This hobby is getting even more ridiculous with pricing......

[Marquiseo]

The difference between wholesale cost and consumer cost does not equal profit.

It's an example without overhead costs, shipping, box fees. To say it is still not possible is being naive considering it was done in the past. I personally have seen it done. I actually see the wholesale costs of most corals before they are released on here by some of the sponsors. I can easily point out some of the corals from different wholesalers. One sponsor here gets most of his livestock from Chris at Carolina Aquatics.

 

[jmp21677]

I'm going to start a coral business with a Costco philosophy! Charge a yearly membership and barely sell above cost. Then sell so much of it I can't do anything but make a profit! Who's in?

 

[Chris Adams]

Its America don't you think everything is inflated

I can understand. For some I guess that green just is not as important as the coral!
I like money in my pocket also and tend to easily convince myself I can live without spending that extra $50

 

[nicholas.babb@gmail]

It's an example without overhead costs, shipping, box fees. To say it is still not possible is being naive considering it was done in the past. I personally have seen it done. I actually see the wholesale costs of most corals before they are released on here by some of the sponsors. I can easily point out some of the corals from different wholesalers.

Suppliers in business long term will not see that return on investment. There was a long standing myth that crack cocaine had these astronomical profit margins but, when you look into overhead, profit was pennies on the dollar. When you look into overhead costs and the costs it takes to attract repeats customers, profit margin is minimal. There is probably a larger profit margin in corals than most industries but it's a niche market with a lot of risk.

 

[jmp21677]

The green I like always seems to have good polyp extension!

 

[waybad41willys]

I would like to mention the over price skimmer pumps and controllers . That you pay 2 to 3 times more than the off brand that once you see the units in person it's obvious they came for same manufacture . But you thought buy spending the higher price . You where getting better survice and support . But the find you are wrong again . I am finding that these over price company's could careless about you after your purchase

 

[nicholas.babb@gmail]

I would like to mention the over price skimmer pumps and controllers . That you pay 2 to 3 times more than the off brand that once you see the units in person it's obvious they came for same manufacture . But you thought buy spending the higher price . You where getting better survice and support . But the find you are wrong again . I am finding that these over price company's could careless about you after your purchase

You're confusing the benefit of circumventing the cost of establishing and maintaining intellectual property with increased profit margins.

 

[MamaLovesHerReefTank]

When I first started 6 years ago, $100 got me at least 6 nice, multi-colored corals. Presently, $100 is almost the same as the value a dollar in this hobby....worth nothing. You can barely get just 1 coral with $100. Once shipping is factored, you will breach the $100 threshold. Also, corals went from colonies, to snack size, to bite size, to residue. When does the madness stop?

As long as people are willing to pay it. they keep going up.

 

[Elder1945 Verified Sponsor]

It's funny when I had my 16 foot reef I would look for large colony coral. I found I could get a 40 head hammer coral for $100.00 yet one head sold for $30.00. I think the nano and small tank craze help fuel the price of small corals (frags).

Just my 2 cents ...

 

[rock_lobster]

I think its funny when hobbyist say prices have gotten high however they will overlook 100 nice frags at 5-10$ and only buy the one that is 100$ LOL. Then they ask why is the price of that one coral 100$. Its call demand that you are creating by not buying anything but the most expensive pieces.

 

[Marquiseo]

As long as people are willing to pay it. they keep going up.

That's primarily because some hobbyist also see it as an investment. They would pay $699 for 1/2" frag then grow it out to get a return investment..maybe more. Some succeed while others lose all together. It is a risky practice.

 

[Marquiseo]

I think its funny when hobbyist say prices have gotten high however they will overlook 100 nice frags at 5-10$ and only buy the one that is 100$ LOL. Then they ask why is the price of that one coral 100$. Its call demand that you are creating by not buying anything but the most expensive pieces.

If you buy online, how many retailers have WYSIWYG section of $5 and $10 corals? Very few. Even so, the selection is debatable. Like I stated before, many of the $5 -$10 corals can be bought locally without paying shipping or adding more corals to your cart to justify shipping. Many hobbyist shop online for something new not offered locally or for better deals.

 

[waybad41willys]

Well if you mean increase profits and not take care after sale
And not doing things like they where when standing behind what you sell is how became a great company you are right

 

[robby2782]

It has been way worse in the past. $1,000+ per eye for the same rainbow chalices with different names, $400+ for 1/2" acropora frags during the Reefraft craze, and $1000+ for the Krak Zoas going on eBay; but now it seems to be about the mushrooms lately.
I'm guilty for falling into the acro part of it, and still continue to buy expensive frags to this day.
There's a caveat to not settling on monochromatic corals...

 

[KingBlingTX]

It's an example without overhead costs, shipping, box fees. To say it is still not possible is being naive considering it was done in the past. I personally have seen it done. I actually see the wholesale costs of most corals before they are released on here by some of the sponsors. I can easily point out some of the corals from different wholesalers. One sponsor here gets most of his livestock from Chris at Carolina Aquatics.

If it is so feasible and profitable, you should just do it and use the profits to buy the other equipment you want!

Based on your comment that an importer paying $150 for a colony should just cut it into 32 pieces, grow them out and make a $170 profit at $10/frag, I assume you've never run a business with inventory. First, the cost of "growing them a bit" must be added in (not to mention overhead costs for the business.) Oh, and what happens if the $150 colony dies? (which certainly happens in reef keeping) Then the retailer has to grow and sell 2 more just to make up for the profits lost from the first one dying.

Competition always finds a way in when there are profits to be made in an "over-priced" market. You see that with lower cost producers (such as Jebao) in this industry all the time. Some times there are enough profits and the manufacturer is around to stay awhile. Other times, when perhaps the low cost product doesn't generate enough margin to sustain a business, the new producer drops out or raises their prices to be more in-line with the competitors.

 

[blkhwkz]

To expand further, most of the companies are using MAP pricing, which puts a leash on retailers. Retailers do not have the flexibility to make sales, legally. So if a company wants to sell an $800 controller at MAP pricing, retailers have no choice but sell it at that point. Retailers are pretty much enforcing their inflated price for them.

MAP is just minimum advertised pricing. Retailers can sell it to you for whatever they want, they just can't advertise it for less. There is nothing illegal about selling it for less. I don't agree with MAP pricing and I am glad I have never paid it.

 

[Marquiseo]

MAP is just minimum advertised pricing. Retailers can sell it to you for whatever they want, they just can't advertise it for less. There is nothing illegal about selling it for less. I don't agree with MAP pricing and I am glad I have never paid it.

You just restated my point. If a product is MAP pricing and they chose to sell it $50 over, the consumer could easily just buy it from the manufacture or other retailers for less which means the store loses the sale. Illegal is the wrong word on my behalf. I should have said "not advisable" due to possible civil suit.

 

[rock_lobster]

If you buy online, how many retailers have WYSIWYG section of $5 and $10 corals? Very few. Even so, the selection is debatable. Like I stated before, many of the $5 -$10 corals can be bought locally without paying shipping or adding more corals to your cart to justify shipping. Many hobbyist shop online for something new not offered locally or for better deals.

Online shopping your already 60$ behind just on shipping. Budget coral buyers probably shouldnt be dropping the first 60$ of their 100$ on shipping. Much better off going and paying 5$-10$ per frag at the LFS. Also helps not to shop at specialty online retailers that only carry the most high end corals in existence. Ebay has plenty of 1$ frags that dont get bid on so you can go there and get 40 of those for 100$ and stock up your tank. That wasnt possible 10 years ago. Not even close...

 

[Cleverbs]

The $10-$20 corals are common corals sold at local fish stores. Hobbyists will eventually want something different. Comparing Cell phones and Mercedes benzs to controllers is comparing apple to oranges. There are different ranges of cars and cell phones available. In this hobby, there are a few companies that make controllers and their prices are within $50-$100 of each other or even the same cost. This practice is pretty much the same as "price fixing".

This isnt really true. I have seen Cali Torts, Blue Tens, Strawberry Shortcakes, and many other nice high end corals for 20-30$ at my LFS's

In fact as of late I have seen them dropping prices on frags. Now all stores have 10$ frags for common corals that they had priced at 20$ for years.

 

[mattstanks2016]

Online shopping your already 60$ behind just on shipping. Budget coral buyers probably shouldnt be dropping the first 60$ of their 100$ on shipping. Much better off going and paying 5$-10$ per frag at the LFS. Also helps not to shop at specialty online retailers that only carry the most high end corals in existence. Ebay has plenty of 1$ frags that dont get bid on so you can go there and get 40 of those for 100$ and stock up your tank. That wasnt possible 10 years ago. Not even close...

But you have to pay for shipping per each coral right?