LE > None LE

[Tecra9100]

Any comments!

http://www.reefcentral.com/forums/sh...pagenumb er=1

[addict]

Well, I read through that whole thread, and while I agree on principle that frag prices are getting astronomical, I can't fault the sellers for charging the prices that they do.

I recently graduated with a degree in Economics, so I have a bit of insight into what happens within a 'market'.
Essentially, the sellers are charging the prices that the market will bear... if people weren't paying these prices, then prices would drop. If the sellers charged too low of a price, then there wouldn't be any frags to sell, due to the limited supply and huge demand. For instance, check out any number of 'exotic coral' websites and look at the waiting list for some of these exotics... I was looking at one list the other night that frags of a certain species were reserved through 2011!
That tells me that the price is too low on those frags... which sounds weird, I know. Essentially, the price of the coral should be what limits it's demand, due to the scarce supply.

If, for example, Ferrari's only cost about $10,000, how many people do you think would seek to own one... yet Ferrari can only turn out a limited supply of Ferrari's per year... it would be the same as if these exotic corals were only $10/frag... the demand would far outstrip supply, and you'd end up with a huge shortage and very, very long waiting lists.

Another example is gas prices during the late 1970's (if you were around back then). The federal government capped the maximum amount gas stations could charge for a gallon of gas during the oil embargo, and thus price was never the limiting factor in demand. So, there were huge lines for gasoline, and an alarming shortage... all because they wouldn't allow the price to creep up and become the limiting factor in demand.

I mean, if you went to get gas, and saw that the price is $3/gallon (in the late 70's that would've been a lot), then chances are you would start thinking about alternate forms of transportation, or limit your trips by car to conserve gasoline... but without the price being the limiting factor, you instead are never forced to make that choice, and conservation goes out the window... everybody wants as much as they can get because there's no limiting factor.

So, that being said, there's really nobody to blame in this scenario... the sellers are charging what the market will bear, the buyers are paying what they're willing to pay for these corals, and the market is in equilibrium... if the buyers weren't willing to pay the prices they do, the prices would drop, and in some cases I believe that prices are 'too cheap', because there's essentially a 'shortage' on some species.

Anyway, hope I didn't lose ya halfway through that.

[Witfull]

i went over this in my Acan rant a while back, when Calfo blasted the market for overpricing. if some one is selling "anything" for X dollars and if someone wants to buy it for X dollars, sold.

but on the flip side i see in alot of instances a "made up LFS" name put on a fish or coral and the priced jacked up. or in some cases out and out lying of collection points. listing it as australian when it came from the philipines..etc.

[BoomerD]

Yep, supply and demand drive this as with anything else. Some of the LE corals are fairly rare in the hobby, so that makes them more desirable to those who are into that stuff...There are plenty of $10.00 frags available for those of us too cheap to pay $200 for a 3/4" piece of something pretty
I certainly don't blame Tyree or the others cashing in on this craze. Look at the prices of acans, or a couple of years ago, blue zoanthids, or PPE's, and of course, one of my favorites, Rose BTA's...3 yrs ago, you had a hard time finding one for under $150. now, $20 or so will get you a nice clone from a hobbyist's tank...

[Witfull]

the thing i dont like to see is people buying stuff at high prices for bragging rights. if you want it for the coral, then by all means spend what you are willing too. dont get caught up with keeping up with the Jones'.

[mps9506]

Originally Posted by BoomerD

now, $20 or so will get you a nice clone from a hobbyist's tank...

I've noticed the prices of these have gone back up, at least through the wholesalers and transhippers. Dunno why.

But yes, I didn't click the link, I've read many of these threads at RC and RDO and heard to many people whine about the prices. I think if people are paying that much for a frag, then that's their buisness. This is a hobby which attracts people with money, some of these folks are willing to pay anything to get what they want. I have customers that will drop $500 on a fish without thinking about it, I just wish I had customers that would pay that much for a frag around here