So you want to open a LFS...

My shop is doing well, we are just about 1.5yrs open. Our customer base is still growing and some have developed mts already. We have dialed in what our customers are looking for, most are first timers and arent looking for ultra rare corals or fish. They just want bright, colorful, and easy to keep.

We have been trying to increase our on hand stuff that more experienced reefers might look for as well like purple tangs, red sea sailfins, and others that arent as common at stores that half *** there saltwater dept. I dont have many customers interested in high end zoas or chalice.

Dry goods we keep to a minimum of essentials salt, additives, heaters, powerheads, rock, sand, and usually the equipment we would recommend to go with the tanks we have in-store.

We are getting ready to shoot our first tv commercial, we still are getting people in that didnt know we are here. Will be played on animal planet, and during tanked, and river monsters.

We do giveaways every few months to encourage customers to shop with us. Instead of selling raffle tickets we do 1 free entry per $10 spent in our store. Its a win win, even if you dont win the drawing you still got something for your money.

As I started to read that you are doing your first TV Commercial I thought WOW you must be doing amazing as I have never heard of and LFS doing a TV Commercial Ever!

I figured it was local but then you said Animal Planet!

How much Money are you guys Making?

That must Cost a Fortune!

I assume you have a Web Site and Ship if you are going to Advertise on National Television.

Keep up the Good Work.
 
As I started to read that you are doing your first TV Commercial I thought WOW you must be doing amazing as I have never heard of and LFS doing a TV Commercial Ever!

I figured it was local but then you said Animal Planet!

How much Money are you guys Making?

That must Cost a Fortune!

I assume you have a Web Site and Ship if you are going to Advertise on National Television.

Most cable companies sell LOCAL advertising space, that is much cheaper than "National Television" ads...
 
I had to close my store when gas prices shot up over $5 per gallon. The store was open over 10 years and was on its 4th bigger and better location. So just a fair warning even if you have the best business plan and a thriving business there are things out of your control that can shut you down in a minute.

I would advise against anyone opening a store who has not put some time in the industry. No different than opening a restaurant and having not worked at a restaurant. It is ill-advised. I would also advise anyone opening an LFS with the hope of it making you wealthy and or being a reliable source of income because that isn't the case. Most barely make enough to pay the bills.

Now I will say one thing that has changed for the better from when I owned a store, if you are running LEDs your bill would be reasonable. I spent $25-30k a year in electricity. See what that does to your balance sheet......lol
 
I had to close my store when gas prices shot up over $5 per gallon. The store was open over 10 years and was on its 4th bigger and better location. So just a fair warning even if you have the best business plan and a thriving business there are things out of your control that can shut you down in a minute.

I would advise against anyone opening a store who has not put some time in the industry. No different than opening a restaurant and having not worked at a restaurant. It is ill-advised. I would also advise anyone opening an LFS with the hope of it making you wealthy and or being a reliable source of income because that isn't the case. Most barely make enough to pay the bills.

Now I will say one thing that has changed for the better from when I owned a store, if you are running LEDs your bill would be reasonable. I spent $25-30k a year in electricity. See what that does to your balance sheet......lol

Which one were you? There were 2 solid SW fish stores that closed around the time I started. I had a nice 75gal set up and suddenly nowhere to buy fish. haha
 
If your LFS cannot get something Cheaper than BRS they are doing something wrong and need a new Wholesaler.

Getting them to Match or come Close to BRS is a Different Story.

But don't tell me you can't buy it WHOLESALE Cheaper than BRS Sells it for.

He must be Lying to You about that.


While some of this statement is true. Im talking about stores that do a little extra markup (20-30% markup), not ones that do 40-50% markup and gauge people. I have about 5-6 distributors, and even some direct with the manufacturer.

Some distributors have this but not that, etc. So sometimes orders have to be placed from more than one source. Some distributors have min $ on order, some charge shipping.

Some manufacturers also give price breaks on $$$$ or quantity orders. So if you order over X dollars in lets say skimmers you get an additional 5% off cost, then 10% off cost. So places like brs that can order 100 skimmers or lights etc, can sell for cheaper especially when they are not MAP priced. If they sell 100 widgets at 15% markup they make more than my 10 widgets at 25% markup. Also the more you ship with UPS or FedEx, they give you better rates, so thats jow they are able to offer free shipping on more and more stuff.

And no its not a lie about buying wholesale vs brs. (At least on some products). I have experienced this first hand.

I tried to get a chiller for a customer 1/2hp from the manufacturer themselves. They gave me the wholesale price plus shipping. Marked it up accordingly to cover cost and follow MAP. Gave the customer the price and he said he could get it online for less with free shipping. So i looked it and it sure was ( it was below MAP price too). So i called the manufacturer and they said " oh well we will give you 10% of the order in free items" aka about 100 bucks. Not many of there cheaper products were worth the time or would sit on the shelf forever. When i asked them about why they were selling below MAP they claimed it was the old map price and had not been changed (i call bullsh*t). So the item itself wasnt really much cheaper than the competitors price, but shipping charges pushed the cost up.


A good store will streamline the way they work and cut costs where possible. A good maintenance service is garunteed money every month. So that could cover rent or electricity, etc.

Dont hate on a shop based on dry goods cost, consider it a convenience fee (within reason). Saw a guy complaining about his 3 week shipping on a pump from china, so he could save $30 vs buying from his local shop.

If a store doesn't carry every brand/model, thats hard to do in this hobby. So many lights, skimmers, pumps, etc. A good shop can figuire out what there customers wants or needs. 10 different skimmer models could tie up over $1,000 in capitol, now add 10 models of lights, etc.

On most big ticket items i follow MAP pricing so our price is the same, i just dont sell many of them yet.
 
jrp1588 I was one of the owners of Aquarium Plus. If you have ever been there then we have met.....lol

I think you closed just before I started. Were you on the east side behind one of the car dealerships? By the time I heard of that store, it was already closed.
 
Such a shame. I work off Vogel now. Once upon a time, both your store and Waters of the World would have been right down the road.
 
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