JasonC
Members
So with the announced closing of Exotic Aquatics, I have been able to witness 3 of my 4 favorite LFS's close since getting into this hobby. Know others have probably seen way more, but I have also only been in for 2 going on 3 years.
So something I have been thinking about for a while, and thought I would share here to see if I can spark some discussion, and perhaps action: "Is the LFS business model outdated, and completely unable to co-exist with big box pet stores?"
The main discussion that I see occurring over and over is a dialogue that goes something like:
The way I see it, there is possibly a way to start to stem the tide and give the LFS's somewhat of an edge again. I point to 2 different sectors of retail... Hardware and Drugstores.
Both of these sectors have the same tradition of Local, privately owned businesses being outdone by the "Big Box" phenomenon... Lowes, Home Depot, CVS, Wallgreens, RiteAid, and every grocery store with a pharmacy department. Both have suffered huge losses as far as these private, local stores going out of business, and both countered in somewhat the same way: Banding together in a loosely (or not so loosely) formed co-operative to give them the customer base and buying power to compete with the big boys.
Two examples... Ace Hardware, and Epic pharmacies. Both are comprised of local owned stores that have teamed together in one way or another. Ace hardware tends to be a lot more corporate centric in that they are given inventory to shelve, sales, advertising, etc. Epic, for what I know of them, is a lot less structured, and more focused on the local level.
Both stores are much more known for their customer service than anything else. My sister-in-law works for a hardware store that bought into the Ace family a good while ago. Ask any of their loyal customers, and the number 1 reason they go to an Ace store is because they have employees that are trained, knowledgeable, and actually give a crap about what they do for a living. All things considered, might this be a potential path for LFS's?
Now I know that most LFS's would never buy into changing their name and turn over stocking decisions to a corporate headquarters, but is there a middleground somewhere between that and totally disjointed stores? Could deals be made with Tetra, for instance, to buy multiple pallates of food at a price comparable to what PetSmart/Co can buy at which can then be disseminated through a (potentially nationwide) network of LFS's that all want to get their hands on the product? Why should each LFS enter into negotiations separately to buy product instead of teaming up to create strength in numbers? Same for livestock. If 10 LFS's are buying 100 Neon Tetras at a time, would a wholesaler be willing to sell 1000 for a smaller per fish price, knowing that they will be sold, and, maybe wholesaler x could grab business from stores that may have been in wholesaler Y's domain before? I cant imagine that the prospect of access to a large number of stores wouldnt be enough to spur some competition. For that matter, isn't that exactly what we do with our group buys? Negotiate a discount and combine shipping with the promise of a large sale so that we can lower our per fish cost?
Or maybe I am totally off my rocker? I don't have any formal business training, nor do I really know how the fish industry works, but these are my frustrated observations. I would LOVE to see some responses and opinions come from this post. I know there are former/current LFS owners/workers on this forum, and I would especially like to hear their opinions on whether or not the independant LFS model is still feasable in todays market?
Thanks for letting me pollute your eyes for a few seconds!
So something I have been thinking about for a while, and thought I would share here to see if I can spark some discussion, and perhaps action: "Is the LFS business model outdated, and completely unable to co-exist with big box pet stores?"
The main discussion that I see occurring over and over is a dialogue that goes something like:
Okay... oversimplification, but the spirit is still there. Bottom line, is that the internet sites, and big boxes are here to stay, and they are always going to have the leverage to be able to provide a huge selection at very low prices... its just sheer buying power on their part. But what have LFS's done to counteract this? I dont know the answer to this... so would love to hear opinions."Shame on you for not buying product/fish X from your LFS! They need our business to stay open!"
"But its so much more expensive there then at BigBox/Internet.com/ClubAuction!"
"So what! Is that place going to be there late one evening when you need medicine/emergency filter/food/whatever? What are you going to do when you are in the weeds and your LFS's are all gone??"
"But I still cant afford to shop there!"
"Harumph!"
"Bah! Crumudgeon!!"
The way I see it, there is possibly a way to start to stem the tide and give the LFS's somewhat of an edge again. I point to 2 different sectors of retail... Hardware and Drugstores.
Both of these sectors have the same tradition of Local, privately owned businesses being outdone by the "Big Box" phenomenon... Lowes, Home Depot, CVS, Wallgreens, RiteAid, and every grocery store with a pharmacy department. Both have suffered huge losses as far as these private, local stores going out of business, and both countered in somewhat the same way: Banding together in a loosely (or not so loosely) formed co-operative to give them the customer base and buying power to compete with the big boys.
Two examples... Ace Hardware, and Epic pharmacies. Both are comprised of local owned stores that have teamed together in one way or another. Ace hardware tends to be a lot more corporate centric in that they are given inventory to shelve, sales, advertising, etc. Epic, for what I know of them, is a lot less structured, and more focused on the local level.
Both stores are much more known for their customer service than anything else. My sister-in-law works for a hardware store that bought into the Ace family a good while ago. Ask any of their loyal customers, and the number 1 reason they go to an Ace store is because they have employees that are trained, knowledgeable, and actually give a crap about what they do for a living. All things considered, might this be a potential path for LFS's?
Now I know that most LFS's would never buy into changing their name and turn over stocking decisions to a corporate headquarters, but is there a middleground somewhere between that and totally disjointed stores? Could deals be made with Tetra, for instance, to buy multiple pallates of food at a price comparable to what PetSmart/Co can buy at which can then be disseminated through a (potentially nationwide) network of LFS's that all want to get their hands on the product? Why should each LFS enter into negotiations separately to buy product instead of teaming up to create strength in numbers? Same for livestock. If 10 LFS's are buying 100 Neon Tetras at a time, would a wholesaler be willing to sell 1000 for a smaller per fish price, knowing that they will be sold, and, maybe wholesaler x could grab business from stores that may have been in wholesaler Y's domain before? I cant imagine that the prospect of access to a large number of stores wouldnt be enough to spur some competition. For that matter, isn't that exactly what we do with our group buys? Negotiate a discount and combine shipping with the promise of a large sale so that we can lower our per fish cost?
Or maybe I am totally off my rocker? I don't have any formal business training, nor do I really know how the fish industry works, but these are my frustrated observations. I would LOVE to see some responses and opinions come from this post. I know there are former/current LFS owners/workers on this forum, and I would especially like to hear their opinions on whether or not the independant LFS model is still feasable in todays market?
Thanks for letting me pollute your eyes for a few seconds!