Coral farming Buisnesses

[Phelipe's Ocean]

Just out of curiosity is there anyone in this industry where coral farming or selling frags is there full time job? Are companies like Reef Raft and Jason Fox just for fun or is that their full time job as well. Everywhere I read it seems like people tell anyone with the idea to find something else to do because its not profitable but I can’t see how not when high end coral frags go upwards of $200 and capping off around the 1k mark usually. What are your thoughts? Thanks in advance!

 

[Crabs McJones]

Just out of curiosity is there anyone in this industry where coral farming or selling frags is there full time job? Are companies like Reef Raft and Jason Fox just for fun or is that their full time job as well. Everywhere I read it seems like people tell anyone with the idea to find something else to do because its not profitable but I can’t see how not when high end coral frags go upwards of $200 and capping off around the 1k mark usually. What are your thoughts? Thanks in advance!

While it's not his full time job, @BoomCorals would be a great guy to ask

 

[Sailingeric]

I would not quit my day job but start small and build from there and see what happens.

 

[Phelipe's Ocean]

I would not quit my day job but start small and build from there and see what happens.

Im not interested in starting anything right now I was really just curious if its possible to sell coral as a full time job.

 

[Crabs McJones]

Im not interested in starting anything right now I was really just curious if its possible to sell coral as a full time job.

You would have to have a large enough facility to do it and make a living off of it. The initial startup cost would be substantial.

 

[BoomCorals]

Just out of curiosity is there anyone in this industry where coral farming or selling frags is there full time job? Are companies like Reef Raft and Jason Fox just for fun or is that their full time job as well. Everywhere I read it seems like people tell anyone with the idea to find something else to do because its not profitable but I can’t see how not when high end coral frags go upwards of $200 and capping off around the 1k mark usually. What are your thoughts? Thanks in advance!

It takes a lot of money to go into this as a business. And no it will not make you rich. And while you may see high end frags going for a lot of money, I don’t think you realize the cost it takes to get to the point where you find, establish, grow, and name unique pieces that will fetch a high price. And the high price only lasts so long before the market drives them down. Plus you have to buy more to have more inventory, etc. There are a lot of costs you aren’t thinking of.

 

[BoomCorals]

Im not interested in starting anything right now I was really just curious if its possible to sell coral as a full time job.

As crabs said it would take a lot of time and money to get to that point.

 

[Antics]

You can definitely make money doing it, but it's not enough to simply live off at the hobby grade level. Meaning you can't just frag from your DT and expect to pay all your bills regardless of how high end your personal collection.

I'm not in the business obviously but I'd assume the coral frag business is largely driven by the cheap pieces moreso than $200+ dream frags.

Add in all the overhead and risk with the work and then actually trying to build a reputation and a business on top of it? It's a lot of work for one person and not many people are built to successfully switch 5+ hats to make sure their business will thrive. I think it's easy to guess why there aren't a whole lot of small business that deal soley in fragging that last more than a year or two.

 

[Phelipe's Ocean]

It takes a lot of money to go into this as a business. And no it will not make you rich. And while you may see high end frags going for a lot of money, I don’t think you realize the cost it takes to get to the point where you find, establish, grow, and name unique pieces that will fetch a high price. And the high price only lasts so long before the market drives them down. Plus you have to buy more to have more inventory, etc. There are a lot of costs you aren’t thinking of.

Yeah that makes sense I don’t know much about the farming industry I just wanted to know a little more in regards to this. Thankyou for elaborating. When you say you have to buy more to have more inventory. In this scenario a huge facility would be neccecary but lets say every week you get an average of ten wild colonies in and color them up over a year or so and frag about 20 peices from each mother colony. Theoretically speaking after the first year couldnt you have a steady supply of new strains every week up for sale? out of every ten or so brownouts i purchase only 1 or 2 turn out amazing after the one year mark but even then couldnt someone make profits? I know theres a ton of costs im not looking into.

 

[Land Shark]

Yeah that makes sense I don’t know much about the farming industry I just wanted to know a little more in regards to this. Thankyou for elaborating. When you say you have to buy more to have more inventory. In this scenario a huge facility would be neccecary but lets say every week you get an average of ten wild colonies in and color them up over a year or so and frag about 20 peices from each mother colony. Theoretically speaking after the first year couldnt you have a steady supply of new strains every week up for sale? out of every ten or so brownouts i purchase only 1 or 2 turn out amazing after the one year mark but even then couldnt someone make profits? I know theres a ton of costs im not looking into.

One local Florida coral grower recently lost several thousand dollars in corals due to a minor plumbing mishap that happened during the night. In one night he ending up with a 5 gallon bucket filled to the brim with dead coral frags. Yes, a years worth of profit can disappear overnight. Coral growers can make a decent living, and they deserve to, but its a lot of time and work and a bit of good luck avoiding the mistakes everyone makes. Its also fixed costs, marketing, loans, frag swaps on weekends, paying for those frag booths just to be able to sell frags, etc.

 

[BoomCorals]

Yeah that makes sense I don’t know much about the farming industry I just wanted to know a little more in regards to this. Thankyou for elaborating. When you say you have to buy more to have more inventory. In this scenario a huge facility would be neccecary but lets say every week you get an average of ten wild colonies in and color them up over a year or so and frag about 20 peices from each mother colony. Theoretically speaking after the first year couldnt you have a steady supply of new strains every week up for sale? out of every ten or so brownouts i purchase only 1 or 2 turn out amazing after the one year mark but even then couldnt someone make profits? I know theres a ton of costs im not looking into.

There is a lot more you are missing. I know it sounds simple but it really isn't. There is a difference between being a profitable business vs a hobbyist who just turns profits to cover their aquarium hobby costs. I guess the question is which path are you trying to ask about? I'll come right out and say it, I had over 1,000 orders my first year in business, but I was not profitable. The ongoing and up front costs are quite large when you are making a serious go at making a business.

 

[Phelipe's Ocean]

There is a lot more you are missing. I know it sounds simple but it really isn't. There is a difference between being a profitable business vs a hobbyist who just turns profits to cover their aquarium hobby costs. I guess the question is which path are you trying to ask about? I'll come right out and say it, I had over 1,000 orders my first year in business, but I was not profitable. The ongoing and up front costs are quite large when you are making a serious go at making a business.

That comes out to Almost 20 orders a week thats amazing! Thankyou for explaining this to me more. Would you say it covered some of the costs of the hobby?

 

[BoomCorals]

That comes out to Almost 20 orders a week thats amazing! Thankyou for explaining this to me more. Would you say it covered some of the costs of the hobby?

I cannot speak to that as this isn’t a hobbyist venture to support a hobbyist tank.

 

[ZoWhat]

Me opening a coral biz and competing with LiveAquaria and the like

Would be like...

Me opening a 800 square ft Thrift store next door to a Super Walmart

 

[Troy V]

For me. I've found the easiest way to make money in the hobby is by developing a good relationship with your LFS. Then start selling frags of the staple fast growing corals like Xenia, metallic gsp, mushrooms, zoa's, and leathers just to name a few. Only sell to the LFS and agree to split the profit with them. If you do this I would highly recommend not selling anywhere else. That way you would show loyalty to the stores and become a small wholesaler. Once you are successful at this, start branching out into other coral types. With my last system I was easily making $600+ a month. Some months were over $1k. Definitely not enough to quit my day job, but enough to more than pay for the hobby. I plan on doing this on a larger scale in my retirement. Good luck!

 

[Travv]

For me. I've found the easiest way to make money in the hobby is by developing a good relationship with your LFS. Then start selling frags of the staple fast growing corals like Xenia, metallic gsp, mushrooms, zoa's, and leathers just to name a few. Only sell to the LFS and agree to split the profit with them. If you do this I would highly recommend not selling anywhere else. That way you would show loyalty to the stores and become a small wholesaler. Once you are successful at this, start branching out into other coral types. With my last system I was easily making $600+ a month. Some months were over $1k. Definitely not enough to quit my day job, but enough to more than pay for the hobby. I plan on doing this on a larger scale in my retirement. Good luck!

That's very cool your lfs was buying from you. How easy was it to make a mini partnership with them?

 

[Phelipe's Ocean]

That's very cool your lfs was buying from you. How easy was it to make a mini partnership with them?

Yeah thats what I was thinking is as well. The LFS in the bay area are very competitive and if i were to sell to them it would be hard to beat wholesale prices especially since they get in wild caught.

 

[Troy V]

That's very cool your lfs was buying from you. How easy was it to make a mini partnership with them?

It shouldn't be to hard at all. But it will take time and require some GENTLE persuasion. I work in an industry where pushy salemen are constantly trying to get me to buy their product. Don't be one of those people. Just offer to help them where ever you can, and never bad mouth other shops and customers. Plant the seed.. Tell and show them the value in purchasing locally grown coral, and tell them you will cover the loss if the coral should die. We as hobbyists should encourage purchasing locally propagated coral.

 

[Dr. Dendrostein]

Yeah that makes sense I don’t know much about the farming industry I just wanted to know a little more in regards to this. Thankyou for elaborating. When you say you have to buy more to have more inventory. In this scenario a huge facility would be neccecary but lets say every week you get an average of ten wild colonies in and color them up over a year or so and frag about 20 peices from each mother colony. Theoretically speaking after the first year couldnt you have a steady supply of new strains every week up for sale? out of every ten or so brownouts i purchase only 1 or 2 turn out amazing after the one year mark but even then couldnt someone make profits? I know theres a ton of costs im not looking into.

Keeping in touch with a fellow in California that for years has been successful selling corals online. He mentioned to diversify in your products. Some months alot of corals, others dry goods, then others fishes. He's been able to set up his business as drop ship with wholesalers. Also website takes a lot of your time. Of course if you can afford to outsource, would help.

 

[Servillius]

I rarely cut anything that isn’t getting overgrown. That said, I’ve gotten to the point where I cut enough because I have to to trade to my LFS for a portion of my consumables. I have a great relationship with a great LFS (FJW in Houston, amazing store with a real affection for his livestock and the hobby). Makes a huge difference.

I’ve considered doing a bit of aquaculture, but I think it would have to be a labor of love. I expect there is money in it if you get good enough, but I also expect there are a lot of losses and disappointments that come first. That seems to be consistent with what folks in the business have to say on the subject.