Mikey Donuts
Premium Member
Thanks Mike! Those are from Sam @ marine flora. He's got some great stuff.
Thank you for your generosity and support
- Thread starter pbetito
- Start date
kdblove_99
New member
<a href=showthread.php?s=&postid=10403799#post10403799 target=_blank>Originally posted</a> by GreshamH
So you by your lost leaders at the LFS and the money makers online? That's exactly why they'll be gone in the future if we don't support them on multiple levels.
Paul, don't forget about the manufacturers....they'll donate as well
definetly disagree, But that is your opinion
Brian Prestwood
Premium Member
Hey Rachelle
Yep, the double bagged zip locks are mine.
Yep, the double bagged zip locks are mine.
How can lost leaders support a business?
Having spent the last decade working in this industry I've watched a ton of places fold simply due to the fact they only really sold the lost leaders and couldn't match dry good prices with online venues. The larger players get a much lower wholesale price then the LFS's. The margin in most cases is so tweaked that the LFS wholesale price is usually the online dealers retail price. Livestock isn't where the stores make money, dry goods and service usually are the money makers. Livestock support those sales.
MrMikeB
New member
Disclaimer: Off topic response below!
Although not an expert in ornamental coral/fish industry, I have seen/helped/started companies who have embraced both sides of the fence be able to stand the test of time - I would imagine this to be true for a LFS. Get the volume of an online e-tailer, with a store presence. There are synergies and economies of scale that can help leverage costs, plus you reach a larger market and move beyond localized pricing markets. Selling stuff to the midwest where there is one store to compete with due to less demand vs. the Bay area where there are 20+ stores and high competition. It allows you to base your prices on a macro level so that you are not only selling loss leaders.
Interestingly in a previous life I worked for a company who was a Fortune 10 business and sold their products ($blns worth annually) BELOW their own costs. They were highly profitable because they would play a money shuffle where they would hold on to thier money as long as possible (investing it) and that's how they made the profit. A billion dollar payment sat on for a month does some pretty interesting things when invested properly. They lost money on thier actual industry - yet instead made a profit by how they managed the cash flow. The business they were in is simply a means to bring lots of revenue in to play investment banker with. IMO, long gone are the days of Retailer A brings Product B to market and sells at price higher than his cost and makes money and lives happily ever after. Globalization is here to stay.
I can go on for days on business models, etc - but I digress: Go LFS!!
Although not an expert in ornamental coral/fish industry, I have seen/helped/started companies who have embraced both sides of the fence be able to stand the test of time - I would imagine this to be true for a LFS. Get the volume of an online e-tailer, with a store presence. There are synergies and economies of scale that can help leverage costs, plus you reach a larger market and move beyond localized pricing markets. Selling stuff to the midwest where there is one store to compete with due to less demand vs. the Bay area where there are 20+ stores and high competition. It allows you to base your prices on a macro level so that you are not only selling loss leaders.
Interestingly in a previous life I worked for a company who was a Fortune 10 business and sold their products ($blns worth annually) BELOW their own costs. They were highly profitable because they would play a money shuffle where they would hold on to thier money as long as possible (investing it) and that's how they made the profit. A billion dollar payment sat on for a month does some pretty interesting things when invested properly. They lost money on thier actual industry - yet instead made a profit by how they managed the cash flow. The business they were in is simply a means to bring lots of revenue in to play investment banker with. IMO, long gone are the days of Retailer A brings Product B to market and sells at price higher than his cost and makes money and lives happily ever after. Globalization is here to stay.
I can go on for days on business models, etc - but I digress: Go LFS!!
kdblove_99
New member
I have seen more fish stores pop up in our area, than go out of business.
So you are telling me got to LFS and pay $70 for a bucket of Reef Crystal instead of online for $40 shipped?
Also don't do anymore group buys for calcium, Alk, Etc. Go to LFS and get them?
Just trying to understand if that is what you are saying?
Cheers,
Davey
So you are telling me got to LFS and pay $70 for a bucket of Reef Crystal instead of online for $40 shipped?
Also don't do anymore group buys for calcium, Alk, Etc. Go to LFS and get them?
Just trying to understand if that is what you are saying?
Cheers,
Davey
Reef n' Madness
New member
I talked to Matt at Exotic today and thanked him for the donations, specifically the 3 pieces I ended up with. 
He said he was happy to contribute and planned on sending more our way next month. He mentioned that he wanted to focus on SPS frags next time. Kudos to Matt (and all the other people that donated!).
He said he was happy to contribute and planned on sending more our way next month. He mentioned that he wanted to focus on SPS frags next time. Kudos to Matt (and all the other people that donated!).
Justin74
New member
Did the same over at CRS today. Almost forgot and ran back in to thank them. Got some new PE mysis (nice new wrapping btw!And super fresh shipment, straight from the manufacter!) some emerald crabs and got some local brewed phyto to boost my filter feeders for my new tank from our westerly neighbors over at reefnutrition (highly recommend!!)
-Justin
(highly recommend!!)-Justin
