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MARKETING RESEARCH FOR THE SMALL SCALE CORAL FARM | XENIA MARKETING TIPS FOR THE LOCAL MARKET


Reef Aquarium Farming News
Online Newsletter for Reef Aquarium Propagation Research

ISSUE # 17 page 3 JUNE 1998


MARKETING RESEARCH FOR THE SMALL SCALE CORAL FARM part 1

This months article will explain how to plan the marketing of the products you grow on a small scale coral farm. Plan your Coral Farm by remembering the most important rule of aquacululture -YOU CAN NEVER MAKE ANY MONEY GROWING FISH - and we can now add corals to this hard and fast rule.  YOU CAN NEVER MAKE ANY MONEY GROWING CORALS ----- YOU MAKE MONEY SELLING CORALS - it costs money to grow them.

During the past three years the Research Foundation at G.A.R.F. has researching ways that corals can be marketed. The Research we have been doing includes both laboratory work and personal communication with professional coral farmers from around the World.

The Foundations background includes two decades of applied research into commercial Aquaculture. We have done extensive research in the growing of tropical aquaculture products in the northern part of the United States using geothermal water to supply the needed heat. Tilapia, Giant fresh water prawns, and hundreds of species of tropical fish have been raised here at the foundation. We have been growing and marketing reef aquarium animals in an expanding research project for several years. We have been able to combine the data we have compiled from the reef hobby with the practical techniques used to produce aquatic animals for profit.

YOU CAN NEVER MAKE ANY MONEY GROWING CORALS
YOU MAKE MONEY SELLING CORALS
it costs money to grow them.

For the past 18 months we have been accelerating our research so that we can share a simple and inexpensive method of starting and growing a small scale coral farm.

G.A.R.F. is a nonprofit educational corporation that is dedicated to helping as many people as possible to start growing reef animals. This information is being collected and distributed to help celebrate the International Year of the Ocean.

The reef hobby has been able to propagate many beautiful, exotic, and expensive invertebrates and fish. Captive propagation is one of the best ways to protect and distribute these animals. Each generation of these animals is better adapted to the captive environment. Some of the most valuable and marketable reef animals have been ones that we did not expect to be so profitable.

This captive grown Zoanthid cave was made by hand and grown in a reef with hundreds of Reef JanitorsTM hermit crabs. Note the fine coralline algae growth.

Zoanthids and soft corals that are kept in beginners aquariums have been both easy to grow and easy to sell. These types of corals are in demand by the large number of new reef keepers who are entering the hobby.

Zoanthids and soft corals that are kept in beginners aquariums
have been both easy to grow and easy to sell.
These types of corals are in demand by the large number
of new reef keepers who are entering the hobby.

During the last two years we have seen the quality and size of wild collected reef animals decrease while the price has gone up. The Mushroom rocks we are purchasing this semester from wholesalers, who sell wild collected stock, are very much smaller than the same priced rocks we purchased just 18 months ago. The hobbyist can benefit from this declining supply of quality imported stock by growing these animals in aquariums. Next semesters series of articles will continue to give you pictures showing new methods of propagating reef animals of all types.

Our marketing research has been done with small scale, local invertebrate production as the main focus. This type of farming has several advantages over larger scale fish hatcheries. The methods used to clone reef invertebrates have been very easy to teach reef hobbyist. The same types of skills that are used to build and operate a successful reef show tank can be used to farm these animals for profit. The marketing methods that we will write about are only some of the many ways you can use to grow and market these reef animals.

The basic Zero Impact Reef - using AragocreteTM hand made live rock is a very good way to start this project because it will work. This system can be added to by using many other products and techniques. The "Rack Reef Farming" tanks can be changed to fit your market. G.A.R.F. does not say that any of these methods are the best or the only way to grow reef animals.

Much of our research has been conducted by growing these products for sale in the retail and wholesale market. We have learned that in this market the three most important things in selling reef animals are color, color, and more color.

When you are planning the marketing of the products from a small scale coral farm you need to consider the following things.

Are you good on the telephone?
Many hobbiest would be very interested in learning
about the new corals that are ready for sale.

1). What marketing skills do I have that will help me be a successful reef farmer?

Experience in any phase of marketing will provide valuable skills that will allow you to compete with the other types of marine livestock available in your area. Are you good on the telephone? Many hobbiest would be very interested in learning about the new corals that are ready for sale. You could run a series of small classified ads listing several corals at great prices so you could build a list of customers in your town.

Are you good on the Computer?  All types of computer skills will be very valuable during the early marketing phase. If you are able to make posters, hand-outs and other needed items you will save a considerable amount of money. Many petshops do not sell Marine fish, and they will often put up your poster so their customers can find captive raised reef animals. They may enjoy taking the business away from a competitor who sells wild collected stock.

HOW LITTLE YOU SPEND IS AS IMPORTANT AS HOW MUCH YOU SELL.
Many new farmers will go broke
THEY WILL SPEND TOO MUCH MONEY!

2). You can trade your captive raised reef animals for new colorful broodstock for your reef farm. Trading is one of the best ways to practice the most important thing a new small business owner can ever learn. HOW LITTLE YOU SPEND IS AS IMPORTANT AS HOW MUCH YOU SELL. Many new farmers will go broke in this type of farming in the same way that people all over the country go broke each year in all types of companies. THEY WILL SPEND TOO MUCH MONEY!

Your reef aquarium is the best source of future cutting stock. The animals you are already successful with can be divided for sale and trade. Soft corals, mushroom anemones, green star polyps, and small polyp stony corals are all valuable popular reef animals. Small colorful starts can be traded with other hobbyist. With the proper lighting and high quality water small cuttings can be divided in a very short time.

All of these wonderful sps corals in Sally Jo's aquarium were grown from small cuttings. This type of farming is going to take time, so you have the time to grow your own brood stock. I will say it one more time - It is better to purchase small colored corals than larger brown corals from the wild.

BE A BARGAIN HUNTER

There are two great ways to find bargains and they both take up more time than money.

1.) Watch the local newspapers for people advertising complete reef aquariums for sale. Many newcomers to the hobby do not understand that the aquarium hobby tends to be a winter pastime. Many people think that they have lost the passion for the hobby when the Spring and Summer days are so nice. I have been able to purchase very nice reef aquariums in the Summer from people who did not know they would be looking for a nice reef tank to enjoy next winter.

REEFS LIKE THIS CAN BE GROWN AT HOME
AND SOLD COMPLETE WITH CUTTINGS

YOU CAN SELL ENTIRE REEF AQUARIUMS

Many times people move during the Summer so their children can be ready to start school in the new city. Moving sales are great places to find aquariums.

I placed an ad in the Boise paper one year and all it said was I buy aquariums. I paid .50 cents per gallon and I could not use all of the aquariums people wanted to sell.

One good way to sell your reef production is to make your own live rock and grow the corals to fill a few larger reef aquariums. These aquariums set ups can be advertised during the late Summer.

Your corals will add value to the set up and you can collect phone numbers from the people who call about the reef set up.

2.) Many wholesale dealers will sell imported reef animals to the small scale farmers when they have the proper business licenses. Ask if they have blemished corals that are healthy. Retail stores often have damaged reef animals that can be purchased for less than retail. These purchases should be quarantined in the proper environment. Corals and other invertebrates that are damaged may not be cosmetically ready for retail sales, but they often are very good for making cuttings.

Any type of marketing takes time if you are going to do a good job.
We recommend that most people start this project as a part time venture.
The skills and experience needed to be successful at marketing can be learned from
the hands on selling of reef animals.

How much time do you have to give to marketing your product?

The more time you spend marketing your reef produce the higher the price you will be able to sell it for.

There comes a point when you may not want to spend the time finding people to purchase your corals at close to retail. This is the time when you may want to work with one good retail store in each town or market in your area.

Any type of marketing takes time if you are going to do a good job. We recommend that most people start this project as a part time venture. The skills and experience needed to be successful at marketing can be learned from the hands on selling of reef animals. By stocking your reef products in nice retail store you can devote more time to growing. Several pricing deals can be worked out with the retail store owner. Many people sell their corals to the stores and the stores take the entire risk that the coral will sell. Other people work with a trusted store owner and they sell their corals on a commission based pricing. Many stores will pay 1/3 of retail for corals that they purchase. These same retailers may be happy to pay 50 percent of retail when they sell corals that you leave there for sale.

Patience and faith that the reef hobby will grow as we provide more tank raised stock are important. If you are ready to build the venture over a period of several years you will not rush into doing things that overwhelm you or your systems.

How do I acquire the skills needed to market my corals so I can have a profitable reef farm?

Read as many books and magazines as you can. Keep an open mind while you do this research. Send for as many pricelists as you can find. Remember there are many ways to do this project right. There are only a few basic mistakes. Don't sell your corals for less than it costs to grow them and try to make up the difference by selling them faster and cheaper. :)

Often a mixture of these techniques can be used to build a marketing plan that is profitable.

1.)Attend your local marine aquarium club and talk to as many successful reef hobbyists as you can. Local society newsletters often charge very low prices for full page ads. You can advertise your corals and collect new names for your calling / mailing list.

2.) National and Regional reef conferences are a great place to meet other people who have much of the information you can use to build a reef farm. Booths at Reef conferences are a great way to both sell corals and to collect a list of customers.

3.)The internet is a new and powerful tool to use for marketing. Many web sites have been set up by companies who sell all types of reef products. We will explore this MUCH more in future issues.

Xenia is a great animal to start with because it grows very fast and it ships very poorly.
You can deliver nice Xenia covered live rocks in a large plastic cooler
and they will survive much better than any that the dealers can import.

5). How you market the reef animals that you produce will have as much to do with your long term success as how well you grow corals. We have found that Xenia and colored sps corals are very popular now.

YOUNG BALI XENIA CUTTING

Xenia is a great animal to start with because it grows very fast and it ships very poorly. You can deliver nice Xenia covered live rocks in a large plastic cooler and they will survive much better than any that the dealers can import. Colored sps corals can be fragged and mounted on a nice piece of live rock. We often mount 4 small frags of the same colony one inch apart on a rock. When the bases have grown together the rock can be delivered much better than it can be shipped.

Your local market is the best place to start. Many stores will be able to purchase items such as Xenias, mushroom rocks and other well grown cuttings. During the winter it is hard to ship reef animals successfully. Winter is often the busiest time for the reef hobby in many parts of the Country. If you can deliver quality reef products without the risk of importing them many dealers will buy or trade you for your stock.

Save a reef - Grow your own





XENIA MARKETING TIPS FOR THE LOCAL MARKET

NEW METHODS FOR PROPAGATING XENIA MAKE THIS ONE OF THE MOST PROFITABLE CORALS

Reef Aquarium Farming News

PROPAGATED XENIA CAN BE DELIVERED TO LOCAL STORES THAT HAVE A HARD TIME IMPORTING THEM

Many stores have a very hard time keeping Xenia that have been shipped for long distances. Some dealers report losses of 100 percent. Xenia corals have the added feature missing from all others - MOVEMENT. Xenia grows very fast when it is doing well, and it is easy to propagate if you follow a few simple rules. Xenia is one of the corals people always read about when they are starting their reef aquarium. This coral looks good in pictures and this creates a demand.

Several things come into play in Xenia marketing that do NOT have the same impact on most other corals .

1.) People buy a nice Xenia and fail to learn the simple methods needed to keep it alive, so they repurchase the coral.

2.) The Xenia colony grows so well that it fills the available space and then crashes when it becomes stressed. People often study this corals needs and they try again.

3.)The Xenia does very well and they want to collect as many types as possible because growing Xenia can be addictive:)

This opens a good local market for your tank raised Xenia. These types of reef products can be delivered to local stores with much better success than they have when they are packed in bags overnight.

We have been preparing the xenia for transport by stressing them several times and then washing the slime off of them in clean reef water.

THIS IS OUR NEW METHOD OF PREPARING XENIA FOR TRANSPORT.

1. We mount the rock or plug on a piece of styrofoam so it can be floated upside down. Rubber bands are used to hold the rock onto the foam. Be careful that the Xenia is not damaged.
2. We hold the xenia out of the water for one minute.
3. We have now started floating the Xenia in the reef it was NOT raised in for five minutes. This reef is the same temp., but it stresses the xenia slightly.
4. Wash the Xenia in front of a powerhead for one minute.
5. Refloat the Xenia in the reef it WAS raised in for five minutes.
6. Pack the Xenia in the reef water it was raised in. Use more water than you would for other cuttings

SOME HELP IN THE SHIPPING OF XENIA

Small corals are much better when the shipment is overnight. It is always nicer to receive a live small Xenia than a dead large one. Even when the larger ones arrive stressed they OFTEN do not make it. We have been using Lugols solution on any spots that are damaged when the Xenia arrives. We figure out how many drops the entire aquarium could use then we divide by one half. If the reef can be treated with 12 drops we put 6 drops in a bulb dropper and then slowly squirt the entire treatment into the damaged area. This bad part of the coral turns yellow. We use extra carbon in the reef during these treatments because we repeat them each day for 4 days. Carbon will remove the Iodine from the reef water.

We use ice pacs in the Summer when we ship Xenia and we have had about 100 percent success during the past year. The captive strains of Xenia are so hardy that we can give an unheard of live arrival guarantee. We use about 3 cups of water in each Xenia bag and we use several bags for each one. The rock the coral is attached to can cause single bags to leak. We use one and one half inch Styrofoam to keep the boxes from changing temp.


Xenia sp.

Most of the Xenia that have in the unconnected genetic bank have large polyps with pinnated tentacles that move in a rhythmic motion. These polyps are connected at the base. The colors we have are cream, biege, and light brown. Two and a half years ago we received a new colony from Bali that is cream with brown edges on the polyps. This Giant Xenia is growing very fast. It is the finest looking pulse coral I have ever seen!

BALI XENIA

THIS IS THE BALI XENIA

We have been able to propagate this Xenia by cutting off one polyp and placing it on a reef plug under a piece of fine netting. The best way to remove one polyp is to suck the polyp up into an air line tube and snip it off with a pair of scissors. The embossed type of fine bridal veil has worked very well for this type of production. We hold the netting in place with a rubber band. We have just stared making a large number of this Xenia and the newest clones - generation 5 - seem to be much easier to grow and to move from one aquarium to another. We have even moved some of the cuttings into new aquariums and they grow. This would have been impossible a year and a half ago.

Summer is a good time to have sales
and it is a good time to locate newcomers to the hobby
- the best group is the millions of people who have fresh water aquariums -
because they tend to stay excited during that first Summer.



SOME WAYS TO MAKE YOUR XENIA STAND OUT IN THE STORES AND SELL FASTER

1.)You can attach two xenia to one rock. The tag method of production makes this very easy. People love to get two corals for the price of one.

2.) Use larger rocks so the coralline algae is an added bonus. Many beginners will be looking for things to fill their reefs. If you are making your own rocks and you have the space, larger rocks will often sell first.

3.) Use two strains of Xenia on one rock. - COMBO ROCKS - the types of Xenia we are growing do not seem to damage each other when they touch. We often put two species on one long rock and these always sell very fast. People love a bargain and even a small colony of the common CREEPER Xenia adds value to the product.

4.) Print up some CARE NEEDED CARDS that can be handed out at the store. We have just purchased a new HP color copier for less than $500.00 and we will use it make color sales and care needed cards. These types of hand outs are POP- Point of Purchase and they can increase sales of your products when you can not be in the stores selling your corals.

5.) BE IN THE STORES SELLING YOUR CORALS. If the store owner will allow you spend some time on the sales floor you can use this time to teach the other sales people about captive raised corals. You can also get feedback from the customers so you will know what to grow. You need to learn to think like a farmer so you are planning and planting now what you will be selling in September when the reef habby kicks into high gear.

6.) Learn the seasonal ups and downs of the hobby in your area - in the North part of the U.S. the hobby almost dies every Summer when people start going outside. This cycle is less in South because people tend to do things outdoors all year. Summer is a good time to have sales and it is a good time to locate newcomers to the hobby - the best group is the millions of people who have fresh water aquariums - because they tend to stay excited during that first Summer.

IMPORTANT

1. Keep the Iodine level up by using Sea Chem Reef Plus at twice the regular dose.
2. Keep the reef below 78 degrees.
3. Move the Xenia into as many tanks as possible.
4. Keep cutting and trimming the colonies.


INDEX OF OUR RESEARCH
ALGAE CONTROL CENTRAL
REEF JANITORS ALGAE CONTROL CENTRAL

Use this site to solve your reef aquarium algae problems, and help support our research!!!

Learn how you can grow a wonderful reef aquarium like the one we visit in this JUNE 1997 special feature Learn to set up your own fantastic reef aquarium like
Sally Jo's

You can learn how a reef aquarium grows into a mature sps coral reef
Sally Jo's 55 gallon reef is starting to mature into a small polyp stony coral aquarium

We will add more about this aquarium each month

JOIN THE RESEARCH FOUNDATION

You can support our research and learn more about reef aquariums and wetlands

1997 WINTER - SPRING NEWSLETTER Our foundation is growing - Please visit our Newsletter

REEF AQUARIUM FARMING NEWS

Newest information on reef aquarium farming

CORALLINE ALGAE PROPAGATION

Learn to grow coralline algae on your reef aquarium live rocks


COMBINATION ROCK PROPAGATION

Learn to grow combination reef aquarium live rocks

COMBINATION ROCK BASE ROCK SELECTION

Learn about base rock for combination reef aquarium live rocks

COMBINATION ROCK SPECIES SELECTION

Learn about selecting species for combination reef aquarium live rocks

LOW COST BULLET PROOF REEF AQUARIUM

Learn to start an inexpensive reef aquarium

55 GALLON INSTA REEF
Visit Rachel's 12 week old Bullet Proof Reef Aquarium

MORE PICTURES OF THIS REEF AQUARIUM

Geothermal Aquaculture Research Foundation,Inc. online tour

Learn why we call it Geothermal

Super glue research page

We teach you the Super Glue method of invertebrate propagation

Super Glue evaluation page

Our researchers rate many brands of super glue

Geothermal Aquaculture Research Foundation Feed Back page

E-mail input so we can make these pages better

Natural Algae Control

Reef Janitor Order Page - red leg hermits, snails, grunge.

THIS IS WHAT OUR HAPPY REEF JANITOR CUSTOMERS SAY ABOUT THEIR NEW JANITORS AND OUR SERVICE

Research page for Xenia and related soft coral propagation

Learn to propagate xenia. Please enter any data you have about these corals.

Soft Coral Propagation Page

Pictures and details of soft coral propagation

Stony Coral Propagation Page

Pictures and details of small polyp stony corals

Mushroom Anemone Propagation Page

Pictures and details of mushroom propagation

Zoanthid and palythoa Anemone Propagation Page

Pictures and details of Sea mat propagation

Image Page for Zoanthids and Palythoa

Learn to construct a 140 gallon plywood and epoxy reef tank

This is one of our most popular pages. Many people have made their own reef aquarium.

Learn to construct an aquarium stand

WETLANDS SAVE THE WORLDS REEFS FROM ALGAE DESTRUCTION


COVER AND INDEX
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MARKETING RESEARCH FOR THE SMALL SCALE CORAL FARM | XENIA MARKETING TIPS FOR THE LOCAL MARKET

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