Wholesale Experiences

[Crims]

Reefers,

I just setup my business and obtained my license. I have found some killer Corals/Fish suppliers but haven't found a good Drygood Wholesaler so far? I am looking for one that carries a lot of products and has to have good pricing. (Not just 10% off like some wholesalers) Any body got any good wholesalers I can look into that can help me out here.

JC

 

[RasBobre]

customaquatics.com
baysideaqua.com

 

[Crims]

customaquatics.com

customaquatics.com

customaquatics.com
baysideaqua.com

customaquatics.com is a good source. They have lots of offerings but really only give you 10-15% off. Is baysideaqua.com better in regards to its offerings and pricing?

Thanks for your reply,

JC

 

[Waoncakonza]

Crims are you looking to do a full line of drygoods?

 

[moonpod]

bayside is the same as marine depot, though obviously if you buy from bayside you get wholesale pricing. Talking to a friend of mine who's in the business, margins are tight unless you purchase direct from the manufacturers. Customaquatics and Bayside are part of the reason why. They both retail and wholesale. So they end up controlling the prices on both ends.

 

[reelheel]

It seems as though a lot of manufacturers won't even deal directly w/ small businesses. Most LFS even deal with "middlemen" that appear to be more like discount bulk retailers than wholesalers. Any of you have any experience otherwise? This might very well explain why LFS and other small businesses charge so much...it's disheartening for those who may aspire to have their own hobby-related business.

 

[Crims]

Crims are you looking to do a full line of drygoods?

Definitely! Looking for Calcium Reactors, Chillers, Lighting, etc.

JC

 

[moonpod]

some will some won't. Some require substantial "buy-ins". Another route is to find primary sources that aren't the manufacturer necessarily, but maybe are a couple middlemen upstream from the first source you find. Also whenever possible find the "non hobbyist" source. Industrial sources for applicable products tend to be cheaper and more flexible. It's a lot of work unless you can survive on 10% margins or less.

Classic example. I know of a light bulb sold by custom aquatics retail for 1 dollar over the wholesale price. That turns out to be like a 2% margin. Most businesses will lose money on that.

 

[Crims]

It seems as though a lot of manufacturers won't even deal directly w/ small businesses. Most LFS even deal with "middlemen" that appear to be more like discount bulk retailers than wholesalers. Any of you have any experience otherwise? This might very well explain why LFS and other small businesses charge so much...it's disheartening for those who may aspire to have their own hobby-related business.

Reelheel,

This is true about direct manufacturs dealing with LFS. It seems that you have to go through a wholesaler like Bayside or CustomAquatics and all you get is 10% off. Which really bites for stores because you can't make any money.

JC

 

[Crims]

Experience

Experience

MoodPod,

It sounds like you have a lot of experience. Custom Aquatics has tons of products but you really can't make any money for the little discount that they give you. I will try Bayside today to see if it is any better as far as pricing. I am sure though, since the retail operation is Marine Depot that the prices will not be better. You mentioned that get from manufactures in-directly. Are there some that you prefer or like working with. I am just trying to do some quality research without re-inventing the wheel here. I know online store get so good of pricing, but how do they do it? (Is Bulk the only answer?)

JC

some will some won't. Some require substantial "buy-ins". Another route is to find primary sources that aren't the manufacturer necessarily, but maybe are a couple middlemen upstream from the first source you find. Also whenever possible find the "non hobbyist" source. Industrial sources for applicable products tend to be cheaper and more flexible. It's a lot of work unless you can survive on 10% margins or less.

Classic example. I know of a light bulb sold by custom aquatics retail for 1 dollar over the wholesale price. That turns out to be like a 2% margin. Most businesses will lose money on that.

 

[ricpan]

Hamilton Technology is another source. Who are you getting your livestock from?

 

[moonpod]

I am not in the business. I have friends that are. This is what they relate to me. I do know that they try in general to avoid buying from customaquatic at almost any length, and seem less unhappy w/bayside, but still try to go around them whenever possible. On some products it's unavoidable. I believe that bayside has the "exclusive" distribution rights to AquaC for instance.

I believe a concrete example is icecap. They will sell to you, but there is a buy in and the larger buy in the better your pricing.

 

[strictly marine]

Royal pet supplies are pretty good in that you dont' have to pay shipping. Gregs a nice guys at bayside, and his stuff are reasonalbly good price. I dont' do much with customaquatics cause they don't even bother to hide the fact they are wholesale retail. I don't try to support people that are trying to cut in on both ends.
Pm me if you have any questions. I just started my store last year and will love to trade good suppliers with you. If you pm me with your phone number and I can call you.
I know how hard it is to start you own business. I am still struggling.

 

[reelheel]

I see where you're coming from, Crims. With all the overhead and mediocre "wholesale" connections, I'm not at all surprised at the exorbitant prices most places charge. I personally buy VERY little from LFS, especially dry goods, because I can save a lot of money ordering online (even at retail prices). I'm sure most people that are serious about the hobby do the same.
So, I guess you've got only a couple choices if you want to start a business:
Go deep into debt with a traditional LFS and try to hold out long enough to build a substantial customer base and try to break even after a few years and a little luck.
Or, try to find a "niche" business that may lower your overhead/upfront costs and allow you to concentrate your time/energy into a specific product line - selling just lighting, or coral farming, or livestock import/breeding, etc...strictly online/homebased in most cases...
What do you guys think?

 

[Crims]

I am not in the business. I have friends that are. This is what they relate to me. I do know that they try in general to avoid buying from customaquatic at almost any length, and seem less unhappy w/bayside, but still try to go around them whenever possible. On some products it's unavoidable. I believe that bayside has the "exclusive" distribution rights to AquaC for instance.

I believe a concrete example is icecap. They will sell to you, but there is a buy in and the larger buy in the better your pricing.

moonpod,

Is there anywhere you prefer or your friends prefer to wholesale products. Do you mean buying straight from PFO lighting or Aqua Logic? Don't they require bulk orders. Just trying to get a good wholesaler for drygoods.

JC

 

[strictly marine]

PFO don't need to buy bulk. Just what you need. They can even drop ship for you too.

 

[sharks]

Royal pets and central pets are our middlemen LOL
The more you buy the better the discount. And every month there are great specials to take advantage of that creates more profit for you. Often when Royal offers us a 20% off special for the month we offer a 10% off to the customers.
Good luck and congrats on the new venture
S

 

[moonpod]

moonpod,

Is there anywhere you prefer or your friends prefer to wholesale products. Do you mean buying straight from PFO lighting or Aqua Logic? Don't they require bulk orders. Just trying to get a good wholesaler for drygoods.

JC

As someone previously noted, SLS and PFO don't require "bulk orders". However, if you make a "capital investment" aka buy in, I wouldn't be surprised if your pricing gets better. Aqua Logic isn't carried by the people I know. They do use Central and Boston pet supply. They also use other wholesalers that are local to this area and don't have websites to my knowledge (All Seas Marine, Sea Dwelling Creatures, etc....local LA places). I know that they typically strive though to cut out the middlemen. It's just not always possible. Like I said about AquaC for instance. You pretty much have to buy that stuff from Bayside/Marine Depot. I believe that at least at one time GRI pumps were pretty much exclusively distributed by Champion. Again, in general, it's not uncommon to be stuck w/10-15% margins or less on certain products that are popular. When all the internet etailers are slitting each others throats on pricing what can you do. You get stuck price matching or coming close b/c say Custom Aquatic has priced a certain light bulb 1 dollar over the wholesale price (unless you make a substantial buy in). So you can make a large initial capital investment (risky) on a small number of items, or slug it out w/small margins and hope that in the long run you get enough volume and access to distributorship type prices that you'll be successful.

 

[Crims]

What do you think?

What do you think?

Thanks Moonpod, Strictly Marine, and Sharkey for throughing in some information on this subject. Besides MarineDepot, Where does the other big Internet Sites get there wholesale brands from. Premium Aquatics gets some cheap things as well as other little internet sites. If a LFS is always going to get questions by customers stating that they get it online instead, then I would like to be a little compative like those guys so I can keep my customers. Any body have any suggestions or like to add where they could be getting wholesale items.

Thanks, Strickly Marine for telling me about Royal Pets. they have some good merchandise and tanks but am looking for High End Reef Market like Calcium Reactors, Chillers, Lighting, etc.

JC

 

[strictly marine]

Try aquariumlifesupport.com. I think that is the site.
you said that you had a good wholesaler of fish and coral. Just wondering if you can let me know who they are. I am always looking for someone better.