Opening a Local Fish Store Questions/Comments/Concerns

[420reefing]

Hello everyone, I am looking for A LOT of feedback here. I would like feedback from hobbyists, diehards, store owners, and guys fragging in their basement.

I am considering opening up a brick and mortar store specializing in marine aquatic life. We would be located in Southwest Michigan. We would also carry freshwater and some other pet supplies dog/cat food etc.

My background
I have been in retail or sales my entire working life. I started selling furniture at 16 years old my first retail management job was in my late teens. Managing a small local owned furniture store. From there did some various commission sales jobs. In my mid twenties I started working at Rent-A-Center and with in 6 months was promoted to manager of a store set to close with in the year. I built a team that turned the store to where it remained open for my tenure with the company. I trained 4 employees that became managers of other stores with in the company two of which are still running stores for them now. While managing that store it was rewarded with a multitude of store of the month/year awards as well as awards for profitability with in the company. After leaving RAC I entered the Michigan Cannabis industry and opened a total of 7 retail stores and a processing facility. Cannabis in Michigan has been EXTREMELY unstable, we have sold 4 of the retail stores and currently are have the 3 remaining retail stores up for investment opportunities or out right sale. Given my extensive retail background I am confident that I will be able to run a successful retail store.

Why retail focused in aquatics?
In my area we have a major lack of aquatic resources. I have been in the Marine hobby now for 8 years and keeping fresh water tanks for 20+ years. I have to drive a minimum of 65 miles to get to a store that is not a big box retailer. So I believe there is a demand but a lack of stores. The last store in that was in our area was destroyed by a tornado this past spring and the owners do not plan on reopening. The selection at the big box stores especially for marine aquariums is very limited as well.

Where do you guys come in?
Although I am confident in my ability to open and run a successful store I would be ignorant to think I know it all or could think of all the in and outs of every scenario. So from y'all I ask the following:

Hobbyist and Diehards - What do you want to see at a LFS? What products are must haves? What products do you not mind waiting for if you have to order online? What products are emergency and you want to be able to grab at the drop of a hat? What have you seen that made you say I will definitely be back? What have you seen that made you say nope not shopping here? What do you expect from the staff as far as knowledge goes? Would you pay extra for a fish to have the LFS QT it? And anything else you guys think would be worth sharing.

Store Owners and home growers - What did you not plan for that happened in the first 6 months, first year? How many sqft. would you recommend as a minimum? What would you never want to run out of? What do you always have even though it might sell slowly? What critters die to easy? What critters sell themselves on site? What would you sell outside of aquatic products? Any vendor recommendations? Where can I save money? What size RODI system and what size reservoir for RO Water/ Saltwater? And anything else you guys think would be worth sharing.

I hope to take all of this and build a store you would all be proud of.

 

[Spare time]

So I have helped open up a store before and feel free to pm me for greater detail as there are lots of small things that you may not think of at first.

The biggest challenges imo are

1. Limited profit on dry goods until you really get a large customer base. Big ticket items will be slow to sell at first.

2. Disease and fish. You need a place to put sick fish and you need to figure out what you will do about parasites that copper can't treat (such as flukes). Flukes are going to be the biggest enemy in a fish system with copper and fresh water dips will be your best friend. Run copper in the fish system (copper power or copper safe) or you will have a nightmare of a time with ich and such.

3. Building a customer base. LFS stores rely on trust and building relationships with customers. You want them to think of you as more than just an employee or owner, but rather a "friend" in a way. You also need to get the word out there that you exist.

4. Dealing with algae. When you set up the coral system, expect there to be lots of algae at first, especially if you use something like eggcrate which is hard for snails and such to move around on. Remember, do NOT wash the eggcrate to rid it of algae if you use it. It needs to grow micro fauna and coralline just like rock.

5. Having enough algae for CUC when you start. I recommend putting some live rock from the ocean in the coral tanks or some live ocean rubble.

6. You MUST stay on top of pests and aiptasia. Customers do NOT like seeing that on frags and in tanks. Dip all new corals. Anything that reliably eats flatworms is also a good thing to keep with the corals. I personally would put utilitarian fish in the coral systems if you can.

7. Placing corals. You must not put SPS with LPS and soft corals. They need totally different flow and lighting and most LFS stores don't account for this.

8. Getting employees who are passionate, willing to learn, and will actively be watching for pests and disease.

9. Figuring out the best product line up. Some are better than others and this can take time

10. Avoid "rare" animals unless someone pre-pays for you to order it or you know you can keep it without the risk of it starving or simply dying. Things like certain butterfly fish, inverts, etc. are rare because they do poorly in captivity.

11. Understand that while you are selling the animals, it is your responsibility to tell customers when something is a bad idea to add to their tank.

12. Always keep customer favorites in stock (i.e. their favorite dosing items, food, etc.). If you don't have it, they may just not come back to see if you get it in again.

13. Be reasonably within online prices and keep track of them.



PS get a de-humidifier

 

[Keithb22]

Where at in Michigan? I’m an hour away from preuss’ and that would be the biggest issue for competition. I think there is a lot more into it than most think, the set up a lone is costly then the overhead on livestock is rough. Dry goods seems to be where a lot of the money is made.

 

[Tamberav]

I like to buy rock local (so I can pick shapes) and fish meds (sometimes you need these ASAP and don't want to wait for shipping but BUY GOOD MEDS... copper power, ruby rally, antibiotics, not stupid ich x!!!) and food, quality frozen food like LRS for sure.

Good fair fish prices and more difficult exotic fish keep me coming back.

A nice frag tank, not just high end but a nice bargain $10-$20 frags. Someone may be coming weekly to check the bargain bin frags but walk out with extras...

Free RODI for the first x gallons/per day, gets people in the store, 5g? 10g? RODI is cheap to make, literally cents. Maybe they come in for free RODI and walk out with a fish. MAINTAIN YOUR RODI UNIT.

I pay extra for LFS to QT fish but it requires a separate area behind closed doors imo with separate everything and well trained employees. Few can pull it off. I won't pay extra for sloppy QT LFS. I consider half-butt QT not QT at all. MOST people who go to a LFS don't want to pay extra for QT, they want the cheap prices.

I DO like to see captive bred fish kept separate from wilds.

 

[GSPClown94]

So I believe there is a demand

How much market research have you done to gauge demand in your area? I would start here, maybe there is a reason no other stores have opened up after the one was destroyed by a tornado.

 

[Aquadude1]

So I have helped open up a store before and feel free to pm me for greater detail as there are lots of small things that you may not think of at first.

The biggest challenges imo are

1. Limited profit on dry goods until you really get a large customer base. Big ticket items will be slow to sell at first.

2. Disease and fish. You need a place to put sick fish and you need to figure out what you will do about parasites that copper can't treat (such as flukes). Flukes are going to be the biggest enemy in a fish system with copper and fresh water dips will be your best friend.

3. Building a customer base. LFS stores rely on trust and building relationships with customers. You want them to think of you as more than just an employee or owner, but rather a "friend" in a way. You also need to get the word out there that you exist.

4. Dealing with algae. When you set up the coral system, expect there to be lots of algae at first, especially if you use something like eggcrate which is hard for snails and such to move around on.

5. Having enough algae for CUC when you start. I recommend putting some live rock from the ocean in the coral tanks. Y

6. You MUST stay on top of pests and aiptasia. Customers do NOT like seeing that on frags and in tanks. Dip all new corals. Anything that reliably eats flatworms is also a good thing to keep with the corals. I personally would put utilitarian fish in the coral systems if you can.

7. Placing corals. You must not put SPS with LPS and soft corals. They need totally different flow and lighting and most LFS stores don't account for this.

8. Getting employees who are passionate, willing to learn, and will actively be watching for pests and disease.

9. Figuring out the best product line up. Some are better than others.

10.



PS get a de-humidifier

I was going to write pretty much the same.
The part about dry goods is so critical. The big ticket items are really there in hope of getting them to be return customers who buy livestock.

I would add that on QT aspect that was originally asked about, it depends on your customers. Some hobbyist will never put anything in there tank unless it's quarantined, but the more casual ones will definitely not want to pay extra. For where I was a manager we offered quarantine but it did not financially make sense to quarantine every fish.

 

[Spare time]

I was going to write pretty much the same.
The part about dry goods is so critical. The big ticket items are really there in hope of getting them to be return customers who buy livestock.

I would add that on QT aspect that was originally asked about, it depends on your customers. Some hobbyist will never put anything in there tank unless it's quarantined, but the more casual ones will definitely not want to pay extra. For where I was a manager we offered quarantine but it did not financially make sense to quarantine every fish.

Yeah I think the QT part depends on the education level of the customer. Customers are also, to put it kindly, lazy and impatient on average and do not want to QT nor wait for the fish to be QT'd. Often, they don't even understand what QT is and how crucial it is long term.

 

[Aquadude1]

Yeah I think the QT part depends on the education level of the customer. Customers are also, to put it kindly, lazy on average and do not want to QT. Often, they don't even understand what QT is and how crucial it is long term.

Absolutely! Where i worked there was a few serious reefers but most were casual. The serious ones usually wanted to do their own qt anyway.

 

[420reefing]

So I have helped open up a store before and feel free to pm me for greater detail as there are lots of small things that you may not think of at first.

The biggest challenges imo are

1. Limited profit on dry goods until you really get a large customer base. Big ticket items will be slow to sell at first.

2. Disease and fish. You need a place to put sick fish and you need to figure out what you will do about parasites that copper can't treat (such as flukes). Flukes are going to be the biggest enemy in a fish system with copper and fresh water dips will be your best friend. Run copper in the fish system (copper power or copper safe) or you will have a nightmare of a time with ich and such.

3. Building a customer base. LFS stores rely on trust and building relationships with customers. You want them to think of you as more than just an employee or owner, but rather a "friend" in a way. You also need to get the word out there that you exist.

4. Dealing with algae. When you set up the coral system, expect there to be lots of algae at first, especially if you use something like eggcrate which is hard for snails and such to move around on. Remember, do NOT wash the eggcrate to rid it of algae if you use it. It needs to grow micro fauna and coralline just like rock.

5. Having enough algae for CUC when you start. I recommend putting some live rock from the ocean in the coral tanks or some live ocean rubble.

6. You MUST stay on top of pests and aiptasia. Customers do NOT like seeing that on frags and in tanks. Dip all new corals. Anything that reliably eats flatworms is also a good thing to keep with the corals. I personally would put utilitarian fish in the coral systems if you can.

7. Placing corals. You must not put SPS with LPS and soft corals. They need totally different flow and lighting and most LFS stores don't account for this.

8. Getting employees who are passionate, willing to learn, and will actively be watching for pests and disease.

9. Figuring out the best product line up. Some are better than others and this can take time

10. Avoid "rare" animals unless someone pre-pays for you to order it or you know you can keep it without the risk of it starving or simply dying. Things like certain butterfly fish, inverts, etc. are rare because they do poorly in captivity.

11. Understand that while you are selling the animals, it is your responsibility to tell customers when something is a bad idea to add to their tank.

12. Always keep customer favorites in stock (i.e. their favorite dosing items, food, etc.). If you don't have it, they may just not come back to see if you get it in again.

13. Be reasonably within online prices and keep track of them.



PS get a de-humidifier

Wow thanks for the great response. I love all of these suggestions.

 

[420reefing]

For QT maybe I offer like a QT package that’s everything you need to instantly set one up.

 

[420reefing]

I like to buy rock local (so I can pick shapes) and fish meds (sometimes you need these ASAP and don't want to wait for shipping but BUY GOOD MEDS... copper power, ruby rally, antibiotics, not stupid ich x!!!) and food, quality frozen food like LRS for sure.

Good fair fish prices and more difficult exotic fish keep me coming back.

A nice frag tank, not just high end but a nice bargain $10-$20 frags. Someone may be coming weekly to check the bargain bin frags but walk out with extras...

Free RODI for the first x gallons/per day, gets people in the store, 5g? 10g? RODI is cheap to make, literally cents. Maybe they come in for free RODI and walk out with a fish. MAINTAIN YOUR RODI UNIT.

I pay extra for LFS to QT fish but it requires a separate area behind closed doors imo with separate everything and well trained employees. Few can pull it off. I won't pay extra for sloppy QT LFS. I consider half-butt QT not QT at all. MOST people who go to a LFS don't want to pay extra for QT, they want the cheap prices.

I DO like to see captive bred fish kept separate from wilds.

All great suggestions thank you.

 

[420reefing]

How much market research have you done to gauge demand in your area? I would start here, maybe there is a reason no other stores have opened up after the one was destroyed by a tornado.

I have done some for sure. Also kind of gaging it on the amount of frags that I sell locally.

 

[exnisstech]

I'm just throwing this out there because I have 3 lfs 2 saltwater only that have been around for quite a long time. All of the owners said if it were not for their maintenance accounts they wouldn't be able to stay open.

 

[Tamberav]

I'm just throwing this out there because I have 3 lfs 2 saltwater only that have been around for quite a long time. All of the owners said if it were not for they're maintenance accounts they wouldn't be able to stay open.

This is what I have been told as well unless you have a partner who can bring in the $ and your job is just for the fun of it.

 

[JumboShrimp]

Sometimes there are 'too many' choices available, which can be overwhelming to new hobbyists. And especially as a retailer, you can't afford to stock it 'all' starting out. So maybe something like "Good" "Better" "Best" selections for things like return pumps, wavemakers, ATOs, lighting, etc. Just a thought.

 

[jmcdona6]

I think the fact the previous store decided not to re-open is a telling indicator. The economics of opening any brick and mortar store is tough right now and pet stores are some of the hardest. It is hard to compete with basement coral growers/hobbyist on price and the fish side is a mess like others have mentioned.

I have spent an ungodly amount of money on the hobby like many others, but I generally avoid LFS like the plague. What would make me start going into a LFS and be a good customer?

(1) Fishless coral systems. I cringe when I walk into a LFS and see an obviously diseased fish swimming along the coral. I want to buy local coral to avoid shipping cost and stress...but come on. Too many LFS comingle their fish and coral operations. I MIGHT trust your coral, but I definitely don't trust your fish.

(2) QT fish. If you can't tell from my first suggestion I don't buy fish from the LFS anymore. Might as well go to the red light district to pick out your significant other. I am willing to pay a hefty premium for healthy fish. Many are. Problem is that new hobbyist aren't...its an acquired cost tolerance once you figure out the true cost of buying unhealthy fish.

I don't care about dry goods. I know they are good margin for the shop but I can get them much cheaper online. It is what it is.

Admittedly, most LFS I am aware of survive off new hobbyist not someone like me. But new hobbyist are fickle customers...its a catch 22 of sorts.

 

[Reef-Mart]

I just opened a small LFS in Southwest Michigan and I hope you do too, we have nothing around here.

 

[Reef-Mart]

Yeah I think the QT part depends on the education level of the customer. Customers are also, to put it kindly, lazy and impatient on average and do not want to QT nor wait for the fish to be QT'd. Often, they don't even understand what QT is and how crucial it is long term.

I have a family that comes in to my shop 3-4x a week just to ignore my advice.

 

[Aquadude1]

I have a family that comes in to my shop 3-4x a week just to ignore my advice.

It's was always a weird feeling when someone would come with a problem they couldn't solve and would argue with any advice that was given.

 

[420reefing]

I just opened a small LFS in Southwest Michigan and I hope you do too, we have nothing around here.

Where are you located? Would love to throw some business your way.