Indo is back!!

sidvicious

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bhodges82

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Gas prices never came down after Katrina, insurance rates never came down with trump, they know how much we are willing to pay so they will charge that price. Once the price goes up, it never comes down.
 

popsbjd

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Not going to free fall. But it’s hopefully a road back to more reasonably priced euphyilla. Funny how nobody liked it until the ban. And now everyone wants it and it caused prices to skyrocket. Happy to say I didn’t buy a single piece of it during the ban!
I'm right there with you. I bought a gold torch from Shac at the expo before the ban when into effect for $40 (unfortunately, it died). I like the looks of the dragon souls and whatever else but I'm not paying $300-400 per head for a torch. Hopefully the prices come down some but like @godawgs24 said that won't happen until supply exceeds demand, and I don't see that happening anytime soon.
 

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In theory price should come down. Increasing Qs while Qd remains constant should yield a decrease in price in this situation, but until supply exceeds quantity demanded, don't expect to see prices getting lower. This will be a gradual process over months to years most likely, considering the way prices move so slowly in this hobby.

Source: I have a degree in economics :(
 

anit77

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Gas prices never came down after Katrina, insurance rates never came down with trump, they know how much we are willing to pay so they will charge that price. Once the price goes up, it never comes down.
Gas prices aren't $1.50 a gallon now like they were in the early 2000's. They're also not $4 to $5 like they were in 07' 08' either.

Like Ben said, once stock levels are higher than demand the price will start falling. But It's not going to happen over night and may never get down to where they were before the ban, they will fall though.
 

sidvicious

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My hope is the market becomes saturated with new product and the demand won’t be there causing a surplus in supply which in return drops the cost. Basic economics 101. Though that hope may be diminishing a bit after reading into this stuff further what’s going on, seems to still be quite a lot of red tape/regulations which only hurts the consumer in the end IMO. Plus, this is only for farmed corals. The good news is that these farmers have done nothing but propagate these last two years and their supply should be absolutely abundant. The ban is still in effect for wild indo corals which I do see being lifted once this has a few months to pass with shipments being shipped all over the world. Gold torch prices in particular were getting completely out of hand and knock on wood they get back to reality.
 

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In theory price should come down. Increasing Qs while Qd remains constant should yield a decrease in price in this situation, but until supply exceeds quantity demanded, don't expect to see prices getting lower. This will be a gradual process over months to years most likely, considering the way prices move so slowly in this hobby.

Source: I have a degree in economics :(
I wanted to say this; but just didn’t want to type it all out. Lol

The comparison with gas prices has also been mentioned a couple times, but there’s an important difference between corals and fuel. Corals have plentiful and affordable substitutes. Whereas gasoline doesn’t, so gas demand is relatively constant by comparison; if glass prices increase by 10%, you’re probably still going to buy the same amount of gas. This gives less incentives for fuel suppliers to drop prices. As such, I expect coral prices to drop more, by comparison... (note: I’m also not stating they will return to previous rates)
 

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I wanted to say this; but just didn’t want to type it all out. Lol

The comparison with gas prices has also been mentioned a couple times, but there’s an important difference between corals and fuel. Corals have plentiful and affordable substitutes. Whereas gasoline doesn’t, so gas demand is relatively constant by comparison; if glass prices increase by 10%, you’re probably still going to buy the same amount of gas. This gives less incentives for fuel suppliers to drop prices. As such, I expect coral prices to drop more, by comparison.
It should also be noted that petrol closely follow crude oil prices, which are controlled by OPEC. Oil pricing cannot be compared to coral pricing because there is nothing natural about the way oil is priced! Gas is pretty much an inelastic good for the majority of Americans. There are very few substitutes to driving your car to work, unless you live in a city with great public transportation or walk/bike.
 

bhodges82

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I still don't believe it will come down much, good comparison it not. I still think that once the price goes up, it stays up. Lots of people have and sell Jason fox coral, he hasn't lowered his prices because of you want what he has you pay the price.
 

sidvicious

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I used the wrong term earlier as corals are not really a need but rather a want, my apologies.
 

sidvicious

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If the market gets saturated with farmed corals from the indo then I’m sure prices shall tumble, I can’t see any other result happening to be honest IMO. Once the wild ban is lifted, then you’ll see prices continue to dip and perhaps get back down to the normal range we used to see.
 

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Designer coral companies have a specialized product with no alternative. Want those green toxic darth plagueis butthole blaster palyzoas? You've got to pay the premium price, because only Jason Cherry World sells them, and they're only here for a limited time! That my friends is called scarcity marketing. Until reefers propagate these designer morphs, prices stay high. And it takes a long time to seriously propagate enough to spread through the community.
 

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Designer coral companies have a specialized product with no alternative.
i agree with the scarcity marketing. But unfortunately, I believe that is more of a problem with the consumers being gullible to these bad strategies. Of course, some sellers are going to take advantage. But I respectfully disagree that there are no alternatives. Substitutes don’t need to be perfect; and for corals, there are many.

This means that when the price for those “green toxic darth plagueis butthole blaster palyzoas” jumps from $80 to $200, many people will say: screw that price. I’m going to get the “razzle dazzle supernova bird-flipping plumbis palythoa” for $50 instead. I’ll get the other coral later.

Whereas, when the price of gasoline creases from $1.67 to $4.25... the majority of people respond “Well I still have to commute to work anyways, so I guess I have to pay it.” I’ll pay it everyday, and just complain.
 

Tanster2

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Scarcity marketing is a predatory practice in nature. We make the consumer believe there is no substitute and only a limited supply. Pair it with what I would consider a luxury good, like a designer coral, and you have no real substitute. This is because consumers see the item as a coveted, and it’s almost like a fad if that makes sense. It’s like when Apple releases a new IPhone. There are substitutes in theory, but none of them will ever be an iPhone, and that drives consumers insane. Same with other luxury items I’m afraid. You’ll never get the satisfaction of owning that special item regardless of how many alternatives flood the market.
 

ActiveAngel

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Scarcity marketing is a predatory practice in nature. We make the consumer believe there is no substitute and only a limited supply. Pair it with what I would consider a luxury good, like a designer coral, and you have no real substitute. This is because consumers see the item as a coveted, and it’s almost like a fad if that makes sense. It’s like when Apple releases a new IPhone. There are substitutes in theory, but none of them will ever be an iPhone, and that drives consumers insane. Same with other luxury items I’m afraid. You’ll never get the satisfaction of owning that special item regardless of how many alternatives flood the market.
I agree 100%. While there are alternatives; but they preys on people by trying to convince them that there aren’t.

Thats why I think the market prices will still drop significantly in this comparison.
 
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