Small Coral Business?

[Jacked Reefer]

Howdy Everyone! I have a few questions about starting a coral business.

I got this idea a few weeks ago when I saw a posting on Facebook for a small-scale reef store that was being run out of a person's garage. I went to go visit it (about a 45-minute drive) and despite only having a single system, which was an Lps and softie only HORSE TROUGH, it had the best coral selection in town!

She used to work for an LFS in the area that closed down due to upsizing to a warehouse and not being able to support the upgrade. I asked her a few questions about the business. She is limited to a small number of coral wholesalers and goes with horse troughs to avoid excess costs.

It got me thinking about how my part of town does not have any LFSs since the warehouse closed down. And I could definitely do a lot better in both coral varieties, system setup, as well as perhaps online retail.

I have already looked at the zoning for my house. I am allowed to run a small retail business out of it. I have experience doing online retail with freshwater fish. Over 4 years of LFS experience, And relationships with wholesalers as I did the ordering for the LFS I previously worked at. So at this point, I got myself thinking. Is there any reason I should not do this?

So the questions I have for you guys are
1: Would you purchase coral from someone's garage?
2: Is there anything I should consider when setting this up?
3: What would you want to see form a similar vendor?

Also anyone who has done something like this please chime in!

Pic Related is the start of my frag system

 

[STLCorals]

I have been selling coral for a long time out of my house. More recently I did all the coral sales for a LFS(about a year in had to leave because they weren't paying me everything I owed but that's another story lol). I am now making a website and hope to sell at least some online. Not so much for big profits but because I love the hobby, growing coral, and meeting people in the hobby.

Having said that...based off my experience many hobbyists are willing to buy out of people's homes. Most however are going to expect to pay a significant discount to retail store prices. In addition there is a portion of hobbyists I have found that think the same coral from "xyz big online seller" is just better. In some cases for the few pieces I consider lineage to matter I agree, but some feel this way about some basic staples in the hobby and would rather pay $40 for a 2-polyp frag of mohawk palys than take one for free somewhere else....

An issue you may run into is some wholesalers are not willing to sell to non brick and mortar locations unless you have what they call an "established" online presence(ie be a big name). However most wholesalers I find have ridiculously high prices anyway and transhipping is often the way to go depending on the type of coral.

The other consideration I am sure you have thought of but will point out ...that could be a lot of strangers at your house.i am not comfortable with it so generally only let people I have previously met come over and otherwise I meet them at a retail location(a different business we have). However people certainly buy a lot more generally when they can browse in person rather than just see pictures.

 

[Jacked Reefer]

I have been selling coral for a long time out of my house. More recently I did all the coral sales for a LFS(about a year in had to leave because they weren't paying me everything I owed but that's another story lol). I am now making a website and hope to sell at least some online. Not so much for big profits but because I love the hobby, growing coral, and meeting people in the hobby.

Having said that...based off my experience many hobbyists are willing to buy out of people's homes. Most however are going to expect to pay a significant discount to retail store prices. In addition there is a portion of hobbyists I have found that think the same coral from "xyz big online seller" is just better. In some cases for the few pieces I consider lineage to matter I agree, but some feel this way about some basic staples in the hobby and would rather pay $40 for a 2-polyp frag of mohawk palys than take one for free somewhere else....

An issue you may run into is some wholesalers are not willing to sell to non brick and mortar locations unless you have what they call an "established" online presence(ie be a big name). However most wholesalers I find have ridiculously high prices anyway and transhipping is often the way to go depending on the type of coral.

The other consideration I am sure you have thought of but will point out ...that could be a lot of strangers at your house.i am not comfortable with it so generally only let people I have previously met come over and otherwise I meet them at a retail location(a different business we have). However people certainly buy a lot more generally when they can browse in person rather than just see pictures.

Thanks for taking the time for such a detailed reply! The majority of the business would be out of my garage. So I would not be too worried about people seeing my house. Even so I've got that whole southern hospitality thing down pat. I might lose money on offering people tea alone .

I am aware of the discount, big retailers have a name, LFS's have rent. And I believe the lack of that would help offset the pain of selling Acros 20 - per. Eventually, I would like to upgrade to a retail location. But I am spending a significant amount on schooling right now so that is not feasible.

On the Transshipping note. I have briefly looked into that. I was kind of dissuaded by the whole "importer license" thing. Is it hard to get one of those? Are there transshippers who have people in the states with importer licenses that can provide to stores?

As for wholesale the ones I have seen that do not sell to brick-and-mortar are mainly fish suppliers. And I do not have enough room for fish systems, unfortunately. I know of a few coral wholesalers that don't really care as long as the order is big. And I understand on the wholesale front how expensive things can be (Used to order a lot from eye-catching), That's why im trying to get ideas from the community!

 

[Mr. Mojo Rising]

I drive 2 hours out of my way (4 hour return trip) to some tiny little town to buy corals from someone's garage. I do it because he gets unique corals that I don't often see in many LFS's, and he sells his corals about 40% cheaper compared to LFS's in the big city.

 

[Jacked Reefer]

I drive 2 hours out of my way (4 hour return trip) to some tiny little town to buy corals from someone's garage. I do it because he gets unique corals that I don't often see in many LFS's, and he sells his corals about 40% cheaper compared to LFS's in the big city.

That's the goal! I'm trying to offer great prices! I just happen to be located near a freeway in Ina fairly large city with 0 good LFS's

 

[STLCorals]

On the Transshipping note. I have briefly looked into that. I was kind of dissuaded by the whole "importer license" thing. Is it hard to get one of those? Are there transshippers who have people in the states with importer licenses that can provide to stores?

If you are importing direct then you need an import license, do all the paperwork, and they must fly into an airport with the proper inspectors. Generally you are also going to have to buy at least several boxes....and ensure it is a legit collector you are buying from. Lot of risk and hassle and I don't think worth it for your average garage seller.

The transhippers eliminates most of that. They have the licensing, do all the paperwork, and while they have to likely have a minimum order it can be from multiple smaller buyers and orders are pooled. The one I use I can do as small as one full box. However of course all that reduced hassle and convenience comes with a cost. I still find it much cheaper than wholesale even factoring in increased DOA than vs a wholesaler. My transhippers will credit DOA, but usually the cost of the coral is cheaper than the shipping/fees and those don't get credited so if you have high losses it is still costly.

 

[Jacked Reefer]

If you are importing direct then you need an import license, do all the paperwork, and they must fly into an airport with the proper inspectors. Generally you are also going to have to buy at least several boxes....and ensure it is a legit collector you are buying from. Lot of risk and hassle and I don't think worth it for your average garage seller.

The transhippers eliminates most of that. They have the licensing, do all the paperwork, and while they have to likely have a minimum order it can be from multiple smaller buyers and orders are pooled. The one I use I can do as small as one full box. However of course all that reduced hassle and convenience comes with a cost. I still find it much cheaper than wholesale even factoring in increased DOA than vs a wholesaler. My transhippers will credit DOA, but usually the cost of the coral is cheaper than the shipping/fees and those don't get credited so if you have high losses it is still costly.

Awesome! That sounds like the route I need to go down then!

 

[Rick's Reviews]

Following

 

[Jacked Reefer]

Following

I will be posting build threads as I start getting things up! Should be in the next week. I am waiting on a few more pieces of equipment to get before I do tho!

 

[reef_1]

People can be a major pain, I would never do a shopfront at my home address, unless you are that type of person who really doesnt care about dealing with idiots in person and can sleep well knowing that crazy looking VERY angry customer who threatened burning down the house knows where you and your family lives.

People behave better at proper shopfronts, but if its your home and only you its less formal and for some that means they can press things a bit more.

 

[Jacked Reefer]

People can be a major pain, I would never do a shopfront at my home address, unless you are that type of person who really doesnt care about dealing with idiots in person and can sleep well knowing that crazy looking VERY angry customer who threatened burning down the house knows where you and your family lives.

People behave better at proper shopfronts, but if its your home and only you its less formal and for some that means they can press things a bit more.

Very good point. People can suck. Luckily I am pretty good at diffusing situations and have not had any long-term arguments with customers in the 4 years I have been working in fish shops. Even tho Im pretty physically imposing I like to consider myself agreeable lol. Granted if I had a wife and kids, I would not be considering this. But since it is just me currently I'm not as concerned for others well being. It seems like a good way to get my feet wet owning my own fish shop.

 

[argiBK]

Have you considered selling fragged coral from established colonies in the long-term? It’s a bit longer runway to be able to have regular/consistent supply, but I think buying a frag that’s proven viable in captivity while also reefing sustainably is important when I purchase these days (whereas, I actively avoid maricultured because those colonies have relatively high failure rates + pests).

What I also miss are the mid-tier sellers who have a consistent supply of non-acro-of-the-moment types that sell for sky high. Sometimes it’s difficult to find pearlberries, solar flares, fox flames, torts, etc.

 

[Jacked Reefer]

Have you considered selling fragged coral from established colonies in the long-term? It’s a bit longer runway to be able to have regular/consistent supply, but I think buying a frag that’s proven viable in captivity while also reefing sustainably is important when I purchase these days (whereas, I actively avoid maricultured because those colonies have relatively high failure rates + pests).

What I also miss are the mid-tier sellers who have a consistent supply of non-acro-of-the-moment types that sell for sky high. Sometimes it’s difficult to find pearlberries, solar flares, fox flames, torts, etc.

There are many online sellers that fit this criterion! Farmer Ty (i think its black label aquatics now), Battecorals, and Epic Aquaculture all have really good sps at all ranges of cost, and Many of the classics as well.

The issue is with so many people specializing in Acropora aquaculture who have been in the hobby for much longer than me (also have much more space and money) I would be a very very small fish in the big online ocean.

What I would be trying to do would be to cater to my local coral market. And have a few VERY reasonably priced online listings for colonies. I will save frags off the corals I get in and try to aquaculture them and hopefully transition to farming at some point. Its just I could not justify such high overhead for no foreseeable return at this point in my life. One thing i've realized while going through marine biology school is that sometimes regulated wild collection is more sustainable than even aquaculture. But that is a topic I don't want to even touch on in this thread.

Already have a dipping procedure that eliminates All common pests (including bacteria) and the second system that will be going up will be a coral QT tank to avoid the pests of wild and mariculture pieces.

 

[officialreefbros]

Following along too! This is something I dream of doing. Seems like a lot of fun!

 

[AquaDaniel]

Sounds fun! I’d be willing to buy from a garage as long as the quality and price are good

 

[AnotherReefHobbyist]

Following! This seems like a fascinating journey and I hope it comes to fruition!

 

[Jacked Reefer]

Following along too! This is something I dream of doing. Seems like a lot of fun!

Sounds fun! I’d be willing to buy from a garage as long as the quality and price are good

Following! This seems like a fascinating journey and I hope it comes to fruition!

Glad people are as excited about this journey as I am! I there has been quite a bit of planning so far! Even got a few of the stand pieces cut after work tonight!

I will be sure to link the actual build thread that I start in this thread so all of you guys can follow along on the on the Journey! Maybe you can buy some good quality coral for a great price too!

 

[bradreef]

I have a neighbor that does it well. You need to setup a social media presence, online , and with your local reef groups. I would say weekly sales, weekly auctions. The more you put into it, the more sales will happen. But, you could make more money elsewhere.

 

[Jacked Reefer]

I have a neighbor that does it well. You need to setup a social media presence, online , and with your local reef groups. I would say weekly sales, weekly auctions. The more you put into it, the more sales will happen. But, you could make more money elsewhere.

Oh for sure! Once this is up and running I will be holding reef club meetings here. Lots of sales, near daily posts, I can already imagine what running a small fish business entails! It’s good to hear someone is having success with it!

As for the you could make more money somewhere else bit. You always can. I could have gone to engineering school or heck most trades pay more than a marine biology degree. Unfortunately I have a burning passion for the hobby and the ocean. And am willing to take whatever steps I need to to create success where I am passionate!

 

[bradreef]

I would recommend focusing on a need in your local market as well. Corals in demand, something that is hard to find locally. Pods, phyto. Whatever you think you can sell well. If you can sell 10 bottles of phyto a week at 15 dollars. The cost to setup and run that is probably around $15.