Originally Posted by Jerky
I am just curious, what do you think the wholesale price on a ".99" fish is?
Yeah Andy, how much do you sell your fish to the retailers for?
ps. Andy is probably the most experienced person here when it comes to the business of fish having been both a breeder and a retailer spanning decades.
The majority of those .99 fish are "bread and butter" fish and often is what pays the bills for a lfs
. It is all the additional items; food, dry goods, etc that bring in more profit. Loss leaders, same as soda & beer. priced low to get you in the store.
I recently had a "discussion" with the owner a lfs
who was constantly bemoaning how terrible business was.
The problem is that he has none of the common tropical, or "bread and butter" fish. He basically stocks what he likes, big cichlids, koi and fancy goldfish.
His salt section is more like a hatchery for ich, although he has some beautiful coral tanks.
Last time I was in there had had probably 70-100 4"-6" firemouth cichlids in there, who the heck is ever going too buy those, !??, he may sell one every 3 months or so. when I tried to suggest how to better utilize his floor space and stocking he got pissed off at me and complained that the little fish were not worth his time.
Funny thing is nobody is breaking down his door to buy what he does stock while a few miles away a store that always keeps all the "bread and butter" fish is ALWAYS busy from opening to closing.
sure the margins are low, but volume and add-on sales is how to make those .99 fish profitable.
Oh and I wasn't completely out-of-left-field criticizing that guy for how he ran his store considering he bought all the stock and equipment from the store I used to manage to start his.