Sean I'm always interested in the economics of running retail business. In your case your are dealing with livestock that needs to be cared for so this makes it more of a challenge. you can't just stick your products on a shelf or showroom floor
How much of your day is spent taking care of the livestock and how much is spent running the business and trying to grow it?
I think if people look at it from this angle it's easier to see why you need to mark things up.
My retail experience comes from being a supplier. I know that when I sell one of my pieces to a store they are going to mark it up 100% - 200%. To cover rent in mid town or soho you have no choice. Like Albert said a while ago it's the nature of retail to get the highest price possible, of course this depends what your selling. relating this to the reef industry there are only a finite number of coral and fish, stores can get, and if everyone wants a acan, or a purple maxima then if I owned that store guess what you are not going to get it cheaply. I personally have no problem with stores charging as much as they can for products, if i think it's to high priced i won't buy it and i might even tell them that. what I do have a problem with are stores that mistreat the livestock, give out wrong info, or try to make sales based on peoples ignorance. I've been lucky and always shopped at excellent stores who were owned by people who care, that I will gladly pay a little more for.
and for those that wonder why there are not more private fish stores in NY, have you checked the rent prices lately? you would need to have a huge amount saved up to open your own store, and the return is not guaranteed. i doubt i would ever open a reef store in the city even if I had the money. if you ran the numbers you would see why NW is charging the prices they are. for the same amount of rent money you could open an ice cream franchise and make probably ten times as much money. and that's what it comes down to in NY. this city does not coddle businesses that do not do well, it eats them alive. look at the turn over of restaurants, they have a similar problem, they need to mark up there product, and always have fresh stock on hand. if people don't like your food, location etc, guess what you have about two months to make it then bam, your gone.
I have not been to Seans store either but would like to go, maybe we can get together and meet there some time? okay that's enough rambling for now I have to get back to work.