Some dog breeds are more popular than others. Dogs that are popular because of a movie, TV show or being photographed in the handbag of a celebrity, become more sought after and therefore expensive. Whether a puppy is show quality or pet quality is another factor in how much puppies cost. The costs a customer pays for a puppy and other factors influence how much money puppy breeders make.
Professional Breeder
People who are professional breeders sell to the general public, to other breeders and to those that want to expand their show dog "portfolio." The objective of a professional breeder is to improve and protect the breed as much as earn a profit. Dogs go into heat from one to four times a year, but that doesn't mean the professional breeder breeds each female one to four times each year. Pregnancy takes its toll on the female. Ethical breeders give the females time to recuperate. The puppies stay with the mother and litter mates at least eight weeks and sometimes up to 12 weeks. Puppies from professional breeders cost more than from hobby breeders but less than from a pet store or puppy broker. That's because there is no middleman -- the broker or distributor -- and no store to maintain. If each female is bred twice a year, has six puppies and each puppy sells for $750, the one female generates $4,500 per year.
Puppy Mill
A discussion about puppy breeders wouldn't be complete without including puppy mills. These breeders only have a profit motive in mind. The care of the mother dogs is neglectful and borders on cruelty. The cages may be stacked to where the feces from the upper cages falls on the dogs and puppies in the lower cages. The cages are barely big enough for the mother to stand up and turn around. Puppy mills sell to pet shops or a broker or distributor. A Labrador puppy in a pet shop may be priced as much as $1,500, according to the Animal Kingdom pet shop in Paradise Valley Mall, Arizona. That means the pet shop paid $750 for the puppy. Retail prices are based on doubling the cost of the inventory, according to Ronald L. Bond in his article, "Finding the Right Price for Your Retail Products." While markup rates vary, a 50 percent rate is not unreasonable. The distributor most likely kept $375 and paid the puppy mill $375. Dog pregnancies take 58 to 63 days. If the mother has two weeks off between pregnancies, nurses the puppies for four to five weeks and has an average litter of six puppies, that one mother produces three to four litters per year or between 18 to 24 puppies a year. This translates to revenues of about from $6,750 to $9,000 per female. If the puppy mill sells directly to the pet shop, the figure is substantially higher.
Hobby Breeders
Occasionally, the owners of a purebred dog will decide to breed their female once a year and offer the puppies for sale to the general public through the Internet or advertising in the newspaper. The puppies go for substantially less than in a pet shop. The pet shop has to mark up the dogs by 100 percent, in other words, double the price it pays to the distributor, to make a profit. The hobby breeder doesn't have those expenses. The money for hobby breeders is minimal, no more than several hundred dollars a pup. Gregg and Deborah Tonkin, championship breeders of Championship Labradors say on their website that a puppy from a backyard breeder may cost as little as $150.
Expenses
Food and shelter are the main expenses for a puppy breeder. If the climate is mild, or if the owner is irresponsible, the dogs and puppies are kept outside in kennels. Food expense depends on the breed. Small breeds consume considerably less food than breeds 50 pounds and up. Professional breeders give their dogs immunizations and de-worming without having to go to the veterinarian. Responsible breeders are well-versed in dog health and care. Stud fees are an expense if the breeder wants to expand the gene pool outside his own male dogs.
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