Pet Supply Business Opening Advise

[ryanb4614]

I have had a pet supply business online since 2008. I have seen minimal profit, there is A LOT of competition in the business. Since I already have the resale license I am looking into opening my own store front. Leasing a small location and mainly carry dog food and cat food with some misc supplies. (may include fish, reptile, other small pet supplies depending on space). The community I will be serving is on the uprise we have had some big businesses move in within the last few years, tractor supply, michelle’s, big lots, etc. But there really isn’t anywhere that offers the “name brand” dog food besides 1 store which is very limited with a few brands and then just the grocery store brands. Now tractor supply has opened and I believe they carry some dog food. This is why I am second thinking this idea.

The closest PetCo and Pet Smart is 30 miles waya. Many people travel to this Petco and Pet Smart because there is no where else to get this food. I already have the distributors lined up, which is an advantage. They are in driving distance that I can go to the warehouse and pick them up, which will remove the freight cost. Good idea or not? This is in the state of Pennsylvania.

1. By our WalMart there is a location for $13 sq ft + $5.31 sf tax, insurance, etc. for a 3000 sq ft suite.
2. By a grocery store and auto zone, where a block buster used to be there is a 4,725 sf, another 7,060 sf price is negotiable.
3. By Staples there is a location for $10 sq ft + $3.62 sf NNN the space is 2640 sf or can be subdivided into 1620 sf or 1020 sf
4. By Tractor Supply and Biglots there is a location for $12 sf + $1.42sf in nets? Spaces include 2000 sf or 3000 sf.


Does anyone know of any websites where I can get statistics of the community and the pet supply business? Live pets will not be sold. Any advise would be great. I will also have to secure financing for around $30k advise on where to try for this?

[Steve B]

One of my businesses is selling (and delivering) dog and cat food. I don't think I have answers to your specific questions, but I thought I would let you know I might be able to help with other things if you decide to move forward.

Living close to the distributor is really not going to save you money because my supplier does not charge me any freight (I must be over their min. order of $400).

I'm curious what type of food you are thinking of selling. We've focused on the higher end foods (much of it grain free) and nothing with corn, soy, wheat, or by-products. It's all good stuff, but the average person isn't willing to pay extra for it.

Go to the bank for your financing - but it will likley be based on the same criteria as you getting a personal loan.

[vangogh]

First welcome to the forum Ryan.

Your idea makes sense. It seems reasonable to think people would shop at your store as for the convenience and also for the brand names you'll carry. Keep both in mind always since those seem to the be the two main selling points you're setting up. They should be in the back of your mind whenever you're making decisions since staying consistent will help reinforce your brand.

I'm not sure exactly what kind of statistics you're looking for. Some stats are easier to find than others. For example a little searching can probably reveal all sorts of information about website stats. I'm not sure where you go for stats on who's walking in the door.

If you're asking about where to locate, my first thought is to set up next to the Walmart. I would think they'd get the most traffic into the store so it would be good to be near them. Does Walmart sell pet food? If so maybe they aren't the best choice. If you need pet food, walk into Walmart and they have pet food, that's probably where you're buying it. Similar for the grocery store. At least if your targeting convenience as a selling point.

[Georgias Gifts]

It seems like I sometimes see a PetCo or PetSmart near a Staples. I would also check the "flow" of traffic. Which location is easiest to get to? Also, think about the future- someday you might want to offer grooming or obedience classes- will you have room? You might need this income during slow times.

Also, will you continue your online business? Can you combine the 2 businesses and do your shipping from your store? (Do you have a warehouse now?)

We have a local pet store with a new owner and he is expanding his reptile & bird food.

[huggytree]

i have 2 cats and i buy them whatever the grocery store has....i care somewhat for my pets, but dont think a heck of alot about what food i buy them...any name brand is good enough...i try to buy different brands each time just to give my cats some variety....i would never consider buying high end food for them....my cats never have health problems and live long lives.....i think your average pet owner feels alot like i do.....you wont make any $$ marketing to people like me...i have gone to a specialty pet store on occasions just because they sell the cheapest clumping litter....cheap is what i look for in pet supplies

what percent of people do you think will pay 2-3x for high end food for their pet?
do they shop at Walmart? or Staples? or Big Lots????

thats how id make my decision

i think you have a good opportunity if that customer has to drive 30 miles to your nearest competitor...if you match their prices your pretty much in

i would focus your marketing right at that point!...'why drive 30 miles when you can buy locally for the same price'...id figure out something 'extra' that you do that the others dont just to add some icing to that cake

[ryanb4614]

Thanks for the feedback. I am trying to figure out some calculations, with rent, insurance, utilities, loan payment etc. I am est. to be around $3,000-$4,000 a month. Going off of $3,750 I figured to clear this amount I would have to PROFIT $187.50 per day, on a 20 day business cycle. (would be open on the weekends, that would just be a bonus). The question I am trying to find out is if that will be possible. With a 5 mile radius there is a population of 45,000 people from this location I am looking into. The loan I am looking into getting is $30k That will cover the inventory, shelfing, other misc equipment, backup expense etc. I am just trying to figure if this is a realistic investment or not.

[billbenson]

Huggy the OP says he is by a Walmart. People that want cheap pet food can go there. Strikes me the pet food market for him is in the good quality food. If you don't think there is a market for quality pet food, stand outside a PetSmart one day and watch people buying it. I have a 70 lbs dog and a small dog. They eat a 50 lbs bag of quality food a month. It costs about $50 for the bag of dog food. That works out to about $1.67 a day. Not really something that is going to ruin my budget. Aside from the fact that there are a lot of fillers in the cheap dog food which makes them eat more, poop more etc., I want a healthy animal. The quality food is more nutritious. I wouldn't feed my kids McDonalds and I won't feed my dogs junk food either. There are a lot of people like me out there.

[Steve B]

You'll never be able to compete on price with Walmart on pet food. You'll be lucky to buy it for the same price they are selling it for. You will be forced to sell the high end foods for two reasons. #1 - None of them are avaiable in Wal-Mart. #2 - You will make more money on the higher end foods (typically 30%). Actually, if you have a conscious, there is a third reason. If you do a little investigating on dog and cat food, it will be hard for you to sell the lower end foods once you understand what is in them.

[ryanb4614]

I agree the is a huge market for the high quality dog and cat food, that is what I would be carrying. I just don't know if I would be able to make the $187.50 in profit. If I could sell $1,000 in sales I would make enough to pay the over head and profit enough where I would be comfortable.

[Steve B]

I seriously doubt you'll be able to get enough in sales to cover your expenses. At a minimum it will take several years to build up enough regular customers to do so. Unless you have a huge nest egg, you may starve waiting for it to happen.