So you want to open a LFS...

Most brick & mortar businesses require location determined by real traffic study.

After location capital is required, true capital will see a small business survive the first 5. Most start with limited capital.

Fish stores have limited market
General pet store has more diversed market

Brick and mortar and or home based fail due to lack of patience, lack of capital, inadequate planning of other critical specs.

Fish stores are not the only low margin businesses.
Supermarkets
Gas stations
Fast food chains
Etc

The trick is setting it up right and once you do expand into multiple locations.

Easier said than done but in low margin businesses volume and multiple locations is the model that works, the model that has most owners living very well.

I have never met any Dunkin Donuts owner that only has one coffee shop....


I have been to many stores in Georgia and Florida and the ones that have really good reviews are all "aquatic only" either do saltwater only or salt and fresh. At the moment my shop is the only aquatic only store in town, there are a few other general pet stores that offer a small selection of saltwater. We hear from a lot of our customers that they feel ignored at the general pet stores because they have too many different animals or are focused on dog grooming.

Many lfs that have been too have just been "in town" they are not in shopping malls, or extremely high traffic areas. I think most of that is due to higher rents for popular/busy areas. I do think if the store is in town more people will stop by while out doing errands or too/from work.

At home business can be sketchy for both the seller and buyer. There are some wholesalers that will not sell to a business unless they have a real storefront. They have less overhead since they are only paying as a residence.
 
I have been to many stores in Georgia and Florida and the ones that have really good reviews are all "aquatic only" either do saltwater only or salt and fresh. At the moment my shop is the only aquatic only store in town, there are a few other general pet stores that offer a small selection of saltwater. We hear from a lot of our customers that they feel ignored at the general pet stores because they have too many different animals or are focused on dog grooming.

Many lfs that have been too have just been "in town" they are not in shopping malls, or extremely high traffic areas. I think most of that is due to higher rents for popular/busy areas. I do think if the store is in town more people will stop by while out doing errands or too/from work.

At home business can be sketchy for both the seller and buyer. There are some wholesalers that will not sell to a business unless they have a real storefront. They have less overhead since they are only paying as a residence.

People will travel if they know the LFS is a Good One (There are so many bad ones).
 
I think a huge problem (at least in my area) is the lack of quality LFS. I would support a LFS but there are none worthy of my money.

For reference I live in Rhode Island which is in the greater Boston metropolitan area if we are being realistic. Around a million people live in RI alone. I've been to every LFS from here to Boston and can honestly say I haven't been to one that I felt was half way reasonable.

The main thing they share in common is being filthy. They stink, rust is everywhere and the floors are always messy/wet. They also are very outdated with no thought to creating a pleasant shopping experience. It seems like they showed up, threw some some tanks in there and called it a day.

The tanks themselves are also depressing. Algae, cyano and unhealthy fish is more common than healthy tanks. Despite this the prices are extremely high. The only LFS I visit in this area sells Bartlett anthias for 100 dollars a piece and they are usually skinny and infected with ICK. Meanwhile I can go online to the Divers Den and pick up 3 extremely healthy ones for $150 and be a stones throw away from hitting free shipping.

My final complain is lack of anything remotely interesting as far as coral is concerned. I'm not sure how you can be a business owner and not try to figure out what people want. They always have ugly sps, boring zoas and generic LPS. Who is buying this overpriced garbage? So this leads to me buying all my coral from local people who have frag set ups in their basement.
 
Good reviews are great. However, staying in business and making a profit is much more important. Hobbyist perspective and business perspective are not necessarily congruent.
 
Good reviews are great. However, staying in business and making a profit is much more important. Hobbyist perspective and business perspective are not necessarily congruent.

Yes, finding that happy medium of carrying what people want to buy and not things they dont is a big part of a good store. Knowing your customer base can help with fine tuning a store. We have a lot of first time tank owners or still new hobbyist. Many dont know the names of all the high end coral names, they just want color. We do have a few long time reefers, but they pretty much have everything they need.

So far the most expensive fish we have ordered is an Achilles tang and thats only because it was a great price, and he is doing great. We have several people drooling over him.

Also what the store owner likes is not the same as what the cuatomers like. To be a good storeowner you have to listen. Never rule out a newbie, there are some out there with plenty of money to spend (not to rip them off either).
 
I think a huge problem (at least in my area) is the lack of quality LFS. I would support a LFS but there are none worthy of my money.

For reference I live in Rhode Island which is in the greater Boston metropolitan area if we are being realistic. Around a million people live in RI alone. I've been to every LFS from here to Boston and can honestly say I haven't been to one that I felt was half way reasonable.

The main thing they share in common is being filthy. They stink, rust is everywhere and the floors are always messy/wet. They also are very outdated with no thought to creating a pleasant shopping experience. It seems like they showed up, threw some some tanks in there and called it a day.

The tanks themselves are also depressing. Algae, cyano and unhealthy fish is more common than healthy tanks. Despite this the prices are extremely high. The only LFS I visit in this area sells Bartlett anthias for 100 dollars a piece and they are usually skinny and infected with ICK. Meanwhile I can go online to the Divers Den and pick up 3 extremely healthy ones for $150 and be a stones throw away from hitting free shipping.

My final complain is lack of anything remotely interesting as far as coral is concerned. I'm not sure how you can be a business owner and not try to figure out what people want. They always have ugly sps, boring zoas and generic LPS. Who is buying this overpriced garbage? So this leads to me buying all my coral from local people who have frag set ups in their basement.

"They stink, rust is everywhere and the floors are always messy/wet."

Seriously? People go to Stores do buy stuff not rate it like this.

It is a Pet Store not the Bellagio.

Anybody I ever talk to is concerned about Price, Quality of Livestock, Customer Service, Knowledge of Employees.

The last thing I ever think about is how the floors look.

Weather they are wet or immaculate and gold plated marble I couldn't even tell you because I wouldn't bother to look.

I can tell you how the coral is though.



"My final complain is lack of anything remotely interesting as far as coral is concerned. I'm not sure how you can be a business owner and not try to figure out what people want."

Please keep in mind that the LFS caters to New Hobbyists not the I want the latest and greatest $5,000 Chalice crowd.

Just because you do not like it does not mean others do not.

I have seen people say "Are these Corals Dead (Pointing to Named Expensive Acros) because they do not even move" They could care less about Acros but are mesmerized by Xenia beacuse it moves.

Collectors would throw Xenia in the Toilet but that stuff is like Gold to a Noob.

One mans junk is another mans treasure.

You can stock a store with all the crazy expensive corals but that store will soon go out of business because nobody would buy it.

That crowd buys online and from frag swaps.



I think most stores do indeed know what their customers want and buy accordingly.

You are just not the target customer.

Don't get mad and complain just go where they have what you want (Online and Frag Swaps).

It is as simple as that.

The Sore Owners are not Stupid and they are not going to Alienate 100 Customers to please 1 Customer as that is terrible for business.
 
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Most of our current customers are new to the hobby locals...

...I work 80+ hrs a week between my shop and my other job that pays the bills at home...

We are still expanding...

We also needed more space for corals.


I think everybody:

interested on OPENING a store...
shopping at a STORE...
participating in a local club and CRITICAL of the local store...

Needs to read the above, over and over, until it sinks in and makes sense.

We the "experienced" saltwater hobbyists, account for a TINY percentage of the sales required to support an LFS. Read that again, until you fully understand what it means!

The LFS MUST primarily cater to the "newbies" or they will not survive! "Daddy I want a fish tank" trumps "Can you order me a rare so and so" every time.

High priced dry goods and high profit margin junk, much of it unneeded, but sold to the less informed, is really the ONLY thing that keeps the doors open.

So next time, before you complain about the prices and the shelves full of junk, consider that without them the LFS would not be there and YOU would not be able to run down the road on Sunday afternoon to buy emergency salt because you overdosed kalk. YOU will not be able to forge a relationship and have your LFS quarantine your order for you for a few extra bucks, etc.

Just sayin...
 
I think everybody:

interested on OPENING a store...
shopping at a STORE...
participating in a local club and CRITICAL of the local store...

Needs to read the above, over and over, until it sinks in and makes sense.

We the "experienced" saltwater hobbyists, account for a TINY percentage of the sales required to support an LFS. Read that again, until you fully understand what it means!

The LFS MUST primarily cater to the "newbies" or they will not survive! "Daddy I want a fish tank" trumps "Can you order me a rare so and so" every time.

High priced dry goods and high profit margin junk, much of it unneeded, but sold to the less informed, is really the ONLY thing that keeps the doors open.

So next time, before you complain about the prices and the shelves full of junk, consider that without them the LFS would not be there and YOU would not be able to run down the road on Sunday afternoon to buy emergency salt because you overdosed kalk. YOU will not be able to forge a relationship and have your LFS quarantine your order for you for a few extra bucks, etc.

Just sayin...

I totally agree. Now bieng an owner myself I see the difference in hobbyists. Also a store that can develop a good maintenance sevice program will also do well and be able to stay open. Also making relationships with long time hobbyist can be a plus, they can bring in frags for trade, they might not buy often but they may spend more in one trip, ex upgrading to that bigger tank they always wanted.

Experienced hobbyists really dont care so much about the stores appearance, just the tanks and livestock. New to the hobby people are turned away by a dirty/smelly store, they are unfamiliar with what the tanks/livestock should look like so they focus on the store or customer service.

Sales of fish/coral are very funny at times. I will have a "new" fish in the store and nobody will really ask about it for weeks. Then as soon as somebody does buy it, i have 3 other people that speak up that they were looking at getting it and now want one. So then i have to 3 more on next order. I know there are fish that need special requirements, but the ones im talking about are 30-100gal recommended fish. I know its good for business, just a funny observation.

We are working on increasing our variety and quantity of fish as we go. So we no longer have to "special order+ qt" popular fish.

The othef thing is some new hobbyist want instant gratification, they see it they buy it, not wait to be ordered. Or on corals buying colony size pieces not frags.
 
I think everybody:

interested on OPENING a store...
shopping at a STORE...
participating in a local club and CRITICAL of the local store...

Needs to read the above, over and over, until it sinks in and makes sense.

We the "experienced" saltwater hobbyists, account for a TINY percentage of the sales required to support an LFS. Read that again, until you fully understand what it means!

The LFS MUST primarily cater to the "newbies" or they will not survive! "Daddy I want a fish tank" trumps "Can you order me a rare so and so" every time.

High priced dry goods and high profit margin junk, much of it unneeded, but sold to the less informed, is really the ONLY thing that keeps the doors open.

So next time, before you complain about the prices and the shelves full of junk, consider that without them the LFS would not be there and YOU would not be able to run down the road on Sunday afternoon to buy emergency salt because you overdosed kalk. YOU will not be able to forge a relationship and have your LFS quarantine your order for you for a few extra bucks, etc.

Just sayin...

I wish everyone understood this.

Excellent Post.
 
I wish everyone understood this.

Few if any will understand or emphasize with it. That is why LFS (unless they have a substantial maintenance business) last about two years (after credit cards are maxed out). My non-scientific sense of failure rate is about 95%.
 
Few if any will understand or emphasize with it. That is why LFS (unless they have a substantial maintenance business) last about two years (after credit cards are maxed out). My non-scientific sense of failure rate is about 95%.

I do disagree with the "Must have Maintenance" concept though as I know a few successful stores that do not do any maintenance whatsoever.
 
My LFS is quite a good one. The owner and his 1 employee are always chatty and laid back. When I set up my 40 I had no problem buying 2500$ worth of dry goods to get going as he matched any big name online stores prices. I have been loyal to them since I set up the tank and bought everything from them. He even went to the extent of when I was contemplating what skimmer to use told me if I bought an aquac ev120 he would toss in a mag drive 5 pump for free. His prices are pretty high for corals so it's kinda held me back as far as only buying cheap frags but fish prices are all over the place. Some are priced under online prices and some are way over online pricing. Either way it has all balanced out. He has been very fair with me and that has kept me returning time and time again. He does some maintenance stuff but not much and is doing quite good financially. I don't think he moves a lot of coral colonies due to price but the frags are real reasonable. My only gripe which I have told him numerous times is not having pricing on the tanks as he thinks it looks tacky. Recently he has been doing it on certain items but not a lot. IMO being a successful LFS is tied to how you treat customers and what you have for sale. They usually have 250-300 fish to chose from and the sps tank is amazing to say the least. Display tank is a 36x36x20 cube with Kessil a160's on it and the whole store is lit with 360's. He said Kessil was gonna do a short bio of his store on the website demonstrating how he has retrofit the whole shop with them.
 
... When I set up my 40 I had no problem buying 2500$ worth of dry goods to get going...

It's been a long time since I set up a tank from scratch with all new equipment. Is $2500 a reasonable cost to set up a 40 gallon reef tank? What did you buy for that money?
 
It's really not but I bought top of the line equipment that will all transfer to a bigger tank when it is time.

Tank 40 at petco ( he told me to go there as he cant even come close on price )
Mp40 was 350
Kessil 360 with gooseneck and controller was 530
Stand 220
Mag 9.5 return 110 I think
Sand 40
Heater was 50
Filter socks 10ea and I got 5
Drilling and plumbing was 150ish
Aquac ev120 with mag drive 5 pump 300
I had the sump And rock from an old tank
Lots of other misc small items
200 for test kits and refractometer

I could have probably done it for 800 with bare bottom equip and no test kits but I'm doing a full sps build. I also have a pair of Darwin clowns I paid 70 for and a couple wrasses that were 45 ea, bicolor blenny was 24 if I remember right. He has a great price on clowns, gobies, and high end fish but the wrasses are a little high as is inverts, snails, and corals. It just depends.
 
My LFS is quite a good one. The owner and his 1 employee are always chatty and laid back. When I set up my 40 I had no problem buying 2500$ worth of dry goods to get going as he matched any big name online stores prices. I have been loyal to them since I set up the tank and bought everything from them. He even went to the extent of when I was contemplating what skimmer to use told me if I bought an aquac ev120 he would toss in a mag drive 5 pump for free. His prices are pretty high for corals so it's kinda held me back as far as only buying cheap frags but fish prices are all over the place. Some are priced under online prices and some are way over online pricing. Either way it has all balanced out. He has been very fair with me and that has kept me returning time and time again. He does some maintenance stuff but not much and is doing quite good financially. I don't think he moves a lot of coral colonies due to price but the frags are real reasonable. My only gripe which I have told him numerous times is not having pricing on the tanks as he thinks it looks tacky. Recently he has been doing it on certain items but not a lot. IMO being a successful LFS is tied to how you treat customers and what you have for sale. They usually have 250-300 fish to chose from and the sps tank is amazing to say the least. Display tank is a 36x36x20 cube with Kessil a160's on it and the whole store is lit with 360's. He said Kessil was gonna do a short bio of his store on the website demonstrating how he has retrofit the whole shop with them.

Very Cool.

What store is it?

I will keep checking the Kessil site for the Video.
 
I have a decent shop that I have developed a relationship with since moving here 4 years ago. They know I am not an every week buyer but, they have not let me down if I ask if they can get me a certain fish in. It may take a week or two but I am in no hurry.
 
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