LFS shoot themselves in the foot

[Jaws]

Originally Posted by Stasher

This is basically what I believe.....Running a business requires give and take. Your customers are what keep you in business, you need to respond to their needs and stay at par with the industry.

I agree with both of you. If you consult your LFS and tell them you would like to commit to them but it's difficult when other stores are providing you excellent product at an excellent price, there has to be somewhere you both can meet in between. If a store isn't interested in dealing with you at all then they're obviously not too concerned with obtaining your business. I know that I pay a "little" extra at my LFS but I also know that I can count on their advice being nothing short of excellent. If you can't count on that, then what are they charging extra for? Shipping? I already pay extra for shipping when I purchase from somewhere online. Would I continue shopping there if all they offered was an overpriced product?... NO! But if I can count on going there and paying a little bit of a premium, stress the term "little bit", for their personal assistance then I feel it's worth it for me. Your LFS wants to be loyal to you but they're going to want a commitment from you as well. If they're smart, they're going to understand that some of your business is going to end up elsewhere. That's just the way the industry is, but if they're really interested in your business then they should be willing to compromise on some sales that will eventually lead to more consistant business from you in the near future. It's my opinion that a buyer's biggest mistake is to just write off a LFS without consulting them first. Try to understand why they're charging extra and try to determine how you can benefit from paying that extra cost. A good business will always tailor to your needs and try to make you happy if you're willing to work with them as well.

[Renegade]

I personally buy almost everything from J&l's. I don't think its fair to flame them when you don't know what they bought it for. JL's is always good about there prices there are the cheapest LFS that i found. sure something’s may have a mark up but, I don't mind giving a little more even allot (sometimes) b/c I know it will come back to me. I know them quiet well in there as I have bought 99% of the stuff for my tanks there. If I ever had a problem such as a price of a heater, I would talk to them and let them know what I found elsewhere and see what they would say. They may have had to buy them at a little higher price for some reason. I would probably end up buying it from them anyways b/c of the relationship I have built with them. In regards to the Canadian dollar they have signs posted in there store that at this time due to the rise in the Canadian dollar that certain goods are 5% off marked price. I work in retail and unfortunately there’s always going to be inflation. In regards to the TV comment at the beginning, those prices are hugely inflated. The price of electronics at your local best buy or Future shop are amazing what they get away with in comparison with some of your local computer shops. Have you ever asked a staff member of Best buy what they can buy a TV for? I know that when I buy from my LFS that if I ever have a problem with a product I’m not going to have the same hassle trying to return something online. But that’s JMO.

Renegade

[BCOrchidGuy]

When buying from a manufacturer a store that moves a lot of inventory get what's called a booking price. This price is a per unit price that is discounted based on what they promise to buy during the year. IE if Big Deals on Fish promises said lighting manufacturer that they will purchase $100,000 worth of inventory over the year they will get a discount based on that amount. If the store doesn't purchase that amount they will either pay the difference or be penalized in another way. So, if Big Deals says they are going to purchase that $100,000 they may get a 30% discount off the normal price they would pay, this means they can mark it up 35% and end up selling it for about 5% more than a mom and pop store beside them that can only move perhaps $1000 worth of said manufacturers inventory. The discount will vary, and in this industry I have no idea what they would be, I was in the sporting wear industry and that's what the numbers I mentioned refer to.
One other thing to remember as well is a store that is known for moving a lot of inventory may get special prefference when it comes to clearance or discontinued items. If a light system is no longer available, or a line of powerheads is discontinued a single store may purchase the whole lot of items at a huge discount so the manufacturer or distributor can make room for new items that will probably sell quicker or at a higher price. Prices in Victoria are the way they are because no one will start discounting stuff, if one store started to do that then the others would either have to follow or rely on their service record and their customers loyalty to carry them through, and lets face it if you went to your favorite store to buy a bucket of salt for $99 and it could be had down the street or even on the other side of town for $49, you would probably complain about the price and ask for either a match or a discount, maybe not but I would.

Doug