How to Start a Pet Supply Store

Part 1 - How to start a Pet Supply Store business - Background

A viable pet supply store sells anything and everything pet-related. From fish tanks to dog toys, a pet supply store offers the products needed to keep a pet healthy and happy. Some pet supply stores have walk-in clinics. Others have adoption centers. While large pet supply stores like Petco exist, there are plenty of successful local pet supply stores.

Our guide is in 3 parts:

• Part 1 - How to start a Pet Supply business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a pet supply store?

Unfortunately, starting a pet supply store can be expensive. Because you’ll be competing with your area’s biggest pet supply chain, you’ll need to make sure you’re fully stocked. This means you’ll need to be well-equipped with food, toys, and care products for all pets. Fortunately, you can buy wholesale goods—rather than raw materials. For example, 50 lbs of dog food will cost between $29 and $49. Wholesale cat food, meanwhile, costs between $9 and $13 for a five-ounce case of 32 servings. As for toys and other supplies, average pet supply store products—purchased wholesale—cost between $5 for small-animal items and about $50 for larger items, like fish tanks. If you want to provide supplies for specialty animal care, you can. These items—like large aquariums, for example—can cost upwards of $500 per unit.

For your rent and utility costs, you can expect to pay about $1.20 per square foot of retail space in a wealthy area. So, a 2,000 square-foot shop will cost about $2,400 in monthly rent. You’ll need to pay an average of $300 for startup utility costs. Per month, your utilities can cost between $300 and $500. Expect to pay around $3,500 for shelves, a cash counter, and display cases.

What are the ongoing expenses for a pet supply store?

Most ongoing expenses will be inventory- food, toys, beds, etc. Rent and employee salaries present additional ongoing expenses.

Who is the target market?

Customers who are calm, understanding, and excited about pets are incredibly valuable. An ideal customer will handle their pet with care, have a well-trained pet, understand what they’re looking for, and be open to any care tips. If a pet supply store doesn’t offer adoptions or care opportunities, preferred customers are often repeat customers looking to restock on food and treats for their pet. As a local business, a pet supply store thrives on regulars.

How does a pet supply store make money?

Much of a pet supply store’s revenue is generated from the sale of goods—primarily food. As one of a pet owner’s only locations for food, a pet store receives continuous purchases. Pet supply store owners can expect return visits every couple of weeks. Many supplies pet owners purchase will need to be replenished over time. Such items include toys, beds, and other supplies that wear out over time. Pet supply store owners can expect consistent purchasing trends. Adoption centers, meanwhile, make money from adoption fees. Care centers receive money based upon provided services.

How much can you charge customers?

For dog food, you can normally charge between $20 and $60 for a large bag of dog food. Cat food, on average, is priced between $15 and $40. You can charge customers between $10 and $70 for pet care and entertainment products, depending on their size.

How much profit can a pet supply store make?

According to the American Pet Products Association, Americans spent about $55.72 billion on pets in 2013. On average, a pet store operated by four people makes about $400,000 in sales per year. The average net income of an average-sized pet supply shop is $30,000.

How can you make your business more profitable?

To be profitable as a pet supply store, you’ll need to focus on much-needed supplies. Find out the industry’s leading pet food brands, and stock them. Change your pricing strategy to price these goods competitively. Don’t focus on toys and self-care items right away. Once you’ve achieved a market advantage on food, move into other essential items, like grooming products and vitamins. You can also eventually add services like adoption, grooming, and a veterinary clinic.

Day-to-Day and Growth

What happens during a typical day at a pet supply store?

A pet supply store owner must purchase and distribute pet products. These products are purchased wholesale, but they require aggressive purchasing plans to profit. As with any small retail shop, operators must handle customers, promote products, conduct transactions, handle maintenance, and ensure a clean environment. Pet supply stores which offer adoptions and care centers have an additional set of responsibilities. They must uphold industry health guidelines, ensuring the health, safety, and wellbeing of any on-premises animals, feed the animals, and perform daily care routines.  

What are some skills and experiences that will help you build a successful pet supply store?

If you’re a creative, entrepreneurial, pet-loving person, a pet supply shop is right for you. The pet store industry is booming, and it’s an incredibly viable profession. Before getting started, however, future owners are urged to volunteer or work at a pet store themselves. Pet enthusiasts, animal-lovers, and animal activists are solid candidates. From a technical skills standpoint, having retail experience, management experience, and financial experience helps in completing administrative activities. Pet nutrition, veterinary, and pet daycare experience are also incredibly important.

What is the growth potential for a pet supply store?

Pet supply stores have a high growth potential. Because their product demands are inelastic—customers need pet food—they can expect the consistent revenue stream needed for growth. As a local provider, a pet store can even become a preferred location. That said, small pet supply stores may have difficulty competing against large chains, such as Petco and Petsmart.

What are some insider tips for jump starting a pet supply store?

If you’re starting out, it’s a good idea to hold off on pet adoption and care centers. While you can still sell kittens, puppies, rodents, fish, and birds, adoption and care centers present additional legal and financial barriers. Start off by offering basic supplies. If you want to offer animals, start with low-maintenance animals, such as fish. As for customer service, make sure you’re capable of maintaining a cheery disposition. Customer service in pet supply shops is incredibly important in creating an environment to which customers will return.

How and when to build a team

It’s advisable to begin a pet supply shop with at least three people. As the business owner, you’ll be in charge of finances, management, marketing, and promotion. You’ll need a cashier, and you’ll need a worker to clean, take care of animals, and load new stock. Pet supply shops require constant upkeep, so having more workers is advisable.

Part 2 - Is a Pet Supply Store business the right fit for you?

Part 3 - Action plan to launch your Pet Supply Store business in 90 days