Page 2 of 4 FirstFirst 1234 LastLast
Results 11 to 20 of 34

Thread: Are there any vets or people in the vet indusrty here?

  1. #11

    Default

    'Kingly Pet' - why are you so concerned with markup/profit of companies you would wish to sell to ?

    Should you be only concerned with your own profit/markup ?

    Do you manufacture your own product - or - do you on-sell ?

    Do you know what your costs are - variable and fixed ? You will need to know these before you can put a proper/adequate sale price on your product.

    The sort of question that you have asked here - maybe - how long is a piece of string ? - would answer it for you.

    Here are some links from the ATO - regarding benchmarking. Take note - the figures are only worked on averages - so maybe no help - but maybe will give you an idea of profit margins that the ATO are using to audit companies. Depending on how companies and other retailers are structured - will depend on their financial results.

    Small business benchmarks | Australian Taxation Office

    Benchmarks A-Z | Australian Taxation Office

    Pets and pet supply retailing - issued 2012 | Australian Taxation Office

    Veterinary services - issued 2012 | Australian Taxation Office

    I am aware that I haven't answered your specific question - but I have asked you some questions for you to think about!

  2. #12

    Default

    Quote Originally Posted by mymatejack View Post
    Profit margins are very different between industries/products. One company i worked for were happy with 30% net profit(cost x 1.3) whereas another company i worked for would accept nothing less than 30% gross profit( cost/0.7). Supermarkets on the other hand run on very small margins because of their high turnover. I have no knowledge of what the vet industry expects but i would imagine 30% GP would be a min.
    Hey mymatejack,

    Thanks for the reply, much appreciated!
    Based on what has been said, I think I am on the right track with pricing.

    Best,
    KP

  3. #13

    Default

    Quote Originally Posted by RileyJ View Post
    ''Kingly Pet' - why are you so concerned with markup/profit of companies you would wish to sell to ?
    Ummm, it just makes it easier to do costing etc

    Should you be only concerned with your own profit/markup ?
    Oh, I am concerned with many, many more things, this you can be sure of..........

    Do you manufacture your own product - or - do you on-sell ?
    We have a manufacturer.

    Do you know what your costs are - variable and fixed ? You will need to know these before you can put a proper/adequate sale price on your product.

    Yeah, all sorted.

    The sort of question that you have asked here - maybe - how long is a piece of string ? - would answer it for you.
    Oh no, the string was measure prior to asking the question.......... There is generally an industry standard.
    I have been contacted outside of the forum by a member and they offered me some great info. Also the info mymatejack gave me was great too.


    I am aware that I haven't answered your specific question - but I have asked you some questions for you to think about!
    Thanks for the questions and the great links you sent.

    Best,
    KP...
    ...
    Feel free to have a look at our canine health supplement site - kingly-pet.com

  4. #14
    Join Date
    Aug 2009
    Location
    Adelaide
    Posts
    12,581

    Default

    KP

    You might want to invest in Dan Ariely's book "Predictably Irrational"

    Product pricing and marketing is quite scientific these days - ie there have been studies done on it and how to get the best price out of a customer.

    I imagine your product would be compared to stuff like Rose hip and maybe Glucosamine... and a pricing that was similar (per dose?) would probably reflect what the market will bear.

    And then there are two ways to go - and I don't know which is best - sell at a discount to build market - with the disadvantage that customers will get upset when you put the product up to something fairer for the producer / retailer, and also gaining a perceived lower quality or confidence in performance.

    Or price it higher, and in the cosmetics and pharma industries - this is often perceived as higher quality and better performing - given placebo plays a big part in these products performance. Ie a moisturiser with a film star marketing campaign charges a lot more than the supermarket brand but when customers don't know what they're trying (in a double blind test), the supermarket brand often does as well or better.

    So the vet isn't the right person to ask when it comes to pricing. I do know I pay a premium to buy product from the vet. In the case of my flea stuff, Revolution - if you get it from the vet - comes with a 3 month bonus pack and worming tablets - that last me 9 months "for the price of the 6 month pack with no wormers". Which sort of works out the same as if I buy it online from an Australian vet supplies store and have to pay the extra 3 months and wormer.

    You need to know who would buy your product and what their price expectations are on a product like that. And how you would break into that market (free samples, discount specials on opening, or really expensive and exotic and "rare").

    After that the vet mark up would depend on how much space your product takes up, how long it keeps, and how fast it sells. If it's small and sells fast, they can afford a lower margin. If it's big and sells slow - they need a bigger margin.

  5. #15

    Default

    Hey H,

    Thanks for the great advice, much appreciated. Also, I will get the book you recommended once I have finished my current one (The Personal MBA - Josh Kaufman).

    Yeah it is a real juggling act trying to decipher markets, marketing and customers. We only want to build a small foundation of clients that we can look after well and keep for long periods of time.

    Again, thanks for the great info, I am happy I asked in the end.

    Best,
    KP.

  6. #16
    Join Date
    Apr 2012
    Location
    Bunbury
    Posts
    1,378

    Default


    This is a surprising forum

  7. #17

    Default

    For sure!

    I think being so green clouded my judgement......lol

    Thanks,
    KP.

  8. #18

    Default

    I wont say "I told you so". Good luck with your marketing and when you are ready give us a link to your web site so we can check out what you are doing.
    Nev Allen
    Border River Pet Resort

  9. #19
    Join Date
    Aug 2009
    Location
    Adelaide
    Posts
    12,581

    Default

    Phew - this thread worked out for the best...

    not really a vet question at all.

    So anyone can google Kingly Pet and find the product. And KP can update their sig if they want to - via their profile setting.

    Note - I have zero idea if it works or not. But it is somewhat more tangible than those flea repellent? metal disks.

  10. #20

    Default

    Quote Originally Posted by Nev Allen View Post
    I wont say "I told you so". Good luck with your marketing and when you are ready give us a link to your web site so we can check out what you are doing.
    HA.......... Thanks for not telling me so.
    Feel free to have a look at our canine health supplement site - kingly-pet.com

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •