Ideal Frag Tank Build

[Bear Claw]

Im looking to start a little online business/selling to my LFS/ Selling on R2R selling corals. I want to build a frag tank and right now Im in the design and budgeting process. Im looking to set up a system that isn't too big or too small and one that I will make a return on investment within a year or two of starting to sell the corals in it. This might be a long shot, but its the goal. Any recommendations, comments, or info on frag tanks or my "plan" I'd love to hear. Thank you!

 

[Uncle99]

You need to have a ton of corals to make it viable.
One of the problems with on-line shipping is losses.
Frags ship better than colonies, but not all make it alive.
So we are looking at min. 10, 4’x8’ tanks full of inventory.
Unless your just doing it for fun to grow and sell a few frags here and there, then 1-2 2’x4’ tanks, Zoo-Med makes these which sell for about $250, add a weir box and sump.
But I think you’ll find that any money made may just support the maintenance cost.
Like anything, from a business perspective, you have to go big to generate good ROI’s.
Today I sell frags to the LFS here and there. For example, It takes me 6-8 months to grow a 2” digi frag, which I get $10, and LFS sells for $30. It cost me a lot more than $10 in standard costs to grow it, but it’s fun, and covers some of the costs of my DT.
So if your going to start a business, you’ll need both capital investors as well as coral farming knowledge, to get up and running.
Lots of work.

 

[Bear Claw]

You need to have a ton of corals to make it viable.
One of the problems with on-line shipping is losses.
Frags ship better than colonies, but not all make it alive.
So we are looking at min. 10, 4’x8’ tanks full of inventory.
Unless your just doing it for fun to grow and sell a few frags here and there, then 1-2 2’x4’ tanks, Zoo-Med makes these which sell for about $250, add a weir box and sump.
But I think you’ll find that any money made may just support the maintenance cost.
Like anything, from a business perspective, you have to go big to generate good ROI’s.
Today I sell frags to the LFS here and there. For example, It takes me 6-8 months to grow a 2” digi frag, which I get $10, and LFS sells for $30. It cost me a lot more than $10 in standard costs to grow it, but it’s fun, and covers some of the costs of my DT.
So if your going to start a business, you’ll need both capital investors as well as coral farming knowledge, to get up and running.
Lots of work.

Yea I kinda thought that would be the case :/
Do you think making a smaller one would end up generating a good ROI? Or would it be best to just not do any of it and just enjoy the hobby? I just thought it would be a good and fun new experience. I can always just frag my display tank colonies and sell those.

 

[Uncle99]

Yea I kinda thought that would be the case :/
Do you think making a smaller one would end up generating a good ROI? Or would it be best to just not do any of it and just enjoy the hobby? I just thought it would be a good and fun new experience. I can always just frag my display tank colonies and sell those.

From the smaller side, just do it for “fun” like an extension of the hobby, sell some frags, recover some hobby costs.
All coral farmers start somewhere, it’s risky to go all in quickly.
Over time, see where it goes, does 1 frag tank go to 2, to 3.
Each addition scales up the business and creates the savy necessary to go large scale with less risk.
Big difference between fun and business.

Fast growing sticks of great colour will give the best returns and 1” frags ship quite well.

So looms, Digis, birdsnest, slimers, and Millie’s, are a great start IMM. Easy maintenance, easy frag, fast growing.

Things like Xenia, GSP, are not great entries as you might get $5 bucks a piece.

You’ll need to grow a master piece for cuttings, so it’s a clip, glue and then master piece recovery.

LSP are in general, slow to grow and are difficult to cut and live, so these are just imported and resold..