So... I bought a LFS

cbeitel · #1 05/22/2007, 04:36 PM

For 20 years, I have worked for the same company and while I still enjoy my job, something has been missing. When I started my Reef Tank a year ago, I asked someone at Petsmart where the nearest SW fish store was located. She directed me to an independent pet store called Plano Pets in Plano Texas.

Later in the year, my wife decided to go back to work but wanted to avoid the corporate 9-5 grind. So... I got his idea

. Why not start a pet or fish store? She didn't want to run a fish only store, so I started looking for an independent pet store. I remembered the friendly people that had helped me start my reef tank and one thing led to another...

I will continue to keep my day job. Its still fun, but now my nights and weekends are spent helping out at the store. Who else has done something like this? My hobby has become my work as well!!!!

What do you think? We have over 130 tanks at about 5,000 total gallons (1,500g+ is Salt)

danch · #2 05/22/2007, 04:39 PM

Good luck!

smy168 · #3 05/22/2007, 04:41 PM

i own 2 restaurants and have always wanted to do a reef shop only. Best of Luck !

corals b 4 bills · #4 05/22/2007, 04:41 PM

Remember when I saved your life back in nam?........Can I have things at cost?.............Friend.

InLimbo87 · #5 05/22/2007, 04:46 PM

Congrats, you don't sell puppies though right?

starmanres · #6 05/22/2007, 04:47 PM

Just some thoughts about running a retail store. Don't let the love of the hobby get in the way of what you're in business to do - Make $$$!

Keep in mind that your profit margins have to be 3-5 times cost. So many animals die and your bottom line gets to eat them. The fastest way out of business is deep discounts for regular customers. I know it sounds cold but it will come back to bite you quickly.

There is a huge difference in understanding how to manage a reef tank and managing a business. Customers are king but building loyality takes an investment in trust and appreciation from both regular customers and your employees.

Just a little insight from a guy who runs 120 retail locations and loves reefs.

Good Luck!

Robert

InLimbo87 · #7 05/22/2007, 04:52 PM

I disagree, we have a store near us called Sea in The City. Started out as a tiny little store where the owner cares about the hobby and the well being of the animals. And guess what? She has one of the biggest following of regular customers I have ever seen, has upgraded her store, and is obviously raking it in by the truckload. Forget the profit margins, if you can stick by your morals and build a customer base that way, it WILL reflect in your profit margins. I shop at Sea in the City almost exclusively, as many others in my area do, because we stand behind what the owner does. Stand out, don't just be another crappy pet store looking for the almighty dollar. Believe me, it'll pay off if you do it right...

cbeitel · #8 05/22/2007, 04:53 PM

Robert- I have 20+ years of retail management and oversee 16 auto service centers. I understand margins!!!! So many times I see people flaming about LFS prices. They just don't understand the business. There is a HUGE cost involved in keeping these babies hummin along.

All- I'll snap a few pics of the fish room tonight. The place has had an absentee owner so there is much work to do. The good thing is the employees are awesome. I plan on a grand re-opening in a few months after I get a few of my ideas in the store.

Here's another pic I found...

corals b 4 bills · #9 05/22/2007, 04:54 PM

Quote:

Originally posted by starmanres
Just some thoughts about running a retail store. Don't let the love of the hobby get in the way of what you're in business to do - Make $$$!

Keep in mind that your profit margins have to be 3-5 times cost. So many animals die and your bottom line gets to eat them. The fastest way out of business is deep discounts for regular customers. I know it sounds cold but it will come back to bite you quickly.

There is a huge difference in understanding how to manage a reef tank and managing a business. Customers are king but building loyality takes an investment in trust and appreciation from both regular customers and your employees.

Just a little insight from a guy who runs 120 retail locations and loves reefs.

Good Luck!

Robert

Hey Robert, Remember when I saved your life in nam?

starmanres · #10 05/22/2007, 04:57 PM

Quote:

Originally posted by InLimbo87
I disagree, we have a store near us called Sea in The City. Started out as a tiny little store where the owner cares about the hobby and the well being of the animals. And guess what? She has one of the biggest following of regular customers I have ever seen, has upgraded her store, and is obviously raking it in by the truckload. Forget the profit margins, if you can stick by your morals and build a customer base that way, it WILL reflect in your profit margins. I shop at Sea in the City almost exclusively, as many others in my area do, because we stand behind what the owner does. Stand out, don't just be another crappy pet store looking for the almighty dollar. Believe me, it'll pay off if you do it right...

And how many retail stores do you own...? My point.

I didn't say do it wrong and hose your customers, I said that it is a business first and a hobby second. I don't know if your investment funds are unlimited but watching where the profit comes from and tracking them against your expenses is essential if you want to survive.

As you can see from the responses so far, everybody is now your best friend...

Robert

cbeitel · #11 05/22/2007, 04:57 PM

LOL CB4B

corals b 4 bills · #12 05/22/2007, 05:03 PM

Yea that's me the broke guy needing a 10% discount come on now, how about a discount for students, don't worry chip if you cut somone a break once in a while the'll keep comming back, I used to drive 20 miles to my LFS for 12 years out of loyalty until they moved 40 miles, good luck.

starmanres · #13 05/22/2007, 05:03 PM

Quote:

Originally posted by corals b 4 bills
Hey Robert, Remember when I saved your life in nam?

Wait... You're that guy that dove on my C rations and saved me from terminal heartburn!

I LOVE YOU MAN!!

wgrinnell · #14 05/22/2007, 05:04 PM

good luck man, and enjoy yourselves.

corals b 4 bills · #15 05/22/2007, 05:07 PM

Quote:

Originally posted by starmanres
Wait... You're that guy that dove on my C rations and saved me from terminal heartburn!

I LOVE YOU MAN!!

Glad to see you made it home in one piece

seapug · #16 05/22/2007, 05:07 PM

Wow, congratulations. The fact it's a place that's already in business is a huge plus. The time an expense involved in just opening the doors to a retail business is more than most people can take. Now you can come in and give the place a nice makeover and rejuvenate it. Glad to hear you understand the retail world and understand the advice Starmanres gave. Provide friendly knowledgable, service and you won't need to lose your *** by operating at a loss only to gain a customer base of cheapskate bargain hunters.

purebullet417 · #17 05/22/2007, 05:37 PM

nice tech tank lol. good luck with the store

clayspst · #18 05/22/2007, 05:42 PM

good luck i have put thought into it but i dont know the busniess side so it will have to wait.

starmanres · #19 05/22/2007, 05:43 PM

Cbeitel,

I'm going to be in Dallas at the end of the month on business, I will look you up and make a purchase... At full retail!

Gotta support the good guys!

Robert

DaveG99 · #20 05/22/2007, 05:45 PM

In Limbo: Marcye is greaty at Sea In the city. She does a great job at running her store. I used to live near there before I moved 6 months ago. I bought my hippo tang from her. I think I paid about $40 for it.

cbeitel: good luck with the store.....I dont live to far from there. I might come by one of these days and check you out.

GMAX · #21 05/22/2007, 05:48 PM

Chip good luck

Those reef tanks will keep you busy trying to get them back into top notch condition. Good location though I would prefer less dogs and kitty cats and more corals.

I would be happy to share my year or so of ownership stories from the business. We did a lot of stuff wrong but in the end, I wasn't having the fun I expected. But you can go to school on the mistakes!

Satori · #22 05/22/2007, 05:50 PM

Congratulations on the store! You know, one thing I've always thought of to increase employee knowledge is to require every employee to own a reef tank. If they don't have one, provide them with a 12 gallon nano as a buisness expense. You know, I'm just sayin'...

JokerGirl · #23 05/22/2007, 06:01 PM

Quote:

Originally posted by InLimbo87
Congrats, you don't sell puppies though right?

You don't sell parrots either right?

Lion_Babe · #24 05/22/2007, 06:30 PM

We have always kicked aorund the idea of owning our own store. Good luck!

robertifly · #25 05/22/2007, 07:20 PM

You go! I do a lots of looking on the internet mainly for info purpose as I perfer to buy LFS and I don't complain about the prices, unfortunatly many don't see the value of having a LFS as I do and the only one within 100mi closed the doors this past Sat. truly a lost for the local fish keepers and community in general. Best of luck and I agree with others: Quality, Good Knowledgable Employee Service, Intergrity, Friendliness and a good bookeeper will make you a success. Best of Luck!