Makes sense to me.
There is more mark up on livestock vs dry goods.
Store credit will likely vary from place to place.
example
store gives you 50 credit you buy a fish for 50 that cost them 20= 30profit plus the retail of the trade minus the 20 in real cost
store gives you 50 credit and you buy a bucket of salt for $50 that cost them 44= 6 dollars plus the retail of the trade minus the 44 cost of salt.
All the profit is in the live stock. Stores that do both live and dry imo are keeping the hobby in mind more so than the bottom line of the business.
Happy customers are more likely to do repeat business.
one store here in St. Louis told me they had a 24 hold on the credit for livestock. I told them I would take a few fish instead and come back 24 hours later to pay for the fish if needed...
Lets say I just walked out with my livestock and didn't trade them or buy.
Not a business major, so maybe you can clarify where I made a mistake in my thinking.
Coral A costs store $15 to purchase, they sell it for $20.
Box of salt cost store $35 to purchase, they sell it for $39.99
There is a profit margin on all items for sale in the shop.
I trade in four coral frags at $10 each that they sell for $15.00 each.
I get $40 store credit for coral frag trade ins and want to use my store credit to purchase a box of salt.
Profit is already worked into the sale price of the box of salt. So trading me straight for the box of salt does not cost the store any money.
If they trade me the $40 in store credit for the box of salt and then sell the four frags I traded in for full price, they have sold them for $60.
Total cost to the store for the items involved, (frags and box of salt) = $75
Total profit to the store from the transactions = $24.99, (profit from frags and from salt).
How is the store losing money on allowing store credit to be used on dry goods?