Could you run your own FS?

[Angelscrx]

I don't think everyone that starts business like this knows all there is to know about everything they sell. Just like the customer who sees a fish or a coral they like and goes home to research it I think the LFS owners get something in and hit the books or look through the catalogs and research the item before they order it. That way the information is fresh in their minds and can give decent answer. I loved going to kevin's store but loved his home tank just as much. He has coral replenishment capabilities where someone who doesn't have access to that kind of a set up won't. kevin is a smart business man and an awesome human being.

 

[diablo]

Well its different point of view. You being on the east coast.

#1 MONEY you need to have enuf money to back up the shop. Buying a pre existing bussiness is a good start if the cliential is already est. Probably be cheaper to buy all equipment yourself and build you own system, depending on what the pre existing bussiness has already. (total gallons,clients,website?)

#2 LOCATION ever wondered why all the wholesalers or located in clumps? when they import it is a major hub for the exporters (walt smith anyone?) Most of all the wholesalers on the west coast are located accross the street from LAX in L.A.. That is where the exporters get a bulk shipping rate anything outside will cost more for shipping and fish will have to spend a extra day in bags. creating more losses.

#3 CLIENTS Who are you going to be selling to does this wholesale company have alot of clients that you will maintain a steady flow of bussiness? If not look into doing something like live aquaria or premium aquatics.. BUT you have to have alot of money to get competitive prices from companys to compete in that market for dry goods.

#4 SAD FACTS in a wholesale company opinion. They tend to move thing very rapidly. as soon as it comes in from a long shipping period. It is usually bagged right back up and sent to the LFS. Way too much stress for alot of fish/ corals. Your loss will be up there when you import, but what doesnt die in importing sometimes trickles down to the home hobbist. There is alot of stress on a fish through the current situation in the chain from wild to home. There is a mentallity that comes with the bussiness and you have to be prepared for loss. You could do a 3 stage QT but your loss would be high causing your prices to rise. In the end the LFS will still buy from the cheapest guy. They have to be price competitive as well.

In answer to your question yes I believe I could.

 

[Steven Pro]

The real question is not so much whether or not you have the knowledge and experience to run a LFS. A lot of people do. The real question is whether or not you want to do it. Before anyone should even consider opening their own store, they really should work in a store for several months to get a feel for retail. Having done retail, I can hnestly say I would never want to do it again.

 

[mm949]

hey steve...the general public isnt THAT bad...maintenance does have its benefits like having several 500gl reef tanks that u dont have to pay for..lol!!

its my GOAL to educate and advocated BERLINism to everyone that wants to listen....

the only bad part of taking a hobby and turning it into a job is it is no longer a hobby...

been doing the hobby for 24yrs and the business for 15yrs and have never been happier...

Reef On

 

[Curtswearing]

Make sure you look at the numbers well and calculate your break-even point and ROI to decide if you want to open a LFS. If you don't know how to do this, don't be cheap. Hire someone who knows how. It may be the smartest money you've ever spent.

I had two separate LFS's contact me to purchase their store. I also had an online store contact me for the same purpose. I ran the numbers on both of the LFS's and decided it wasn't worth my while. The online store is still for sale the last I heard. If you are interested, PM me and I'll have the owner contact you. Putting info like this on the Internet would be disasterous to his business. I didn't run the numbers on this store....I simply wasn't interested in selling a bunch of dry-goods.

While I believe that I could run a LFS, the other reason I wasn't interested in my own LFS comes from my days selling electronics while working through college. I spent about 2 hours going through the advantages of a very high-end stereo system with a client explaining everything. After that, he was brutally honest with me and said, "Thank you....you've been very helpful. The idiots at XYZ store couldn't tell me anything about this system but they have it for $75 cheaper so I'm going to get it there". I wasn't on commission but it still ticked me off. If you won't get upset knowing that people will use you for information and then not repay you for your knowledge, then a LFS might be fine for you. I know that it would upset me so a LFS is not a good idea for me.

 

[DonW]

Make sure you look at the numbers well and calculate your break-even point and ROI to decide if you want to open a LFS. If you don't know how to do this, don't be cheap. Hire someone who knows how. It may be the smartest money you've ever spent.

Part of figuring the overhead is paying YOURSELF. So many people think they can get the paycheck after business picks up and they can live off CC's. Dont payyourself just the bare minimum to scrape by either, take a good salary. Scraping by will just get ya in divorce or bankruptcy court.

Don

 

[bradreef]

If you ask most LFS owners they will tell you they dont have tanks at home anymore. when you turn your hobby into work it can stop being fun fast. there is a lot of tricks to this industry. that is why a ton of stores go under. the thing I can say is it is almost impossible to make a ton of money at a retail fish store without having maintenance as a big part.

 

[Aquatic Guru]

If you ask most LFS owners they will tell you they dont have tanks at home anymore. when you turn your hobby into work it can stop being fun fast. there is a lot of tricks to this industry. that is why a ton of stores go under. the thing I can say is it is almost impossible to make a ton of money at a retail fish store without having maintenance as a big part.

I agree. I have a friend that runs a fish store. He says he's making ok money on the fish and corals but he says he makes the most money on doing maintenance for homes and business. There's alot of people out there that has no time whatsoever to just simply clean their tanks and they'll pay crazy money for maintenance. I guess these customers are rich???

 

[Dr. Dee]

Yeah i have a LFS in So Cal and I've been in this game since 1993.So you have to know your stuff like fish corals and so on,and the key is you must love your work or else you will fall on your asphalt It takes a lot of patience to deal with sick fish and some rude sick a-s people and thats because some will take your kindness for your weakness.but nevertheless its a lot of hard work keeping the stock up and orders but if you love your work it can bring Joy and MONEY. Oh as for questions i get at lease 120 a day man and now its driving me CRAZY MAN CRAZY :evil:

www.advancedtanks.com

 

[barrierreefcf]

As a maintenance business owner for 8 years, a store manager for 15, and now a store owner two things jumped out at me as I read this.

I have to say that what Curtswearing mentioned is one of my biggest pet peeves. At least once a week I took a phone call to trouble shoot a problem for someone only to have them tell me, "thanks, those guys at store xyz didn't know anything but it was cheaper there" or "no i didn't buy it from you but I knew you could help me." Better yet here's a phone call I took right before I left my managerial position. "Hi can you tell me about Sebae anemones? What will host in them? What are their requirements?" And on and on for about 15 minutes. Only to be followed with, "well thanks a lot, I'm at Petco and they have one I'm looking at for $20 and I knew you could tell me how to keep it." Or someone would come have us design a system only to go out and buy all the components somewhere else or online only to save a few dollars. System design takes time, which costs money. Thanks for wasting mine! I know this is all part of "retail" and as a store owner you have to suck it up and at least be thankful for your knowledgable reputation, but it doesn't mean its not wrong.

Also, I'd be skeptical of anyone who knows "everything." There is so much to know, the information is constantly evolving, and there are huge grey areas and lots of truly unknowns. Anyone who can't admit they don't know once or twice or never has too go look something up to be sure, would scare the heck out of me. I would always be asking myself....do they REALLY know everything?

 

[bradreef]

Cy I like the people at LFs's who say there is only one way to have a tank. The this is the only way you can do it speach. I agree that there is always something new. I think one thing not to many owners do is get online and stay current. I think it helps them keep up with the clients.