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Race

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swsaltater,
My cannon (as you say), is not leveled at the LFS. I will admit though it's huge barrel is leveled at AMDA. Kind of like in war,-- when a building is blown up innocent people inside get hurt. Probably going to be the same with AMDA members when I touch her off. I am not proud of it, please consider yourself a victim not a target.
 

JennM

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Why AMDA? Because they turned down your membership a few years back?

I'm not an AMDA member nor have I ever been one (although I was invited several times). So evidently I don't have a dog in that fight (or do I?)

That post quoted makes you out to be quite the martyr... but on one hand you boast about having a $250million business, then you selflessly throw out there that you're losing money.

Which is it? You can't have it both ways.

Jenn
 

Race

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Hi Jenn,
As I stated, made my money another way. I find it charitable at this point to buy half a million dollars of live fish and coral per month and distribute them amongst the hobby-- all with a guarantee to live. Makes me feel good inside to give something back.

One customer called me the "Aquatic Santa", if he knew the industry behind the hobby he would realize that I am more like Robin Hood.
 

JennM

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I think I get it.

Lose money on shipping - but I looked at some livestock prices - just some bread-and-butter stuff that sell well. Race's yellow tangs start $5 MORE than mine. Tonga Nassarius snails $1.00 more than mine. Zebra Turbo, $1.00 more than mine. Emerald crab, $1.00 more than mine. I could keep looking for more stuff, but I'm getting a fairly clear picture.

Yeah some stuff is cheaper but all of the stuff I looked at off the top of my head except a couple of tangs, was more expensive there than in my shop. Go figure.

I get it now :)

I'd bet that Race pays less for these items than I do because of volume - yet he sells them more expensively than I do (perhaps I need to raise my prices!!!). Even if he's paying the same as I am, without the expense of housing 74% of the stuff he sells (by HIS figures), that's a whole lot bigger profit margin than I get, having to house everything I sell and all. Heck he could even be paying a bit more than I do, and still be able to make money on the livestock, even if he loses a bit on the shipping end.

Somehow I doubt with a "$250million" business (again, his figures) that anybody is stiffing him for price at wholesale - no there probably are too many folks salivating at the chance to fill those orders themselves.

Last year I made the observation that Race had mastered the art of spin, clearly he hasn't lost his touch :)

Respectfully, of course :)

Jenn
 

JennM

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Race":3o78v1is said:
Hi Jenn,
As I stated, made my money another way. I find it charitable at this point to buy half a million dollars of live fish and coral per month and distribute them amongst the hobby-- all with a guarantee to live. Makes me feel good inside to give something back.

One customer called me the "Aquatic Santa", if he knew the industry behind the hobby he would realize that I am more like Robin Hood.

So you're giving it away now? Come on, Race, you can fool some of the people some of the time, but you aren't fooling me.

So now reef hobbyists are a charity case? Pardon me for finding that kind of condescending. My customers are hard working people from all kinds of walks of life - from kids whose parents want them to have a fun hobby, to affluent people who want a status symbol in their homes, and everything in between. I'd hardly view any of them as "charity cases" - not even the educators who spend their own money on tanks for their classrooms - or the group of special ed students that's coming to tour my shop today (third group this month).

This thread gets more and more entertaining each day!

Jenn
 

dizzy

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Race,
How succesful do you think Petco will be in trying to do dropshipping? You have already told us you think this is direction the industry should go so you must be flattered they are going to follow your lead. Also do you know which wholesaler is going to be the primary dropshiper of livestock for Petco. Surely not QM.
Thanks,
Mitch
 

Race

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Hi Mitch,
I do not know who is dropshipping for Petco. In all honesty I never spend a minute worrying about a competitor. I focus 100% on my customers.

I will say this. Petco will augment my sales. The most difficult task facing me is getting the hobbyist to make that first step to purchase a fish or coral sight unseen. Petco will get the entry level hobbyist to take that first step and I will outperform them from there. In other words, my inventory control will be better, customer service will be superior and my livestock quality will be greater. They cannot beat me in the long run and I wonder how long they will stay in-- not making money. I hope they do not exit as I need them to help me market the concept.

Thanks Mitch, Race
 

dizzy

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Race,
With all due respect I don't see why they can't do pretty much the same thing you are doing and thus effectively split the dropshipping pie with you. It will be in the best interest of the wholesaler they contract with to give them advice on how to do what you are doing. Like Jenn pointed out there is room to cut the prices you are currently charging on most items. What if they outmuscle you and get better pricing on fish and inverts. Are you really so naive as to believe a customer base build on lower prices will stay with you if you are no longer the cheaper option?
Thanks,
Mitch
 

JennM

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Well Race, if you're "losing money" and you made your fortune elsewhere only to squander it on the charity of being the Aquatic Santa (all Race's words, not mine) then how long can you stay in the game?

This is why I'm calling into question the whole martyr thing. If you're losing money at it as you claim, you can't keep it going forever, now can you?

There's nothing wrong with making a profit - so why be so reluctant to admit it?

Jenn
 

Race

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Hi Jenn,
I guess then that you have no danger of me stealing your hardworking customers, at any price. Why all the concern on dropshipping if your customers will not go for it. Is it because they work too hard for their money and therefore they will not enjoy Christmas from the Aquatic Santa ? Even I do not have that much pride.

Off to work, talk to you guys in a few days. Thanks, Race.
 

Race

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Hi Jenn,
I have made a fair amount of money selling other things. Never made a dime selling livestock and do not intend to. It is my labor of love. I am fine with the martyr thing though, as you call it. It is in my personality to hoard titles.

Now I am off to work------Race
 

Tropic

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Ho Ho Ho

:roll:

Post edited for violating the User Agreement Addendum; The Industry Behind the Hobby Forum. Futher violations may result in the revocation of posting privileges - Thales



Race, noone is scared of your pea shooter, or your gatlin gun....Keep shaking the cage though!

Mods, dont delete this. These are fair comments, and wasnt race already banned? he just changed his username and that works with you guys?
 

pyrrhus

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Tropic,

Thank you for your insightful commentary. I am certain that it will help to move this conversation forward.
 
A

Anonymous

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Tropic,

I edited the paragraph with the pot shots in it. The thought behind the comments are fair, but I felt the way you chose to express them wasn't.

Race was never banned, he was asked not to post in the forum. Enough time has passed to give him another go - this is pretty standard practice on RDO.
 

pyrrhus

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Race,

I find it interesting that you are taking aim at an organization that has not even updated their home page in 4 years. It would seem that the AMDA is all but defunct unless they communicate with their members through other means.

Your comments are appreciated.

Matthew "Skip" McMahan
About The Reef
 

Tropic

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Post edited for violating the User Agreement Addendum; The Industry Behind the Hobby Forum. Futher violations may result in the revocation of posting privileges.

No on is asking you to be utopian, just cordial. Rebut all you like, just leave out the pot shots and the name calling. In other words, act like the professional industry people you are.

FYI - I am an LFS employee, a wholesale employee, and I do web work, graphic design and product shaping for a reef food manufacturer. Don't mistake different opinions than yours for non involvement in the issues.

Thales



I find his remarks deserving of a rebuttal, especially being that he wants to make my customerbase innocent victims of the game he wants to play.(his words) Am i supposed to be cordial with this guy? He is attacking the infrastructure of the trade for his own selfish gain. You mods need to realize that tense issues will be discussed on here and i think the comments need to be heard by all. Keeping it polite for the online utopian wont work because of the nature of this forum and thread. It is about our future.....not yours. You guys have "real jobs" and the outcome of change doesnt affect you one way or the other. (well, actually it does, youll get cheaper stuff, which should make all of the frugal hobbyists happy)

If you cant understand this, then go on and edit me.
 

dizzy

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Matthew,
I find it interesting that Race has never turned a profit on livestock. Around the time of the big brewhaha that got Race asked not to post on rdo, he told me around 25% of all the livestock coming into LA was being shipped out for him. When I look at what liveaquaria sells stuff for and knowing what the wholesale price is on those items it leads me one very sad conclusion. At least half of everything they ship out must be dying and the guarantee they offer is robbing them of profit. If the animal rights people ever learn the truth about how much blood is on the hands of this dropshipping scheme the industry will be indefensible. Peter has finially gotten the proof he needs of high loses in this industry. All he has to do is analyze what Race has told us and do the math.
Mitch
 

JennM

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Race":rkj0hve2 said:
Hi Jenn,
I guess then that you have no danger of me stealing your hardworking customers, at any price. Why all the concern on dropshipping if your customers will not go for it. Is it because they work too hard for their money and therefore they will not enjoy Christmas from the Aquatic Santa ? Even I do not have that much pride.

Off to work, talk to you guys in a few days. Thanks, Race.

I really don't think I had too many concerns about it.

The original concern in this thread about dropshipping was SDC's role in doing so for TFO. I simply drew a comparison when I contacted TFO asking about their practices, and you jumped in from there.

I am concerned that their answer wasn't the "whole truth". Given what's been said in their reply, if I knew nothing more about them, I'd go away with the assumption that they house all their own stuff themselves, which would be very misleading.

Given what I do know from Eric's statements in this thread, drop shipping does occur. So I can now assume a couple of things - they may house some stuff and drop ship some stuff, OR they may occupy the same space as SDC and have some sort of "sharing" agreement and therefore their answer was truthful.

My bad I guess for not being completely specific. So to follow up with them I sent the following email this morning:

Thank you for the reply.

Perhaps you can clarify something for me then. I participate in an online message forum for the marine aquarium industry, and your drop shipper admitted he does this for you, in a public forum. He denied it at first, but when a client of his mentioned receiving one of your acclimation sheets in his retail store order from the wholesaler, the truth came out. He has stated for all to see that he does indeed drop ship for you.

So you are telling me you house your own specimens. Is that ALL specimens you sell, or do you house *some* and drop-ship others? You never addressed the drop ship question in my initial email. I made the comparison to Liveaquaria because they house *some* but drop-ship *most*.

Looking forward to your answer.

Jennifer

Somehow I'm not expecting a reply to that one - but we'll see.

My PM box has been buzzing on this topic too - and I even got a phone call about it but alas, I did not have time to speak with the caller because I had a bus load of special ed students learning about marine life in my shop when the party called. Hopefully they call back because I'd like to discuss it more :)

As for Race and his martyr thing - I'm sure this subject came about last year when he was asked to refrain from posting - but since the subject keeps coming up, I'm sitting here wondering how Race can maintain his position that he's the political voice and savior of the hobby? Savior from what? And who's he saving?

Let's see - let's sell livestock at a loss (which I really have to question the validity of that statement, but I'll take it at face value for the sake of this discussion) - sell it at a loss, guarantee its survival for 14 days regardless of what the buyer does with it, and be the champion to the great unwashed masses of people in this hobby.

Let's think about how that's a "benefit" for the reefs, and the hobbyists for a moment, shall we?

If a hobbyist buys something locally, *maybe* pays more for it (but then again, I didn't see much that was cheaper than I sell it for...), after discussions with a good LFS (and we know there are good and bad everywhere), they've done their homework etc., and it dies after the short LFS guarantee expires, they are more likely to either not try that specie again, OR figure out what they may have done wrong first, before they try another.

With the blanket guarantee - no problem, get a free replacement (with more losses to Race on shipping - right because he loses money every day on shipping...) and carry on. Perhaps a second specimen dies - don't know if Race will replace the second DAA - but even if he doesn't, that's 2 dead for the price of one. That's great for the reefs - NOT.

Meanwhile, as it's perceived by some, this practice "causes" the demise of the local stores that supported the wholesalers for all these years (I don't necessarily agree with that thinking - but it's something that I hear quite a bit that etail will make the LFS extinct). (Allegedly) Selling livestock at a loss also devalues the creatures themselves, so people can buy all they want, regardless of whether it's appropriate for them to or not, because it's cheap. How's that good for the reefs and the hobby?

And as Mitch pointed out, if Petco (or anybody else) is following the same business model, why does Race expect them to funnel him business? It could easily work the other way too. Further devaluing of marine life. That's just great, isn't it?

Feedback that I get from drop-shipped livestock is that for coral frags and little stuff like that, it's fine. For fish, or more delicate creatures, it's often a case of once bitten, twice shy. Plenty of my customers have *tried* ordering online, and once they realize they didn't save anything, or got something they were disappointed with and then stuck with, they opted not to do that again.

I can see it being good for people in areas that aren't served by a local store - but then again it's hard to get into a hobby when you can't find a store to serve you in the first place - usually that's an established hobbyist who relocates to a new area, although not always I guess.

Folks, we don't have to cross the lines of decorum to get our points across - we just have to tell it like it is.

Race, you haven't changed a bit since last year :) You have no "low self-esteem" problem that's for sure. I read a good chunk of this thread to my service technician and she left here laughing her head off, well at least she'll serve her customers with a bigger smile today :D

Jenn
 

Race

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HI Mitch,
Please do not assume that all of the fish that I get my hands on are dropshipped. I am not sure that you know if I am selling you fish or not. The beauty of being privately held.
 

Race

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Hi Jenn,
My sales have no impact on the reefs. Remember that I do not create business, I only take it from retailers. The reef pressure remains a constant. Right?
 

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