Small Coral Business?

[Roli's Reef Ranch]

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

Are you planning on running it as a non-profit? If so, you may be successful.

 

[TangerineSpeedo]

All my corals are Local. Either from the Coral Farmers Market or local reefers.

 

[Mr. Mojo Rising]

This is why I drive so far for my corals. Check this out:

Big City LFS Price:

Small town basement 2 hours away:

 

[Jacked Reefer]

All my corals are Local. Either from the Coral Farmers Market or local reefers.

Good! I try to shop locally whenever I can. Marketplace, friends, or LFS are where I get most of my equipment from, and I will ALWAYS continue to do that. (or shop at businesses with a greater cause than making money online).

This is why I drive so far for my corals. Check this out:

Big City LFS Price:

Small town basement 2 hours away:

If I remember correctly wholesale cost for a rock of 10-20 discosoma mushrooms that resemble those was around 75-80 dollars! I cant believe what big stores feel like they can get away with. This is why I want to start my own shop!!!!

 

[Rick's Reviews]

It's great having the chance to set all this up, I'm kinda in a similar situation, it's not the problems setting all this up and money to do it, the problem being it's not a constant income.
You could have say 200 frags for sale.. so they all sold in first month great, so now your waiting for another 3 months to grow another 200? Then they become unpopular, so now your stuck with 200, no room to move on. Just my thoughts sorry

Unless you can get your hands on sought after fish/coral and maintain/ culture them for months or even years it will work out well, it's definitely not a millionaire maker hobby

 

[Jacked Reefer]

It's great having the chance to set all this up, I'm kinda in a similar situation, it's not the problems setting all this up and money to do it, the problem being it's not a constant income.
You could have say 200 frags for sale.. so they all sold in first month great, so now your waiting for another 3 months to grow another 200? Then they become unpopular, so now your stuck with 200, no room to move on. Just my thoughts sorry

Unless you can get your hands on sought after fish/coral and maintain/ culture them for months or even years it will work out well, it's definitely not a millionaire maker hobby

Oh for sure! This will just be supplemental income for right now, and I'm not having to really rely on what's in vogue vs. what I can grow as at least initially most of my stock will be wholesale/transhipping.

I do plan on getting into fish/coral culture when I have even more space and finish up my degree, But for now, Im focusing and bringing quality cheap corals to a market with almost 0 coral in circulation.

 

[Jacked Reefer]

UPDATE!!!!
For everyone watching this thread waiting for updates, here they are! Made a thread for my builds and recording things. The post gives a more detailed record of what I have planned and what systems I have. So If you have any insight you can share it on that post as well!
Jacked's Coral Emporium

 

[Opus]

Don't forget to collect taxes!

 

[Jacked Reefer]

Don't forget to collect taxes!

Of course! Gonna run everything legit and clear from day one! not underground cash sales for me! I have worked at fish stores where this is an issue and don't want to deal with that at all.

 

[Rick's Reviews]

Wish you the best succes

 

[Troylee]

Plenty of them in Vegas! The 2 biggest fish stores in Vegas started out of their garages lol… it can be done but it’s a lot of work! The stores moved from selling coral out of a garage to a store and sell mostly fish and do Maintence, Maintence is where the money is..

 

[Opus]

Of course! Gonna run everything legit and clear from day one! not underground cash sales for me! I have worked at fish stores where this is an issue and don't want to deal with that at all.

The problem is when you start shipping out of state and may need to collect out of state sales taxes. Each state is different and you would probably be too small to worry about but you never know.

We have one guy that has done very well selling out of his garage. He is always posting pics of the 20 or more boxes he ships out each week. He does probably 90% of his business on facebook so he is always on the edge of being shut down. I got in trouble for using the wrong word on his page and got a note from him. He does the one thing I hate which are raffles. He always has a couple going and I believe they are illegal to run. He has taken it to the point of having a raffle to win a spot on the main raffle.

 

[Jacked Reefer]

Plenty of them in Vegas! The 2 biggest fish stores in Vegas started out of their garages lol… it can be done but it’s a lot of work! The stores moved from selling coral out of a garage to a store and sell mostly fish and do Maintence, Maintence is where the money is..

Unfortunately the maintenance gave us very oversaturated here. I know of at least 4 individuals that each have 20+ accounts, and 3 businesses that have wayyy more than that. If someone approaches me and wants their tank cleaned I will do it! I know how to and what to charge. But I’m hoping to supply these maintenance companies with the livestock they need! As only one of them has a holding facility.

 

[MoshJosh]

That the dream right! I think it would be super cool to have a little shop in your garage or shed (dreamt of a discus breeding shed back in my FW days).

 

[Jacked Reefer]

The problem is when you start shipping out of state and may need to collect out of state sales taxes. Each state is different and you would probably be too small to worry about but you never know.

We have one guy that has done very well selling out of his garage. He is always posting pics of the 20 or more boxes he ships out each week. He does probably 90% of his business on facebook so he is always on the edge of being shut down. I got in trouble for using the wrong word on his page and got a note from him. He does the one thing I hate which are raffles. He always has a couple going and I believe they are illegal to run. He has taken it to the point of having a raffle to win a spot on the main raffle.

That is definitely something to consider. I’m not planning on doing any gimmicks like live sales or raffles. Just good old fashion coral selling. The business had become way to inflated with crazy ideas and flashy marketing tactics. I want to steer clear of that as much as possible.

That the dream right! I think it would be super cool to have a little shop in your garage or shed (dreamt of a discus breeding shed back in my FW days).

I did have a breeding pair of discus at one point. But I was to focused on my rare apistogramma breeding to raise the babies up. (They kept eating em :/)

 

[MoshJosh]

I have been thinking about this a bit (probably not at my current house but when I move in a year or so). Thinking about setting up 3 systems in stock tanks. SPS, LPS, and softies. . . growing a fragging plus buying wholesale and reselling if possible.

https://www.tractorsupply.com/tsc/product/behlen-country-round-end-sheep-stock-tank-50-gal

 

[Gumbies R Us]

Hoping for the best success for you!!! I think it would be a really neat idea

 

[c_healy]

I saw in your other thread you are in N. Florida, if you’re otw to Jacksonville we would stop in on our way to the shops there. I’m in the SC low country and jax has the closest good stores.

 

[Jacked Reefer]

I have been thinking about this a bit (probably not at my current house but when I move in a year or so). Thinking about setting up 3 systems in stock tanks. SPS, LPS, and softies. . . growing a fragging plus buying wholesale and reselling if possible.

https://www.tractorsupply.com/tsc/product/behlen-country-round-end-sheep-stock-tank-50-gal

I may use stock tanks in the future. Especially if I need a few hundred gallon systems. Currently I’m trying to stick with tanks as I am much better at cleaning when I can observe it. I even have a “battlestation” planned that is just a big comfy chair I can look at the tanks in while doing business stuff.

Hoping for the best success for you!!! I think it would be a really neat idea

Thank you! Just trying to make my dreams come true. I feel like I’ve been working in the industry to long with little to show. I want to make a difference in the aquarium hobby.

I saw in your other thread you are in N. Florida, if you’re otw to Jacksonville we would stop in on our way to the shops there. I’m in the SC low country and jax has the closest good stores.

if I was near a city with any good stores I wouldn’t be setting up a garage coral shop!!! If you ever make it over to Pensacola you are more than invited!!!

 

[affan]

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.

That's a good advice, will surley try this out