Is it worth importing?

[trido]

So, my wife talked me into writing off part of my tank as a business and then sell frags to help suppliment the hobby. I dont forsee too much difficulty in selling $100 a month in order to show some sort of profit. I am wondering if it is worth the time to try to import a couple cases twice a year to increase the variety I have to offer to my fellow reefers here in Seattle.
My questions are:

• Is it necessary to get a lisence to import corals?
  How difficult is one to obtain if it is necessary?
  Is it even worth my time in asking these questions?

 

[Raskal311]

It’s not worth the time to even open an account with a transship company much less importing it directly yourself for just a few boxes a year. I’m not even sure if any collection site would even sell only a few boxes at a time. It may be a better idea to make some type of deal with your local store for a box or two. I sell a box of corals every now and then at a very deep discount. In some case half of what I would generally charge for a particular piece.

 

[trido]

TY for the quick reply. Thats about what I figured.

 

[cindre2000]

The problem with transhippers is they make their money through quantity. If you look at their lists they sell their animals, and corals, by the bag. So, unless you want 30 fiji leathers, or 100 acro frags at a time, you would need to do some research into a wholesaler in cali or just working with a local store.

 

[jhemdal1]

I'm not a tax lawyer (but hey, I could play one on T.V.) - take care in trying to write off aquarium expenses. You have to be able to prove that what you have is more than a "hobby business". I don't know what the exact IRS regulations are, but they have certain criteria you must meet.

Jhemdal

 

[trido]

I'm not a tax lawyer (but hey, I could play one on T.V.) - take care in trying to write off aquarium expenses. You have to be able to prove that what you have is more than a "hobby business". I don't know what the exact IRS regulations are, but they have certain criteria you must meet.

Jhemdal

I am aware of these things. Thanks anyway.

 

[trido]

just working with a local store.

IMO it sure wouldnt feel right in asking my LFS to cut me a deal so I can go into direct competition with them. Maybe Im just not a cutthroat enough businessman.

 

[jhemdal1]

Sorry, its just when you wrote about writing off "part of your tank" as a business expense - that doesn't make the IRS qualification for a business (unless the tank is like Joe Y's 20,000 gallon reef<grin>). The kicker is that the IRS says you have to rely on it as part of your livelyhood - and $100 a month isn't at that level (for most people).

In terms of direct importing, I agree that you ought to explore transhipping first (although that is fraught with peril as well). For direct imports, Seattle is a POE so you won't need a USFWS exemption. However, each shipment needs the $95 fee for the 3-177 form. You'll also probably need a broker (since they can better walk you through the CITES issues). My broker charges me $180 per shipment, but I've been charged $300 in the past. I'm sometimes charged a $20 paperwork fee by the airlines. When you distribute those costs across a couple of boxes of corals, the numbers simply don't work out.

If you do try transhipping - watch for "spreading", where the corals come in packed 40 to a box, but the importer repacks them at 20 per box and then charges you for importing two boxes.



jh

 

[Piero]

So, my wife talked me into writing off part of my tank as a business and then sell frags to help suppliment the hobby. I dont forsee too much difficulty in selling $100 a month in order to show some sort of profit.

If only a nickel fell from the sky for every 'plan' exactly like this one that ends up in domestic squabbles and an audit. But take a look here if you're really interested in profitability and scale.
_________________
Gossip Girl Forum

 

[trido]

So, my wife talked me into writing off part of my tank as a business and then sell frags to help suppliment the hobby. I dont forsee too much difficulty in selling $100 a month in order to show some sort of profit.

If only a nickel fell from the sky for every 'plan' exactly like this one that ends up in domestic squabbles and an audit. But take a look here if you're really interested in profitability and scale.

Thanks for the link that actually provided some insight rather than giving me too much s**t for trying to make an effort to aquaculter some frags for my local Reefers.

I have been self employed for over six years and am well aware of what it takes to keep the tax man happy. I could go on about the tax man but my question was about importing corals. Not how to do my taxes. Worst case scenarios is I get audited and dont meet the criteria for a write off and pay back 3Gs for three years of time. BFD! You guys just let me worry about that when the time comes.

 

[jhemdal1]

trido,

You asked a series of newbie questions, so you are bound to get real basic advice. If you already "know all about it", then just say so and move on. I did give you some solid information on why not to import boxes of corals in small lots....


jh

 

[oldgrayhair]

jh, I think his last response was directed at the failed e-tailer's response. Not at you

Peace!

 

[clarionreef]

SOMETIMES.........
fish are the bait
to sell the frieght....
and mis-handling fees, and boxes, and documentation fees, and fuel and security surcharges, and delivery fees....etc.

THE INSIDE JOKE IS OF COURSE ...HOW DO YOU MAKE A WHOLESALERS MONEY WITHOUT THE OVERHEAD....Steve

 

[Piero]

on second thought, I'm obviously confused. :?
_________________
Mercedes 500

 

[jhemdal1]

Hey Steve,

So: what's the difference between a large pepperoni pizza and a professional aquarist?

The pizza can feed a family of four......



jh


sorry - its an old one, but it still cracks me up.

 

[Anonymous]

:lol: It still gets me as well :lol:

 

[clarionreef]

Jay,
I have a sadder one.
How do you support a family in the aquarium trade?
Marry a Tongan village girl.
She learns English, gets a job at a hamburger stand and soon surpasses your career .
Yep. My wife now makes 20 bucks an hour , has total insurance benefits, retirement porgrams , paid vacations,etc.,
Steve :?

 

[Anonymous]

Yah, but your getting good at growing tomatoes

 

[trido]

trido,

You asked a series of newbie questions, so you are bound to get real basic advice. If you already "know all about it", then just say so and move on. I did give you some solid information on why not to import boxes of corals in small lots....


jh

jh,
You are corrrect, I did ask newbie questions regarding the ins and out of importing corals. I dont have a clue where a person would start. I do however know how to do taxes as a business owner. So no, I dont know everything about it. Your first response addressed only my taxes. I should have thanked you for your insightful opinion in your next response but I didnt realize it was protocal for thanking every person for a valid helpful reply to a question.

jh, I think his last response was directed at the failed e-tailer's response. Not at you

This is correct. Comments like "nickels from the sky" only tend to make people very angry.


I really appreciate the fact that this thread has turned into a joke. I guess the industry forum is only for the elitist LFS owner etc. that knows everything about the money side of the hobby. If you think that trying to make a few bucks off a prop tank or two is a big joke then just say so. Dont insult my intelligence with stupid jokes. That may not have been your intention but that is what it feels like. If You posted what I thought was a stupid question in some carpentry forum. The fact that I could build your house from ground up doesnt give me the right to belittle you. I personally think that with only four decent SW LFS in the Greater Seattle area that a well managed hobby can turn a profit. Not on a ten or twenty thousand dollar a year scale, but enough to keep the tax man off my back.

Again, thanks to the few people that were willing to offer valid advice.

 

[Anonymous]

Trido, semi knowing your area, I think your assessment is fairly spot on regarding the local scene. If done right I think you could make a real go at this.

Rather then fuel anyone elses fires, you can email or PM me and I'll let you know what I know Jay did basicly lay it out in one of his posts though.