This is a conversation I had with Myk Brown who is the last owner of Exotic Aquatics and the one who shut it down. He declined to say anything about the store specifically, so we stuck to the LFS business in general. I’m sure you may have ideas and thoughts on this topic. Feel free to comment on my Facebook post.
Sequoia Elisabeth:
“What are your views of the future of LFS, the barriers, and what would have helped you succeed at Exotic Aquatics?”
Myk Brown:
“As far as Exotic aquatics, I'd prefer not to comment on that at this time. I think the future of LFS's in Colorado comes down to the hobby needing to come together. Otherwise, big chains are inevitably going to overcome small business. You're seeing this with all industries though, where right now small businesses are struggling to compete with big box stores. I also believe the fish store industry is over-saturated in Colorado. There was this huge boom during the pandemic where ALL hobbies were booming. People were stuck at home bored, and pushed people to focus more on existing hobbies, or picking up a new one. People saw a lot of money in the aquarium industry, but it'll never be the way it was before. I have a friend who was making thousands of dollars a month off scale model cars. Working out of his basement. Now people are playing a lot of catch up financially. A lot of which lost interest in their respective hobbies. So now there needs to be a new approach to bringing in new hobbyists and keeping current hobbyists engaged.”
Sequoia Elisabeth:
“Any ideas on what the new approach could be? My blog is all about supporting LFS and I believe most hobbyists do so. It is the newbies and causal hobbyists which support Big Box. They just want things as cheap as possible and don't realize the full cost of their choices.”
Myk Brown:
“Not too sure. Maybe more collaboration between LFS and CAS (Colorado Aquarium Society). More support from LFS for CAS. And I mostly agree with what you're saying in regard to hobbyists' support for LFS over big box, but a lot of people still purchase their dry goods from big box stores, and selectively go to 1 or 2 shops for their livestock.”
Not to turn this into a discussion of economics, however it is important to understand how the system works. Public Corporations have shareholders and thus are compelled to make a profit above all else. It says so right in the by-laws. The small business owner must stay in business, while maintaining a roof over their heads and food on the table. All businesses who have employees are supporting the community where they operate, however the difference is small business keeps most of that money in the community while corporations suck the money out of the community. The consumer looks to find what they need at the lowest cost. This is how the game is played. I am not saying whether this is good or bad, I just point out what should be obvious. Profit margins in the pet industry are tight and rest largely on the dry good portion of the business. Livestock are expensive to import and maintain, while the competition keeps the prices down. Making money in retail is all about through put or volume and online, chain stores have this advantage.
From my point of view, the secret to success as a LFS one must sell online or have an established customer base or both. Most of the stores on my list of permanently closed LFS where young stores, with a few exceptions. Those were stores which succumbed to mismanagement. One store I know of simply went to selling only dry goods online. Keeping high demand items and last minute items in stock makes sense as one of the biggest advantages LFS have. Competing on price with the Big Box, online stores does not make sense. Obviously, one does the best they can and still stay in business. The trend of selling livestock online has grown tremendously and as far as I can see this is mainly due to consumers getting used to the convenience of curb service during the pandemic as well as those who live in rural areas. I have noticed the LFS here in Colorado do a great job of competing with online retailers in price once shipping is figured in. With open access to prices these days, it is less a factor than it used to be. Convenience seems to rule the business world now.
My call here is to thank all hobbyists who support their local fish store (LFS) and use big box or online as a last resort. I must confess to being an online store supporter at times because what I need is not available at my LFS. I’ve not gotten livestock online in quite some time and only plants. This said, we are all stretching our dollars as best we can, and I expect the trend will continue with other LFS closing their doors in the years to come. If you are considering opening your own LFS, I would think hard on this and do extensive research. Anything is possible though given the right approach and a bit of persistence.
Sequoia Elisabeth
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