Do you want to know how much money dog daycare make yearly? If YES, here are 7 factors that determine the income & profit margin of dog boarding business owners. Dogs are rated among the top three most popular pets owned by individuals and families. In the United States, people love to have a furry companion by their side as they are friendly and can co-habit perfectly with humans.

However, owning a dog is a daunting task as they require an owner’s utmost attention. A dog cannot be left alone at home and this poses a challenge for working dog owners. Hence, many animal lovers refrain from having a dog even if they want to. Owing to this fact and demand, services like dog day care and dog boarding are emerging and becoming necessary in modern America.

According to reports, the pet care industry was valued at nearly billion last year, making it one of the hottest markets for entrepreneurs to enter. Reports also have it that over $6 billion of that total number was spent on pet services like day care, boarding, and grooming.

This demand is being fueled by two specific sets of people: millennials and baby boomers. Both have become avid pet owners and seem very dedicated to providing the best available care and services to their dogs.

How Much Money Do Dog Daycare Owners Make?

In the United States, dog day care costs can range anywhere from $29 to $46 for a full day. If we are being very conservative in the number of dogs a day care can service each day, assuming 30 dogs show up on any given day, this day care can generate about $870 on the low end and $1,380 on the high end each day.

This also translates to a minimum of about $6K a week if the location is open seven days a week, putting the dog day care business at more than $316K a year in day care alone. Note that these numbers don’t account for overnight stays or any additional services the day care may offer.

Nonetheless, before any savvy entrepreneur invests in any business venture, it’s expected that they ask questions about the profitability of the business. Howbeit, the good news is that dog daycares can be an extremely lucrative opportunity.

There’s no exact figure for how much a dog day care can make, because there are so many factors that come into play. These factors include:

7 Factors That Determine How Much Income Dog Daycare Centers Make

1. Location

This is the most important factor that affects the amount of profit a dog day care business can make. People are only willing to drive about 5 miles to take their dogs to daycare. So a Dog Daycare business located within a populated area will have more customers and likewise generate more revenue.

Although a location along the main highway will cost more to rent, but it will bring in three times as many customers. In addition, the location in which the dog day care is located dictates what the business can charge for its services. The popularity of the location or the density of pet owners within the area is directly related to the number of dogs the business can have in-house each day.

2. Services and Products

Services can range from daily dog sitting to spa treatments. Some businesses in this business also offer vet care, grooming, emergency or paying to have a “drop-in” anytime perk. Dog day cares across the nation offer many different kinds of options. Some have pools, parks, trainers, calming centers, socialization, and special diets.

Some clientele may request a service that no one else offers. Some dog day care businesses in the United States also sell dog related products. These products may include, nutritious food, specialty toys, books and magazines, clothes, health supplies, grooming tools, dog beds, and carriers, car restraints, and other novel items.

3. Expenses

Expenses or what a business must pay for the goods and services they offer clients will rise over time and this will tell how much a business flourishes. Costs include more than meets the eye. Taxes, employee benefits, rent, utilities, building maintenance, insurance, and supplies are often forgotten when cost of business is being analyzed. Technology up-grades will be an expense too in this age.

Today’s customer expects to be able to see their pets on a smart phone from real-time cameras the business installs. They should be able to read website, find fees, recommendations for vet and training services, current health information and products sold by the business all by clicking on their mobile devices.

Being able to provide customers with information about their pet’s weight, temperature, or temperament tells the customer that a day care business indeed cares about their pet. Having the tools to meet these small conveniences will mean keeping customers happy and coming back. An expense that increases the health and safety of pets will always increase a dog day care business profit.

4. Investment

The amount of money invested when starting this business will indicate the scale of the business, and this will ultimately dictate the profit generated. The lower this number, the lower the profit when compared to a bigger one, although all depends on how well the business was managed.

5. Franchising vs. Independent

Starting a dog day care franchise typically offers a much better-earning potential than owning an independent business, because the required investment is usually far lower, and the entrepreneur has the benefit of a recognized brand name, and also access to corporate resources and support.

Even the exact franchise can majorly impact earnings. Franchising is nothing new. Fast food joints and grocery stores have been doing it for decades. But recently, more industries are catching on to the convenience and security of franchising, specifically the booming pet care industry.

Spending in the pet care industry only continues to rise and many see it as a recession-proof market where they can find solid footing in franchising – and they’re right. While franchising in the pet care industry isn’t easy, it is rewarding more than starting from the scratch.

6. Facility

Dogs are active animals and love to play around. The most emerging trend in the dog-care industry is a cage-free facility. Although having an outside area is not a requirement to operate a Dog Day care Facility successfully, but it is nice to have. It gives the dogs a break from being inside and gives workers a chance to cleanup the inside area while they are outside playing.

It also adds another dimension to the business that they can sell. One of the most asked questions by potential clients entering the facility and taking a tour is “Where do the dogs go to the bathroom?” So it is useful to have, both as a selling point and as an additional space for the dogs to utilize.

7. Management Style

The way an owner manages the business, including marketing, customer service, and employee training, will affect the profitability of the business. Most successful businesses in this industry have owners who spend much of their time looking after dogs. This includes letting them out as needed, feeding them, exercising them and playing with them. It also involves cleaning up after them as necessary.

When not spending time directly interacting with dogs, these owners often take care of administrative items and repair any damaged kennels or fences. Owners who don’t have a lot of experience around dogs will definitely not succeed in this business since it will affect the business revenue stream.

Successful business owners in the industry have a relationship with a local veterinarian who provides emergency vet services for dogs, in case a dog has medical issues while boarding. To calculate estimated dog day care profitability, you’ll need to average the number of dogs being serviced each day multiplied by the cost of a full day of day care for each then subtract operating costs.

Estimated Profit Margin for a Dog Day Care Business

First and foremost, the profit margin of any business is the gross profit as a percentage of total sales, where gross profit is total sales minus the cost of goods sold. Note that the higher the percentage, the more successful the business is at selling its products or offering its services.

Sometimes, you also tend to hear of net profit margin. This is simply the net profit as a percentage of total sales, where usually the net profit accounts for selling, general and administrative expenses in addition to cost of goods sold. Generally, net profit margin does not take taxes or extraordinary expenses into account.

According to reports, the typical profit margin of a dog day care centre is quite low. The margin frequently exceeds 10% and that is the more reason why businesses in this field choose to offer additional services like dog spa and dog boutique to be able to increase the margin and make substantial profits.

Joy Nwokoro