View Single Post
  #8  
Old 03-18-2010, 01:42 AM
BlueWorldAquatic's Avatar
BlueWorldAquatic BlueWorldAquatic is offline
Vendor
 
Join Date: May 2009
Location: Edmonton
Posts: 2,160
BlueWorldAquatic is on a distinguished road
Default

Shipping expenses should not be a major factor in the prices of salt if they buy it by the skid lot.

I knew of anothe LPS that would buy a 6 pails of salt, and pay the same shipping as I do for 32 pails. Go figure, at approx $150-$300 a skid (depending on distance) you think they would maximize the weight.

In my shipping business (my other company), there is a "resort" charge for out of the way places. So a small surchard per delivery is expected, like in Banff or Jasper.

Yes granted they may have the larger overhead, but that is also calculated out in the margin as they have many more products they carry. Another Large LFS manager once told me their fish room basically pays all expenses and staff wages, leaving the sale of their drygoods to be added to their profit margin.

This same LFS is the one that blows out salt at cost on boxing day at $29.00 a pail. I/O Salt is supplied by 2 companies that I know of, 1 in the East, and 1 in the West. Myself and Kelly (Reef Shop) were talking about this the other day, why we weren't offered the same breaks at x-mas with this distributor. When it comes down to it, its quantity purchased that controls the price, as both our shops could not match the ordering capacity as this other LFS. Maybe next year though, as I will be spearheading a group buy before x-mas for the specialized stores in edmonton, as we can store it all in my warehouse.

But $100+ for a 160gal IO salt is +100% markup.

Ken - BWA
__________________

Store Location


Twitter


Facebook

Last edited by BlueWorldAquatic; 03-18-2010 at 01:47 AM.
Reply With Quote