The Pet Industry May Not be

Recession-Proof After All!

Making the Move from Luxury to Multi-Functional Products

by Xiomara Iraheta

It’s no surprise that amidst these tough financial times consumers are rethinking their shopping patterns, especially when it comes to their dogs. Recent pet manufacturing trends show that consumers are honing in on the move from “glitzy to green,” that is, they are no longer shopping for luxurious or flashy pet items but instead high-quality, healthy products that solve a problem.

The American Pet Products Manufacturers Association Inc. (APPA) reports that the average dog owner spent just under $500 on their dog for food, grooming products and toys in 2006. But we may see that average drop as consumers learn to manage their dog expenses valuing quality and function over Paris Hilton style “bling”.

Bo Nelson, owner of Wholesalepet.com, has been selling to upscale branded pet products pet stores for 15 years. “Over the past several months we have noticed more conservative buying patterns. Pet Boutiques are still purchasing clothing, jewelry and frivolous items but in smaller quantities,” Nelson said.

“We have seen less of a drop-off in the sales of treats, toys, collars, beds, bowls and spa products. Overall it seems that sales for items people and their pets use on a regular basis are faring better than items people and pets only use on special occasions.”

Sheri Scarborough a pet industry veteran and owner of Gotorovers.com concurs. “Buying decisions are more focused on price point than ever before.” She adds, “ Retailers are adding more holistic, organic, and raw food lines as well as products made in the USA and made from recycled material.”

For years as the pet industry was growing in double digits, business owners claimed that the pet industry was recession proof. According to recent articles in Pet Product News this may not exactly be true. Very expensive high end items sit on the shelves longer while quality well-priced items continue to sell well.

Stretching your dollar and keeping Fido safe and happy doesn’t have to be a contradiction. Weighing in on the situation, Lorna Paxton, owner of happytails Canine Spa Line says, “in order for products to sell they have to solve a problem, they have to actually do what they claim to do, and it helps if they perform more than one function."

You don’t want to lower your standards as far as quality products go and risk safety or comfort for your dog. Therefore, consider the following tips when shopping for products under these three categories.

Grooming and Bathing:

• Problem/solution based products: If your dog has itchy skin, find an oatmeal shampoo
• Multi-functional: Combined shampoos & conditioners and other products that can perform more than one function
• Holistic: Products that focus on the overall health of the dog, not just the outside appearance
• All natural
• Made in the USA

Food :

• Grain Free Food: Not only will your dog be nourished but the food could help with itchy skin
• Read the labels! Experts say to protein should be at about 30 percent and fat to be at least 18 percent.
• Read the Whole Dog Journal which often publishes reviews of every food on the market.
• Seek deals: Register your e-mail address on your manufacturers’ website and you may get coupons sent to you via e-mail or a heads up on specials

Treats :

• Functional treats: Like a treat that has supplements for joint support, vitality or other health concerns
• All natural and made in the USA
• Treats that are not fattening (if your dog has weight issue)
• A treat that takes some time to eat. Maybe it’s hidden in a toy and takes a while to get to. This is entertaining and stimulating for the dog
• One that your dog loves. You can use them as bribes and training tools!

Toys:

• Ones that you can hide food in
• That engage your pet’s interest whether it be a bouncing ball or squeeky toy
• Toys with longevity: If you purchase toys that are made from good materials you can get even more use of it by rotating them weekly. Making one or two available to your dog for one week and switching it with a different one the next can seem like their getting new toys all the time.

Sheri Scarborough, co-owner of www.gotorovers.com, a shopping site for pet retailers, and ex-pet store owner  writes:

“I am finding that the economy is greatly impacting the buying decisions of dog and cat owners, which in turn, effects the buying decisions of retailers.  I am based in Florida, and this is particularly evident,  because the foreclosure rate is very high.    In the past 6 months, I’ve seen retailers  bring in merchandise with much lower price points.    Most of the boutiques that I visit  have only carried high-end ”bling”, leather, and beautiful ribbon collars in the past.   Many have now added a nice nylon collar line that retails for $7 - $12.      For the past three years, apparel (tanks, dresses, etc.)  has placed a strong third place in overall selling categories.   Sales have significantly dropped in this category and treats have now taken over this spot.

 Retailers are adding more holistic, organic, and raw food lines.  Some are carrying as many as 20 different lines, although the margin on food is usually around 30%.   Their general retail areas have become more mainstreamed to the basic needs of the pet to include collars/leads, toys, treats, grooming and beds.     Buying decisions are more focused on price point than ever before.

 Other retailers are setting up areas in their store that focus on matters/items important to them and their customer base.  These can include products  that are:  made in the USA, made from organic material, made with natural ingredients. made from recycled material, made locally (in their particular geographic area) and items that reflect a particular lifestyle - i.e.  Pride Wear.  Because these items may be of particular importance to their Customer, they don’t seem to mind paying a higher price point.

This holiday buying season has been very slow in Florida.  Retailers heavily stocked up on holdiay-themed merchandise in the past, but this year have either purchased a very small quantity of this type of merchandise, or decided to stick to non-holiday-themed merchandise altogether, for fear that they will still have this merchandise after  the holiday season.   They are being very selective about their purchases, and are having the purchases shipped much later this year than in the past.    Quite simply, they don’t know what to expect this holiday season.

Outside of Florida, we are finding that Retailers have continued to place  nice orders, but are being more cautious about the amount they are spending than in the past.   Coat and sweater sales are soft as compared to prior years, as some Retailers have plenty of stock from last year.  They are waiting to see what the demand is before committing additional inventory dollars to this category.   

 Overall, most of our Retailers tell us  that October has started off nicely and they are hopeful for a strong holiday season.    We are hopeful, as well!”

Bo Nelson, owner of WholesalePet.com (www.wholesalepet.com), an on-line service representing over 200 manufacturers and supplying over 3,000 write:

“In my 15 years in the pet industry, I can recall many occasions during economic downturns when people would say to me: “the pet industry is recession proof and people will always buy things for their pets.” I think there some truth to this, but the US economy seems to be facing its most difficult period since the Great Depression and this slow-down is affecting most sectors including wholesale purchases and consumer spending.

 Stock market pundits and the main-stream media are likely amplifying consumer anxiety. People still have money in their pockets, and I believe the pleasure people get from buying items for their pets far outweighs the monetary costs. However the current state of the US economy is affecting consumer spending in the pet sector and thus it is affecting wholesale purchasing as well.

 WholesalePet.com specializes is selling upscale branded pet products to independent boutique pet stores. Over the past several months we have noticed more conservative buying patterns from the retailer we service. Pet Boutiques are still purchasing clothing, jewelry and frivolous items but they are buying these items in smaller quantities. We have seen less of a drop-off in the sales of treats, toys, collars, beds, bowls and spa products. Overall it seem that sales for items people and their pets use everyday or on a regular basis are fairing better then items people and pets only use on special occasions.

 I do not predict an overly robust Holiday selling season for most pet product retailers, but I believe most will survive. Inevitably the economy will recover and the wholesalers and retailers who are able to endure this tough time will emerge stronger and better equipped to meet the need of pets and pet owners in the future.”

 

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PAWTY, PAWTY!

by Fran McCaskill

Doggie Birthday Parties are becoming the latest trend among pet owners. You, as a business owner, can capitalize on this trend as a way to engage your customers, build community, and oh yeah, to increase your sales!

Encourage your Customers to pamper their faithful companions by throwing a birthday pawty at your facility. Here are some profitable considerations and suggestions for a fabulous doggie party.

LOCATION: Although a backyard party at a home is an ideal location, many people don’t have this option. A boutique or doggie day care are ideal places to have a party. Consider making some space available primarily for social events. You could put together a ‘pawty pack’ with your facility available to rent for blocks of time, along with all of the other pawty accoutrement.

INVITATIONS: Sell doggie invites in your store. The invites could be breed specific to the birthday dog of honor. Check out Barktalk.com for some cute invites. You can also offer doggie "evites" with your store logo. But don’t get carried away! The Client should be advised to keep the attendee list to a reasonable number. Too many dogs canbe a recipe for a chaotic disaster!

DÉCOR: Keep an abundance of dog themed balloons, banners, tablecloths, plates, cups, napkins in stock, these add to the ambience and spirit of the occasion. Some fun items can be found at: www.funstufffordogs.com and GoodDogexpress.com

FOOD: Doggie Bakeries are key to a happy Birthday dog’s heart. No pawty would be complete without Treat Platter’s and Birthday Cakes. Three Dog Bakery creates scrumptious treats and cakes for such an occasion. Promote these items with sample "tastings". Dogs can choose what cake they are partial to prior to the event. Dogs are loyal customers, they never forget their first experience eating a slice of Birthday cake and will be drooling at the thought of one for years to come. Owners should be prepared for dogs enthusiastically diving head first into their cake. Keep wet wipes on hand, they come in useful to remove frosting smeared all over the face.

REFRESHMENTS: Make sure there are plenty of water bowls scattered around the location for the dogs and keep an eye on them that they are replenished. You can offer your client the option of having distilled water. Alcohol for people should be limited, no need for unruly adults setting a bad example at a dog party! Wait a minute, what am I thinking? With 50 dogs running around, alcohol will come in very handy for the human set

HAVE ON HAND:

• A potty station- check out petapotty
• poop bags (for those who miss the potty station)
• A bath replacement spray like Dry Dog Instant Clean . Dogs get very stinky when frolicking and you don’t want to send them home smelly!
• first aid kit
• wet-wipes
• If outdoors, a sunscreen & flea repellent such as Flea the Scene ” that will repel those pesky fleas & provide sunscreen.
• In addition you might find Dog Smog Remedy valuable (for bad breath and gas)for the odd dog that cannot contain his excitement for the occasion and comes down with a bad case of anti-social gas.

Etiquette: Invited dogs and their owners should possess good manners, have compatible personalities and be well socialized. A badly behaved aggressive dog is not worth the invite, nothing like a back yard brawl to bring the worst out in everybody and put an abrupt end to a good time. To avoid any misunderstanding the invites should point out that doggie drop off’s are not optional, each dog is to be accompanied and supervised by a responsible parent.

ENTERTAINMENT: Depending on your Client’s budget you can keep it simple or go all out and have a pawty that will be talked about in the dog park for years to come. Provide a games-coordinator to entertain the dogs, there are plenty of team-building activities to choose from that can get all participants interacting. Here are some suggestions:

Fancy Dress - Pick a theme or leave it open the imagination. Doggie guests should arrive in their attire.

Agility - Set up a small agility course to include a tunnel, a few jumps, weave poles and a low table.

Paddling Pool – For those dogs who just can’t resist splish splashing around!

Activity Corner – Set up a box of fun to include Frisbees, balls, stuffed kongs, tug of war ropes.

Contest – A judge to nominate the best candidate for the dogs performance in the following categories:

• Best Outfit
• Friendliest Dog
• Best Kisser
• Most Obedient
• Best Trick
• Most Vocal
• Don’t forget to provide prizes!

Organized Games – These can be a lot of fun:

• Hide & seek: The owner hides while the dog is being held with his back turned, once let off his leash he is rewarded upon locating his owner.

• Musical Mats – Owners walk their pets around in a circle to music, when the music is turned off both owner and pet need to locate the nearest mat & sit on it. The last dog to sit on a mat is eliminated. The last dog standing gets a prize!

• Simon Says – Dogs are given commands such as “Sit”, “Lie Down”, “Roll Over”, “Shake”, “Stay”. Last dog to obey is out.

TRAINER: Provide a trainer for the day to teach the doggie guests tricks.

SPA DAY: A day of relaxation. Provide a doggie masseuse, the dogs will think they’ve gone to doggie heaven and will thank you for it! To add to the relaxation process combine the massage with lavender-infused Calming Aromatherapy Spritzer . Followed the massage with a pawdicure using bowWOW Butter Balm - a treatment for dry cracked noses and paws!

GROUP PHOTO: Have a photographer on hand. Picture this, the Birthday hound surrounded by his buddies, always a crowd pleaser, don’t forget the party hats!

GOODIE BAGS: Every good dog deserves to be sent home with a goodie bag, in addition to some jaw-licking good treats you can include non-food items such as a bandanna to mark the occasion or some grooming products such as gift packs “Travel Dog Collection” or “Spa on the Go” . You can find some cute “It’s my Birthday” bandanna’s at: www.good-doggie.com

THANK YOU NOTES: A well mannered pooch knows the importance of social etiquette, thank you cards should be sent out for all those lovely gifs, stamped with a paw of approval of course. Suggest that the group photo is turned into a thank you card, not only does is provide a nice memory for the guest but it is another service your business can profit from.

Why not put together a "Pawty in a Box" to sell to your customers incorporating the items in this article-everything they’ll need to throw a canine birthday party. For wholesale items check out one of the online pet wholesale ordering sites like: PetManufacturers.com , WholesalePet.com and GoToRovers.com .

For other ideas for events to throw in your store click here.

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