Pricing, touchy subject?

Pricing, touchy subject?

Postby downbydasea » Thu Nov 15, 2012 6:06 pm

Ok so I saw a post on another site from a few years back and the discussion was in regards to pricing, for both wholesale and retail.
My question is, Is this something that is generally not discussed amoungst breeders?
I would believe that generally speaking the wholesaler is the final word on setting the standard market price, however when approaching a potential buyer,say a LFS, how do you determine what is a good price.
Just some curious thinking here. Not really looking for everyone to share their pricing....however if you would like to feel free..lol....
Also if you have any tips on the do's and dont's of contacting wholesalers and retailers that you have learned from experience, please share.
As always your time is much appreciated.
Thanks
James
When someone shares something of value with you, and you benefit from it, you have a moral obligation to share it with others.
Chinese Proverb
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Re: Pricing, touchy subject?

Postby CoralAndFishDepot » Thu Nov 15, 2012 9:36 pm

Regarding Clownfish: I am sure you know that basic economics of supply and demand will dictate what the pricing will be, wholesale or retail. Obviously it helps if you have a unique product that is desireable to the masses, but believe it or not, the staple of any wholesale business is just the regular Percula and Ocellaris. If you are providing designer clownfish to retailers then you should require them to purchase a certain amount of your "regular" fish on consistent basis as well. For example, there is a certain wholesaler in the northern USA that requires a purchase of $500 worth of livestock to be able to buy 1 of his designer fish. That is a bold strategdy to move his less desireable fish and I think it's working, so other 's may soon follow his lead.

Regarding approaching a LFS, its all going to depend on if you can beat their current pricing and if you/your fish have a good reputation. IME most fish stores do like to deal with proven local breeders because they don't have to fill a mininum order amount like they do with the major wholesalers. Also, they don't have to pay for shipping and or deal with stressed out or DOA's. Best bet is to try and approach your LFS ASAP and build a relationship with them. Simply tell them what you are attempting to do to see if they will become a future customer of yours.

Regarding contacting wholesalers, most of them will require that you have an actual brick and mortar store, but there are a few that sell to internet or tank service companies. All you have to do is provide them with a valid business license and tax ID from your state.

Of course this is all just my opinion/experience, so take it with a grain of salt. I am sure others will have their own view of it. Either way I hope it was somewhat helpful and let me know if you have any other questions. GOOD LUCK!! :D
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Re: Pricing, touchy subject?

Postby Chad Vossen » Fri Nov 16, 2012 9:51 am

I've got 3 wholesalers that want to buy my clownfish. I don't even know where to start on pricing. I know my prices if I wanted to sell to the LFS since I can see what other wholesalers are selling them at. I have not given the wholesalers my prices yet, and one of them wants to buy my fish in 100 lots. Right now i'm raising Darwin ocellaris, regular ocellaris, snowflake ocellaris, and onyx percula. Soon plats, picasso, and percs.
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Re: Pricing, touchy subject?

Postby jeff@zina.com » Fri Nov 16, 2012 3:11 pm

In general, wholesalers will pay 10-25% of what retail will be. This depends a lot on the type of fish, demand, survivability and so on. You can figure wholesale at 1/4 of the retail and see if the wholesalers will take them at that amount.

The usual issue with wholesalers is whether you can meet their demand. If they buy 100 fish a month and one month you can only supply 35 fish, they will move on to the next source and not look back.

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