We have written 4 posts about the pet stores in our previous posts. We can conclude that the sales benefit will be better if the retailing takes up higher ratio. Because the benefit per per groomer is fixed, but the retailing benefit can increase to a higher level.
So if we want to increase the retailing sales, then we must coose the location of traffic cener, the shopping mall is a very good choice.
This time, we visited a chain pet store in city of east of China, we are pet supplies manufacturer, this pet store usually buy many knids of products from us. This pet store started from community shops in 2013, from 2017 they started opening shops in shopping mall. Now they have 2 shops in this city.
The pet store in the shopping mall has 360 square meter, retailing area is about 200 square meters, pet grooming area has 80-90 square meters. The left area is living pets display area and rest room. There is no pet fostering, because the plaza forbid this.
The unit customer price is 150-180rmb, it sell all the categories. Including the pet foods and supplies for mammal,reptile,aquarium,etc. The are more than 2000 skus are selling in the shop, actually there are 6000 skus in the system. Pet foods and supplies has the ratio of 6:4, retailing takes up 70-75% of the turnover.
We are pet product manufacturers, so this pet store bought many kinds of categories from us.
They are focusing on the middle and high end market from the price level, small dog washing price is 150rmb, grooming price is at least 300rmb. There are 4 pet groomers in this store, in order to improve the working efficiency, they require the booking service. So ervery groomers can serve 6 pets per day,pet grooming only take 5 percent in the sales.
Living pets selling:
They have living cats,dogs, reptile. Cats and dogs prices are between 3000-8000rmb, the gross profits is about 55%, this takes up 20%-25% of the sales.
This shopping mall store April turnover is 1130 thouand rmb, the overall gross profits is 35%. Renting is 12%, 17 staffs, the employee cost is about 120 thousand rmb. So the net profits is about 140 thousand rmb, net profits rate is about 12.4%. This shop ivested more than 2 million rmb, so it will take 1-1.5 year to arrive the balance point.
According to the numbers, the sales turnover is much more higher than the community shops, but this kind of store is not the best. Because, along with the increase of the sales turnover, the management cost is also increasing, this will bring the overall benefits down.
The best sales turnover to this shop is 600-700 thousand rmb.While the turnover is more than 1 million rmb, management cost increased a lot.
But since the retailing income is so high, can the shopping mall store cancelled the pet grooming service?We caculated this situation, 1 pet groomer can bring 20 thousand rmb. 1 pet groomers can serve 5-6 pets, the customer unit price is 150rmb. So the best sales that pet groomer can bring is 23-27 thousand rmb.
Adding the free time and customers discounts, the final sales income is only about 20 thousand rmb. There are 4 groomers in this shop, so the total sales income is about 80 thousand rmb.
This is the highest level, while the monthly sales income is only about 57 thousand according to the sales turnover.
What about the cost? Pet groomers salary is 8 thousand rmb (including the insurance), the bonus is 20%. Calculate pet grooming without deducting the labor cost gross profit, it has net profits 4700rmb, so the boss said “We didn’t earn money on grooming”.
But the retailing, 1 staff can bring 80-100 thousand rmb, 50 square meters need 1 sales person. What’s more sales person takes lower salary than the groomers.
If change the pet grooming area into bigger retailing area, hiring 2 more sales persons, the benefits can increase 60-80 thousand rmb theoretically.
In order to do testing, they tried to cancel the grooming service in new stores, the sales turnover is about 300 thousand rmb, net profits is about 30 thousand rmb.
But they will keep grooming service in the folllowing stores, because grooming service is more frequent, and it can build very good relations with customers.