Why Bash Petco more then other LFS?

When I was making high end cabinets, we were paying .35cents for each 4'x8' panel of MDF(medium density fiber board) Home depot and Lowes sell the same panels for I think around $7-8 each? Just goes to show the difference in price from bulk wholesale to individual retail (ie: petco buying tanks at a tiny margin then selling them for huge profits and making everyone think they are having a super sale)

 

They are absolutely loosing money. You need to consider shipping, storage and all the other overhead. It isn't just the price of the tank. It's pretty common practice really. Back in the late 90s, when I was finishing high school, I worked at a circuit city. I know they used to loose up to about $100 per computer, but they didn't care. They made all their money on peripherals, accessories, extended "service protection" (warranties) and credit cards.

I'm sure petco is more than happy to loose a few bucks on a tank if your going to buy that $46 maxi-jet from them...

 

My only issue with Petco is it's online ordering and customer service. All of it is contracted to a third party located in the Philippines. The majority of the individuals answering the phones understand English words, but not complete sentences or thoughts. When ordering any items that are live, including fish, inverts or corals, you don't receive tracking information until after it's been delivered. Not even notification that the items have been shipped. That exhibits poor communication, customer service and concern for the well-being of the items they ship. They handle live orders in the same manner as any other supplies sold.

In addition, just as all other retailers, they purchase items from wholesalers in California. However, they do not maintain the inventory list on a daily basis as other retailers do. As a result, items you order, may not be in stock. Often placing your order on hold until they are available. Which results in you not knowing when your items will be shipped.

 

m2434 good point, when i was with Home Depot we did the same thing, they still do. If a customer complains or anything of the sort we were able to mark any item down up to $50 w.o manager approval, they figure w what they are losing this one time they will make up with future sales.

corporate stores = adjkfhalksdjhf

corporate pet stores? = om*g its so sad. cheap animals get poor treatment, its still something that feels and has a sense of self. unless you believe in creationism ofcourse.

i'll post pics next time i goto petco, you will see what i'm talking about. *plus like i said, inbred, parasite infected, also non-aquatic plants being sold as true aquatic*

 

No company will lose money ever! That's just stupid cuz most people just walk in there and buy the tank and walk out. So they still would be losing money.

If a company is losing money that is not smart at all.

 

I would think they would be almost breaking even with the dollar a gallon sale and most people using that deal are prob buying other merchandise to set the tank up. Ya know the people that say " Ohh dollar a gallon? Well give me all the stuff to make it run today and throw that yellow tang and anemone in on the deal too" lol

 

I wish they sold bigger tanks at the dollar/gallon sale. It's all under 55 gallons.

 

Ya, a nice crisp 210g for $210 would be an awesome deal

 

Theoretically true, but by buying their drystock and huge mark ups you help to support the store period! Even on there $1 a gallon sale, most people buy a pump and light etc.! Also, keeping all those tanks with all the pretty fish draws people into a store who inevetibly probably buy that hydor koralia pump for $60 instead of $35 at MD or elselwhere! Same with Walmart! I bet Walmart looses money on their fish due to the massive losses they have! at least mine, but they have them there for a reason, Incite a kid to whine, parents buy fish and accessories, and profit! Same prob goes at Petland! Don't have a Petco so can't speak about them! They lure ya in to look at the fishy's and doggys and I bet most people say hey, I've always wanted a fish, and then get lured into something they don't know how to keep and pay high prices for the supplies! Or $2000 a PUPPY MILL dog as in my PetLand!

i just choose not to give my money to Petland or walmart and thus not support there business at all! Feel better that way!

My local LFS guy actually talks to people and makes sure they know what they're getting into before they send a live animal out to die! seen him tell people to go read up on it, and if they still want it to came back!
just IMO

 

Happens all the time. Here is a recent example:
Amazon to lose money on each tablet sale, analysts say - CNN

Also common with cell phones etc...

Large companies have analysts and do market research research. Companies go by data, not the profit margin of an individual item. If the data suggests selling an individual item for a loss, will make more money in the long run, they do it, and it certainly isn't stupid... Petco wouldn't do the sale if there weren't enough customers buying other stuff with the tank to offset the cost.

Say hypothetically your loosing an average of $10 per tank and your expect to sell cheap over-priced particle board stands with even just 1 out of 3 tanks. Those stands are absurdly expensive for what they are. Lets guesstimate, they average an $80 profit margin per stand, so, your up $17 per tank on average. Sell some over-priced lights to a few customers, your even better. More junk, better yet. The profit margin on any given item for a big box store is minimally relevant, it's the big picture that counts.

My understanding is that they do indeed loose money on the tank, but do quite well overall with the sale, which is why they have been doing them more often recently. It brings people in the door. They may even buy stuff for other pets while they're there. Maybe a new color for the cat, or food bowl for the dog. Little things people don't think much about often have the highest percentage markup and that's what a lot of these companies really want to sell.