Group Orders.

[jnarowe]

How can we coordinate more? Is there any way to do these and support LFS?

 

[Herefishyfishy]

Thank you Johnathan, I agree entirely and apologize for any thin skin I might have manifested on the other thread. Been quite busy but that is no excuse.

The local LFSs need our support to enable the hobby to continue in a positive way. The glue order was a specific request by many local friends and I had a hard time saying no (believe me I tried).

I have purchased all my 100s of snails, hermits, feeder starfish, Metal Halide bulbs, salt, etc at the local stores even if there was a chance of finding a better "group order"

We are fortunate to have so many excellent stores her and need to do all we can to make sure they thrive. There are few things I like better than visiting Barrier Reef and dropping come coin there where it does some good.

Guess each and every group deal is a judgment call.

 

[jnarowe]

Well, it is business, and although I push LFS to carry certain lines, sometimes it is just impossible for them to do it and make a margin. I spend most of my work hours sourcing products from around the country and overseas, and the distribution channel can get quite convoluted, with every turn adding cost. Take the D-D salt for instance. We all think it is expensive, but typicaly in retail, consumables run at lower margins, especially when they are "commoditized". I would bet that BR makes very little on those buckets and that's why we don't see LFS bringing in pallet loads.

In my retail store I hear it all the time. How a customer can get something cheaper somewhere else, and the assumption made is that I am pocketing the difference. The truth is, I am usually pocketing less to stay competative. In fact, most of what we carry is LESS than larger stores or our online competitors, but when a person walks into a small retail store, they just figure prices are higher. And the aquarium business has tremendous waste as well. I lose between $1000 and $2000 worth of food product per month to waste, and I cannot imagine what some of these LFS lose. That's why pricing is tough for them.

I call it as I see it Mike, and unfortunately, I make just as many enemies as friends. It's more or less a brain damage thing (or at least I use that excuse), but I am all about sharing, learning, and speaking my mind, regardless of whether anyone wants to hear me.

 

[Corriander]

If a LFS were to sponsor a group buy for a specific list of goods on a quarterly basis, it may achieve the best of both worlds.

Bulbs, salt, additives . . . we all need these things at regular intervals. Set prices, set a weekend, take advance orders (plus deposits) and get a few pizzas for the people to share while they are picking up their reduced cost goods while they peruse the livestock. Everyone leaves happy.

 

[jnarowe]

That's an interesting idea. Of course, it trims the LFS' margin, but perhaps there would be a decent amount of follow-on sales and goodwill. Plus not having to maintain much inventory on said items.

 

[Jan]

I think that's a very good idea.

 

[Herefishyfishy]

At least once a year my local store, Barrier Reef Aquariums, has a large open house sale and offers cheap salt buckets and raffles. They move a HUGE amount of livestock during these events and establish many new accounts. I suspect many other LFS do similar.

 

[jnarowe]

Yeah, the BR sale is fun, but not in the same vein as a "group order". Perhaps that would be a good way for LFS operators to judge potential sales though. So if a store is planning an event, they can have a group buy sign-up and make more sales while cutting overages. That's the big problem for small businesses is not having the "right" amount on hand and juggling minimums as well as price breaks.

But what you (Mike) said earlier about having people not make good on their order is always a potential problem. I would not mind at all paying up front going into an LFS group buy though, and that would ensure that I show up, pick up, and possibly buy more stuff as a follow-on. At times there are very good price breaks on larger volume orders, often free shipping on minimums etc. so there is more margin or savings to be had.

I bring in pallets evey week and most of my import vendors offer free shipping with a minimum order. I do way more business than those mins. which tend to be in the $3K - $5K range, but I can also increase my order frequency and just cutting the shipping out allows me to sell at a very competative price and still make a good margin.

Jan: Every idea is good! But we all do things a bit differently and every business owner has their own set of operational challenges. I have pushed three LFS to bring in Tropic Marin Salt, but to no avail. It's just an issue of cash flow, storage space, demand, and availability. I would switch to Tropic Marin regular if I could get a good price on volume.

 

[Corriander]

I can assure you that livestock and equipment orders in the LFS realm also have minimum purchase incentives and large order shipping deals. All the wholesalers I used to deal with in LA had $500+ minimums just to do business. There were ways to circumvent the minimums but unless you were local chances of this were slim.

Offering pre-sale, advance payment pricing before a general LFS event is a great idea . . . if the LFS is in to it, of course.

 

[barrierreefcf]

I've offered to do group orders and still will. I'm open to anything. If you can get a small group started behind the scenes we can get a feel for pricing on whatever item is being sought. Then we can post and move forward. Pre-payment is the key. Just contact me through PM or email.

Things that come to mind:
Glue
Cleaner Critters
Salt
Anything Elos
Anything Tunze
Anything CoralVue/Octopus
Frozen Foods

 

[ghazni]

I am in for Cleaner Critters and Salt

 

[jnarowe]

hmmmm...how about a group buy on Tunze 6301???

I am glad to see you chime in Cy. You have been very proactive and I respect that a lot. I wonder what the demand would be for Tropic Marin salt and if it would be good enough to get a pallet? I hate to beat that dead horse, but it is the only other salt I have tested that meets my criteria.

 

[barrierreefcf]

hmmmm...how about a group buy on Tunze 6301???

I am glad to see you chime in Cy. You have been very proactive and I respect that a lot. I wonder what the demand would be for Tropic Marin salt and if it would be good enough to get a pallet? I hate to beat that dead horse, but it is the only other salt I have tested that meets my criteria.

If the demand is there, I'll do it. If its all pre-paid I'm sure I can get a decent price. I just haven't seen the demand. I've had 3 people ask about it in the past 2 years.

On a side note, I've figured out where the use is for the D-D salt. Check our previous discussion for my thoughts.

 

[jnarowe]

Thanks. When I buy, I usually get 12 x 200g so I would be a good part of a pallet myself. I'll talk around and maybe we can get it together.

 

[Jan]

Jonathan, did you decide that the new Tunze salt doesn't meet your criteria? I would be interested in buying some of that, whether part of a group buy or not. Let me know when you get some of that in, Cy...

 

[jnarowe]

I have not gotten any of the Tunze salt to try yet so I don't know from personal experience. I am a bit suspicious of all the "new" salts hitting the market though.

 

[sherm71tank]

You could count me in for a few buckets of the Tropic Marin and I don't mind paying up front.

 

[jnarowe]

This guy in Iceland can get it for God's sake!!

 

[Red C Aquarium]

tropic marin group buy

thats something we'll be down for.

We can sit on $3000 worth of the worlds best salt , but we would love to plan a future group order, they are 300 gallon sacs:shock:

 

[sherm71tank]

What kind of price tag are they? I've never seen a 300 gallon sack of salt before!