Based on the first eight months of this year, how do you expect your total sales for 2024 to compare with your total sales for 2023?
Digging deeper into the results, grooming salons appear to be the most bullish, with 64% expecting sales growth in 2024 and almost 25% anticipating sales to increase by an impressive 20% or more. Boarding and day-care facilities expect the least growth, with only 30% looking forward to sales gains this year. Pet Boss Nation’s Candace D’Agnolo offers this advice to those businesses: “There’s still time left to see a revenue boost in 2024. Consider encouraging customers to buy gift cards or packages at current rates before you raise them in 2025.”
And for any “down” business wanting to spur sales growth, take a look at your marketing, she says: “What marketing campaigns did you implement this year? Were they effective? Did you execute enough of them? Can you win back lost business? Now is not the time to hide. Be confident and start digital conversations with your customers daily!”
What were your total sales in 2023?
| Less than $250K |
| 22% |
| $250K-$500K |
| 21% |
$500K-$1M
|
| 25% |
| $1M-$3 M |
| 26% |
| Greater than $3M |
| 6% |
Broken down by percentage, what were your product sales by department in 2023?
| Dog |
| 58% |
| Cat |
| 14% |
Bird
|
| 5% |
| Small animal |
| 3% |
| Reptile |
| 3% |
| Aquatics |
| 4% |
| Pond |
| 1% |
| Other animals (horse, chicken, livestock, etc.) |
| 7% |
| Gift (products for people, home) |
| 5% |
In which product category did you see the biggest sales growth in 2023?
Cat category growth for Thrivers and Strugglers stands out here. Only 17% of Thrivers reported that cat was their fastest-growing category, while 33% of the Strugglers saw their growth being led by cat. Did the Strugglers focus less on dog and more on cat to see that sales increase, but because these customers are harder to attract and sell to, and therefore require more investment, did those results came at the expense of the overall business?
Strugglers should continue to chase cat customers — after all, the potential for growth surpasses other categories — but understand that it may be slow going and follow D’Agnolo’s advice on fine-tuning your inventory: “Your assortment is critical. Perhaps you are over-assorted, meaning you have too many brands or options. Streamline. Decrease suppliers and sell more from a set of core product lines.”
Over the last 20 months, in what cat food category have you seen the most growth in sales?
Wet food will likely always reign in the cat food category, but like in dog food we’re seeing frozen raw as a differentiator between Thrivers and Strugglers. Among the Thrivers, 19% saw the most growth in frozen raw, while for the Strugglers it was just 10% for that category. Could an increased focus on selling raw to cat customers not only have more of an impact in that category’s growth, but also overall competition with big-box and national chains that do not carry the many raw brands indies do?
Over the last 20 months, in what dog food category have you seen the most growth in sales?
Strugglers, consider adjusting the product mix in your freezers to better align with that of Thrivers — but don’t take away too much space from gently cooked foods. After all, the direct-to-consumer brands continue to spend, spend, spend on marketing, which benefits you by increasing awareness of the category. Be ready to offer local solutions when those pet parents realize the actual monthly cost when brands no longe b d e shipping with introductory discounts.
Do you have “bad profits”?
Certain products bring in “bad profits,” meaning they require too much effort, but remain in your stores for a valid reason. One respondent said, “Kibble doesn’t have a decent profit for the space it takes up. Although without it, sales would be slim.” And many who champion fresh feeding pointed out, “Frozen dog and cat food require freezers, which use additional power, and employees who are knowledgeable and believe in it.”
D’Agnolo responds: “You have the power to change your profit. Consider how to increase purchase volume, like by building a bulk-buying group with your customers, or offer auto-subscription to increase their buying frequency.”
Grooming was mentioned most as a service with “bad profits.” One indie said, “Just with staff management and time investment, it is grooming. Groomers are notoriously difficult to manage. They are profitable, but very disruptive to the overall operation of stores.” Self-wash proves problematic for some. “It does bring profit, but we are still paying off our tub,” one retailer said. “The customers who use it are rude and demanding, and never purchase any other items in the store.”
D’Agnolo advises: “Know your worth. Could you raise prices on self-wash and grooming by $5-$20. Minimal to the average customer’s annual spend, but across all will make a huge difference in profit. For example, at eight dogs a day, five days a week this increase brings in an extra $10,400-$41,600 a year!”
Other “bad profits” with good reasons:
- “Supplements require a lot of time, and margins aren’t the highest, but we believe and excel in them. We must serve in the areas most needed.”
- “Harnesses take so much time to fit. However, customers appreciate the individualized attention. It builds repeat business.”
- “Chicken and horse feed and bedding. Very slim margin, lots of heavy lifting. Having them keeps the customers. Otherwise they might buy their pet supplies elsewhere.”
- “Feeders for reptiles and fish.” And “Our small-animal boarding. The care required takes a lot of time for what we charge.” Indies say these are a must if they sell these pets.
What was your average retail sale per transaction in 2023?
Further analysis finds that 42% of Thrivers managed an average retail sale per transaction of more than $60. That compares with the lower 34% for Strugglers and 35% for All Pet Pros in our survey. At the other end of the scale, 27% of the Strugglers reported an average transaction value of $40 or less. In contrast, only 15% of the Thrivers reported the lower average transaction value.
What area of your business’s performance do you most need to improve?
Only 3% of Strugglers answered “Profit margin,” compared with 14% of Thrivers. Strugglers, to become a Thriver, reassess your margins — you actually may need to improve them.
How frequently do you look at your finances, including cash flow? Check all that apply.
More Strugglers look at their finances daily than do Thrivers and the overall All Pet Pros group. D’Agnolo says, “Keeping an eye on your sales goal daily is great, but stressing about your bank account daily is soul sucking! I encourage you to monitor your accounts weekly, transferring money to savings or tax accounts and paying a little down on debt. Then look at your profit and loss every month once it’s reconciled.” Those who never look at your finances, really?
Rank your services mix, from highest generator of profit to lowest (rank lowest those you do not offer):
How many months of operating costs do you have in your business savings account?
D’Agnolo offers this praise to the 32%: “This is exciting! Wow!”
What % of your overall retail sales was from e-commerce in 2023?
Well, these results raise eyebrows. A surprising 50% of Thrivers and 48% of All Pet Pros in our survey do not offer heir inventory online. D’Agnolo points out that this remains a growth opportunity for Thrivers, Strugglers and All Pet Pros, but recommends advertising to new customers who will shop online rather than encouraging your in-store customers to shop there.
What were your average retail items per transaction in 2023?
Thrivers appear to be following D’Agnolo’s regularly repeated advice of “Show, show, show until they say no. Connect the dots along the entire purchase. Adding just one more item to every customer’s basket will make a massive impact over time.”
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