Standardizing Marine Systems - New aquarium business looking for ideas

[calming-creatio]

Hello:

I'm not new to the marine aquarium hobby and have a great deal of experience in nano reef tanks, however, my business is currently dealing with larger tanks at this time. Please keep in mind that my target customers are from medium to high-end clientèle they expect their displays to be kept in prestige condition at all times and are willing to pay. I am looking for a formula that I can use with my customers in order to give them a basic understanding of marine systems for different types of aquarium setups whether it be FO, FOWLR, or REEF. I had generated a simple formula: $50 per gallon for FO and $75 per gallon for REEF, but am looking for something more concrete.

I know that there are several different options of Lighting and Filtration for each of these aquarium setups. I also understand that an aquarium with FO doesn't necessarily need as much light as a REEF setup, but will need more filtration to compact the increase in waste. Knowing there are many more options for filtration whether it be biological, mechanical, or chemical. As well as many types of filtration there are many options of where to place these filtration components.

Over the last year I have done a great deal of reading from requirements of fish and inverts to different types of aquarium systems. However, when I look back to these readings I become very confused because it seems everyone has their own opinion into what has worked for them. This is where my confusion is starting to boggle my mind and making it difficult for me to get customers. My LFS that I started from has had great success in keeping an aquarium with a wet/dry filter and protein skimmer, but I'm not sure this is the best option for a reef tank. I am looking for low maintenance with prestige display such as crystal clear water, little to no algae, and beautiful fish/inverts

My reasons for posting this topic is to ask for help in developing a matrix formula I can use with my customers in helping them develop a budget for an aquarium setup. This matrix formula will include options that involve basic, medium-end, and high-end models. I would like to develop a list of models for each FO, FOWLR, and REEF setups. I understand that it may not be possible to summarize REEF setups into these three model categories so I think it would be best to open up the REEF setup to include three sub-categories: Low, Medium, High-end Lighting. I understand that lighting and filtration is dependent on the size of the aquarium, but lets just keep this simple. There would be a size difference making 3 basic groups: 50-100 gallons, 100-200 gallons, and 200+ gallons.

Please keep in mind that I have a mind that thinks like an engineer and I understand that there are many ways to construct a tank of variable sizes, please lets keep this simple. Also, I know that lighting requirements change according to animals and depth of tank. Let's try to stay away from watts per gallon as this provides little help in a mathematical equation. Remember that I am not looking for brand names at this time unless you know they are the only ones that will fit into this system.

I am looking to provide my customers with a service package based on 2 or 3 times per week visits. So if my clients need to do something on a daily basis it would have be kept to the minimal no more than 5-10 minutes a day and my weekly services would have to be kept to 15 minutes. My monthly services would be 30-60 service time.

Finally, remember my clients are willing to pay for the increased cost to insure that their investment will stay at top quality so much so they are willing to invest in natural seawater to avoid any problems or conditions not supplied in salt mixes. I would like to thank you for your suggestions in advanced and look forward to this becoming a popular post as I think this is an untapped niche in the aquarium industry.

On a side note: I hope to use the information gathered in this post to write an article to help others looking to expand their hobby into an income.

Thanks.

 

[JNye]

You want help explaining to customers why nicer set-ups cost more? Maybe your models/spreadsheet should simply be the real thing. Can't you set-up different types of systems and let the customer see for themselves about what they'll get. Also you asked about filtration and that some clients have loads of cash, this is a great opportunity for you to experiment with many different set-ups until you find one that really works. That is what i would do. or you could do 25% water changes weekly and maybe 50% bi monthly if money is no issue. then you'd have almost no additives to deal with, except food, i'm sure the customers will want that responsibilty. also larger scale water changes would make startup cheaper, u would need no filtration except high flow and LR, and oxygen but i an assuming all tanks will have a sump set-up. at most u might want use ozone to give it that professional crystal clear water.
whatever you do it sounds fun and a good problem to have.

 

[billsreef]

Setting up a general $per gallon set up estimate shouldn't be too difficult for basic set ups such as FO and FOWLR. The biggest trick and tip I can give you is to plan things out using high quality reliable equipment, the last you thing you want is a disgruntled customer calling you up at 2 am because some cheap pump failed I also recommend using ozone for water clarity, it'll also help with water quality.

As for Reef, it depends on what corals as to what equipment you need. i.e. an SPS tank will not only need high light output, but also high in tank current, while an LPS tank or softy tank will need as strong lighting and in most cases not as much current either.

 

[calming-creatio]

Bill:

Thanks for your suggestions. Do you have any hints on high quality reliable equipment companies I should look into adding to my list. Thanks again for the suggestions.

Especially need suggestions on an Ozone manufacture.

 

[forensicdoc]

Wow! I know this has to be an exciting and scary time for you. Just a couple of thoughts.

It seems like your business model should be based on careful planning and slow growth initially. In other words, if you need this income to eat, you are in trouble. Your business is primarily going to grow through word of mouth and references from existing happy customers. If you have a good connection with people in a LFS, they might be able to refer your first customers to you.

Setting up sample systems for potential customers to look at is expensive and complicated. Ideally your existing customers will be able to provide examples of what you can accomplish within a given budget. Your first customers will likely be experiments for you in what works and how future customers will be serviced.

There are many reliable equipment manufacturers for all kinds of equipment. Reef Central has people who swear by many different brands and dislike brands that others swear by. You need to start with your experiences. OK, it is mostly small, but if you have not had any experience with larger tanks, you might be in trouble before you get started. I have learned much in putting together larger tanks for myself. Despite careful planning and research, I have been surprised from time to time.

In your case, I would want to be sure that the equipment is reliable. But more important, you want to make sure that their customer service is sufficient for your needs. If, no, when something breaks and you need to replace it or a part quickly, you need to be sure that the supplier will be able to get you what you need fast. Better yet, as your business grows you might want to have some backup equipment available to cover the gap while waiting for parts. You might want to try different manufacturers for the first few customers to get some experience with different equipment. Then you will find the stuff that works for you and for your customers best.

I think having a ballpark for expected costs (so many dollars per gallon) is fine. But it will likely take you several customers before you get a good handle on costs. Then you will get better at providing reliable estimates.

Just like setting up a tank, a business requires good planning and slow growth. Take your time to understand what you are actually selling to your customers. Do not take on too many customers until you really understand what you are doing. If you get a bad reputation at the start your goose is cooked, so be careful.

Good luck!

 

[GuySmilie]

Re: Standardizing Marine Systems - New aquarium business looking for ideas

<a href=showthread.php?s=&postid=11651422#post11651422 target=_blank>Originally posted</a> by calming-creatio
Hello:

I'm not new to the marine aquarium hobby and have a great deal of experience in nano reef tanks, however, my business is currently dealing with larger tanks at this time. Please keep in mind that my target customers are from medium to high-end clientèle they expect their displays to be kept in prestige condition at all times and are willing to pay. I am looking for a formula that I can use with my customers in order to give them a basic understanding of marine systems for different types of aquarium setups whether it be FO, FOWLR, or REEF. I had generated a simple formula: $50 per gallon for FO and $75 per gallon for REEF, but am looking for something more concrete.

So what you're looking for is a business plan. j/k
With so many variables involved in what you're wanting to do (wanting to cover many diverse categories), why don't you just quote your prospects with equipment cost + your labor/hour?

This would be much more realistic when trying to service such a broad spectrum of systems. Plus, there would be less of a chance for a financial catastrophe (on your part) in the event you screw up an initial installation. Because, believe me, it happens to the best of them! Been there - done that.

And keep in mind that nano tank design and maintenance, which is where you say you're experienced, are not the same as big "prestige" displays.
I wish you well.

 

[calming-creatio]

Thanks, for the information I'll keep this in mind.

 

[rlxwcapt]

I am in the process of doing the same thing. I have started a tank set up and maintainence company as well. I think the best thing is to have good better best products for each iteam. Have the customer pick out what they want and go from there. Keep in mind that different products will cost more for setup and maintainence as well. I would put different packages together. You are thinking in the right direction. Let the customer tell you what they want and then give them the best solution.

 

[lfjewett]

Let me stand out here and disagree. I don't think offering a good - better - best option is right for high end clients. It sends the wrong message from the very beginning. Instead you need to target the BEST every single time, let the customer pick from the type of tank.

If they want to save money they'll pick a smaller tank or non sps tank, etc. But they'll get the very best equipment possible.

Examples could include:
Pick a tank size 20-50, 50-90 90-200 200+
Pick it's livestock: LPS, SPS, Clams, FOWLR, inverts only, etc etc.
Pick a design choice: Totally silent, built in, modern, high light, low light, low heat, etc.

Provide your customers the very best equipment and service possible with a tank in every category. By breaking down the type of tank you lower the overall possible choices and narrow in on a product much faster. I will be doing something like this very soon, you can PM me with for details.

 

[rlxwcapt]

lfjewett, Where in Virginia are you located? You will have some competition but lots of clients. Have you been to Marine scene? I am working for DR. Mac at Pacific East Aquaculture. I agree with what you are saying. You may not word it good, better, best, but you need to give customers choices. Thats why we have so many differt car companies, soda companies etc. In the end you only want to offer products that you are willing to support. I like your example. That is a great way to break it down.

 

[a1amap]

<a href=showthread.php?s=&postid=11692809#post11692809 target=_blank>Originally posted</a> by rlxwcapt
lfjewett, Where in Virginia are you located? You will have some competition but lots of clients. Have you been to Marine scene? I am working for DR. Mac at Pacific East Aquaculture. I agree with what you are saying. You may not word it good, better, best, but you need to give customers choices. Thats why we have so many differt car companies, soda companies etc. In the end you only want to offer products that you are willing to support. I like your example. That is a great way to break it down.

You mention cars as an example of why there is a good better best. This is not true. If everyone could afford a Mercedes at the same price as any other car do you think Hyundai would be around? If his target customer is High end there is no need to work good or better in to the equation for equipment. The only think that will add is work in him maintaining the equipment. I like setting the cost equation by size and what is in the tank. There could be a better best in coral selection. Even in SPS corals there are different levels.
You mentioned this would be a cost per gallon equation for maintenance. The better equipment would be the initial investment
If a coral dies in the tank do you have the cost burden of replacing the coral? This would alter you cost for each tank style.

 

[GuySmilie]

Wisdom for sure.
This business venture is all about disposable income.
Joe 6-pak is not going to be in your target market.

 

[lfjewett]

rlx, I live in Ashburn. Man I was just thinking of driving our to Doc Macs to find a few cherry corals for my 50. Now I can say I know somebody there.

a1a hit my point exactly. I understand that when dealing with normal customers a good, better, best option needs to be available, however when dealing with high-end customers specifically, I think you stop talking about quality of the product and more about the features. To use your car analogy, he's basically opening a BMW, Lexus, Ferrari, Lamborghini dealership. He's not going to stock any Chevy's.

 

[rlxwcapt]

The only reason that I say that you may need a good better best is that even though you maybe dealing with highend customers not all of your customers will be in that class. You always want to have flexibility to meet your customers needs. Look how Mercedes came out with the C class. Its all about gaining market share. I am not saying that you want to be Walmart. This hobby is a high end hobby.

I don't think that you can have a setup price bases on gallons. You may have a range. I think there is to many varibles to do price per gallon. I like the break down gallons, filters, lighting, coral type, fish, live rock - pillers or walls, etc. Then charge product plus labor.

I don't know if you are trying to find out away to advertise your service or your plan for charging your customers. Remember to be flexible. This is the best way to take care of your customers but never give up quality or service to gain a customer.

 

[forensicdoc]

Mercedes came out with a C class to introduce people who want luxury and the Mercedes name, but cannot afford the top of the line. It is aimed to younger people in the hopes that as they age and move up the income scale that they will move up the Mercedes line as well. The major differences between the classes of Mercedes is size, not features. So that analogy is more comparable to the differences between a 50 and a 200 gallon tank. Or, to look at the Mercedes line in another light:

C class sedan: Cheap
E class sedan: Expensive
S class sedan: Super expensive

 

[rlxwcapt]

I agree 100%.
There is nothing cheap about setting up a saltwater tank. (correctly)

Joseph You said $50 for FO and $75 REEF per gallon. I guess this is for setups and not maintainence? That would bread down like this.

20 - 50 gallon 2500 FO 3750 REEF
50-100 gallon 5000 FO 7500 REEF
100-150 gallon 7500 FO 11,250 REEF
150- 200 gallon 10,000 FO 15,000 REEF

As far as maintainence I charge $75 per hour or price per tank size. I visit once a week. I try to hit 5 to 10 tanks a day depending on tank size and time to travel between each location.

I hope that we see more ideas what people are doing.

 

[BeanAnimal]

Everybody has been very nice and attempted to offer you opinions based on some of the questions you have asked.

I have an overarching concern regarding your business plan. Please forgive my blunt comments, but I feel that they must be considered before you go any further.

You have asked some very general questions that illustrate a very large gap in your understanding of the systems in which you want to sell and maintain.

You have indicated a desire to sell many different types of systems to demanding customers at a premium price. The fact that you are asking for general recommendations indicates a lack of experience with the products and systems in which you wish to sell and service. This is a very serious problem. If I am paying a premium for a product or service, I am going to expect an EXPERT that is well versed in every aspect of the project. Others will expect the same. Learn as you go is simply not an option here. Mistakes will cost you customers. That will cost you money and in the end will destroy your business.

Please understand, I am not discouraging you. We all have to start someplace. However, from the sounds of your post, it would appear that you are ready to dive in head first and hope for the best.

Asking for help is a start! My advice would be to forget about the pricing matrix and the different types of systems. You will need to setup and maintain the same equipment that you wish to sell and service. When you can setup and maintain a large system at home for a year or two, then you can try and sell that same system to somebody else.

In the meantime you can work on picking up small projects and maintenace contracts. This will allow you to learn first hand without putting your entire business at risk.

As other have mentioned, you need a business plan that has reasonable goals and reasonable time frames and milestones.

 

[bryan007]

I agree with BeanAnimal which is why I asked you what your level of experience is in the hobby/business in the PM I sent you. The dynamics of this field are increadable and if your going to try and sell your business I would think your customer's are going to want to know they are dealing with someone who is an "Expert."

 

[mokeyz]

Joseph, I used to do tank setup and maintenance for a living in Long Island, NY. I had been out of the hobby for awhile and after being back in about a year I went to an LFS who I trusted and admired for the quality of his fish and inverts and asked him if I could work for him for free to learn all of the stuff I didn't know. He said he would pay me and taught me a huge amount about the business. Additionally, he sent me on maintenance calls and split the fees with me 50-50. After awhile he would just give me the customers outright as he really didn't want to do maintenance and setup anyway. I developed a great business through word of mouth and through Gene (the LFS owner). But I could not have done it without the experience in taking care of many aquariums of all sizes, shapes, filtration, creatures, etc..

As to your customers, all of them are high end because believe me no one who doesn't have money is going to hire you to maintain their tank. Eventually, I set up and maintained tanks for doctor and dentist's offices, restaurants and many very wealthy people's home aquariums.

As to choices in equipment and livestock, etc., you need to interview your potential customers in the same way that you would do systems analysis in IT. What do they want from their tank, how large of a tank, location in their home, office, business. How much are they willing to spend, do they want to be involved in the hobby or just want an aquarium that is beautiful and taken care of by you. (BTW, be prepared to be available 24/7 for emergencies) After all of these considerations and more you can help them get the equipment, etc., that they need.

Also, I incorporated when I went to work for Gene so I could buy from wholesalers but Gene always included me in his orders if I chose because he got much better discounts because of buying larger quantities both of livestock and dry goods. All of these things are a real consideration and if you haven't done so already a business plan is a must.

Hope this is helpful and ask PM me if you have any questions.

Good luck!
Marlene

 

[aninjaatemyshoe]

Forgive me if this is a naive question, but are there any regulations, licenses, etc. involved in doing professional home/business installation of such equipment? I honestly have no idea. It would seem like there should be. I mean, especially with the larger systems, you're installing something that sucks electricity like mad, weighs enough to potentially be a structural concern, and involves electrical appliances quite close to highly conductive saltwater. I guess if something goes terribly wrong your customer could just sue your business. But, I would think something that could be potentially life-threatening would involve some sort of regulations.