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  • #978648
    Property Idiot
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    Just got back from picking up the pooch from 5 nights at a dog hotel,

    $48 per night x 5 =$240

    Iasked how many dogs they had, and they said its quiet now, only about 25

    so I just did my sums, assuming now is quiet time, or average time, thats $438k per annum,

    husband and wife, and I occassionally saw a young girl working there (could have been daughter)

    so! thats $438k profit per year, minus the food, maintenance, repairs etc,

    and it looks like a family home to me,

    even if you paid $50k per person, you’d still have $338k profit before your own wage!

    and this is not even considereing peak periods,

    the properties in this area fetch anywhere from $500k to a 1 million,

    and there is only 2 businesses in the area,

    techncailyl, you could pay off the house in 3 -5 years!

    am I missing something?

    #1108539
    MyGreatIdea
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    yes, you’re missing insurance for starters, which I imagine could be quite hefty for that number of animals.

    Even if you only spend $5 a day on food for each dog there’s another $45,000 gone. And there’s no way you could get by on $5 for the larger dogs.

    Then there’s the number of hours walking them say 6 dogs each at a time for an hour, there’s at least 4 hours a day gone. Cleaning their enclosures and the fact that you can never have a day off. One dog gets sick and it’s off to the vet and down one employee for the day.

    There’s probably a lot more negatives in fact, there must be, otherwise there’d be boarding kennels everywhere lol.

    If something seems too good to be true then it probably is…

    Wendy :)

    #1108540
    Spider
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    On those figures, the biz is probably just staying afloat.
    And the owners would have to love dogs, noise, and love working 7 days.
    Looks like a hard way to make money.

    #1108541
    ray_223
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    I agree – it probably is a good business and they probably are making a nice income.
    But also agree with the others in that it would be a rather challenging business – 24×7.

    You say there are “only” 2 businesses in the area doing it – it would be very difficult to start a 3rd if the 2 current businesses are well respected and well known (if not there may be an opportunity).

    It’s good to see you thinking how others operate – I (and my wife who is my business partner) also do this – usually wondering how businesses with such poor service can continue to operate – but every now and then see a business using a nice strategy and see how we could use a similiar strategy.

    #1108542
    Opulence
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    This reminds me of that old anecdote used to describe the efficient market hypothesis.

    Person A is walking down the street with person B. Person A says “Is that a $100 note in the gutter?” Person A replies “Can’t be, someone would have picked it up already.”

    Your experience with the kennel is something that happens to me almost daily. You come into contact with a business and you start to ponder the workings behind it (invariably annoying the Mrs in the process).

    To answer your question, you most likely have missed something but until you find that thing that makes the investment untenable… keep enquiring.

    If we always shied away from something on the assumption that it would never work out we would still be cruising around in caves beating our chests and clubbing saber tooth tigers.

    I’ve seen a few of these for sale and at briefest of inspection (and I emphasise very brief) they look like great little businesses if you could pick one up cheap.

    People will always have dogs, people will always holiday. Therefore people will always need kennels.

    Starting your own kennel…. now thats a different kettle of fish. (Try as I might I couldn’t come up with a good dog pun there ;) )

    #1108543
    AgentMail
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    Well for one there is the fact that an income generating property would not be on a nice 6.5% mortgage, try more like 12-13% for commercial loan.

    You then have, as has been mentioned the fact that you have to work long hours, 7 days a week and can only take holiday outside of busy periods.

    Also, the $48 a day is hugely expensive for kennelling, the average is more around $25 a day.

    Also, the ongoing expenses and maintenance of a kennels would be a lot more than you might think.

    Not that it is a bad business, I love the idea of running a kennels, but the idea of dogs barking through the night, getting up at 5am to start cleaning out and working through every holiday season, not money hungry enough for that I’m afraid.

    #1108544
    Leonie_C
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    We often leave our dogs at a local kennel and we’re grateful for the care they get so we can go away and know they’re ok.

    But the Kennel owners do work some long hours, they have to be available for drop-off and pick up and they are open about 364 days a year! Not much chance for a break or holiday of your own! I imagine it would be like running a motel but with furry, barking guests! I think most kennel owners are serious animal lovers and their business stems from their passion. Always a good thing!

    But I agree, it’s always good to think about these things!

    cheers
    Leonie

    #1108545
    Divert To Mobile
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    Opulence, post: 120775 wrote:
    Starting your own kennel…. now thats a different kettle of fish. (Try as I might I couldn’t come up with a good dog pun there ;) )

    how about kennel of fish :)

    #1108546
    angela123
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    Dogs would be hard work, they need to be exercised etc. I would prefer a cattery, as they are lower maintenance, they still required company, but nowhere near as much as dogs. They wouldn’t need as much space either.

    #1108547
    Avatar Consulting
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    Running a Dog Kennel Business

    Hi

    Not to forget the huge vet bills to ensure no bugs or diseases are transferred between peoples favourate family members.

    You would also need a permit to be allowed to do this in most states and the law of boarding animals has changed recently as causing the costs to go up.

    Forget how many dogs they ‘say’ they look after, find out how many dogs are in the area in total to see if the market would support another kennel.

    BTW dont forget that tax man will want their share of that projected $400,000 revenue leaving you with a 12 hour day job for 365 days a year. You really want to love dogs.

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