I showed this post to Scott. He works in a competitive business - their competition advertises "comparisons" to the company he works for. As a result, they get a lot of "surprise" contact from prospective clients who have seen the others' advertising and feel that if those companies are comparing themselves to his employer, then his employer must set the standard in that industry. And they do.
Not very comforting, I know - but it might backfire on them in the end, to some extent.
There will always be the bargain hunters - in any business - but at the end of the day, you get what you pay for. My auto mechanic back home used to have a sign behind the counter that said,
The Bitterness of Poor Quality Lasts Long After the Sweet Price is Forgotten.
Remember that. Some have to figure that out the hard way - but many figure it out in the end, and return to where they got value added for the extra buck or two they may have to pay. Personally I don't blame folks for trying to save a bit here and there on big-ticket stuff, but most do continue to come back for day-to-day stuff, emergency stuff, livestock, help and advice. If they buy their MH fixture someplace else, that just means I can confidently sell them more demanding creatures, knowing that they will be housed in a suitable environment.
Then, there will always be those who aren't so worried about price, as they are about long-term support, and choose to spend their money, not only as an investment in their hobby, but as an investment in the specialty store that helped them acheive their goals. Those customers are the lifeblood of this industry, IMO.
What I can't figure out is why they would show their wholesale prices to their customers? They won't stay in the game long if they don't take a suitable markup in order to pay their bills - as much as hobbyists complain about the markup in the fish trade - it's necessary for the shop to take a margin on their resales in order to keep the doors open. Nobody thinks twice about the price of a loaf of bread or milk (usually a loss leader - I spent many years in the grocery biz) or steak or breakfast cereal - or their stereo system or furniture... but all of those vendors have to mark things up to pay their overhead.
As for showing livestock lists - if they are *only* showing Sun's list, and you are buying from more direct sources, that's no biggie, IMO. I have found Sun Pet (at least their saltwater stuff) to be much higher-priced than if I buy direct from west coast (not only California) suppliers. Sun sells yellow tangs wholesale, for more than I charge for them at retail - so that's a non-issue as far as I'm concerned, because I buy them elsewhere for less.
Sooner or later, showing the wholesale prices to the buying public WILL bite them in the hiney - because the very bargain hunters they are pandering to will eventually resent even them taking any markup. And if they are selling at cost, they'll find out the rent and wages don't get paid that way.
Let us know how that goes... I'm curious about it myself.
Jenn
I doubt most Pet Supplies Plus make the lion's share of their profit from the fish room, so he could probably afford to do dumb things for quite some time. You might also consider going down there and having a chat with the fellow. Price wars don't really do either retailer much good.
