Most pet shops make money at one very obvious and obvious reason: the pet lovers. I want to be frank and real: it is because pet shops cater for the pet lovers. The pet lovers have been conditioned to think that a pet shop has to sell high end products such as toys, and not necessarily the low end pets they are after.
This is one reason why it’s so difficult for a shop to sell lower end pets. There is a limit to how low you can go, or even what quality control standards you can have. I’ve sold pet accessories myself for years. I can see the problem, it isn’t uncommon for the shop to be unable to meet their standard because I’d just sell to myself. Some shops do manage to sell very low end pets on a regular basis because they’re very good at their trade show business. But many pet shops have not been able to do so. If you don’t understand that then you will not be impressed by the fact that these pet shops have been able to continue to sell low end pets for many years without a problem. This is what makes pet shops an extremely successful business.
But some shops have made a massive loss. In 2009, The Pet Shop in Brighton, UK, announced a major financial loss. I’ve dealt with them in the past when they were the leading designer retailing pet accessories. But I can say with certainty that they are no longer a major player. One of the major reasons why they’re not in business is a product shortage resulting in pet shops having to buy more of them every year. If there was a problem with it it could very well be the biggest financial loss experienced by a pet shop.
But despite the massive loss, many pet stores like to argue that they do ‘make money’, and ‘make money from their customers.’ They argue that there are a lot of pet shops that can’t survive without having to sell many cheaper, lower end pets rather than their high quality, high priced ones. If there was a way they could sell their pet accessories and ‘make money from their customers’ then yes, they would probably stay in business. But they can’t. Their high quality products that are in demand and sell well, can’t be sold much below these cost.
This has a lot to do with the fact that pet retailers are generally very large businesses with a lot of capital investment (which the average Australian pays for) and a lot of management expertise. These are all things that are not a part
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