In the fifth part of our year-long pet store make-over, Mark and Caroline Janczak realize they will have to sacrifice some aspects of the overall store renovation plan–and provide a lot of labor–to stay within their budget.

By Karen Long MacLeod

You can’t always get what you want.

This was true 30 years ago when the Rolling Stones said it in their hit song, and it’s true today as Mark and Caroline Janczak strive to upgrade their store, Critters Pet Shop in St. Charles, Ill., to make it more competitive in a changing retail marketplace.

Even with the money they intend to borrow, the help of the PET AGE Pet Store Make-over sponsors and consultants, and the cooperation of their contractor, the Janczaks realize they cannot afford to do everything they hoped to do in their store make-over. They will have to sacrifice some aspects of the overall plan to meet a total budget of $60,500, which includes their own minimum $10,000 contribution. 

After hiring a general contractor to manage the remodeling project, they needed to decide what they could live with—and what they could live without—while preserving the excitement of the plan provided by Mike McCahill of Retail Store Planning (Roseville, Calif.), one of our consultants.

In this segment of our year-long series about Critters’ redesign, we’ll review project estimates and learn what the Janczaks changed to stay within their budget. We’ll also see how their business is faring as they head into the holiday selling season.

Whittling Down the First Bid

Mark and Caroline admit they were “shocked” by the contractors’ first estimates. The bids were more than twice Critters’ budget—without the cost of the aquarium system for the fish room.

Still, the Janczaks realized they needed a general contractor to manage construction details so they could concentrate on running their business. Since they had a good feeling about David English of Jade Custom Builders Inc. (St. Charles, Ill.), they asked him to help figure out how to modify the job and whittle his $142,000 bid down to size. 

After studying the blueprints and discussing priorities, Mark and Caroline agreed to make several changes to the plans to reduce the total estimated cost of the project: 

• Reduce the plumbing allowance. Savings from the first construction bid: $7,500.
• Use standard 6-foot-8-inch doors instead of the more expensive 7-foot doors specified in the plans, and omit the sliding glass door in the puppy room. Savings: $2,900. 
• Keep the existing ceiling grid structure instead of installing a new ceiling grid. Savings: $3,500.
• Assist with painting the store. Savings: $2,000.
• Refurbish and move slat walls already in the store instead of buying new slat walls. Savings: $8,000. 
• Get display accessories and cash/wrap counters from fixtures vendors instead of building them to order. Savings: $8,000.
• Omit cabinets and valances specified for the bird area and fish room. Savings: $6,500. 
• Reduce the allowance for the rain forest. Savings: $1,000.
• Install the sink, tub and counter in the storeroom themselves. Savings: $4,500.
• Keep the existing 200-amp electrical service instead of installing all-new electrical service and wiring. Savings: $5,000.
• Refurbish existing light fixtures instead of installing new fixtures. Savings: $1,500.
• Eliminate the fee for constructing the kiosk by incorporating it into “miscellaneous costs.” Savings: $5,500.
• Reduce the estimate for profit and overhead, which represents the contractor’s fee. Because it is based on the total job cost, this amount diminishes when items end up costing less than projected or are eliminated.

Based on these and other changes, the contractor figured the job would cost $77,000. At least this revised bid came within shouting distance of the Janczaks’ budget. 

Paring Down the Second Bid

Even though it was more reasonable, the revised bid didn’t include the cost of sophisticated new aquarium systems for the fish room, the key element of the new store design. Nor did it include the cost of new gondolas and shelving for the main sales area, decorative neon elements and other signage. 

To leave money for these other important aspects of the project, Mark and Caroline decided to make still more changes to the plans:

• Simplify the plumbing work and eliminate drains in the rain forest area, if necessary. Savings from the second construction bid: not known.
• Refurbish floor tiles in the main sales area instead of installing new tiles, and install new floor tiles only in the fish room. Savings: $1,500 for demolition and $6,600 for new tiles. 
• Refurbish and paint existing doors instead of installing new doors. Savings: $1,600.
• Use only one Dumpster, since less demolition work would take place. Savings: $400.
• Tear down old ceiling tile themselves. Savings: $800.
• Proceed with installation of new ceiling tiles, which landlord agreed to furnish. Savings: $4,500. 
• Paint the store themselves. Savings: up to $4,000. 
• Buy display flats from a fixtures manufacturer (for $275 each) instead of having them built to order. Savings: $3,375. 
• Proceed with construction of the rain forest. Mark and Caroline were confident that it would cost less than the $8,500 allowance. Savings: not known.
• Accept the estimate for miscellaneous costs, which cover demolition, cleanup time, materials and so on. 
• Accept the estimate for profit and overhead.

Based on these and other changes, the contractor expected materials and labor for the construction project to total $44,760—about 10 percent less than the amount Critters received from the 21 companies sponsoring the renovation project through PET AGE.

Because they were willing to make some difficult choices and provide a lot of labor, Mark and Caroline were able to significantly reduce the estimated bill for construction. This left them enough cash to apply to the purchase of efficient new gondolas and shelving for the main sales area as well as decorative finishing touches that will convey a sense of excitement in the store. 

Taking on Debt

To equip their fish room with sophisticated aquarium systems, however, Mark and Caroline figured they would have to spend an additional $30,000.

This led them to make one of the toughest decisions of their professional lives: to take on significant debt.

Although debt is a routine part of life for most business owners, it is something the Janczaks strive to avoid. They bought their business with cash, and they pay cash for almost everything. “The only thing we bought on time was the computer system,” Mark noted. 

“But there was no way we could do what we wanted otherwise,” he added.

Their solution was to lease aquarium systems valued at almost $30,000 over 48 months. (PET AGE will provide more details on this aspect of the make-over project in the next issue.)

Their biggest disappointment so far is having to forego new flooring in the main sales area. Although it is a big part of the overall presentation, the Janczaks realize that a new floor will not boost sales or enhance efficiency as much as other aspects of the project. 

“We’ll hire a polisher to come in once a month to keep up [the existing floor], since we haven’t been able to keep it looking nice on our own,” Caroline said.
With tile left over from the fish room, they plan to add color accents to the floor in the main sales area. 

Working With Contractors

In general, though, the Janczaks believe luck has been on their side throughout this project. 

For one thing, they have good working relationships with David English, as well as the subcontractors he brought to the job. At press time, they were on track to complete major construction by Nov. 15.

“David has been very considerate of our needs,” Caroline said. “He works around us to avoid disrupting our business, and he is very patient.” 

For another thing, the contractors were good about suggesting ways to shave expenses without cheapening the look or feel of the overall project. 

To save time and labor, the plumber dug a deep pit in the corner of the fish room instead of an expensive trench through the reinforced concrete floor from the fish room to the back of the store. He suggested using an ejector pump to move waste from the new central filtration system up through pipes in the ceiling, similar to setups used in basement bathrooms. 

The plumber further minimized digging by installing the rain forest’s drain close to the drain pit in the fish room. The rest of the plumbing in the rain forest will be very simple: a small waterfall and pool with a pump from Critters’ own aquarium products department.

As a result, the Janczaks figured to spend only $6,000 on plumbing for the fish room and rain forest—only 60 percent of the amount allowed in the contractor’s second bid. 

Mark and Caroline pitched in by installing a big stainless steel sink (salvaged from a restaurant) in the storeroom instead of paying contractors to install a new utility sink and build a new counter. 

“It’s larger and more efficient [than the utility sink we had],” Caroline said. “You can fit a whole cage into it for cleaning.” Cost: about $750.

To save money on materials, they bought mix-and-match cultured stone on clearance to decorate the rain forest; and plan to sponge-paint the soffits above the puppy play area, the bird area and the rain forest instead of facing them in Formica as called for in the blueprints.

“We would rather put our money into fixtures that we can take with us, if we move, rather than electrical wiring and plumbing that we can’t take with us,” Mark said.
“I’m concerned that they will put off some of the finishing touches that add ‘exclamation points’ to the project, such as the neon accents and the controller that adds thunder/lightning effects to the rain forest,” said Mike McCahill. “In my experience, people who put off finishing touches don’t do them at all. Bells and whistles make a good store a premier store.”

Holding Up Under the Strain

Remodeling projects can fray nerves, even under the best circumstances. In October, Mark and Caroline were thrilled to see their plans begin to take shape. They were equally relieved to see their sales hold steady.

“It’s going pretty smoothly,” Caroline said. “For me, the construction is less stressful than the planning. Now, something is happening every day.”

According to Mike, that’s how it’s supposed to work. As he likes to say, “The greater the plan, the smoother the project.”

“I had anxiety attacks about the numbers plummeting,” Caroline said. “But our numbers have stayed stable compared with last year. Only three days were down. We’re pleased with that; it shows the project hasn’t disrupted business too much.” 

That’s not to say the couple hasn’t had tense moments. 

We haven’t killed each other yet,” Mark laughed. “But tension over the project does make us argue about petty things that don’t have anything to do with it. For example, the other night we were watching TV, and Caroline got up to get a snack. I got mad because she didn’t ask me if I wanted a snack, too.” 

Despite the occasional dustup, however, Mark is getting a little more sleep than he was last month!

Now that construction is underway, how will the contractors’ budget estimates hold up? Will Mark and Caroline encounter more surprises as they turn their attention to holiday sales? How will focal areas devoted to livestock turn out? 
Next month, we’ll take a closer look at the fish room. In our February 2000 issue, we’ll see how they created a rain forest in the middle of their store. PA

Karen Long MacLeod is editor in chief of PET AGE.