In the last post, we discussed the community pet store. One 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 income, 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, and the location is remote from downtown. The pet’s caring, retailing, fostering take one-third of the monthly revenue. In consumer groups, women take about 80%, and 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 foreign 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 abroad brands, and the net profit is about 30%. Since the selling brand is variable, so they will change the brands every other year. The gross profit is about 40%-50%, and some are up to 100%, the overall gross profits are almost 40%-50%.
One square meter can make three layers, and one 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, and 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 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 get at most wash 8 pcs dogs or trimming 6 pcs dog hair. If you want to do more service, so it has to increase the pet groomers’ quantity, so the labor rises. What’s more, there are more customers at weekends than on 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, and the rasing cat cost is 1380rmb, the price will go 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 six 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 typically 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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