Factors that determine Coral Pricing.

[Davidl919]

I was asked by a child "Why are corals so expensive" I didn't have a quick answer to this and what I will usually do is google certain words to see if I can find the answer by collectively reading some results. I googled and didn't come up with much, just a thread at R2R about the chalice craze and LE Sps.
Since I could not get a precise answer but I know I have read some material on it I answered with the following:

"Pricing of corals are determined by a few factors. Most important is its availability. If it is limited the price is higher and usually the demand is greater so prices are usually high when a coral species is first introduced.

Second is where from and wether it is captured or wild. If a coral is imported from australia it's usually a higher price ...than a hawaii or carribean Coral. If it is raised in a captive enviroment and then sold then chances are there are overhead charges for the company/person captively growing it in a facility, but captive grown corals usually are hardier than wild corals.

A very dumb factor for pricing is fads. If someone says a certain species of coral is the new fad and it catches then overnight you can see the same coral that cost $80 before the fad, shoot up to $400. Google the term My Miami chalice to see an example of this. A few years back you could buy any chalice for under $80 for a frag the size of a quarter, now a frag the size of a quarter will cost you in the upwards of $300.

This was off the top of my head I couldn't find any info on this when I googled it, but I know I have read most of the info I posted from either books or forum postings"

Please correct me if I am wrong or add to this.

 

[motortrendz]

i agree 100%..soon a new entry level aquarist will not be able to afford to get into this amaizing and rewarding hobby.. they will be stuck getting 10 heads of palys that are LE bc theyre a special color under the attinic lights and spend 100$ on them.. meanwhile some of the great members here are giving those same run of the mill palys away for free bc they grow like wildfire..

theres really no way anymore to find out if something really is LE or just sold as such bc so many names are made up and changed from LFS to LFS...

 

[Killerdrgn]

it's like all market prices, it's based on supply and demand with asymmetric information.
Basically anyone can label any BS coral with a limited edition, deep water, Japanese, Australian, etc tag, and because people don't actually know any better the prices automatically shoot up. And basically the only people that really know where a piece of coral actually came from is the diver that dove down and retrieved it.

 

[Master Shake]

I also agree with the above. The newest "fad" will charge more. Also the more common it is and the faster it grows usually the cheaper it is and reverse for the other way around. It also depends on fuel prices at the time, shipping goes up. If a coral looks nicer than a different one just like it stores and suppliers will charge more because someone is more likely to want it and pay for it. Also this one is the best answer: Developed countries like the united states fine and tax the hell out of corals and fish. That is why hawaiian/australian fish and corals are so expensive. Besides protecting and funding the habbitat they know what these things can go for/are worth and what people are willing to pay so they see it as a chance to get more $$$ out of us. 3rd world countries always 9 out of 10 times have extremely cheap corals to supply. They just get expensive when the U.S. suppliers and fish stores get them and realize how nice they are then just jack the price up.

 

[Wes]

Supply and Demand.

 

[Dre]

HONOLULU, Hawaii (Achieve3000, November 10, 2009). If you wreck the coral reefs around Hawaii, it will cost you. Two years ago, the state began charging fines to those who damage corals. Why? Corals are a resource that is important to Hawaii's delicate environment. They are also important to the tourism industry.
"People are going to have to be more careful out here, because if [corals keep] getting damaged, we're going to lose [them]," said Laura Thielen. She is on Hawaii's Board of Land and Natural Resources. The group decides how much to fine people. "We have to take some very strong action or else it's going to be too late."
Hawaii officials feel that charging fines is the best way to protect coral reefs. The reefs provide habitats for fish. They help protect shoreline areas during storms. Reefs also support snorkeling and scuba diving industries. Hawaii is home to 84 percent of all corals in the U.S. About 15 percent of those is found near the main Hawaiian Islands. They reach from Niihau to the Big Island. Another 69 percent is near the Northwestern Hawaiian Islands. President George W. Bush made the waters near the northwestern islands a national protected area in 2006. This keeps the corals in this area safe from human actions.
The reefs in the protected area are in good shape. But corals near cities on the main Hawaiian Island are suffering. These corals face various threats. Overfishing can harm corals. So can runoff from fertilizers, waste, and other materials. Careless ocean users are another danger. Boaters and divers can kill a 500-year-old coral in minutes, just by touching it.
Not all corals die as a result of these threats; some are merely injured. However, scientists say that climate change has made the ocean a more difficult place to live. Injured corals are weakened. They have a tougher time dealing with rising ocean temperatures. Increasing levels of carbon dioxide and other effects of climate change also weaken sea life.
"It's the same as if when a disease hits people; it's the weaker ones that will normally be the ones that suffer the [most]," said Kuulei Rodgers. Rodgers is a Hawaiian scientist who studies sea life.
Until two years ago, the Hawaiian government seldom charged fines to people who harmed corals. Instead, officials educated people about reefs. Leaders asked people to help with the cost of restoring damaged corals. These actions weren't enough, however. In June 2007, Hawaii charged its first-ever fine for breaking corals. It ordered tour operator Crystal Seahorse to pay $7,300. The fine was for entering a protected area and breaking 11 corals there.
Other fines have followed. Maui Snorkel Charters is paying the largest penalty so far. In 2006, one of its tour boats sank after developing engine problems. No tourists were hurt. But the company later caused even more damage by trying to bring up the boat. One scientist for the state of Hawaii believes it will take 80 years for the corals to grow back. Maui Snorkel Charters is paying $396,000 in a settlement.
In another case, Hawaii plans to sue the U.S. Navy over a 6- to 10-acre area of wrecked coral. It was damaged when a ship ran aground. The Navy has already spent nearly $40 million on ship repairs. It has also spent about $7 million restoring the reef.
Florida is also moving to protect its reefs. About 2 percent of U.S. coral is found in Florida. This is more than any state besides Hawaii. In July 2009, Florida passed the Coral Reef Protection Act. The law allows state officials to fine people who damage coral reefs up to $250,000. Officials can also sue for unlimited amounts of money.
The fees for damaging corals are high. But the cost to the injured coral reefs, and the fish they support, is even higher. Tori Cullins is co-owner of a tour group in Hawaii. She supports fines. Cullins says that the fees may be the only way to get people to think about how their actions affect corals.
"Unless you hit people in the pocketbook, I don't think it's going to matter much," said Cullins.

 

[Dre]

A little off topic but that was an article from my children's school asignment that would contribute to the cost of corals etc.

 

[j900]

GREED!
SELFISH- caring only for oneself

 

[Chongpark27]

Supply and Demand.

I agree with wes :sgrin:

 

[Imbarrie]

Supply, Demand and Marketing.


Sent from my iPhone using Reefs

 

[albano]

Supply, Demand and Marketing.

Supply+ Demand+ Marketing+ GREED = :bunnies:



.

 

[jaa1456]

Actually, over the years I have seen certain coral prices drop dramaticaly as others have gone up. When I first started 16 years ago Live rock was 22.00 a lb. And frogspawns were going for 100.00 a head. There were no sites like this with other members selling and trading for lower prices. I mean when I first started the internet was no where close to what it is today. remember dial up? LOL. I also remember yellow tangs costing 10 - 15 bucks and imerator angels going for well over 200 for juvinelles. Once people get bored of certain corals and fish, they move onto the next thing. Chevron tang today 170 -200, achilles 200 and up. WOW, I bought my achilles for 40.00 bucks years ago and the chevron was what 80 bucks. I know some is inflation, but more of it is the demand. The larger angels are getting cheaper because more people want reef safe angels.

 

[Killerdrgn]

Yeah jaa that's what asymmetric information is all about. People will pay more when they don't have the proper information.

 

[prattreef]

And, hobbyists are their own worst enemies by obsessing over LE names and "rare" morphs etc, because the exporters overseas monitor the reef boards, see the trends and manipulate the market ( both price and supply wise) accordingly.

 

[jaa1456]

Yes very understood Killer, I was putting out examples from my own experiences.

 

[Imbarrie]

Supply + Demand + Greed = Branding