Should You Sell Retail Products?
The Dog Gurus often get asked about selling retail products in pet care facilities. Should every business be selling products? As with so many questions, the answer is, “It depends.” There are a few things to consider before rushing out and purchasing a whole warehouse full of fun products to sell. Here are a few questions to ask yourself before you get started:
- Can you make a profit? Every revenue stream you have should be profitable on its own. This is true of retail too. Be sure to plan to track your income and expenses for retail items right from the start so you can assess the profitability of this part of your business. Retail takes space, managing the inventory takes time. If you aren’t making money on the products you are selling, then it would be better to save your space and time for other ventures.
- Do you have walk-in traffic other than your clients? It’s hard for any pet care facility to compete with the larger retail stores unless you have a large market segment that will stop by your location unannounced. If the people who will purchase your retail items are primarily your current clients, then this will influence what you sell. Focus on items that support your current revenue streams (shampoos if you do grooming; training treats or clickers if you do training; special night time snacks if you offer boarding; games used in daycare if you do daycare). You can also focus on items that your clients need on a continual basis such as dog food so that you have repeat purchases.
- Can you sell items at a reasonable price? In order to make money in retail, you obviously need to sell products for more than you purchase them. Normally vendors will provide you with a wholesale pricing based on the quantity of items you order. However, shop around. Some items come with a large minimum order that will tie up a great deal of money in inventory (sitting on your shelves) and prevent you from making much money. This is especially important to consider if items don’t have a long shelf life.
- Do you have space? Once you know what you want to sell, determine if you have the space to sell it. Small facilities can put bulk dog treats or toys in small bins that use very little space. However, items like 20lb bags of dog food need a great deal more space. If you are going to sell cold or frozen items, then refrigerator/freezer space also needs to be considered. The size of your retail area will dictate what you might sell.
- Is your staff trained to sell products? No matter how great your inventory of products is, if you don’t have anyone that helps sell it, your profit margin is going to be reduced. You’ll need to make time to train your lobby staff how to use and promote all the products, as well as how to explain the benefits of the products. Teaching them to recognize opportunities to recommend products each day will go a long way to helping you turn over that inventory.
Want to see some great products! Check out SuperZoo, the National Show for Pet Retailers.
