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  1. #1
    Senior Dog zd262's Avatar
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    May 2015
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    Retail Markup of expensive dog items

    Recently, I was inspired by a friend to find work at a local pet store for the employee discount. I chose my favorite store, researched if they had an employee discount, and applied! I have a full time job, so I only work a few times a month evenings or weekends, but so far it's been great! Aside from getting to meet so many amazing dogs, and talk to their owners about our products, I've already saved a bundle of money

    Our discount is "at cost" + 20%. I assume this is "at cost" for my retailer, not "at cost" for the actual producer of products (though I'm not sure if there is a difference). With bully sticks, bones, treats, etc, this usually amounts to around 55% which is what my co-workers said I should expect. So the retail mark up is usually around 35% on a lot of these products.

    Today I got a new large bag of Fromm. The discount was only 33%. I thought this was interesting in a few ways. 1. Their retail markup is very low (13%)! 2. It is really expensive for them to make food!

    I haven't used the discount with any other brands, but I would be really interested to know how this compares.

    Just thought I'd share because I found it interesting!
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  2. #2
    Senior Dog POPTOP's Avatar
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    May 2014
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    Don't know about markup at pet stores in particular, but markups in general are exorbitant. Rarely do I believe that at a sale price does the store lose money. They have a lot of cushioning in fall back on. Where I see this the most is in makeup and cereals. In the Navy exchange/commissary these items are greatly lower than other stores and, yes, they do have to make some profit for operational expenses and funding scholarships.
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  3. #3
    Best Friend Retriever LucyTudeOn4Feet's Avatar
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    May 2014
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    The cost to the producer is indeed different from the cost to the retailer. Every step along the chain of production adds on for all their expenses+profit. So, in the pet store case, you have the manufacturer, the wholesaler, then you, the retailer. That's the very basic scenario, in other industries, you can add in brokers and other add-on "services".
    And then just at the manufacturing level, you have the suppliers that Fromm's (for instance) buys from; like, the chicken supplier, the chicken meal supplier, the barley supplier, the vitamin supplier, etc. Although I suspect there's a food broker involved in there also, that adds on their expenses and profit. Product pricing is complicated.

  4. #4
    Senior Dog MightyThor's Avatar
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    May 2014
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    Due to my personal website and some freelance writing I've done, I have a 'pro account' with some outdoor gear brands. My discount is usually around wholesale + 10%, which translates to 40-60% off retail price. I'm not allowed to specifically name the brands that give me the discount, but if you ever met me in person you would notice my wardrobe is 90% certain brands. The general retail markup is crazy, but the visibility I have into it now helps me recognize a good sale deal when I see it!
    Mighty Thor, "So Much Dog", born 1/6/2014
    And baby Barley, born 3/9/2018

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