Bit of a Vent

[digital-audiophile]

Just my two cents.

The price differential does not sit at the level of the retail shop. The change needs to come at the manufacturing level.

If two of the exact same skimmer are manufactured in Germany and one is shipped to a LFS in Canada and one is shipped to a LFS in the United States with the dollar at parity and assuming that both stores have the same overhead and expected profit margin there should be no real difference in the price.

This of course should only apply to material that has been manufactured and shipped since the dollar has reached parity and it may take some time to ensure that the dollar does not vary from parity or near but in a years time I would expect to see prices on an equal footing. I know that we have to expect some differences on price based on different shipping lanes, duties and so forth.

Personally I have bought 99% of all my fish goods dry and live from local fish stores in my near three years in this hobby. I would persoanlly rather support my local retailer than even an online source like J&L. I have made a few purchases online but only becuase there were products I wanted that I could not find locally.

[fishmaster]

[quote=digital-audiophile;278851]Just my two cents.

The price differential does not sit at the level of the retail shop. The change needs to come at the manufacturing level.

If two of the exact same skimmer are manufactured in Germany and one is shipped to a LFS in Canada and one is shipped to a LFS in the United States with the dollar at parity and assuming that both stores have the same overhead and expected profit margin there should be no real difference in the price.

**********One difference I could see is Volume. Don't forget how small our population base is compared to the US. California has more people than Canada!!! I'm sure the "Big Player" vendors in the US could move volumes of product that would make our "Big player" vendors look like a joke in comparison. I run into this all the time in my industry, there are retailers down there who buy way more volume of certain product lines than we as a Distributor can buy. The cost is almost always lower with volume. So now you have US Retailers buying better than Canadian Distributors!!!! This isn't always the case, but it's not uncommon.************

[midgetwaiter]

Originally Posted by digital-audiophile

If two of the exact same skimmer are manufactured in Germany and one is shipped to a LFS in Canada and one is shipped to a LFS in the United States with the dollar at parity and assuming that both stores have the same overhead and expected profit margin there should be no real difference in the price.

Most of the time this isn't how it happens though. You usually can't call up a factory in Germany and say "I'd like 3 please". They're going to sell them by the pallet or not at all. This means you have to call up a wholesaler, almost always in the US, and get them from there.

Now there is another thing that comes into that with currency. USD and CAD are at par but keep in mind this has more to do with the relative weakness of USD compared to the strength of CAD. If that wholesale operation is buying from Germany they are now paying more and will pass that cost on. This is already starting to happen.

The option for local guys is to find ways to buy direct or find Canadian wholesale guys that do it. This isn't always easy or even possible though.

[Ken]

Hi Neal, I sincerely support and understand your frustration and venting because I have a similiar business and maintenance company that we operated. I live in a small town on Vancouver island, population less than 50,000 people, and the few aquarium reef hobbyists supports mostly online or out of town. My percentage of retail is less while my maintenance clients is my living. As our town is fairly small, there is not a huge reef hobbyist here compare to larger city like the mainland. Maintenances takes me up and down the island just to make a living. I have been in this hobby for 37 years and very passionate about, I am still learning and I am not about to quit. We have spent many hours with maintenance clients just staring at their prize aquarium because they are themselves passionate about the hobby. I just took a drive around town lately and noticed many retail stores have closed down. I feel supporting your local store for whatever at a reasonable price is fair, considering where you live. We are small but we provide good service and support our local stores and local charities. Where in our town can you come by at 10:00 pm and get a 10k MH bulb in an emergency? Tonight, we just picked up 3 boxes of Bali shipment, each and every one of these livestock will be accilimated carefully, housed in a stressfree environment, fed the best quality food and trained to aquarium life and then after 6 weeks or more, will be sent to one of my maintenance client's aquarium. They will not be advertise as "new shipment in" tomorrow. We are passionate and we do care about the livestock that are placed in our hands for their well being. Neal best of luck to you sincerely. Regards Ken