Threatened Controller Manufacturer Attempting to Shut Out New Lower Cost Competitor

[User1]

So where is this specially priced bundle they are talking about in the article? I want to order one right now

CoralVue | Search results for: 'hydros control 4 starter pack %20bundle'

CoralVue is a manufacturer of OEM products and exclusive distributor representing a wide range of industry-leading brands for freshwater and marine aquaria including Reef Octopus, Maxspect, Abyzz, Waveline, RLSS, Giesemann, ELOS, AutoAqua, IceCap, Radium and many more! CoralVue excels at...

www.coralvue.com

 

[Coastie Reefer]

Data to back this up? As requested above can anyone provide the data otherwise it is all hyperbole.

Note - not calling anyone out but having some data to backup a statement goes a long way for all of us. Easier to send a email to complain. At least how I see it.

Name another US based controller that goes for 800 retail as stated in the article. I also know several retailers have been told they could lose incentives for carrying Hydros. I won’t post names as it’s not my place to...

 

[Coastie Reefer]

So where is this specially priced bundle they are talking about in the article? I want to order one right now

Click the link highlighted in blue in the article.

 

[smiley28]

Surprised by the lack of memes in this thread.. and that it hasn’t been locked or something?..

 

[JoshH]

The price doesn't reflect the parts themselves. We're not ordering off Wish. The price reflects the engineering that went into designing it/writing the software, testing, web services, office/HR/payroll/etc while developing it, marketing, sales, legal, etc, etc.

I'm well aware of what the price usually reflects. However, that same process takes place for the controller that's cheaper and there is typically MUCH higher costs for them because for them it's all new R&D as they are developing an entirely new product from scratch. The company in question has had basically the same controller for YEARS now that they put new lipstick on and tweaked a few things. Not a whole lot of research and development when you're just tweaking something you already have been making and supporting for many years.

The longer a product is out, the higher the profit margin gets as the company refines its process, hammers out defects which eliminates/reduces support costs and reduces it's overall unit cost. This should, eventually be passed on to the consumer, especially when something has been out for SOOOO long. Take a look at Aqua Illumination, they upgraded there entire line of lights (Slight tweaks), added things and the cost to the end user stayed the same. They didn't increase the cost of there products to cover the adjustment of there assembly lines, engineering to cover the design of the new boards and heat sinks, etc etc.

Now, one could argue that they then use the now inflated profit margin to fund other R&D projects. However, where enlies the original argument of the insanely inflated price on those products if the R&D and support has been covered by the profits from another product?

Now, don't get me wrong, I get the fact that these companies are obviously in the game to make money. Every business is in business to make money. However, attempting to block a competitor by shady business tactics and continuing to gouge customers on products that should probably have dropped slightly in price by now isn't something that should just be ignored...

 

[JaimeAdams]

There was a big thread about all this on FB in various reefer groups a day or two ago. It alleged that Neptune was strong arming retailers and distributors not to carry the coralvue product. Take it for what it is and make your own judgement.

 

[JoshH]

And what about GHL? They carry the dosers but not the controllers? Seems a bit suspect.

Reminds me of the "Best of 2019" Videos, watch there ATO video, they don't even mention the Neptune ATK at all. Now it's only my speculation but I don't think the ATK was the best, so they opted to omit it entirely to save it the potentially negative impact on Neptune's product.

 

[Colt13]

I thought that guy mark “mr saltwater tank” owned saltwater aquarium.com?

 

[Coastie Reefer]

I thought that guy mark “mr saltwater tank” owned saltwater aquarium.com?

No he only does their videos.

 

[User1]

Name another US based controller that goes for 800 retail as stated in the article. I also know several retailers have been told they could lose incentives for carrying Hydros. I won’t post names as it’s not my place to...

Again the article nor anyone here provided actual information or source thus the hyperbole comment. Ironically enough there is only one post reference here and it goes against the articles report. With regards to BRS they can carry what they want so do not see that as being applicable.

The article did not provide information or a source. Thus the question. As with typical reporting today no one provides actual information. Only speculation. No data to support the claim then this is just free advertising which I guess is fine.

 

[Variant]

Reminds me of the "Best of 2019" Videos, watch there ATO video, they don't even mention the Neptune ATK at all. Now it's only my speculation but I don't think the ATK was the best, so they opted to omit it entirely to save it the potentially negative impact on Neptune's product.

Yeah I know exactly what you are talking about... it is actually kind of disappointing that BRS is playing along because they seem to be doing so much good for the community...

Similarly I get that they are now stocking Royal Exclusiv products now that its being used by Ryan but he aint using every single one ofthose skimmers... so why sell em all? Does BRS not trust Coralvue as a company?

SMH

 

[smiley28]

Reminds me of the "Best of 2019" Videos, watch there ATO video, they don't even mention the Neptune ATK at all. Now it's only my speculation but I don't think the ATK was the best, so they opted to omit it entirely to save it the potentially negative impact on Neptune's product.

There needs to be a this! Emoji lol!
I wonder what premium aquatics is up to?

 

[Variant]

With regards to BRS they can carry what they want so do not see that as being applicable.

I somewhat disagree because if the claim made by RB is true and BRS is supporting this company in such a way, IMO, they are supporting an unethical company. I know I would not want to have business relationships with racists and those who display other unethical behaviors (not saying the incumbent controller company is racists, just using an example so calm down everyone!)

But you are right in that there is no solid evidence and that we can only make logical comnections. However this does not mean we cannot think critically about the situation.

 

[Potatohead]

This kind of back room politics is unfortunately extremely common. To think it doesn't go on and/or that retailers are always doing what is best for the consumer is being pretty naive.

If said "orange and grey" controller company is trying to strong arm retailers, the retailers basically have to determine if they are going to play along and possibly lose Coralvue as a supplier, or vice versa. With the brands Coralvue brings to market that is probably not an account anyone wants to lose. At the end of the day the retailers and the suppliers/manufacturers all have to support each other. If they don't the system falls apart and you will end up with manufacturers trying to sell directly, or sticking to smaller retailers.

 

[lmm1967]

This kind of back room politics is unfortunately extremely common. To think it doesn't go on and/or that retailers are always doing what is best for the consumer is being pretty naive.
If they don't the system falls apart and you will end up with manufacturers trying to sell directly, or sticking to smaller retailers.

As you indicated - the system has already fallen apart in most retail industries. The tactics have been perfected to the point that it's easily hidden from the end customers.

Pretty much all retail is completely controlled by the manufacturers and/or non-retailing wholesalers. The nonsense that goes on in a lot of industries at the fulfillment/manufacturing levels is downright criminal.

 

[Potatohead]

As you indicated - the system has already fallen apart in most retail industries. The tactics have been perfected to the point that it's easily hidden from the end customers.

Pretty much all retail is completely controlled by the manufacturers and/or non-retailing wholesalers. The nonsense that goes on in a lot of industries at the fulfillment/manufacturing levels is downright criminal.

For many years in reefing, you had almost a handshake agreement between companies that they stuck to certain products. Octopus made skimmers and reactors, Tunze made pumps and powerheads, Ecotech made LED lights and (completely different) powerheads, Red Sea made tanks and additives/salt, Apex made controllers, ATI specialized in T5 lighting, etc etc.

Now, everyone is trying to get a piece of the pie and are infringing into other brands traditional territory on a pretty massive scale. So it is not surprising that chaos would ensue.

 

[flampton]

One thing I find interesting is if this is true then the incumbent controller company must allow for large markups. The only reason a company would be worried about losing someone is if they're banking off their products. So if CV doesn't offer a large markup then they're not looking as favorable. And it's clear in this retail world no retailers seem to flex any true buying power. Almost everything is sold at or extremely close to MSRP.

 

[shred5]

Yeah I know exactly what you are talking about... it is actually kind of disappointing that BRS is playing along because they seem to be doing so much good for the community...

Similarly I get that they are now stocking Royal Exclusiv products now that its being used by Ryan but he aint using every single one ofthose skimmers... so why sell em all? Does BRS not trust Coralvue as a company?

SMH

Actually what I find curios about that is they actually started carrying them after Vertex was gone.

 

[shred5]

Again the article nor anyone here provided actual information or source thus the hyperbole comment. Ironically enough there is only one post reference here and it goes against the articles report. With regards to BRS they can carry what they want so do not see that as being applicable.

The article did not provide information or a source. Thus the question. As with typical reporting today no one provides actual information. Only speculation. No data to support the claim then this is just free advertising which I guess is fine.

Its hard to have factual evidence if a company will not go on record because they will get retaliated against. If you have been following the chatter on social media and all the deleted posts it seem possible..

Some of it could be because of the Vertex controller too..

 

[revhtree]

This is a tough thread to have on here as we don't want to be in any part of the mudslinging or anything that isn't factual. The hard part is knowing what is true and what is not. That being said I want to leave this open for now but PLEASE do not make comments about companies that are not proven to be true or are speculation. Those comments will be removed because I am not going to have "fans of companies" from any side fighting on R2R. Thank you for understanding.