LFS shoot themselves in the foot

dirtyreefer · #1 12-23-2005, 05:27 AM

I was at Total Pet in Kelowna during the holidays and I remember a bag of IO salt (for 50g) was $45. What a joke

RonPeter · #2 12-23-2005, 06:01 PM

I know...AJ's In Vernon sells 160G IO for $99.99 and when I ask about their high price there reply is "we are doing you a favor selling it that cheap!" I now by it from Pet City in Kelowna for $69.99 a pail. I guess they can get away with it as they are the only Salt LFS in Vernon.

DanG · #3 12-23-2005, 06:14 PM

I don't work for a LFS, but I do know the difference in pricing when it comes to buying power. The prices can be drastically different when it comes to buying 20 vs buying 2000. I can definately see paying a premium from the LFS, but more than double is way out of line.

Stasher · #4 12-23-2005, 06:40 PM

On a single item at a small local pte store I could see a much larger price.
They don't have the buying power.
They have building, employee costs, shipping etc which they pass on. This is only fair on their part and I do my best to support them, they need to charge certain prices just to make it worth their while to sell.
It's the big box stores I don't understand charging the inflated prices, they have the size and buying power, aren't they supposed to be better, which they are not.
Next time you go to the LFS, if they are a small business, deal with them. Explain to them the what you can get the product for online, but don't forget you often neglect to remember the shipping price you will pay. Tell them you will glady pay marginally more locally for the convenience and support a local store but exagerrated prices are unreasonable. Don't ever compare to american prices, I am a small business owner and when I hear this I take offense, I don't mind you supporting another Canadian store but not an American one. It's not entirely a patriotism thing but I would rather invest in our economy as the triv=ckle down effect of consumer power will spread throughout the community.

Mostly, my point is that you shouldn't be completely selfish with your purchasing power, be an "informed consumer".

Local price is what you pay...

Online....product plus shipping ( plus duty and brokerage for US)

BTW...I support JL along with my LFS, they are a great store and are very helpful on the phone. Heck, one time I wanted to spend money and they talked me out of it. (A clam, recently treated my tank and they advised me to wait)

robzilla · #5 12-23-2005, 06:49 PM

my local pet store goes to vancouver and buys stuff from the coastal stores
and brings it back via his van. so he buys salt for $40 and sells for $99. its seems it bit much for a mark up. some of these lfs need to read the walmart book on how to drive their business.....

Willow · #6 12-23-2005, 07:07 PM

all it takes is to tell your lfs why you aren’t going to shop there and where you will shop and why. if they tell you to knock yourself out, go shop else where. the internet and shipping can be great asset in this hobby. be informed when you shop and tell your lfs to cut you some breaks when you bust them on their prices, if they go out of business because they are relying on people spending 99 bucks on a pail of salt they should probably be in another type of business.

Stasher · #7 12-23-2005, 07:09 PM

Quote:

Originally Posted by Willow

all it takes is to tell your lfs why you aren’t going to shop their and where you will shop and why. if they tell you to knock yourself out, go shop else where. the internet and shipping can be great asset in this hobby. be informed when you shop and tell your lfs to cut you some breaks when you bust them on their prices, if they go out of business because they are relying on people spending 99 bucks on a pail of salt they should probably be in another type of business.

This is basically what I believe.....Running a business requires give and take. Your customers are what keep you in business, you need to respond to their needs and stay at par with the industry.

JohnM99 · #8 12-24-2005, 12:30 AM

Don't get me wrong about wanting to support local business - and I certainly understand the cost of employees, insurance, spoilage, rent etc - but the amount of markup has to be within reason - and it is bad business. I am sure I am not the only one driven away by a silly markup.

The $50 is not really the point - this hobby is a luxury, and I have spent well into 5 figures and then some - but it just bugs me to see that kind of a markup. I bought a pair of speakers from a high end, small volume audiophile store this week - they were not really all that much higher than the rock bottom web price plus shipping - so why is it different for a LFS? I guess they get away with it.

As for J&L I know they have higher expenses than perhaps Premium Aquatics does - but they are usually closer than that in their pricing - I wonder if the recent rise in the CN $ has yet to be caught up with - ie they bought their stock a while ago at a lower $ value which is still reflected in the price.

Anyway, I will wait 3 days and see what their Boxing Day sale brings. My old Scottish grandfather (who would be 113 now) would roll over in his grave if I didn't.

Jaws · #9 12-24-2005, 06:27 AM

Quote:

Originally Posted by Stasher

This is basically what I believe.....Running a business requires give and take. Your customers are what keep you in business, you need to respond to their needs and stay at par with the industry.

I agree with both of you. If you consult your LFS and tell them you would like to commit to them but it's difficult when other stores are providing you excellent product at an excellent price, there has to be somewhere you both can meet in between. If a store isn't interested in dealing with you at all then they're obviously not too concerned with obtaining your business. I know that I pay a "little" extra at my LFS but I also know that I can count on their advice being nothing short of excellent. If you can't count on that, then what are they charging extra for? Shipping? I already pay extra for shipping when I purchase from somewhere online. Would I continue shopping there if all they offered was an overpriced product?... NO! But if I can count on going there and paying a little bit of a premium, stress the term "little bit", for their personal assistance then I feel it's worth it for me. Your LFS wants to be loyal to you but they're going to want a commitment from you as well. If they're smart, they're going to understand that some of your business is going to end up elsewhere. That's just the way the industry is, but if they're really interested in your business then they should be willing to compromise on some sales that will eventually lead to more consistant business from you in the near future. It's my opinion that a buyer's biggest mistake is to just write off a LFS without consulting them first. Try to understand why they're charging extra and try to determine how you can benefit from paying that extra cost. A good business will always tailor to your needs and try to make you happy if you're willing to work with them as well.

BCOrchidGuy · #10 12-28-2005, 08:04 PM

When buying from a manufacturer a store that moves a lot of inventory get what's called a booking price. This price is a per unit price that is discounted based on what they promise to buy during the year. IE if Big Deals on Fish promises said lighting manufacturer that they will purchase $100,000 worth of inventory over the year they will get a discount based on that amount. If the store doesn't purchase that amount they will either pay the difference or be penalized in another way. So, if Big Deals says they are going to purchase that $100,000 they may get a 30% discount off the normal price they would pay, this means they can mark it up 35% and end up selling it for about 5% more than a mom and pop store beside them that can only move perhaps $1000 worth of said manufacturers inventory. The discount will vary, and in this industry I have no idea what they would be, I was in the sporting wear industry and that's what the numbers I mentioned refer to.
One other thing to remember as well is a store that is known for moving a lot of inventory may get special prefference when it comes to clearance or discontinued items. If a light system is no longer available, or a line of powerheads is discontinued a single store may purchase the whole lot of items at a huge discount so the manufacturer or distributor can make room for new items that will probably sell quicker or at a higher price. Prices in Victoria are the way they are because no one will start discounting stuff, if one store started to do that then the others would either have to follow or rely on their service record and their customers loyalty to carry them through, and lets face it if you went to your favorite store to buy a bucket of salt for $99 and it could be had down the street or even on the other side of town for $49, you would probably complain about the price and ask for either a match or a discount, maybe not but I would.

Doug