As a vendor this thread is illuminating and lots of good feedback to take into consideration. An opinion from "the other side" is that you do have to make good money on certain items. Everybody wants things cheap cheap cheap but corals are actually kind of expensive. Whether direct importing or buying from USA sources there is always a cost. The indo/malay stuff is going to be the cheapest but also tends to be less hardy (if we are talking about SPS/torches etc). Direct importation is fraught with issues and requires a large capital investment (the indo/malay/vietnam guys don't ask for too much, but if you're placing say a 7000 dollar order in vietnam it's going to still have a 5-6k shipping charge).
That said, lots of things can go wrong that lead to losses. The vendors themselves (like us) have to deal with losses just like hobbiests deal with losses. Aquaculture facilities are expensive, and they have a high up-front cost if you are trying to do things right (not just fragging out of a tank in your basement). That money has to be earned back over time and the best way to do that is on some highly profitable items that are sought after that you can grow/maintain.
Another thing to consider is "Free shipping" and "29.99" shipping (we offer both) but lets be honest here I can't ship live coral to any of you for less than $50.00. Fedex is going to charge me $32-40 even if the package is small and you are close by. Then I have another $7-12 dollars in shipping materials (heat pack, styrofoam coolers etc). So when I offer you 29.99 shipping and you want a $20.00 coral frag... well you can see really quick how that math doesn't really add up. Business be out of business fast, or no employees, or never leave the basement, right?
If I got a 150-200 dollar cost into a medium sized acro colony you have to understand that I might lose that money.Not every colony is going to make it. I might ship you a frag and it might die in transit, or within the 48-hour guarantee window and then I have just lost $50 shipping it to you + the cost of the frag that I now have to replace. This happens pretty often as vendors we do our best to mitigate HOW OFTEN but when you are a reputable seller (and not a basement dweller) then you have to be responsive to these issues and give people a fair shake. You can't be like 'oh well sorry it died on you in 48 hours guess you're SOL'. No you have to refund/credit/replace/reship etc.
Anyways, this is all very high stakes, a $400 shipment could get delayed and lost completely (can and does happen to no fault of anyone but FedEx or UPS).
At the end of the day, a reputable business that seeks to grow (Expand facility, expand operations,have employees, make profit) has no choice but to make money on hot items when they can. There isn't anything "Wrong" with that at the end of the day it's what the market will bare that dictates the price.
That said, there is a lot of feedback here to take into consideration and I can't speak for all coral vendors out there but we will definitely try to improve what we do based on some of this feedback.