When will the frag bubble crash?

FX CharityCorals · Mar 11, 2009

So as with the stock market and the bubble it made that alot of us have painfully watched burst when do you think the economic downturn will burst the extremely overpriced coral frags that are on alot of these sites? or do you think it wont?

Discuss

AquaWorldPSC · Mar 11, 2009

I don't it will change much.

macawmagic · Mar 11, 2009

i don't think prices will change much, but I do think people will buy less. Just like every other aspect of retail. I work for a watch company and all jewelry stores were down. ALL!!! I feel like the only things that are going to stay normal are groceries, gas, etc. but even those will get cut back as much as possible.

the way the corals work now...only the people with money can buy them. even if prices come down...because theoretically we all loose money...those same "rich" people will be able to buy them. they'll just get a better price. LOL i used rich for lack of better word.

Mallard · Mar 11, 2009

Depends on the economic view that you take. If your a Keynes person, then you believe the prices are sticky in a downward direction. If your more of a supply side economics then you believe that prices will move downward as reefers supply increases due to slow downs in sales. However, most hobbyists would likely save the pieces then sell them at prices they feel are below market value.

I tend to believe that prices will stay fairly stable at the hobbyist level but fear the suppliers will take the largest brunt.

All in all... prices will likely stay about the same for "named" and well known pieces.

FX CharityCorals · Mar 11, 2009

For those online stores that are sitting on frags and corals that are marked up to insane amounts, do you see them lowering prices to keep product moving or do you think they will just keep sitting on them?

Hypertek99 · Mar 11, 2009

I don't think the price will drop. They seem to get higher and higher?

Salt Water Crazy · Mar 11, 2009

BlackGPGT said:
For those online stores that are sitting on frags and corals that are marked up to insane amounts, do you see them lowering prices to keep product moving or do you think they will just keep sitting on them?

I dont think most web sights are sitting on them, I think they cant keep up with demand still.

Mallard · Mar 11, 2009

I think the prices at e-tailers will depend on the products they sell and the business model that they run. All together, it just depends, the strongest and most innovative will survive while the weaker, slower ones to adapt will fail.

macawmagic · Mar 11, 2009

i might be wrong on this...but most e-tailers are people who have normal jobs and do this on the side??? if that's true, the I would say the majority of coral sales are to fund the hobby while their normal job are the regular bills. aka they don't NEED to sell these corals so they'll keep prices the same untill they need the money.

droblack · Mar 11, 2009

When I tell my family and friends about the "value" of high end corals, they tend to be amazed. Really is crazy how some corals can increase in value over the course of a year, by growing larger and thus becoming fraggable. I think the price on many will go down, especially if it is a fast grower. Wish I could buy stocks that increase in value like my BGM chalice has over the course of just one year!

FX CharityCorals · Mar 11, 2009

macawmagic said:
i might be wrong on this...but most e-tailers are people who have normal jobs and do this on the side??? if that's true, the I would say the majority of coral sales are to fund the hobby while their normal job are the regular bills. aka they don't NEED to sell these corals so they'll keep prices the same untill they need the money.

Even if it is a side job, if they are shelling out $100s of dollars a month on sponsorships and running the tanks and seeing no return do you let it continue to be a money pit or lower prices?

colorfan45 · Mar 11, 2009

Lets hope they will lower prices. This overhyped high price frag thing is crazy.

Sikryd · Mar 11, 2009

If people stop paying $100 a polyp for zoo's, the price drops. Simple economics - as long as people are willing to pay x amount the price stays. When the market is saturated - ie. a lot of frags are out there, the price drops.
People right now are paying extreme prices for stuff that will be out of "vogue" in 6-12months, then on to the next big craze.
Remember when Zoa's were almost considered weeds?
This has already happened to acans.

slipondajimmy · Mar 11, 2009

I do not mean to ruffle feathers or anything but from what I have seen about this hobby is a few things.

1. Some people have more money then brains. You put a fancy name to it and people will buy it no matter what the cost.

2. Sellers know this.

I think the most I have ever spent on anything in my tank was $40. And I killed it in a week. "Super duper green to the 3rd power" will not make me spend 100+ on anything. But thats just me.

Sikryd · Mar 11, 2009

I forgot to add, I have some super Limited Edition...........
Oh yeah, EVERYTHING IS LIMITED EDITION now.

FaviaFreak · Mar 11, 2009

The whole thing about buying frags is that it is a highly addictive thing to do and provides a rush for a lot of people, I know in my case I am totally addicted to buying frags

It's like a woman who loves to buys shoes, one pair just Isn't enough, she has to buy and buy and buy without regard to the cost or consequence...that is why the frag industry will stay booming as long as more new and beautiful corals keep pouring in!

anybody got any chalice frags for sale??

ReefRunner · Mar 11, 2009

FaviaFreak said:
The whole thing about buying frags is that it is a highly addictive thing to do and provides a rush for a lot of people, I know in my case I am totally addicted to buying frags It's like a woman who loves to buys shoes, one pair just Isn't enough, she has to buy and buy and buy without regard to the cost or consequence...that is why the frag industry will stay booming as long as more new and beautiful corals keep pouring in!

anybody got any chalice frags for sale??

I think you hit the nail, or should I say frag, on the head with that comment. The hobbyists in my area seem to be spending their money at the LFS and with fellow reefers as usual. It seems to be booming here.

Robin

slipondajimmy · Mar 11, 2009

i think I might just go buy a frag today..haha

kurbs · Mar 11, 2009

Food For Thought

The economic chaos of the past few months has created an environment of doubt and apprehension for many. In times of anxiety we tend to revert to our survival instincts. Our fear causes us to worry about the most immediate needs. We stop reaching for a better future and start taking whatever we can get.

But this is definitely a step in the wrong direction. Because of anxiety we needlessly abandon some of our best ideas and innovations. A negative mental attitude in life stops us cold. Too often we lower our expectations, forget about our dreams and lose faith. Ironically, our dreams, our faith, and a positive mental attitude are exactly what we need to move beyond our current suppressed economy.

gflat65 · Mar 11, 2009

The economy's been in the crapper for a few years, it's just getting press now that the banks have done their best to screw the country. Prices on 'high end' coral have only gone up, for the most part. Our city government, along with a number of other businesses, hvae decided that despite the fact that they are cutting back job for savings, it's a good idea to increase things like water charges by 6-10%. For those scraping by, this is only going to get worse and worse. Corals are a different arena since they are strictly a luxury item, but it never ceases to amaze me when prices on everything else is going up with a bad economy and worse and worse customer service. You'd think that with so many job openings across the country (maybe not in the field you have experience, but openings, none the less), only the most eager to work would have job, but you'd think wrong...