opening your own LFS?

[ca1ore]

I think there will always be a market for a good LFS. Buying corals online seems to work for me but ordering fish has been hit or miss... mostly miss. I like to look at the fish see its mannerisms and then have them feed it before my eyes before buying it.

Don't doubt your experience, but mine has been precisely the opposite LOL. I have good success buying fish online but not corals. The latter I buy almost exclusively locally - either LFS or in trades with other reefers.

 

[Forsaken77]

I bought one of my Magnificent Foxfaces online for $130. Three months later my LFS got a gorgeous one in after I was searching for this fish for 6 months and spent the $130. My store had this fish selling for $60! I asked him why it was so cheap and he said that people think $60 is too much for a saltwater fish and won't pay it. I had to buy it.

It seems like this is part of the problem why so many physical stores carry mostly "safe" inventory. A lot of hobbyists aren't willing to pony up for livestock nowadays. I guess most are still in shock over how much it cost to set up the tank, lol.

 

[John3]

I don’t think it’s s good time to get into any retail type business. In ten years I believe almost all retail will be gone.

Heck, they are even going to sell cars in vending machines....

 

[vetteguy53081]

I owned a pet store (full line ) for almost 12 years and it was enjoyable - An enjoyable headache. Customers had no respect for already low pricing and I am glad I had a full time job at the same time as many weeks, I broke even ( Likely due to low prices and low profit margin) and found myself working twice the hours of my full time job at the store and making half the money I did at work.
Once I filed for divorce, it was a very Easy decision to take the store down especially having full custody of my daughter. Online shopping has made it difficult to compete as a store front business when you have to pay wages, insurance, sales tax, rent, CAM fees, advertising, phone, utilities, equipment and operating supplies. HOW DO YOU COMPETE WITH AN ON-LINE RETAILER THEN?

 

[Evan28395950]

Dream job. Life goals: Work hard in my main career, retire and build a 10,000 gallon tank (would be wonderful to get people who are interested in the hobby and marine biology to dive in the tank and have fun), then if I could, have a small, but amazing lfs

 

[Reeceblse]

After all the advice, I think I’m going to just try to find reputable online sellers! I can’t justify opening a store and putting my family’s revenue in jeopardy.

 

[Sir Chris]

A good LFS can be hard to find. There are many, but... Also many not so good ones. To me a good LFS is not only a place to buy drygoods, fish and inverts, but also a place to go for 1st hand knowledge. One of my LFS owners definitely isn't in it for the money, but he has a very loyal following because he has been around the block more than a dozen times. He answers all questions from newbies and old salts alike. His proven long haul track record speaks volumes. His store is also a place where many a seasoned reefer go to chat with others of the same ilk. It's more than just a LFS...
It would be difficult, but not impossible, to start something like that today. To many other options with the internet..
If I were retired, had more money than I knew what to do with, I might consider it. For now, I am just very choosy as to where I spend my money. I think most average reefers/Fishkeepers are similar if not the same..

Whenever I'm about to make a large online purchase I actually go to my LFS and ask what he thinks and in the past he gets frags so he then can make $ off his knowledge. So a trust has built and I get corals for free incase a crash on multi systems I'm a back up now and LOVE it. So getting 2 know a LFS is important and 1 is needed. He is supported like u said by every1 Red Sea and that new company that's short named... has all glass tanks... regardless he's fresh and always on point and idk what I'd do without him and when I get my paychecks he's my 1st stop and waits for me Friday's. I buy all my questionable from them. Bulbs thermos and doses. So when LFS die I will inside.

 

[CMO]

Seems like the way to go in opening a LFS is the WWC or like model of having a strong online presences with that as your primary sales channel. You now become a national fish store which seems like it would be a whole lot less risky (in terms of sufficient demand).

 

[Blackened]

Lie down till the thought passes.

In addition to what’s been said, go ahead if you like...
Clearing cargo at odd hours of the night.
Running around for documentation,

watching loads of fish die, fish side of the business is a black hole.
Dealing with unethical sellers, scammers, cocky customers who think they know it all.

You will make money but you will burn more...

Still reading?

Online is the way to go and pick another business with a larger outreach.


(Have been a partner at 2 very successful LFS)

 

[DEWreefing]

My buddy and I started one in his back garage but the ban shut us down it was going good.

 

[Dr. Dendrostein]

This could also be called "How to turn a big pile of Money into a very small one"
Having been around the hobby for what seems like forever, I can say that all LFS owners are hobbiests 1st and business owners second. If they aren't, they don't last.
LFS are not a place to make tons of money. Most owners scrape by. The issue nowadays is that what what once was the bread and butter of the LFS, dry goods, now can be purchased oftentimes cheaper on line.
Not to dissuade you, but... Livestock is an even tougher sell. You have to pick/source good fish and inverts and be able to house them until they sell. More often than not, people want the cheapest fish/coral they can find and have little loyalty to whatever store is closest.
It's a tough business. Most successful stores supplement their actual sales with service contracts and installs. Unless you have the knowledge and wherewithall to suffer through that, I would suggest sitting on that nest egg for a bit longer.
If... You are determined, talk to whatever store owner you trust and see what his/her take might be.

Recently met a guy, that owned a LFS 1988-2004. He close down, now only sells online.

 

[Dr. Dendrostein]

@ndrwater, I see you are in Anaheim. I'm curious where you go down there. I remember 'Tis in Fountain Valley and Aquarium Stock in LA. I'm curious what are the good stores in the area these days.

You remember Tis, I forgot their name, but they had best showroom in all California, for LFS. WOW.
I'm old

 

[Dr. Dendrostein]

I don’t think it’s s good time to get into any retail type business. In ten years I believe almost all retail will be gone.

Heck, they are even going to sell cars in vending machines....

LFS are going the way of the dodo bird. MO

 

[Uhohhotdog]

Right now, I pity anyone with a brick-and-mortar store. People are migrating more and more to online purchasing, and you can see it in places like Toys-R-Us (gone), Sears (not long for this world), that were around and successful for many years, but failed to adapt to a changing online world. People now want to see everything on the screen in front of them, click a button, and wait for the man in the brown outfit to satisfy their purchasing needs. Having seen what has changed in the retail world in just 15 years, I can't imagine opening something like a LFS today, to have a possibly successful first few years, only to find that everyone has migrated to solely purchasing online.

Toys R Us was actually profitable. What brought them down was vulture capitalists.

 

[srad750c]

After working in two different LFS for about 20 yrs, they can be profitable for sure. But as mentioned in previous post, online retailers are taking over and I’m guilty of using them also. I buy all my livestock from LFS, don’t trust online sellers or shipping services. I buy dry goods online but expensive equipment I get from LFS, they started keeping their prices close to online retailers. I support local business as much as possible, especially since we all know each other very well. Most of us worked at the LFS back in the day.

 

[oceaninabox12345]

There was a decent store here in Montana(only one [emoji52]) and then they shut down the retail side, and just did tank maintenance. When someone didnt want their tank anymore, or a coral, they sold it to the person who cleaned their tank, and they made an extreme profit by just selling it to their other clients.

 

[srad750c]

Dream job. Life goals: Work hard in my main career, retire and build a 10,000 gallon tank (would be wonderful to get people who are interested in the hobby and marine biology to dive in the tank and have fun), then if I could, have a small, but amazing lfs

A dedicated man cave with 6x180 gal tanks would do me. African chiclids, rainbows, 2 South American tanks, SW tank for large fish, mixed reef, frag tank and 1 semi planted community tank, oh that’s 8 tanks

 

[Tjakes680]

Ok first off I will have to say as someone who owned 2 LFS the first one about 15 years ago before evry person and website had fish corals and sold everything you can imagine I and 2 friends decided in Brooklyn NY to open a store and we built everything ourselves and had one of the most amazing stores in Brooklyn and the fact that were at least 5 other stores in about 20 miles of us didnt matter we killed it we brought in so much great fish corals bulit tanks systems did maintenance it was great and we made alot of money. I was young and doing what I loved and it was very hard work but worth it only problem rent was super high in Brooklyn NY we were paying 4000 a month and electric was around 600 to 800 a month but we made it but as the internet got bigger rents got higher and every other store was closing every year we finally had to close about8 years later due to high rents and internet stating to sell anything and private people selling frags and corals it was devistaing but thats life fast foward years later I fell into a LFS i helped build and worked at part time and it was sold to me it wasnet huge it needed work and wasnt the best but it did great I basically spent my next 3 years there 24-7 all day all nt everyday and i loved it !!!! Then came Super storm Sandy and i lost it all now I would never open a LFS again only because im 50 and have a bad back and knees and cant build another store But if u have the energy and drive go for it its so awesome to own a LFS yes the internet will be your bigest compation yes rents are super high yes its a full time comitment yes you will live there and Yes you will do what you love you need $$$$ good credit and good spot and good connection s find a good transhipper bring in your own fish do maintenance summers get real slow maintenance will help u survive sell systems and go for it Best of luck its hard but sososo worth it I can tell you so many stories and write so much on this subject but if your really dedicated and a hard worker you can do it and dont limit your self to just saltwater sell all types of fish fresh and salt fresh water fish sales are very good if u have a nice stock and do maintenance and installation s Best of luck to you again go for it

 

[JasPR]

How do you end up with a million dollars selling corals in an already 'soon to be crowded' market? Easy! Start with 2 million! For the thinking folks contemplating this move-- please read 'The Tulip Mania' of 1637. It was THE golden age of collecting Tulip bulbs in as many colors-- as many colors-- as-- well Mushrooms and Zoanthids! At one point it was said that a single bulb of a rare color could be purchased for the price of a small cottage on the canal! There were no jawbreaker Tulips or Colorado lemon drop Tulips but there were FEVER PITCHED purchases at any price. Like bitcoin, bubbles build, bring in the enthusiastic, the naive and the obsessive manic type As and dreamers -- and then-- then 'correction to reality' taking all their money away in the process as prices fall. Measure twice- cut once before taking your life savings into yet another coral outlet. On the outside change you do not heed this elder's advice, I have a massive number of light fixtures for sale cheap-- new MH bulbs and a ton of T-5s

 

[bblumberg]

You remember Tis, I forgot their name, but they had best showroom in all California, for LFS. WOW.
I'm old

Tong's is still around (if that is who you were referring to). They have a good supply of everything and quite a few tanks. However, their livestock is of dubious quality, in my opinion. I only go there when I am in desperate need of something (food, part, etc).