Brs taking over marine depot

[zalick]

Nope. Just talked to BRS directly about this. Ryan and Andrew still own BRS (from what I gathered)

It appears from Betrams PR that they basically purchased the Youtube and social media revenue stream from BRS. And the announcement that MD will be keeping a MD branded you tube/social media presence but closing the stores, strongly suggests this merger was also for the same purpose and controlled by Bertram.

The real money made by BRS is social media eye balls, not selling widgets. This will likely lead to less product choice for us consumers. but more fancy videos to spend hours per day watching.

 

[rtparty]

It appears from Betrams PR that they basically purchased the Youtube and social media revenue stream from BRS. And the announcement that MD will be keeping a MD branded you tube/social media presence but closing the stores, strongly suggests this merger was also for the same purpose and controlled by Bertram.

The real money made by BRS is social media eye balls, not selling widgets. This will likely lead to less product choice for us consumers. but more fancy videos to spend hours per day watching.

I'm not BRS but Ryan was completely open and honest at one point that YT revenue didn't even cover the costs to make the videos. That was a while back though. I doubt it has changed a ton. BRS has a lot of overhead to make videos and have a social media team.

But I highly doubt a private investment group didn't do some research to see profit and loss...

I will say this, people love to hate on successful companies and think they're always trying to shill products, but the very first thing I was told once this went public was how excited some
BRS employees are that they now have Aqumaxx! At the end of day, the vast majority of BRS employees are hardcore reefers. They love equipment like a lot of us do.

I was told years ago that MD was trying to find a buyer. They've been "for sale" for a very long time if the rumors are true. BRS is about the only industry company that could (or even would) buy them.

I believe we will see good come out of this as a hobby.

 

[zalick]

I'm not BRS but Ryan was completely open and honest at one point that YT revenue didn't even cover the costs to make the videos. That was a while back though. I doubt it has changed a ton. BRS has a lot of overhead to make videos and have a social media team.

But I highly doubt a private investment group didn't do some research to see profit and loss...

I will say this, people love to hate on successful companies and think they're always trying to shill products, but the very first thing I was told once this went public was how excited some
BRS employees are that they now have Aqumaxx! At the end of day, the vast majority of BRS employees are hardcore reefers. They love equipment like a lot of us do.

I was told years ago that MD was trying to find a buyer. They've been "for sale" for a very long time if the rumors are true. BRS is about the only industry company that could (or even would) buy them.

I believe we will see good come out of this as a hobby.

I hope we do see good! I think more competition is generally a good thing. I’m also very happy for Ryan, Andrew and team that they were able to partner with a PE company and sell a % for likely a great amount and make some real $$. As an early stage/angel investor myself, I’m happy for anyone who achieves a full or partial exit!

 

[rtparty]

I hope we do see good! I think more competition is generally a good thing. I’m also very happy for Ryan, Andrew and team that they were able to partner with a PE company and sell a % for likely a great amount and make some real $$. As an early stage/angel investor myself, I’m happy for anyone who achieves a full or partial exit!

I agree. I am 100% for competition and all it brings. Companies get lazy when no one competes with them.

First thing I asked BRS was if we would see them bring in all the halide options that MD has had. Even if it meant drop shipping and not taking up BRS warehouse space. I can say I wasn't told no...so I really really hope we see BRS pick up Hamilton and others with this.

 

[reefwiser]

As a long time hobbyist I see this from the cost and availability of livestock point of view. Due to the high cost of animals and the restrictions of collecting the last few years. Less people are entering the hobby. If the market was thriving there would be more online sellers not less.
With one less reseller the companies selling products have less outlets to distribute their goods. Causing less completion and keeping prices high.
Less options is never a good thing.

 

[rtparty]

As a long time hobbyist I see this from the cost and availability of livestock point of view. Due to the high cost of animals and the restrictions of collecting the last few years. Less people are entering the hobby. If the market was thriving there would be more online sellers not less.
With one less reseller the companies selling products have less outlets to distribute their goods. Causing less completion and keeping prices high.
Less options is never a good thing.

I understand that 2020 was an odd year in MANY MANY ways but the hobby nearly doubled in size last size according to the few things I have seen. A very large number of people entered the hobby last year.

My dark humor side is excited for all the great used gear that will be availble aroud Fall and Winter

 

[Two Tides Aquarium Supply]

I would also advise you to check out @Two Tides Aquarium Supply - Tyler and Cody are fantastic!

Thanks for the mention RC

To Your Success
- Tyler Moon
Owner @ Two Tides Aquarium Supply

 

[SantaMonica]

Nice to learn about Two Tides

 

[reefwiser]

I understand that 2020 was an odd year in MANY MANY ways but the hobby nearly doubled in size last size according to the few things I have seen. A very large number of people entered the hobby last year.

My dark humor side is excited for all the great used gear that will be availble aroud Fall and Winter

The churn of hobbyists in the hobby is a real issue. Most are in and out of the hobby in a short period of time. Might be great for sales and for buying used equipment. But doesn’t make a healthy atmosphere.

 

[rtparty]

The churn of hobbyists in the hobby is a real issue. Most are in and out of the hobby in a short period of time. Might be great for sales and for buying used equipment. But doesn’t make a healthy atmosphere.

I know your username and know you have been around a long time like I have...it has been standard to lose over half the new hobbyists within 1 year. It has been that way since I started back in 2006. So this isn't anything new

 

[Roli's Reef Ranch]

I think, since they mostly sell equipment and supplies, that is the way it will play out.
For the most part, they're a retail sales business. They're going to be selling most things @ or close to MSRP, with margins not too far off from other retail sales businesses. The best way for a retail sales business to increase profit is not to start price gouging, it's to increase sales and negotiate better deals on the product to lower cost and increase margin.
If they come in and start increasing prices and basically telling the community too bad, you only have 1 choice, pay what we demand... they'll only incentivize people to find alternatives, DIY solutions, or to start their own business in this space. Nevermind the ill will they'd engender from thumbing their noses at the community that not only made them what they are today, but is their only source of continued success. Granted, new businesses wouldn't have the same margins they do, but could still be profitable while selling at a lower price.

I'd be a lot more worried if they were a coral seller, and there was massive consolidation going on with them buying out all the other coral sellers. That would be a lot more problematic in my view, as I feel like there would be a fairly large knowledge gap in between hobbyists growing coral and doing it as a business to sell in volume, and that knowledge gap would make a fairly effective barrier to entry against someone deciding to start competing against them on any significant scale. Also, in my view corals would be a lot easier for them to price gouge for as long as they could and then sell at a loss or at cost to drive out any new competition that pops up, then go back to price gouging since with corals you're not having to buy them from another entity to resell them, and have a fixed cost you can't get around.

One thing about the consolidation that does bother me is them stating that they're consolidating operations at their MN headquarters; I read that as a lot of people at Marine Depot's operations in CA are going to be losing their jobs. While you always lose some staff with a merger, you almost always keep some too. I would've preferred that they kept the CA operations and warehouse alive; not only would it keep people employed, it would give them multiple places to ship from - less distance to ship to reach most of the west coast which could help them on shipping costs... or what about wintertime when a massive snowstorm hits MN and shipping out of there is ground to a near halt? Having multiple warehouses can help alleviate some of that kind of pain. Also can mean lower shipping times, and being able to ship live goods like chaeto, pods, and coralline from whichever warehouse is closest to the customer.

Yet another CA business popping smoke for better business conditions.

 

[Forsaken77]

That stinks the we're losing another huge online presence for the hobby. I wonder if BRS will start selling Aquamax products or we'll see a larger influx of other cheap, Chinese brands instead of quality brands.

MD was the only place that sold my Spectrapure silicabuster DI resin and the correct size jars of AlgaeMax pellets. Buying direct from Spectrapure is a nightmare.

It was terrible when Drs. Foster & Smith disappeared... Now this to. Like Drs F&S, MD was a place to find certain products nobody else sold. I will definitely be sad to see them gone.

 

[Tamberav]

That stinks the we're losing another huge online presence for the hobby. I wonder if BRS will start selling Aquamax products or we'll see a larger influx of other cheap, Chinese brands instead of quality brands.

MD was the only place that sold my Spectrapure silicabuster DI resin and the correct size jars of AlgaeMax pellets. Buying direct from Spectrapure is a nightmare.

It was terrible when Drs. Foster & Smith disappeared... Now this to. Like Drs F&S, MD was a place to find certain products nobody else sold. I will definitely be sad to see them gone.

This one? I use the max di and silica MD sold so been looking around. I think I can purchase them separate.

BRS refills look like poo to me. Always felt like BRS had their favorite products and unfortunately seemed to skip over some really good brands.

10" Silica Buster DI Resin Filter Cartridge (DI-SB-10) - Spectrapure

Shop The Best Saltwater Aquarium Equipment & Supplies at Saltwater Aquarium. We Carry Everything you will Need for your Fish Tank.

www.saltwateraquarium.com

 

[nkyreef]

That stinks the we're losing another huge online presence for the hobby. I wonder if BRS will start selling Aquamax products or we'll see a larger influx of other cheap, Chinese brands instead of quality brands.

MD was the only place that sold my Spectrapure silicabuster DI resin and the correct size jars of AlgaeMax pellets. Buying direct from Spectrapure is a nightmare.

It was terrible when Drs. Foster & Smith disappeared... Now this to. Like Drs F&S, MD was a place to find certain products nobody else sold. I will definitely be sad to see them gone.

If I remember correctly from they're youtube video they are picking up Aquamaxx brand products.