Why are LFS prices so high? - Page 8

sequential · #**176** 02/24/2006, 03:00 PM

I can't help but shake the feeling that something more can come of this thread, something of an ongoing discussion or place to continue this open dialogue between LFS owners and their consumers. Perhaps we need a forum dedicated to this topic, a forum moderated by a few consumers who have participated in this thread and a few LFS owners.

Yet that doesn't sit entirely right with me. There's a lot of energy, some good, some bad, but mostly constructive, that could be harnessed to evangelize the hobby while benefiting the cottage industries in the hobby. I just don't see how that could work with just a forum, but at least a place to chat is a start.

Then again, I have no idea how RC works, how a new forum would be proposed, or even if it's an idea that has any of your support.

JonnyD91 · #**177** 02/24/2006, 03:10 PM

I believe in being a good customer at my local LFS. If you are a dedicated customer and buy things on a regular basis the LFS sees that you are a good customer and in the future will give you good deals. ex. Yesterday i was in the store and just looking around. I had ordered a Blue tuxedo urchin a couple weeks ago and was just in to see if it was there. We had been chating and i had said to him "I still have my eye on that purple acro" He then said "yea i just raised the price on it" I said "Higer that $100?"
He said "yes its 125 now" which was written on the side of the tank. Then he offered it to me for $75 which i appreciated so i bought it. It things like that that will keep me coming back. On the other side i am in college working part time and the prices of his equpment are just too expensive. While i would like to support him it would be hard to afford to. They were selling a 35.00(online) phospho reacotr for 79.00. with the money i save from that i can just come back and buy anohter coral. Most livestock an corals though i am willing to pay more locally simply because you can see it before you buy it. Its not like your looking at a picture and then dont get what you expected.

hotredjag · #**178** 02/24/2006, 03:14 PM

I personally would love to see some board like this. I had no idea of the feelings of so many people. Leaving the lines of communication open can only benefit us all. As a side note, I ordered some ARM from Caribe Sea today. Again an online store had it for $6 less than my cost. Should I just not carry it or be perceived as a price gouger? If I bought it from the online store, what do people think is a fair markup?

sequential · #**179** 02/24/2006, 04:13 PM

Quote:

Should I just not carry it or be perceived as a price gouger? If I bought it from the online store, what do people think is a fair markup?

Here's a general rule of thumb. If you can sell a single item, specifically an item that is likely to be purchased alone, once, or infrequently, for less than the cost of shipping for that item, generally within $10, then it's an item you can probably move in your store. Larger items, like tanks and furniture, you simply have to remain locally competitive. Likewise, livestock and food should be locally competitive, but certain items won't be flying off the shelves if you are significantly more expensive than online.

On the other hand, if I'm only saving, including shipping and the product, $10, I'm more likely to increase the value of the convenience of buying locally. If it were $50, on the other hand, well, I think you can guess where the market will shop in that case.

In practice, this means very few higher priced items should be stocked in any significant quantities. You do want to have stock on hand for sales, but you don't want to keep too much on hand on the chance that they sit for months on end. Inventory management is key.

This rule of thumb is just that, a rule. It's meant to be broken, but I'd advise knowing why you're breaking it; the need to generate a profit is not a sufficient answer.

There are many factors to consider other than price alone, like the likelihood that someone will need product X in your market, but perhaps it is useful to you.

hotredjag · #**180** 02/24/2006, 04:20 PM

By the way, we have LOTS of loss leaders in my store. Aquariums being by FAR the least mark up. I guess that is what makes it so hard, the knowlage we have to make money on something, or the doors won't be open long.
The times they are a changing (Dylan)

firefish2020 · #**181** 02/24/2006, 08:18 PM

Quote:

We as LFS, walk a line of not wanting to insult people and telling them "no, you can't put Nemo in a betta bowl"

Yes learning to say no as nice as possible is a great skill to have

On a side note, spent 55 minutes explaining a reef setup to a couple today will they come back, prob one day. Told them to build there own sump it would be cheaper for them. Did I loose a sale? Maybe but I think they will be back after asking a few questions at other area shops. Time is an investment but in my opinion truth is a greater investment than just trying to sell something. Sorry to hear of all the bad LFS out there and am glad to see there are others that do care to learn and pass on what they know unselfishly thats the only way we can survive as an industry IMO.

unsane · #**182** 02/24/2006, 08:58 PM

The prices are so high at LFS because dealers are selling DIRECT to ONLINE vendors. LFS must use a middleman wholesaler., as dealers will not sell direct to the LFS. Its a dying breed if something dont change soon. Unfair how the LFS dont have a chance. I used to think LFS was just out to rip me off until I had this same discussion with the owner of the LFS, very interesting conversation.

firefish2020 · #**183** 02/24/2006, 11:19 PM

Quote:

Unfair how the LFS dont have a chance...

Pleeeeze don't write us off just yet we might have lost a few battles to eshops but the war is far from over IMO. LFS still have certain advantages over online and virtual shops, as long as we can learn to be competitive and focus on our real competition we will survive just like anyother physical shops in the future will. I honestly don't see the computer, internet virtual petshop whatever may come next, closing down every physical retail shop at least not in the next several decades. Something about needing to talk face to face with someone physical rather than text or pictures on a glowing screen.

toto · #**184** 02/25/2006, 12:11 AM

firefish - have you had a chance to tell your boss about this thread? i'm sure he/she would love to have a chance to get a better feel for whats going on in the industry. This thread was brought to our attention by an employee of ours..were really glad he told us about it. Just a thought. Actually, maybe everyone could tell there LFS owners about this. Who knows..you just might be pleasantly surprised at the results you get. You'll never know unless you try. I'm not saying that it would change the face of the industry, but it could make it alot better than it is now.

firefish2020 · #**185** 02/25/2006, 08:22 AM

Yes he knows and takes my advice on these matters. He's from the old school so I do a lot of translating so to speak but we agree on these matters for the most part. We see the internet as our greatest competition and realy dont wory about LFS in our area. In fact as I said we have forged good relations with a few of the LFS. They order dry goods for us if someone wants something after we place an order and we trade corals with some as well. However like I said you have those who just want to dominate the industry and refuse to to anything peacefully in a joint effort. In the end the internet may actually force good LFS to be better LFS, the rest will deal however they wish.