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(borrowed off another site, very informative)

Why do Pugs cost so much

Well lets look at the logically here, one litter a year for a maximum of 4 litters....
Breeding Pugs is not easy or cheap and no breeder will say they have done this for years with no problem. Infertile males and non-refundable stud fees, bitches who just don't take, fading puppies, complications, early or late deliveries, middle of the night runs for emergency c-section, 24 hour care. It is a common occurrence that one or more of the litter may need 24 hour care for the first few weeks of their life.

One glance at a litter of healthy puppies is enough to make any owner of a pure bred dog consider breeding their own. After all, it looks like so much fun, and you might even make a little bit of extra money. However, before rushing into breeding there are some very specific things you need to consider. The main on being cost. Breeding, whelping and raising puppies is exorbitantly expensive. Unlike many other breeds, Pugs do not have huge litters and very rarely need no intervention.
The average litter is between 1-5.

Costs regardless of size of litter:
Stud fee $500+
Cost of scans/ultrasounds $250+
Whelping Boxes $100+
Possible cost of a cesarean $750+ in working hours and $2500+ for out of hours emergency cesarean (90% of litters are out of hours)
(Not all Pugs need cesareans, but you do not know if this is needed until the last minute, so worth including)
Advertise on other sites $70
Puppy pen $200+
Heating equipment $40+
Extra laundry, electricity, etc $100+
Vet checkup for mother during last week $50+
Whelping supplies (milk replacer, whelping pads, alcohol wipes, disinfectant, etc) $100+

Costs for a litter of 5:
Puppy vaccinations/check-ups before they go to their new home $150+
Registering puppies with the AKC $40+
Puppy wormings $25+
Puppy feeding for 9 weeks $200+
Blankets $30+
Puppy Training Pads $100+
Feeding bowls and equipment $40+
Toys $50+
Puppy pack when puppies leave (homemade blankets, folders, registration documents, leaflets, guidance, food, treats, toys) $400+

Based on a litter of 5:

Cost Total: $4945

Based on a litter of 5 at $1000 each would leave you with a grand total of around $55 after bills. Not taking into account if there are any complications or if it is a smaller litter. Not as much as you would think hey? Also bearing in mind you will have had to be almost housebound for 9+ weeks. Breeding dogs correctly is a labor of love not a money making business.

Not to mention misc. expenses:

State license fee per year $250

5% sales tax per puppy