Seahorses are bread because the prices for them have gone through the roof - I still remember the days when a wild H. kuda was $10...
The reality is that seahorse breeders today make less than they did just a few years ago.
The very first order I shipped to Colorado was with 2 seahorses. FedEx Priority Overnight was $42 and change without a discount. Today the same package with a 39% discount is $87.59. Standard rate would be $129.15. Since we offer flat rate shipping of $39.95, the money has to come from somewhere.
We used to average 2 cancellations a week due to shipping charges. Folks would pay more for the total order from another company than pay a perceived high shipping charge. Since we have gone to flat rate and raised the price of seahorses, we don't get the cancellations anymore.
This doesn't even get into the packaging. A styrofoam box with cardboard runs about $8.00 and change if buy at least some quantity (you have to have the space to store it) then you have heat or ice packs which average a buck a package, special labels, bags, O2, ammonia neutralizers etc. run another couple of bucks.
The large companies that spend a $1,000,000 a month on shipping get discounts that have to be close to 80 to 90%. Small companies just cannot compete as they are paying the rates to cover the large companies.
Other expenses have gone up as well. Food such as frozen mysis, brine cysts, enrichments etc have increase an average of 30% since we started. Our favorite skimmer for our systems has increased 65% in the last 4 years. Depending upon whether a customer pays with which credit card or paypal is another 3 to 5%. Everywhere I look expenses have increased.
If you have to have employees, then double or triple the rate of their hourly pay to cover taxes, unemployment, insurance, dealing with regulations and sick time.
This is without getting into the time aspect of handling retail customers who typically take several emails or phone conversations before the order is done. Sometimes as much as an hour per customer. Without this, you then have to deal with them after the sell as they messed things up by having the wrong setup or at the minimum the wrong expectations.
In the end, most seahorse breeders have gone out of business. A few have managed to hang on, but I can promise you, that they aren't making the money that most believe they are making especially if they are providing quality specimens.
It is easy to become envious of other countries that don't have the regulations we have in the US and can do net pens, where labor in some cases is a $1.00 day, government subsidizes them, and they can sell their seahorses in less than 1/2 the time at less than 2 inches.
Some of us are hard headed and still produce!!!!!
Dan