Am I wrong for thinking this?

[parrthed]

I agree it isn't easy at all. I fiddled around in some internet sales a couple years back. I had a seperate 1500 sq ft warehouse I rented just for the business. Ordering from a wholesaler is not an exact science. You get what you get, I've ordered meduim hippo tangs and gotten anyehere from 2" to 5". Plus if you are not placing consitant order with the wholesaler ( you will be assigned a rep) you dont usually get the exceptional corals or fish that the regulars do.
Also alot of wholesalers are now even doing a WYSIWYG themselves. If you are just after regular bubble corals and hairy mushrooms you should be fine, just dont expect a LE chalice or anything. Its not a random grab from a bunch or corals, most are picked through numerous times ( where do you think think alot of the LE corals come from these days).
Sorry to get off topic of the OP. I can see how it may appear to hurt the hobby but if you look at it from an insiders point of view the initial order will most likely scare off many people because of both the complexity of ordering/shipping/distribution
and the fact that some people may not get what they orderd due to shortages or DOA. Also their ability to meet the minimums constantly may become an issue as well.
Ive done a few "group orders" before and they were nightmares. Every person had a different schedule and expected ridiculous payoffs to ordering directly from a wholesaler. I personally do not order anymore, I have found it much more satisfying to pick cherry livestock from local and online vendors.
In short, if your LFS only has "crap" then ordering from their supplier will only result in you having boxes and boxes of "crap".
There was a group of guys in my area that wanted to start selling corals out of their garage. They got a business license online and started contacting wholesalers. In turn the wholesalers started contacing the stores in the area that they sold to to check the guys out. By the end of the week everyone knew the gig and some of the LFS around here (whom the guys were really good customers) had some choice words with them.
Im not knocking these guys for trying to start a business at all, just saying that the aquarium indusrty is relatively small and everyone practically knows everyone.
Just be sure to tell the guys in your club be careful not to bite off more than they can chew.

 

[Gold Stripe]

I buy all of my dry goods online. LFSs have 200% to 300% markup on dry goods. $56 for a maxijet? Come on! They claim they need the drygood markup to cover the live good loss but the live goods are marked up 200%. I understand that they have die-off and that increases their cost of goods on live orders but I just dont believe it is that bad. And, they have a huge service business that is mostly labor intensive so it generates quite a bit of revenue. I just cant see paying $150 for something I can get for $50 online.

Now for live goods I buy at the LFS. It is worth the extra $$ to be able to see the actual fish/coral I am getting and know its size, color ad health. For the most part my LFSs will sell to anyone so I dont buy the whole paying for their knowledge and experience thing. They will do what they need to and say what they need to say for a sale. I have seen it. Massive upsale of un-needed equipment. If they go out of business because I dont buy my dry goods there then I gues I will have to start buying my live goods online.

I dont think there is anything wrong with a group getting together and getting a discount but if you have to lie or mislead to do it then its wrong. The seller has a right to sell to who he wants and he should have full knowledge of who you are so he can make that decision.

 

[Michigan Mike]

Parrthed, I don't understand the last part. They got a business license and the wholesalers had local lfs check them out? What was it the lfs mafia? LoL

That's kinda messed up, everyone has the right to start a business.

 

[livingseas]

This has happened in the past and will continue.. its evolution.

Scuba shops are a good example. Scuba gear had huge markups at local scuba shops years ago.
Then the internet came. Shops *****ed and moaned and tried to place artificial limitations
On where products could be sold and supported. In the end the internet kicked their asses.
Sure the local shops don't sell as much gear but they do repair it for a fee, run classes, do dives,
Sell tanks and air. They also provide expert advice for people looking to buy gear and win business
Because of it. The markups aren't as high as they used to be though.

Sure dives shops closed but the ones left do fine

Lfs need to adapt in the wake of the internet . Provide more support services, tank maintenance, things
you can't realistically buy via the net.

If you just rely on fish and equipment. You will go under eventually.

I dont blame people for ordering direct from wholesalers, I run a small web biz and I mark things up 50%
Of course I have to layout 5k per wholesale order to do it. If you can get 1k worth of fish to buy. There is no reason
Not to order from a wholesaler. That's what they are there for. I don't think the fish stores have anything to worry about
Re wholesale orders. Its the drop in 1 off orders ya gotta see coming

Mike

 

[Fishbulb2]

When I was in San Deigo people would do this all the time from wholesalers in LA and it was super easy to do. The wholesale prices were generally so low (about 1/2 to 1/3 of retail), that people would all jump on board. Orders were typically for 20 or 30 people and we would easily spend several thousand dollars per order. Then all the fish would arrive at the persons house and we never had any problems. Always had good quality too.

I did kind of have a problem with it the more I thought about it. I would love to have own an LFS or aquarium related company some day but boy that would be hard to compete with. The person who organized this for us was literally OK with a 0% mark up. I think he just liked all of the attention of being the "Go to Guy". That's going to be tough to beat when a hobbyist sets out to do that just for fun. We actually had great LFS's there as well so it seemed unfortunate. It also just seems disingenuous for what the guy was probably issued his business license for. Here, all I ever see are house wives and soccer moms driving giant trucks that say "Dale's Construction" on the side. I have a feeling all of those tax write offs and tax breaks are meant to help you run a company, not shuttle the kids off to Magic Mountain.

OK that was a little bit of rant. Sorry.

FB