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Regarding Malaysian Fishfarms, Loach prices, and LFS profit margains.

Posted By: Tom Griffin <Tom@tomgriffin.com>
Date: Sunday, 7 February 1999, at 9:34 p.m.

I read with a smail the exchange lower down regarding the prices for Kuhli Loaches from Malaysian Fish Farms.

As a retailer, I would LOVE to put Kuhlis in my tanks for 7 cents each. But that is the starting price. Ever consider what goes into the final cost before you buy it? How about a little insight before you crucify the guy at the local shop.

Air freight.

The loach that costs 7 cents will cost another roughly 20 cents to get into the states (can't help with UK freight, but it will likely be as much or more. Then you have to get it thru customs, which unless you can go to a certified airport terminal will require the services of a customs broker, which will add around another penny to the cost. so now we are up to 28 cents.

Then it goes from the transshipper to a wholesaler, who will add approximately the same to his costs, after taking into account losses. These losses at times can be severe, so the cost to the local LFS will reflect this. Normal whole sale varies, from about 75 cents (if you buy it from the first level wholesaler and can accept their minimum number, usually around 25 to 50 of them) to about $1.50 for those who cannot afford to buy that many (many shops will want maybe a dozen at most, and the midlevel wholesaler will make his/her money as well, thus inflating the price even more. This is also a price for the very small Kuhlis.

This, allowing for normal retail markup, means the fish will retail for a minumum of $1.50 or so, and that does not take into account the losses the store will suffer, or the ones replaced to customers who lose them for whatever reason. Now...want to buy the larger ones, the price increases substantially along with size.

Lots of changes in the 7 cent price...and that is just the beginning. I could get far more detailed as to price, but that is a short scenario.

many people have gone into this business thinking that BIG money is to be made selling fish. Most are working other jobs now.

Tom
 

Tom's Place

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