Price increase on Ecotech and Aqua Iluminations....

[Jon's Reef]

The inflation is artificial. Disposable income has not increased substantially. The only area of employment to see substantial increases in wages has been the $15-$20 jobs. The stimulus money was spent as soon as it went out. Either to pay bills or for the middle class to buy something they have been saving for… or it is going to a vacation this summer/ fall.

Net effect of this specific change is people are going to buy less often and buy used more frequently. If the price of used increases, that may increase the sales slightly, but not enough to offset the loss due to postponed purchases. Likely a net loss in sales. For a private company without set margins/ revenue goals it may be a detrimental move.

Also a huge opportunity for Neptune if they keep the Sky price point, they will gain substantial traction in the market, further diluting Ecotech revenue.

 

[Scorpius]

And people wonder why I'm hoarding salt and buying higher end stuff before it becomes unaffordable.

 

[rtparty]

really wow...but they did make them better from what I researched...so a price increase is understandable...but this recent one has no merit to do so....My thought is cause now there is one less bigger competitor out there after July 31st

100% false. This has NOTHING to do with BRS buying MD. Prices were going up July 1 regardless. This has been planned for months and Ecotech isn't the only company. Companies BRS doesn't even carry will be raising prices soon too. So what's the excuse there? It certainly can't be "one less competitor"

This is called inflation and rising prices of shipping and raw materials. Unless you work in the shipping world, it's hard to believe the numbers. Aquarium products going up in price should be the least of your worries right now. Basic necessities to live are about to sky rocket in price.

Imho they raise prices because they can. Sure, they may have some extra expenses due to Covid, but it's not like these things were cheap to begin with. Most equipment in this hobby has very high markup - especially from these "premium" brands. Supply and demand.

The margins are lower than most items in the business world.

Computer chips that used to cost 40 cents are now $14 and rising. Shipping containers were $1500 then $3600 then $10000 and now $23000. People really think these companies can eat 1000% or more cost increases? If so, I got some beach front property in Arizona for sale.

 

[SchrutesReefs]

If so, I got some beach front property in Arizona for sale

I’m listening

 

[TnFishwater98]

Imho they raise prices because they can. Sure, they may have some extra expenses due to Covid, but it's not like these things were cheap to begin with. Most equipment in this hobby has very high markup - especially from these "premium" brands. Supply and demand.

Inflation is real

 

[Scorpius]

Financial experts were warning of possible inflation with all these Covid-19 relief bills. You cannot print trillions of dollars and not "usually" expect inflation.

History has proven this over and over again.

 

[Jon's Reef]

Inflation is not defined by an increase in prices due to rise in costs. Inflation is an overall reduction in the value of a currency over time. One hallmark is when the currency’s value vs other standard currencies changes. The value of the dollar vs the euro has stayed steady so the specific injection of US currency was not a cause. The more detrimental money distribution in the past 5 years was the corporate tax cuts before COVID where most companies used it to buy back stock rather than the promised wage increases, directly resulting in the rich getting richer.

In the case of inflation wages grow at a similar rate meaning that even if the prices increase, relative purchasing power of the public has increased at a similar rate. This is not true right now. This means that companies can try to charge more, but that does not mean that their customer base can afford it. Example was when gas prices spiked before the 2009 crash. The public could not afford gas to drive to work, caused many people to quit… can’t pay the mortgage and so on.

Building materials increases are not due just to costs, it is due to the housing boom. If you make 2x4’s you want a chunk of that and are going to sell to the home builders who will pay $$$ rather than to Home Depot. The stock remaining after the builders is less, so it sells for more.

I agree that raw material price has increased, but I would not be surprised if chips are not the cause of the price, rather they may have had to increase the wages of their general assembly workers to retain/ recruit. Also small US companies could apply for the forgivable small business grant over the last years which was a fairly substantial influx of cash which is no longer available. Lastly there is just good old corporate greed. Last year we made XXX, this year I want to see 20% more or we fail.

 

[biecacka]

That’s a huge increase in lumber 300%?

It is. I just framed up some of my basement to put a bar and cigar lounge in it. I actually went with with 2x3’s since it was non load bearing. Lumber is also up for futures….from the fires in California the past few years. Couple that with COVID and shipping issues for incoming product and you have an absurd increase.
a buddy of mine is a contractor and was telling me a story something like, he quoted a guy a price on this house 18 months ago, they shopped around and procrastinated then 8 months ago called him and said we want to start the build. The new adjusted quotes was something like $70k more just due to lumber…..they went off on him like he was trying to pocket $70k extra. Finally when they seen that 2 years ago wood was less than $2 a board and now it’s almost $9 it’s not his fault.
crazy crazy times we are in….


corey

 

[SchrutesReefs]

Some lumber yards have not raised their prices dramatically yet. Most of the lumber issues are related to big box stores and the supply/demand. I have friends who own/operate a local yard and they are running low simply because people who research buy from them rather than your typical home store. Then again it’s all relative. Location location location.

 

[Jon's Reef]

Most residential lumber here does not come from California, it comes from Canada.

I have heard the same, if you need wood don't go to Lowes or HD, go to a lumber yard and the prices/ quality are much better.

 

[biecacka]

Yes Jon that is true that most comes from Canada. That is where the shipping issues come in. little is crossing our borders now. But to my understanding it is all based on futures. I’m no expert though…so I can’t say one way or another
unfortunately for me, all places nearby had increased lumber prices. But the 2x3’s were “only” around $5 apiece.


corey

 

[SPS2020]

I was in the market for a new Hydra 32hd, was $366 last week, $399 yesterday.

Last June, they were $399 at BRS when I bought mine. Not so sure about any price increases, as far as AI Hydra 32 HDs are concerned.

 

[SchrutesReefs]

Last June, they were $399 at BRS when I bought mine. Not so sure about any price increases, as far as AI Hydra 32 HDs are concerned.

Hmm maybe they were on sale when I checked. I thought $366 was an odd price point.

 

[Oregon Grown Reef]

Last June, they were $399 at BRS when I bought mine. Not so sure about any price increases, as far as AI Hydra 32 HDs are concerned.

I've been looking at buying 2 more 32's for my tank, but I've been looking at used ones instead because of the price. They were $366.50 for a very long time. Looks like I should have bought them new during a sale.

 

[SPS2020]

I've been looking at buying 2 more 32's for my tank, but I've been looking at used ones instead because of the price. They were $366.50 for a very long time. Looks like I should have bought them new during a sale.

LOL I think I paid retail for everything on this build!