I see reducing the prices on an the species in question to be what I would consider great business sense (this is after consulting with several other actual business men herpers and with an accountant). You see this lizard is at the point now where the prices are apt to fall drastically in the near future. They have had quite some popularity and therefor have been sold in fairly large numbers to people who are now breeding them in numbers. They are also quite prolific if I have my info correct. Why shouldn't I be the first to lower the prices for the next round of reductions. If I purchase a breeding colony of these lizards, and sell babies at a reduced sale price as compared to other vendors the results will possibly be as follows:
1) My lizards would sell faster than those of others, despite the fact that I may not be as well known a supplier. Bear in mind I do have a customer base and a good reputation so far. I also have people who were not previous customers already expressing interest - and I am not counting chicks before the eggs hatch, but am doing my homework.
2) The quick turn around from lizards to cash will help quickly pay my initial outlay. It will also save on care bills for the young lizards. No feeding, no heating, no water, none of my precious time spent on them once they are sold, etc...
3) The result of this will be that I can more rapidly turn around my stock into cash and then into additional desirable stock (more breeders) to keep business going.
4) I will also make more than enough to care for the adults and any new animals with the profits made on the babies, even when sold at a 25% discount (an bear in mind this discount amount is not written in stone - it may be as little as a 10 or 15% discount but you can bet they will go for less than what they are currently priced).
5) As far as hiring someone to care for the animals if I am sick, I would not have to pay a cent unless my whole family came down ill. In that event the animals would go to someone at my local herp society or be disposed of since we could no longer care for them. This is unlikely to occur, but if it does it would be dealt with accordingly.
6) Every last iota of normal operating expense has been calculated into the equation as I can see it. My time, my outlay for the breeders, my outlay for enclosures with all accessories, my outlay for electricity, my outlay for water, the money for food items, the money for substrate and so on. This also includes money for medications for deworming and other parasite eradication. Vet bills could put a kink in the equation but that is where exemplary care comes into play - they will not likely require a vet.
7) This is not a fool proof equation, nor is it guaranteed even if a genius, a brain surgeon, or a rocket scientist was to run the operation. There is risk, but the risk I am taking has been calculated to be minimal. Sure I could fall on my face, but I make a considerable salary right now - so much so that a loss of the money for this project will not bankrupt me. It would make me go ouch pretty loud, but I will recover easily. I am not planning on starting of bigtime, but small time. I will pinch pennies regarding this venture - but that does not mean I have to inflate prices. If it works the first season, Inwill expand the next, and so on. After about three years, if it is working out - I will go into it full time. I will be retired by then. I will have a pension, I will have a Master's degree in Psychology and hope to work part time in that field, and I will devote at least 40 hours per week to my herp business (probably more). I have a plan, now I have to try to put it together.
8) Granted I will not make as much money as someone who is currently selling Ackies for from $200 to $250 apiece, but I will make a net profit that will be substantial.
9) As far as my being the one who was complaining about not making enough money, no it was not complaining. Please do not mistake my reiterating facts as being complaining on my part. Just because I say something cost me money, or say that this is how much I made at the last show and it was not much does not mean I am complaining. I am usually a very literal guy – I say just what I mean. If I had said boy this sucks big time and I cannot take it anymore because people are cheapskates, and I hate trying to do business because I cannot make money – then you could have been sure I was complaining. On the other hand I think I just said that here are my expenses (in detail) and here is what I sold, and here is what is left over – now how can you (the guy who said he made such great profits) say that you actually made a profit if you consider all of these types of expenses. If I was complaining, then it was about this young kid being cavalier about what he imagined was a profit when he probably has not even had to pay for his own ice cream yet because his parents likely pay for just about everything.
Please remember, I was stating a bunch of facts about my outlay for my HOBBY wherein I sometimes sell animals. I was doing this because someone else had claimed they were making astronomical profits without considering such expenses. If you do not consider expenses then what you are calling profit just does not cut it; AND I made those statements in the context of being amazed that so many other people had claimed to be breaking even when selling herps as per a poll on this group of forums. Bear in mind that when I first commented – 56% of the folks responding said they at least broke even. After some discussion on the forum that number dropped dramatically but is still relatively high.
10) If you reread my post carefully you will see that I also said I was considering breaking into the business, now that 35 years plus in the hobby has given the keeper experience I need. As far as business experience goes, I have a little. But I am making sure to depend upon a lot of advice from others whom I know well and trust even better.
11 ) I saved this for last because you implied something is wrong with being competitive and charging less for an animal. In fact you called it low balling – which in some people’s minds may hold an extremely negative connotation. I believe the lizards are fairly easy to breed, they are relatively inexpensive to maintain, and they require relatively less care than many other species thereby requiring less time (by the way my time comes free for my own business but any net profit will make up for that nicely). It is also my understanding that they are relatively prolific – enough so to make it feasible to lower the price and still make a good and desirable profit. Maybe you can see what I am getting at here but if you cannot or choose not to, please allow me to spell it out: I believe that the prices charged for Yellow Ackies and many other herps are inflationary or ridiculously high. The people charging these prices in my estimation are price gouging plain and simple. Some price gouge as a way of life and when the price falls they will move onto another more profitable species for them. Others will stick with Ackies and be satisfied with the lower prices and thereby smaller profit they can make and they will still make a living. They are being good business people making as much as they can while they can. I plan to be a good business person to and will do so by starting off with lowered prices as compared to others. I am hopeful that this tactic will give my business a sales boost right from the starting gate because I gave the consumer a break right from the beginning. As far as raising prices goes, if I need to I will. As a business person that would be my prerogative. Prices go up all the time and people still keep their customer base. I am willing to bet though that if I do start up this business, my prices will be lower than that of others as this will one of my tenets by which to run my business. Is that low balling or is that competition – call it what you like.
I appreciate your concern and do appreciate you're pointing out what you feel are flaws in the plan. I may yet change my mind, right now this is all in the planning stage. I'll keep you advised as time goes by.
Best regards,
Glenn Bartley
ps: check out the new pages for my web page - not the site I would use for a business being it is an AOL homepage and not a .com but worth a look anyhow I think.
'>