Originally Posted by Dr. Doolittle
I agree with Mellanie. There is no financial gain beyond a standard mark-up when it comes to selling pet food. And our mark-up is not that much- 20-30%. What is a pet store mark-up? It would be silly to think that pet stores aren't making a profit on pet foods. And our clinic recieves no monetary reward for selling rx foods. At most we are offered a free bag of a new diet here and there. I also know that the pet store owner across the street was sent on a cruise by the Innova company.
The pet stores make a huge profit on the pet foods. Sometimes in excess of $10 per bag. I just recently watched the prices on a certain brand jump up at least $3 a bag. No changes were made to the formula, and it has the same ingredients as a lot of other foods that didn't go up in price. And it caused a lot of people to switch to another food after they saw that. But a lot of people, of course, are convinced it's the best in the world and will continue paying over $40 a bag for it. Which makes up for the people who said "To heck with this!" and switched to something better that didn't cost as much.
Pet stores make a pretty decent profit on a lot of things, really. I was looking into opening a pet store at one point (can't afford to, though), and I was pretty surprised by how high the markup really is. One example is the discontinued dog crate I bought when I got my puppy. The manager told me that it retailed at $150, but since it was discontinued and the last one he had, he sold it to me for $50. And if you think for a second that he didn't make money on it, you're crazy.
Most people will pay whatever they have to so they can get the things they need. That's why pet stores manage to do well even when the economy stinks.
BUT I know that my vet charges just as much as the pet stores, if not more, for the Science Diet he stocks in his office. He doesn't sell a whole lot of it, except some people who want to feed it but can't get to a pet store often, but I know he gets a decent profit per bag. The nylon collars and leashes that he sells are pretty pricey as well.