could be under valueing the fish!!!!
Christian
Christian, definitely some good points. There's 0 chance for success if you sell to wholesale at $4 and retailers at $4...you'll lose the wholesaler REALLY QUICKLY...heck I have a hard time in general believing that a wholesaler will purchase from you if you're selling to his clients at ANY price level (unless it's HIGHER than the highest price the wholesaler might ask for your fish). I certainly wouldn't....if I were wholesaling fish buying from a "farmer" the last thing I'd want to hear is that you're also selling directly to my clients..."screw that" I can go somewhere else. Heck, I'd probably try to drive you out of the market if I could by undercutting your prices...it's really EASY to take a hit on occellaris and run a "special" just to make you look super expensive...they have a lot more invested and a lot more money to play with than a private breeder. Bottom line, treat those wholesalers you consider selling with lots of respect or they could put you out of business really quickly. Not saying that they WILL, but that they COULD. Afterall, if you are selling to retailers, they you ARE competition for the wholesalers that also sell to these retailers.
Guess what happened to Cichlid Breeders who marketed to our local clients...bye bye orders from our facility (and there went the Chicago market for those breeders). Bottom line, when I ran the hatchery (which also resold at a wholesale level) I didn't purchase from anyone who'd sell directly to my clients. Colby, the only real way you might have piqued my interest would have been to sell to me at such a STEEP discount that I could undercut your price to my clients.
The only reason Black OC's are up there is because they're REALLY not easy to find...availability fluctuates (and of course, they're not an easy clown to produce either). If they were always around, well, they'd probably be on par with regular Ocellaris! The funny part is, when they're "not around" the price is higher, and well, when they show up the price goes down. It's just like Helfrichi's and Blue Spotted Jawfish. 2-3 months ago you could find Helfrichi's for under $150 online...now try to do the same. BSJs...at one point one etailer was blowing them out the door at $75...those that didn't and still have them are now easily getting $200. So yeah, Colby, if you suddenly are ABLE to steadily produce 500 Black OC's a month it IS quite possible that the retail price would have to come down to move 'em. Sure, right now the LFS will take 'em at $15 ea. because that's the going price and he can't always get them. If suddenly they're always around and he finds himself sitting on them, there's only a couple way things can go. Suddenly they lose their appeal because maybe they're not so rare afterall, sales dry up, he has to put them on sale, and well, he either won't purchase OR he'll want to pay as much. SAVVY retailers will purposely STOP stocking a fish for a while if it's movement slows....that's the only way they can keep their prices up. Your clients may purchase steadily for a couple months, meet the backlog of demand, and then poof...no orders for 2 months (and all of a sudden you have all these extra clowns that you either raise larger to sell at the same price as before OR have to put on sale). OR I could have just summed it up with the standard phrase, consider the laws of "Supply and Demand" as they will definitely apply.
I know I'm really rehashing things over and over and man I'm probably shooting off my keyboard more than I should, I got in the business at 13 and got out around 23 for very good reason.
OK, Colby, 500 Black OC's at $15 each - $7500 per month. Now, a few years back but kinda still relevant...the
entire FW department of a top-5 Chicago Shop ran on around $2k per month in the late 90's, and that INCLUDES all the rare stuff, cichlids, discus, oddball plecos..now that's FW but still, think about it. You're planning on generating an amount of revenue from ONE SPECIES of marine fish that's equivelent to the operating budgets for the entire freshwater DEPARTMENT of 3 pet stores? Man, either CA is THE PLACE that everyone should be selling or somehow I just don't see those numbers coming through even IF you can produce them!
Again, I'd REALLY REALLY low ball your numbers to get a more realistic view. Around here I could probably easily move 50 Black OC's at $15 a shot...if I had 500 a month to move, well, the stores I'd have to go to to move that volume would want to pay $7-10 a shot...I just know that's how the largest shops around here work. The BIG VOLUME retailers that are successful here PINCH their suppliers, buy in BIG quantity and sell CHEAPLY...and I'm talking the independants...not the Petcos and such.
David, is California just that much more of a hotbed of retail fish sales? Granted, you do have LA and San Diego in pretty close proximity...Chicago only has "Milwaukee", "Madison", "Rockford' and "Peoria"....I think Chicago metro probalby does more business than all of those next 4 combined, and that's looking in a 2 hour's radius. Man, that's 2 hours each way as it is. I just don't think I could EVER move the numbers Colby's talking about without shipping and having good relationships across the country.
Cobly, again, not trying to be discouraging but from over here to the east, I just don't see how it's possible at the SCALE you're considering. I'd personally really love to see a business plan. I'll try to keep my keyboard "shut" for a while and hope for the best! I AM keeping my finger's crossed.
MP