Pros And Cons Of Starting A Pet Supplies Business

According to the America Pets Products Association, Americans spent $123.6 billion on their pets in 2021 alone
. So if you are a pest enthusiast and an investor looking for long-term growth opportunities, consider starting a pet supplies business.

The next natural question should be whether
owning a pet store is profitable
. The booming pet care industry has enormous prospects since many are prioritizing their pet’s well-being. Besides, it’s stable, with the recession having minimal impact on it, guaranteeing your financial success and satisfaction.

However, starting a pet store business has advantages and disadvantages like any other business. That’s why we are here to help you prepare for a smooth start with a list of the pros and cons of starting a pet supply business. Let’s dive in.


Pros Of Opening A Pet Store

There are many benefits you can accrue from owning a pet supplies business. First, it lets you control your business operations and choose the products you want to supply. You also get to offer your customers personalized services
, increasing your customer base. Other benefits include: 


  1. Has High-Profit Margins


Is pet supplies a good business?
Definitely yes. Pet supply businesses have shown an increase in revenue regardless of how the economy is performing. For instance, APPA reports indicate that the pet care market has grown from $216 billion in 2020 to $232billion in 2021 globally
 despite the pandemic.

Retailers who have invested in the sector make an average profit margin of over 60%. The profit allows their business to manage its cost and grow. The most popular products sold are chewing toys and bones, with a profit margin as high as 70%.

Organic and gourmet pet food’s profit margin takes about 40%, with Cat food and dog food making the most significant percentage. Pet supplies are not limited to foods only. Investing in designer clothes, high-end accessories, and luxury collars for dogs can give you even a higher profit margin. 


  1. It’s Recession Proof

During a recession, consumer spending drops across many sectors. However, the pet care industry defies all odds during an economic crisis as it remains stable.

Studies show that people who love their animals are willing to cut costs on other luxuries elsewhere to spoil their pets
 regardless of the economic situation. You can, therefore, rest assured that your business will still thrive no matter the crisis. 


  1. The Demand for Pet Products is Season

    l

    ess

The pet supplies business is a venture that is not affected by seasons. Even though the demands for pet foods, accessories, and treats increase around the holiday season in December, you’ll have a relatively steady revenue throughout the year.

This consistency eliminates the need to stock up on products at certain times of the year, easing your inventory management. It also allows you to make long-term plans for your business.



  1. The Market Keeps Growing

The demand for pet supplies has increased over recent years, with the number of pets tripling to around 312.1 million.
 This growth has opened opportunities in new areas in the pet industry, especially for dogs.

Canine photography, luxurious nutrition, doggie blogging, etc., are some fast-growing markets entrepreneurs can venture into. The pet population growth also translates to increased demand for pet grooming, foods, and other pet supplies. Businesses investing in pets are assured of a ready market.


  1. Availability of New and Innovative Products

Initially, pet supplies were limited to grooming products, treats, leashes, foods, and beds. However, there are now more pet supply options thanks to innovations by companies. New market developments include pet wipes, dog vitamins, battery-operated or Wi-Fi-connected litter boxes, cat toothpaste, and many more.

Besides products, you can also be innovative and add creativity to your pet store. For example, you can be creative with your store merchandise, interior space, logo design, colors, and style to express your vision and personality. 


  1. You can Attract Customers with Your Expertise

Modern pet parents are sophisticated and selective about the products they want for their pets. Most customers are likely to visit a pet store whose owners are experts in animal care instead of going to giant retail stores with untrained employees in pet care. 

Starting a pet supplies business, especially when you are a pet expert, is the surest way to attract customers
 who want the best care for their pets in your store.


  1. It Sets You Apart

Most small pet stores are known for selling unique pet products that are not readily available in the big retail stores. For instance, customers who love holistic pet products frequent small pet stores because they know they stock products that may not be found in the other stores. 


Cons Of A Pet Supply Business

Starting a pet supplies business also has challenges you can overcome if you take the proper measures. Some cons of starting a pet store are:


  1. It’s Expensive

Starting a pet store requires significant investment to cover the overhead cost and other expenses. This cost makes starting the business an expensive undertaking, especially for small businesses, which may not have that start capital at their disposal. 

But if you are determined, you can consider applying for financial help to cover the cost of a small business.


  1. The Business Is Competitive 

You’ll have to compete with other established businesses as a starting pet supplies business. The only way to overcome this competition is to analyze your market to understand where demand is.

Stand out by selling goods that most established stores don’t stock to make your business a go-to store for specific products. Also, improve your customer service by offering personalized service.



  1. Finding The Right Suppliers Can Be Hectic 

Finding suitable suppliers to supply your business with quality products when starting a pet store can be difficult, as it involves a lot of trial and error.


  1. It Requires Total Commitment 

At the start of the business, you’ll also need to commit most of your time to the company and develop strategies to propel the business forward. Sometimes you may find yourself with minimal activity for most of the day. Some may like it, but others may struggle with this lack of activity. 


  1. It’s Hard To Establish Customer Rapport And Trust

Being the manager or owner of the business may isolate you from the rest of the team. You may not interact with customers and other team members at the beginning. This isolation makes establishing a relationship and trust with your customers difficult. Therefore, you’ll need to go the extra mile to attract your customer’s attention or believe that you hired the right employees.


  1. Limited Marketing Resources

When starting a pet supplies business, you may not have the funds to allocate a budget to the marketing and advertising departments like big retail businesses. Good thing there are cost-effective ways to market your brand, like sharing business cards, using influencers, building an online presence, etc.


In Conclusion

There’s no doubt that the pet supply business, like all businesses, has its challenges. However, you can be sure that no matter the challenges, you’ll still have a customer who will want to buy your products.

Don’t let the cons or well-established businesses deter you from enjoying the benefits of pet stores. Careful planning, expertise, and determination are all you need to stand out in this competitive but lucrative industry. 

Investing in Erply’s POS solution will also combat some of these challenges, like organizing and optimizing your suppliers, managing your financial reports, offering features like gift cards
 that enhance your customer experience, and doing all the manual work leaving you with time to interact with your customers and employees. Try Erply’s demo
 today.