Recession and the Marine Industry

[MrPike]

I am a bit worried as to how the current economic conditions will affect the marine industry. I know that the "Pet" Industry is suppose to do fairly well during these times, does the same hold true for the Marine Aquatics side?

We started a greenhouse about a year ago and have been growing brood stock and are about ready to sell(to wholesale) right as the stock market is crashing and unemployment is rising.

So, my question is, how are you business owners in the industry doing during these less then stellar times?

Any insight is appreciated,

Thank you.

 

[Raskal311]

Stores are closing by the week and wholesalers aren’t stocking as much as they used to. Even Petco are closing stores in my area so the Pet side isn’t fairing as well as you may think.

However I can see an advantage in buying from a supplier that does not require government paper work and or large quantity so this could be an advantage for you.

 

[MrPike]

Sounds like its going fairly poorly then. Thats disappointing, but not surprising I suppose.

 

[JeremyR]

We've had some rough months, but have seen a slight improvement in january & so far in feb. I"m not ready to go optimistic yet, but we'll see.

 

[Raskal311]

I don’t think we’ll see the bottom until the end of this year.

 

[Twisted1]

We won't see a turn around for another 3.5 years....Obama will pull a miracle out of his behind to save the economy, just in time for re-election!

If you are planning on starting a business of any sort, I wouldn't smash the idea just yet, use the next couple of years to find out everything you can about that field, and smooth out any kinks in your plan...maybe even start setting up the base of it on a small budget to see if it comes together as well as you want it to.
Then when that "miracle" pops out and saves us all, you will be ready to start up nice and strong.

 

[swsaltwater]

Since summer is the slow season in this game I am thinking summer will be mass murder for Pet stores

 

[Anonymous]

I don't think the pet industry as a whole is holding up well, not when shelters are filling up with good dogs and cats that their families still love, but can no longer afford to keep, or are forced to move where they can't keep them.

 

[Raskal311]

Since summer is the slow season in this game I am thinking summer will be mass murder for Pet stores

My thoughts exactly.

 

[MrPike]

Thats really unfortunate news.


Those that own pet stores, has there been a significant decline in sales compared to last year at this time?

 

[dizzy]

Quit worrying. Haven't you heard the good news? The Dems stimulus plan/tax cut is going to put $13 a week more in people's hands. Let's just hope they don't raise the tax on gasoline.

 

[MrPike]

Quit worrying. Haven't you heard the good news? The Dems stimulus plan/tax cut is going to put $13 a week more in people's hands. Let's just hope they don't raise the tax on gasoline.

Lets hope thats 13 bucks more they spend on coral

 

[swsaltwater]

LMAO, maybe Acorn will install large reef tanks in their offices around the country, they got 5 billion........Sales are not far down from last year right now but several months last year were bad and i get a feeling nationwide it is horrible since I have been telemarketed by at least 4 dry or wet suppliers a day this week.

 

[C.Chadwick]

Hi, I'm new around here and wanted to share! We own a marine specialty store in Upstate SC and our sales, phone calls, etc. have drop drastically since last September. We've had a few really good weeks but as a whole, our store has been hit hard. But then again, we've managed to survive through a fire so this is a breeze compared to that, lol! I know of a local guy planning on opening up a store about an hour from here at the beginning of summer, in a college town at that, and MAN I feel for him. I mean, summertime, college town, and recession spell bad for ANY saltwater shop. Our service business has remained steady though. The only problem we've noticed in the maintenance side of the industry is some people not paying their bills which we're in the process of taking to court.

 

[JeremyR]

I don't do alot of service, but all the service guys I know are complaining that people aren't paying their bills, but for some reason still expect their tanks to get cleaned. Amazing how that works eh?

 

[JennM]

Our service is down a bit. Some have given up their tanks, some have cut the frequency of our visits, but we're hanging on to most of our customers. Fortunately no real issues with slow payers - I did have that problem in the past, but those are all "pay as you go" now.

I've seen an increase in small (nano) type tank sales - but a decrease in larger tank sales. Sign of the times.

Also, back in the day, a show sized coral colony would be out the door in a heartbeat - nowadays smaller colonies and frags seem to be the way to go.

Things change, and so must we. Those of us that can adapt and ride out this downturn will be that much stronger when things get better.

Jenn

 

[condiman]

I know from what I have seen in my companys area is that the LFS are still trying to rape people on the prices of corals. I know lately I have seen a slight increase in my sales due to the fact that I dont put a high markup on my products.

 

[Anonymous]

I don't do alot of service, but all the service guys I know are complaining that people aren't paying their bills, but for some reason still expect their tanks to get cleaned. Amazing how that works eh?

I do one tank outside of work and they haven't paid us in 6 months. Pretty annoying.

 

[reefrash]

I've had to tighten up a little AFA billing, but luckily with direct communication and sympathy I've had people cut back hours rather than get in above their heads [/fingers crossed]

 

[swsaltwater]

Sales are doing good now since the relocation. Service payments are an issue but not too bad. We are pushing people on a pay as you go system as well. I have sold two 450 gallon systems in the last 2 months and just sold a 300 last week. Nano's are still the best sellers however. Going to LA soon to get the glass and silicone for the second 450 build soon.