In the last post, we discussed the community pet store, 1 community store can only cover 3KM https://www.nicepetproducts.com/how-to-open-a-profitable-pet-store. So the traffic is fixed, and the monthly revenue also has the ceiling. If we want to increase the monthly revenue, then we need to improve the unit customer price. We are the pet products manufacturers, we visited another customer’s pet store in the high-consumption community shop.
How To Open A Pet Supply Store-Location:
This pet store has 130 square meters, the location is remote from the downtown. The pet caring, retailing, fostering is occupied 1 third of the monthly revenue. In the consumer groups, women take about 80%, foreigners take up to 30%.
How To Open A Pet Supply Store-Pet caring:
Pet Bathing: 130￥/pc, pet grooming:220￥/pc, and they also provide driver picking up service. The pet grooming profit is about 50%-60% besides the electricity, shampoo and labor cost. Since there are many foreigner customers, they have high requirements for pet grooming. They even bring the shampoo by themselves, most of them know more about the grooming, so the cost is higher than ordinary shops.
There are about 800 SKUs in the store, pet foods are mainly imported brands, and the net profit is about 30%. Since the selling brand is not fixed, so they will change the brands every other year. The gross profit is about 40%-50%, some are up to 100%, the overall gross profits is about 40%-50%.
1 square meter can make 3 layers, 1 pet fostering price is 40￥-50￥ per day, the peak season is about 40 pcs dogs and cats.
According to the boss, this store’s turnover is about 100thousand RMB, the net profits are about 18%, that is the net profit is about 18 thousand RMB. In an ordinary situation, the net profits are only about 10%. Even though the profits are high, but the community shop average sales per unit area are 1250rmb/month, but this shop is only 769rmb/month. So the former shop’s net profits are better than this shop. Now the boss of this shop has stopped the pet caring and grooming, he is mainly doing retailing now.
Why the pet store’s profits ceiling is so low? We conclude below:
1.The pet groomers efficiency
One pet groomer can at most wash 8 pcs dogs or trimming 6 pcs dogs hair. If you want to do more service, so it has to increase the pet groomers quantity, so the labor increases. What’s more, there are more customers at weekends than weekdays. So if increasing the pet groomers quantity, it will reduce the working efficiency.
2. The average pet consumption cost is not high.
According to a pet industry survey, the rasing dog’s cost is about 1626rmb, the rasing cat cost is 1380rmb, the cost will higher in the big city. On the other hand, the frequency of cats and dogs is not very high, dogs usually 2-3 weeks need a bath, while the cats need about 6 half a year. People prefer to buy pet food online rather than buy them in the pet store and take them home by themselves.
Since every community shop can cover several hundred pets within 3kms. So this limits the sales amount.
But is there a pet store that can exceed this limit? Yes, there is another pet store, the turnover is about 200 thousand RMB. It has 100 square meters, the retailing is 70 percent, and the left is snacks.
Why this store can reach that much turnover, it’s related wit the pet foods and snacks competition situation. The new brands usually take high rotation to help the stores sell their products. They usually sell new brands for 1-2 months. Since the community shop has the consumption market limit, so the turnover will not be too much.
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