What's the markup on your livestock?

[Anonymous]

I'm having difficulty realizing a set markup percent on my livestock. I have no problem justifying things to the customer, especially in the instance of rare items, but I was wondering what ya'll are making things up at. We're about to explode as far as selection and volume of business, and I want to be prepared. Thanks.

Peace,

Chip

 

[dizzy]

I'm having difficulty realizing a set markup percent on my livestock. I have no problem justifying things to the customer, especially in the instance of rare items, but I was wondering what ya'll are making things up at. We're about to explode as far as selection and volume of business, and I want to be prepared. Thanks.

Peace,

Chip

It all depends on the type of clientele you want to attract. If you want white trash go for 25-30% gross margins. If you want to earn a living go at least 50% gross and add on something to cover freight, loses, and operating overhead. Remember the more you can get out of each item the less things that have to be taken from the wild.

 

[Anonymous]

It also depends on how much you lose. The more you lose the higher your mark up needs to be to make it up. Althought the higher the markup the longer you'll sit on it and the easier it is to lose. It's a delicate balance.

 

[dizzy]

Rover is right some dealers have to discount their livestock to keep it from dying in their custody. I sincerely hope Chip is not going to be one of those retailers.

 

[Saltykirk]

:evil: I can honestly say if you keep your fish healthy & have good selection, people will pay you a fair price for your fish. Ordering seems like a good idea to most people till they realize that acclimating fish after an over night flight is no cake walk. I have seen stores that literally dump their livestock in their tanks, lights on w/ no acclimation. These guys are paying distributor cost, not wholesale. It seems to me the cheaper a fish is, the crappier it is treated. You can probably tell, I love mail order/internet fish houses to death. I agree w/ the white trash statement. People in the market for the cheapest fish possible are not going to order a good skimmer from you or take your honest advice about maintaining what you sell them. I don't think a set markup is key but paying your bills & being able to afford to take of your livestock till you sell it defintly is.

 

[JennM]

:evil: I can honestly say if you keep your fish healthy & have good selection, people will pay you a fair price for your fish.

I couldn't agree more.

Ordering seems like a good idea to most people till they realize that acclimating fish after an over night flight is no cake walk. I have seen stores that literally dump their livestock in their tanks, lights on w/ no acclimation.

I've also seen people acclimate stuff right to death -- leaving it in putrid water for HOURS to acclimate -- sometimes a faster acclimation is better -- think of it like pulling somebody from a smoky room. It's a fast/shocking change but it's a GOOD change. Also, I seriously doubt that wholesalers take more than the time it takes to float for temperature -- I've watched unpacking at my local wholesaler...'nuff said.

People in the market for the cheapest fish possible are not going to order a good skimmer from you or take your honest advice about maintaining what you sell them. I don't think a set markup is key but paying your bills & being able to afford to take of your livestock till you sell it defintly is.

I couldn't agree more. The cheapskates will ask you a hundred questions about that high end skimmer, play with the one you have operating in the store, then they'll run out and order it online from some huge .com. Frugal customers are not loyal customers. Sometimes people will see quality and be willing to pay for it, but not often.

Markup depends on the animal and its desirablity, and its availability.

Jenn