Are there rules or laws about posting wholesale prices?

[rocko918]

I saw a post on another forum from someone posting wholesale prices for fish because they are going to order and wanted to see if anyone else wanted in. I know this person is not a store, not sure how they got an account but are there laws about doing this?

It under cuts all the lfs's and online vendors. Just wondering if anyone knew if it was legal?

 

[Troylee]

I don't think there can be any law against it, but out of common courtesy I would say those things shouldn't be public......the lfs. Out here in vegas aren't afraid to show the prices they paid and I'm sure there is a bunch that do if you know the owner well......pretty much they will show me they paid x amount of dollars for something to justify the price if someone is complaining that online they can get it cheaper....I honestly don't care and when I want something I'm the type of person who has to have it now!!!!! So there gonna get my buisness regardless lol.....

 

[Makbarracuda]

There are some laws regaurding loyalty to the place you work. However if he somehow got an account then that wouldn't apply.

 

[rocko918]

this person does not work for a lfs. he has gotten the list on his own.

 

[EliteReefs]

considering that a google search will yield several wholesale list without to much effort i dont see a problem with it. its not like its a big secret. stores make money of corals. big shocker lol.

 

[rocko918]

considering that a google search will yield several wholesale list without to much effort i dont see a problem with it. its not like its a big secret. stores make money of corals. big shocker lol.

ah did not think of that. very cool.


But they are not just trying to show the prices, they are putting together an order for a group.

 

[JNye]

considering that a google search will yield several wholesale list without to much effort i dont see a problem with it. its not like its a big secret. stores make money of corals. big shocker lol.

true, but the wholesalers should not be doing this.

 

[revhtree Verified Admin]

Yea this would be bad on the wholesalers end.

A. The wholesaler is selling underneath the LFS's and online vendors.
B. The individual has told the wholesaler that he was a store and provided some non legit info.

 

[EliteReefs]

true, but the wholesalers should not be doing this.

this part is very true. if it is the wholesaler then hes not breaking laws but will lose most of his reseller business because of it. I have seen many wholesalers turn public so it would not be a big surprise.

many dont becasue its alot easier to sell to a business then an individual buyer. the rules are alot different.

 

[Mitsuko]

I'm currently helping to research for a LFS and I can tell you that its hard to get an account with a GOOD distributor. You need a resale license or business license depending on the state you are in. Most distributors will also want a tax ID and some even want a yellowpage listing just to avoid this sort of topic. Most wholesalers will keep track of their accounts to avoid selling to close to each LFS. Yes, its doable...will the IRS be knocking on your door if you don't register a tax ID and establish a business...most likely.

 

[JNye]

this part is very true. if it is the wholesaler then hes not breaking laws but will lose most of his reseller business because of it. I have seen many wholesalers turn public so it would not be a big surprise.

many dont becasue its alot easier to sell to a business then an individual buyer. the rules are alot different.

must be a small time(wholesaler) though right? prolly desperate for some sales.

 

[EliteReefs]

must be a small time(wholesaler) though right? prolly desperate for some sales.

i would say thats true. the big boys all do like said above, you have to jump through hoops for some of these guys. and it takes quite some time to form a releationship with them and get a good contact that will hand pick for you.

 

[Sikryd]

Yea this would be bad on the wholesalers end.

A. The wholesaler is selling underneath the LFS's and online vendors.
B. The individual has told the wholesaler that he was a store and provided some non legit info.

That isn't necessarily true. I know of guys that order wholesale and its all good. The wholesaler doesn't care who you are or what you are buying them for, so there is no reason to give them a song and dance. All you need is a retail license.

Its all business. There is a Seafood store ordering in live fish now here in the local area. I haven't been there yet, but I think he is into reefing himself.

It can be bad and good depending on how you look at it.

I still pick up fish from my LFS as long as the mark up isn't insane. I'd like to be able to check out fish in person even if I am not buying, for years to come. The only way is to support the legitimate LFS that sell their fish and coral for decent prices so they will be around in the long run.

On another note, I'd like to see the stores that sell fish and corals for outrageous prices, have a little more competition to get them to either lower their prices or out of the business for good.

 

[gooch Verified Sponsor]

Just wait until this guy gets his group order together. Places it and gets about half what he orders and is substituted the rest or sent more than he ordered. With wholesale it is very hard to get exactly what you ordered when it comes to livestock. Most have ten page livestock lists but do not have ten pages of true stock. Yeah you can get 50 green chromis but try ordering ten mystery wrasse and see how many you get. Maybe it is good for a few of the usual wholesale orders to go direct to customers. Then the hobbyists will truely understand how the wholesale end works. Not bashing the system at all. It is what it is. If the wholesaler is guaranteeing no substitutions let everyone know who it is. I am sure every retail store in the country would order from them.

It is true more an more wholesalers are turning to retail sales. Cutting out the middleman. Then again more retail stores are getting direct shipments than ever before....cutting out the middleman. It almost seems acceptable to most and the playing field will level out. Is it unethical? To some yes. Definately not traditional. I can't tell you where I stand on this issue. I am both a hobbyist and a business.

I am guessing the wholesale prices for this have been inflated a bit. There was a diver in Hawaii selling flame wrasse harems to local clubs about a year ago. Far below retail but I would guess just a bit more than wholesale.

 

[Gonzo]

The LFS closest to my house has a mark up of 300%-500% , and the next closest in another city wants $85 for a med yellow tang

it's crazy those are the only LFS in those 2 towns, besides petco

They def cant compete with my coral selection LOL

 

[stunreefer Verified Sponsor]

Just wait until this guy gets his group order together. Places it and gets about half what he orders and is substituted the rest or sent more than he ordered. With wholesale it is very hard to get exactly what you ordered when it comes to livestock. Most have ten page livestock lists but do not have ten pages of true stock. Yeah you can get 50 green chromis but try ordering ten mystery wrasse and see how many you get. Maybe it is good for a few of the usual wholesale orders to go direct to customers. Then the hobbyists will truely understand how the wholesale end works. Not bashing the system at all. It is what it is. If the wholesaler is guaranteeing no substitutions let everyone know who it is. I am sure every retail store in the country would order from them.

Big time + 1

This is an issue waiting to happen... seen it a hundred times!

 

[JR's Reef]

I think the biggest issue would be posting on a local forum. They have paying sponors that are trying to make a living off selling. We are lucky enough that they let us sell are stuff that we grow in are own tanks because they dont have to as we cut vendors prices down. But when you have somebody ordering from a wholesaler that really hurts paying vendors. just my 0.02

 

[EliteReefs]

Just wait until this guy gets his group order together. Places it and gets about half what he orders and is substituted the rest or sent more than he ordered. With wholesale it is very hard to get exactly what you ordered when it comes to livestock. Most have ten page livestock lists but do not have ten pages of true stock. Yeah you can get 50 green chromis but try ordering ten mystery wrasse and see how many you get. Maybe it is good for a few of the usual wholesale orders to go direct to customers. Then the hobbyists will truely understand how the wholesale end works. Not bashing the system at all. It is what it is. If the wholesaler is guaranteeing no substitutions let everyone know who it is. I am sure every retail store in the country would order from them.

this is VERY true. same goes for the coral. just becasue it say Super colroed zoas DOES NOT mean that what you get. tehre idea os color will not be the same idea as yours. and most of the time when the do substitute things there is little you can do about it.

 

[wishntoboutside]

i recall a local doing a group buy a few years back on fish.. a complete disaster. first off there were the subsitutions. then there was the doa, then there was where do i put all of the fish until some pick up and off course some picked up late. bad bad news. if ones lfs prices are right i have no problem supporting them.

 

[JR's Reef]

if ones lfs prices are right i have no problem supporting them.

Thats the problem. I dont mind either but there are fewer lfs than ever right now and the ones are still here the prices are very high. I can pay shipping and still come out about the same but I get a healther fish/coral. I have to order 90% online and always try to support vendors from here if they have what Im looking for