Are “Basement Vendors” Ruining The Reefing Industry?

[ReefLegends]

I’ve operated 2 stores in different counties, it’s hard to run and make a profit. Even when you have items the same price as Amazon, customers have the prime visa and get an extra 5% back. Then they will come in and ask all kinds of questions about said equipment.

The wholesalers selling to everyone and anyone doesn’t help the LFS. The entire industry needs a revamp. I built a shop with my new house, I don’t have any employee issues, I don’t let customers over and I stay in my lane.

I’ll read more and post later, time to enjoy some sleep and venture off to Yellowstone in a few hours. All while my systems are safe and ran by an APEX, shhh don’t jink me this trip.

 

[VintageReefer]

There wasn’t a coral store within 30 min of me, aside from petco. All my shopping was online for years. Then. A LFS opened. 2 min away from my house. I was extremely excited after years I was getting a saltwater fish and coral store literally 2 min away. I counted down the days to it opening. I was there opening day. And I bought…

Nothing

Everything was new and clean and modern. Healthy fish. But. Boring overpriced corals. It was such a let down.

I still visit every few months for frozen food. I look through the tanks. And I’m never impressed.

The prices are insane. I can’t bring myself to supporting them. 3-4 acan polyps. Plain ones. Can pick from green ones or red ones. $150

Dragon soul torch. Two small heads. One open. The other with bjd and not open $175

Hulk torch. One head. Which looks like a regular green torch. $200

3” gsp rock. $100

Maroon acanthophyllia. 5”. Good size. Boring color. No neon or anything. Very very plain and drab in person. $800

You get the point

They are charging Armani prices but selling Walmart products. It is cheaper and better for me to buy something high end, online, and have it shipped

 

[Peair]

This is a touchy subject, but I’d like to know what you think. A LFS in my area claimed this to be true. Business owners can feel free to answer honestly as well. I just think that most reefing vendors and businesses started off selling from home, but now they are concerned about the ease of others to do it without a store and “dilute” the industry. Or is there room for everyone?

Allot of Basement vendors are selling online, but they don’t like to tell you that because they want to make money, I notice their prices are actually the same or a little higher than a brick store sometimes, but prices are all over the place for both, much better years ago before the Frag takeover, and it’s usually one person with an elaborate website, I think it is a tough business either way, and it’s more of a love of the hobby that drives them, and I don’t think they make allot of money.

 

[SanFernandoValleyAIOReef]

Thanks for the response.

$3 per square foot for retail space. Yes, I guess I should update my post with a range. I did opt for the high end (Mall, or other high traffic high profile retail). Strip mall or other areas may be as low as $3 or $4 per sqft/m, especially with extended multi-year leases.

We can also go back and forth with labor costs etc.

No argument there. The point that I was trying to make is that the numbers are not (at all trivial) and overall margins are nowhere near where people think they are. Retail (especially in a market where you are competing with big box, online and home based) is tough.

Right definitely not a business I would invest in even tho I like it very much.