Price Hikes

[Ryans Reef]

So first off, I've been keeping reef tanks since 2009-ish. So admittedly, I'm an old curmudgeon. That being said, besides keeping our pets happy and healthy, the best thing we can do for this hobby is help it grow so even more people can learn and improve on it. Not more than 3 years ago I remember Hanna Alkalinity Reagent being $9.00. It's now $15.00. I remember Ecotech Versas being $149.99, they're now $209.99. This hobby is inherently tough and expensive, and it should be. We're keeping tropical animals who live underwater in our living rooms. I understand COVID-19 happened and inflation, but eggs and milk haven't gone up 67% like Hanna Alkalinity Reagent, or 40% like Ecotech Versas. This hobby is difficult enough. Is it just me or are companies price gouging to the point of it being unsustainable?

 

[VintageReefer]

The exact magnetic flipper algae scraper I bought in 2015 has gone up 42%. It’s a magnet and plastic and 10yr (at least) old design.

 

[ryanjohn1]

Price hasn’t gone up. You money isn’t worth as much as it used too be.

 

[ryanjohn1]

My grandma bought a farm with 8 acres of land and two houses on it in 1980 for 25k and sold it last year for over 800k. What changed

 

[exnisstech]

My first new car was $2800 my last one $48000

 

[Ryans Reef]

My grandma bought a farm with 8 acres of land and two houses on it in 1980 for 25k and sold it last year for over 800k. What changed

I don't disagree. Obviously inflation plays a part (as do many other things). But so does the timeline. I just feel the price hikes we've been seeing in this hobby are constant and quick. And property value and Hanna Alkalinity Reagent value for a reef tank which is a very obscure hobby in the grand scheme of things aren't the same thing. But let's use that example. So in 43 years your grandma's property increased by 3200% or about 8.2% a year compounded annually to go from 25k to 800k. In 3 years that would be an increase of about 26.7%, or $6660 give or take. Hanna Alk Reagent, which has increased by 67% over 3 years, or 18.55% annually if compounded annually, will cost $13,552.19 in 43 years, or $24.99 by 2027.

 

[Clarkjw2002]

Hanna makes a lot more than reagents for reef tanks. We are a side shoot hobby business for them. They make all kinds of reagents for things like water quality testing that I am aware of. We use their products for field water testing in combat zones and water quality analysis testing in garrison.

What you don't capture above is regulatory/compliance costs. Many companies will eat small losses in some parts of their business to a point rather than raise customer costs if the increased production costs are seen as transitory. You never hear about this side of the equation because it doesn't fit a narrative.

Also, if you look at your example I'm pretty sure they never raised the price from when you started in the hobby until 2021 or so. At least I remember paying 8 or 9$ for alk reagent since I first started using the alk checker in 2012 or thereabouts. So you really need to estimate your yearly cost increase for alk reagent over 10 or more years, not 3.

 

[VintageReefer]

Ya’ll can argue about inflation but the fact is that most manufactured goods did not increase in price like this over an equal period of time, pre-covid . IE
2013-2017, flipper was same price.

Most items drop in price over time, as newer models come out, initial excitement of a new product dies down, competitors come out with similar products etc

Cars and property are incomparable to pouring plastic in a mold and slapping in a magnet. Or making a reagent.

Property increases because the amount of property is limited, car prices increase because the features increase, new RD is constantly done to improve hp, ride quality, tech, etc

Compare for example a new Toyota Camry from 2015 to 2023 in these pics, the price has gone up, but everything has been improved on, from function to design. And this is a price increase of less than 20% over 8 years

A mag float and a reagent is unchanged over this time

 

[MartinM]

I don't care about prices, but If starting in 2009 makes you a curmudgeon, what does having started in 1993 make me?

 

[gbroadbridge]

A mag float and a reagent is unchanged over this time

The reagent formulation has changed 3 times over that time.

 

[paragrouper]

The price is dictated by what the market will bear.

 

[VintageReefer]

The reagent formulation has changed 3 times over that time.

I stand corrected. I’m curious, do you remember if the price increased each time the reagent changed? Or did the price raise suddenly over the last 2 years ?

 

[Katrina71]

I understand the cost of doing business has increased. I definitely support paying employees a livable wage. I think we are sometimes our own worst enemy by being willing to pay ridiculously inflated prices.

 

[Reefering1]

Though not every job was meant to provide a livable wage.. McDonald's is a 1st job kind of place, not the end goal. I don't think a McDonald's cashier should be able to afford a house, car, support family. No, get a better job or do better at current. 15$hr minimum wage. You know what I've done for 15hr. Alot more skilled than collecting carts outside Walmart, I'll say that.. you ever notice the kind of cars uber drivers drive?

 

[fish farmer]

Hanna makes a lot more than reagents for reef tanks. We are a side shoot hobby business for them. They make all kinds of reagents for things like water quality testing that I am aware of. We use their products for field water testing in combat zones and water quality analysis testing in garrison.

What you don't capture above is regulatory/compliance costs. Many companies will eat small losses in some parts of their business to a point rather than raise customer costs if the increased production costs are seen as transitory. You never hear about this side of the equation because it doesn't fit a narrative.

Also, if you look at your example I'm pretty sure they never raised the price from when you started in the hobby until 2021 or so. At least I remember paying 8 or 9$ for alk reagent since I first started using the alk checker in 2012 or thereabouts. So you really need to estimate your yearly cost increase for alk reagent over 10 or more years, not 3.

I also wonder if chemical costs went up/play a factor.

I noticed chlorine pool tabs went up in price and I was having a hard time finding them for a while.

 

[kevgib67]

I don't care about prices, but If starting in 2009 makes you a curmudgeon, what does having started in 1993 make me?

I started in the mid 90’s, Ive seen dirt younger than us!

 

[rtparty]

Everything in life is more expensive. Welcome to failed policies and the greatest scamdemic ever created.

People have no idea how much the cost of raw materials has gone up across the board. Almost like it was planned

 

[MartinM]

Everything in life is more expensive. Welcome to failed policies and the greatest scamdemic ever created.

People have no idea how much the cost of raw materials has gone up across the board. Almost like it was planned

+1 - single greatest transfer of wealth (theft) in the history of humanity

 

[BeanAnimal]

So first off, I've been keeping reef tanks since 2009-ish. So admittedly, I'm an old curmudgeon. That being said, besides keeping our pets happy and healthy, the best thing we can do for this hobby is help it grow so even more people can learn and improve on it. Not more than 3 years ago I remember Hanna Alkalinity Reagent being $9.00. It's now $15.00. I remember Ecotech Versas being $149.99, they're now $209.99. This hobby is inherently tough and expensive, and it should be. We're keeping tropical animals who live underwater in our living rooms. I understand COVID-19 happened and inflation, but eggs and milk haven't gone up 67% like Hanna Alkalinity Reagent, or 40% like Ecotech Versas. This hobby is difficult enough. Is it just me or are companies price gouging to the point of it being unsustainable?

I think most have no choice if they want to stay in business.

 

[BeanAnimal]

A mag float and a reagent is unchanged over this time

But the cost to produce one has increased several fold, from raw materials, to wages, to theft, to lawsuits, to regulatory compliance, to taxes, to competition, to rent, to utilities… everything involved.