Darcie Krueger sounds relaxed and upbeat when she answers the phone at SitStay.com, an online retailer of healthy dog treats and other dog paraphernalia based in Lincoln, Neb. “We offer dog lovers products they often can’t find other places,” she says, while cooing to Tilli, the 55-pound Belgian Shepherd sitting on her lap.Krueger, who in 1997 started SitStay with her husband, Kent, with money from their 401(k) account, has good reason to be upbeat. While larger pet supply e-tailers?most notably Pets.com?have crashed and burned, the Kruegers have established themselves in a high-margin niche, earning profits of $111,000 on $880,000 in sales last year. “Our online store has always paid for itself,” she says. Another, smaller site for pet lovers, Waggin’ Tails Pet Essentials (Waggintails.com), based in Lee, Mass., has also been able to turn a profit on less than $5 million in sales by offering high-end dog food and hard-to-find treats. The trick? Unlike the big sites that tried to offer everything to animal owners, SitStay.com and Waggintails.com specialize in fewer items with margins that exceed 30 percent. By contrast, Pets.com shipped lower margin goods, such as 20-pound bags of run-of-the-mill dog food available in every physical pet store. SitStay has made a decision to stay small. The partners have turned down several offers from VC firms for fear they would lose too much control. “We saw that it didn’t work with the larger sites,” says Krueger. “It’s always been surprising to us how some people can take so much money and dump it into the wrong places.” Related content opinion The Importance of Identity Management in Security By Charles Pelton Nov 28, 2023 5 mins Cybercrime Artificial Intelligence Data Management brandpost Sponsored by Rocket Software Why data virtualization is critical for business success Data is your most valuable resource—but only if you can access it fast enough to address present challenges. Data virtualization is the key. By Milan Shetti, CEO of Rocket Software Nov 28, 2023 4 mins Digital Transformation brandpost Sponsored by Rocket Software The hybrid approach: Get the best of both mainframe and cloud Cloud computing and modernization often go hand in hand, but that doesn’t mean the mainframe should be left behind. A hybrid approach offers the most value, enabling businesses to get the best of both worlds. By Milan Shetti, CEO Rocket Software Nov 28, 2023 4 mins Digital Transformation brandpost Sponsored by Rimini Street Dear Oracle Cloud…I need my own space Access results from a recent Rimini Street survey about why enterprises are rethinking their Oracle relationship and cloud strategy. By Tanya O'Hara Nov 28, 2023 5 mins Cloud Computing Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe