What is the markup at fish stores?
- Thread starter urbor
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Potatohead
New member
That's probably true for livestock, I imagine dry goods is not close to that
Bret61081
Active member
When I ran a store here in Ft Laud we always did 100% on everything including SW livestock, frozen foods and dry goods. FW fish are 200%. Items like aquariums, stands, pumps and lights are usually 15-50% to compete with online prices. I know some stores in the Orlando area who do 200% on SW as well but they also have to pay shipping charges to get the live stock which we usually didn't as there were lots of wholesalers around.
CoralsAddiction
Active member
100%-200%.
Less on more expensive fish if special ordered and picked up same day from fish store. For example, I had a fish store offer me a black tang for $475 retail while wholesale was $400. So less than 20%. But I knew LFS owner and we had good rapport.
Less on more expensive fish if special ordered and picked up same day from fish store. For example, I had a fish store offer me a black tang for $475 retail while wholesale was $400. So less than 20%. But I knew LFS owner and we had good rapport.
brett559
New member
Seems like such a brutal business. I talk with LFS owner about the business, and the Amazons of the world (and Marine Depots and BRS to a lesser extent) have just crushed their business. Why buy a bucket of salt for $70 from the LFS, when Amazon sells it for $50? He said he makes no money on freshwater - I mean some of these fish he can only sell for $2.99. Where's the money in that?
I think he keeps the lights on with his service customers (he charges about $200/visit) and big builds for doctors (or someone else who doesn't realize the markup on equipment).
He tells me he was making real money in the 80s and 90s, but his business has never recovered from the crash in 2008. I get the impression he barely squeaks by. And it's a really good shop - he stocks really nice fish (he goes down to LA every other week) and knows his stuff.
LiveAquaria doesn't help either, I'm sure.
I think he keeps the lights on with his service customers (he charges about $200/visit) and big builds for doctors (or someone else who doesn't realize the markup on equipment).
He tells me he was making real money in the 80s and 90s, but his business has never recovered from the crash in 2008. I get the impression he barely squeaks by. And it's a really good shop - he stocks really nice fish (he goes down to LA every other week) and knows his stuff.
LiveAquaria doesn't help either, I'm sure.
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LFS are no different than the corner grocery or the neighborhood office supply store. They can't compete with the pricing, so they have to make money selling service. I think there would be much more profit in selling installations and followup service than in the dry goods or livestock.
ThRoewer
New member
I still prefer LFS over online stores when it comes to livestock. The things I buy online are usually things the stores around here don't have. Fish are actually cheaper at most local stores here.
Many LFS make money with frags. One store here has actually mother colonies they frag from, but most frags come from maricultured or wild collected colonies. It's in most cases a win-win situation. The store gets more money of the frags and the customer has a lower risk with a frag than it would be with a larger and significantly more expensive colony.
When it comes to equipment I have a mixed approach. Small items or things I need right away I usually buy locally if I can find them. For larger equipment I shop around for the best deal, and usually end up buying online.
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Many LFS make money with frags. One store here has actually mother colonies they frag from, but most frags come from maricultured or wild collected colonies. It's in most cases a win-win situation. The store gets more money of the frags and the customer has a lower risk with a frag than it would be with a larger and significantly more expensive colony.
When it comes to equipment I have a mixed approach. Small items or things I need right away I usually buy locally if I can find them. For larger equipment I shop around for the best deal, and usually end up buying online.
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Not sure on livestock I imagine 8% - 10% on dry goods maybe more depending on purchasing power. Internet business generally are cheaper but I still like to purchase from lfs to support them, I won't buy livestock online in the UK as I like to watch the fish etc for awhile before I buy.
Having been a financial consultant to an LFS, I can tell you that service is where they make enough to survive. It is very, very difficult to break even (let alone make a profit) with livestock, equipment, or dry goods. Some of the high end equipment vendors require an inventory level that is nearly impossible for most stores. As such, they can not afford to carry some of the best brands. Average store life around here is less than two years. A very difficult business.
Greybeard
New member
200-300% on livestock is common, even higher on freshwater... those $2.99 mollies probably cost 30 cents.
Mind you, that's above WHOLESALE prices. You're _not_ paying wholesale at BRS or Marine Depot or LiveAquaria. You're paying retail, albeit at a discount store. Those online stores sell for a good deal over wholesale as well.
I support my LFS's. They provide several services that are difficult to do without. Frozen foods, for instance, are much easier to pick up locally. Shipping... LFS's pay shipping on a truck load, it's much cheaper than paying for a 100lb box delivered to your house, and much less likely to have been kicked around the FedEx office for a few days. Even paying tax, and markup, it's still sometimes cheaper to buy big heavy stuff locally. Being able to see a healthy animal _before_ you plunk down your cash... that's a service that I'm willing to pay for.
Mind you, that's above WHOLESALE prices. You're _not_ paying wholesale at BRS or Marine Depot or LiveAquaria. You're paying retail, albeit at a discount store. Those online stores sell for a good deal over wholesale as well.
I support my LFS's. They provide several services that are difficult to do without. Frozen foods, for instance, are much easier to pick up locally. Shipping... LFS's pay shipping on a truck load, it's much cheaper than paying for a 100lb box delivered to your house, and much less likely to have been kicked around the FedEx office for a few days. Even paying tax, and markup, it's still sometimes cheaper to buy big heavy stuff locally. Being able to see a healthy animal _before_ you plunk down your cash... that's a service that I'm willing to pay for.
Dmorty217
Saltwater Addict
kmbyrnes
New member
Bear in mind that markup has to cover shipping losses as well.
Not every fish that arrives to your LFS survives the first few days.
I'm happy to buy livestock at my LFS.
I always give them a chance to bid when making major purchases.
Paying $20 more on a $250 item to help keep my LFS in business means I can have have a large selection of local WYSYWYG livestock.
Not every fish that arrives to your LFS survives the first few days.
I'm happy to buy livestock at my LFS.
I always give them a chance to bid when making major purchases.
Paying $20 more on a $250 item to help keep my LFS in business means I can have have a large selection of local WYSYWYG livestock.
Marshall O
New member
Also don't forget the overhead of LFS. You buying a fish or coral pays for the staff, the rent, utilities, salt, chemicals, tanks and other equipment, etc. You are not just paying for that fish or coral. I also will happily pay a bit more from a LFS as this hobby would be a lot more difficult without them IMO.
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Dmorty217
Saltwater Addict
LFS have their place and I commend anyone trying to do it as a buisness. Unfortunately I can get nearly everything fish cheaper from another source and that's after the shipping charges. Equipment is easily found cheaper online and it comes to my front door. I do still visit a semi local fish store to pick up a pallet of IO since salt is the cheapest thru them.
Bret61081
Active member
Always ask your LFS if they can match the online prices for dry goods. Most will if they can. They would rather make 2$ and less of a mark up then lost the sale altogether. We used to match online companies like amazing and Dr Fosters unless it was below our wholesale price which was rare and in that case we called the wholesaler questioning our pricing. it was a bit of work but in the end we wanted you to support us over amazon
ThRoewer
New member
Interestingly enough, the LFS here are usually lower with fish and invert prices than the big online stores. In some cases it's less than half.
For that reason and of course the WYSIWYG factor, I usually buy only those fish online that I can't find here.
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For that reason and of course the WYSIWYG factor, I usually buy only those fish online that I can't find here.
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