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General Business Discussions This is a general purpose forum open to business related topics concerning Reptiles and Amphibians that are neither appropriate for the Board of Inquiry, nor sales, purchase, or trade solicitations. |
09-28-2008, 11:27 AM
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#1
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New price order?
We are all aware the economy is going through rough times. People have trouble paying their mortgages or even filling their tank with gas. In spite of this we still see individuals offering animals for sale at outrageous prices. This is no criticism to the price itself, as you can ask whatever you want for your property. But really, how does asking in excess of $5,000 for a snake sit with everyone strictly from a business approach perspective? Even if you receive an offer for $2,500 for the animal, would you reject it? My point is that there seems to be a disconnection of some people with the current state of affairs and their approach to business. The days of the $10,000 snake are gone; at least that's my opinion. It seems to me that the current economic situation calls for a new price order.
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09-28-2008, 11:52 AM
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#2
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Quote:
Originally Posted by The BoidSmith
We are all aware the economy is going through rough times. People have trouble paying their mortgages or even filling their tank with gas. In spite of this we still see individuals offering animals for sale at outrageous prices. This is no criticism to the price itself, as you can ask whatever you want for your property. But really, how does asking in excess of $5,000 for a snake sit with everyone strictly from a business approach perspective? Even if you receive an offer for $2,500 for the animal, would you reject it? My point is that there seems to be a disconnection of some people with the current state of affairs and their approach to business. The days of the $10,000 snake are gone; at least that's my opinion. It seems to me that the current economic situation calls for a new price order.
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I dont see anything else in our country getting drastically cheaper just because the economy is in the crapper. Why should the reptile market be any different? In fact many markets are actually charging more (been to the grocery store lately?).
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09-28-2008, 11:57 AM
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#3
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Yes, although groceries is one thing that we can't live without; on the other hand reptiles...
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09-28-2008, 12:03 PM
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#4
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Quote:
Originally Posted by shrap
I dont see anything else in our country getting drastically cheaper just because the economy is in the crapper. Why should the reptile market be any different? In fact many markets are actually charging more (been to the grocery store lately?).
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Hobbies are usually the first to take a plumett.
Because people focus more on spending money on gas and food and other necessities, they spend less on their hobby of choice, so because less people are buying, its taking a costlier animal to sell, to make up for the costs of the animals you havent sold, which then makes people less apt to buy, because they dont have THAT kind of money to spend on an animal, that they could have gotten cheaper a couple months ago. I also think because the price to deliver feeders* for those that dont breed their own*, and the cost of food to feed them too is going up, people start to charge more for their animals to feed the ones they do have. Again, backfiring because less people are buying, so making things go all out of whack. This trend wont continue if the prices on everything keep rising, and pay does not increase with it as well.
Eventually, stuff WILL have to come down, and people will start eating it on their animals. Its just a matter of when, really at this point. and then thats when your best time to buy is. ( from a business standpoint anyway)
At least, this is how i look at it.
I like learning/talking about market stuff, and economics, and how everything is sort of like a chain reaction, where everything affects everything in a market. there are lots of different ways to look at things.
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09-28-2008, 12:06 PM
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#5
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I understand where you are coming from Dan. I just dont see the need for people to go into panic mode and drastically change the market at this point. If the economy is going to completely tank somewhere down the road then that will take care of the prices on all non essential good and services in this country. If the market rebounds then things will be able to carry on as normal. Where supply and demand will dictate future market prices.
At this point I just dont see the need to panic and prematurely alter the market. It is just too soon for that in my book. The next 12-24 months will tell the tale.
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09-28-2008, 12:11 PM
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#6
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Quote:
Originally Posted by shrap
I understand where you are coming from Dan. I just dont see the need for people to go into panic mode and drastically change the market at this point. If the economy is going to completely tank somewhere down the road then that will take care of the prices on all non essential good and services in this country. If the market rebounds then things will be able to carry on as normal. Where supply and demand will dictate future market prices.
At this point I just dont see the need to panic and prematurely alter the market. It is just too soon for that in my book. The next 12-24 months will tell the tale.
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I agree. a panic will harm more than do good. I think people should just stick with it for a bit. Things will start looking better soon enough.
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09-28-2008, 12:14 PM
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#7
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Quote:
Originally Posted by shrap
I understand where you are coming from Dan. I just dont see the need for people to go into panic mode and drastically change the market at this point. If the economy is going to completely tank somewhere down the road then that will take care of the prices on all non essential good and services in this country. If the market rebounds then things will be able to carry on as normal. Where supply and demand will dictate future market prices.
At this point I just dont see the need to panic and prematurely alter the market. It is just too soon for that in my book. The next 12-24 months will tell the tale.
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No, need to panic, that's for sure. Again, more power to those that can weather the current situation and decide not modify their prices. My take though is that the $5,000 snakes are not going to sell that easy as a few years ago. Even if someone has the money to spend there are other priorities down the road. These times are good for those individuals who sell more affordable animals.
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09-28-2008, 12:30 PM
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#8
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Quote:
Originally Posted by The BoidSmith
My take though is that the $5,000 snakes are not going to sell that easy as a few years ago.
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I think we have seen that happening for the last two or three years already. It was only 4 or 5 years ago that a Spider Ball was 10k-15k. Now they are $300 all day long. The laws of the marketplace (supply and demand) have already been busy doing just what you suggest and will continue to do so.
Personally I have no problem with the laws of the marketplace lowering prices. It is just going to open up the market to tens of thousands of people who have been priced out of the market to this point.
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09-28-2008, 01:46 PM
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#9
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Quote:
Originally Posted by shrap
I think we have seen that happening for the last two or three years already. It was only 4 or 5 years ago that a Spider Ball was 10k-15k. Now they are $300 all day long. The laws of the marketplace (supply and demand) have already been busy doing just what you suggest and will continue to do so.
Personally I have no problem with the laws of the marketplace lowering prices. It is just going to open up the market to tens of thousands of people who have been priced out of the market to this point.
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Furthermore, I don't foresee new ball python designer morphs entering the market at what they used to. You may very well produce the first brand new killer morph but if there's no buyer for it, you are dead in the water. Now more than ever it's the buyer that sets the price, and not the seller. A seller may want "X" amount for a snake but ha has to be prepared to negociate to "where he has never been before" or he will not move your animals. There's one psychological aspect to it. If the buyer gets used to the "new morph" in the ads for a long period of time he tends to loose interest.
In my opinion this is a very good time for less expensive snakes species (or normals of certain morphs).
Best
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09-28-2008, 01:56 PM
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#10
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Quote:
Originally Posted by The BoidSmith
In my opinion this is a very good time for less expensive snakes species (or normals of certain morphs).
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I don't think it's ever really been a bad time for less expensive species.
The majority of the high dollar animal sales have gone to people looking to produce more of the same as a financial investment. While they may own that particular animal for the remainder of the animal's life, they aren't really an end consumer in the strictest sense. Conversations with other people who are functioning on some level as a business or are simply the more diehard herpetoculturalists can skew the perspective of the overall market.
It has always been much easier to sell (meaning find a customer for, not a question of total work involved) one hundred ten dollar animals than it has been to sell a single thousand dollar animal.
I believe you're right about the prices of some morphs. Supply constantly goes up from the point of initial production and demand goes down as consumers who wanted one have obtained one. Mix in the current overall economic slump and the tendency for slightly more tightfisted budgeting by those who are hobbiest breeders or smaller operation types looking to invest and the prices drop. "By how much?" is always the question that matters... to those looking to buy and sell morphs anyway, I've always liked what natural selection did a lot better.
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