Here we have a person that claims to lose $300,000 last year just on shipping costs. So this means he sells how much each year, multiple milllions maybe with all animal lines combined, maybe a few million or so in his "fish and coral cartel". Doing this much business, what is his motive for taking time to search out this forum and sit there wasting his time putting this stuff on a forum that he claims to have no interest whatsoever in the practices of those reading and frequenting this forum? It makes no sense at all. And, he comes on here and tells everyone to watch out for him, that he is manipulating the industry by meeting with manufacturers and setting prices (his own words voiced here), and we had all better write him into our business plans and watch out for his retail presence soon. All this and his claim that he does all this for his personal amusement, not for any financial gain at all.
Most of us will read his words and make our conclusion as to their validity and worth to us as individual business people. The vast majority I would guess would brush it off thinking these are just rants and have no effect on our businesses. Well, maybe they don't and maybe they do. I'm simply posing the proposition that his actions may have an impact on this industry.
Some reasons for my thinking:
1. Market Presence & Selection of Products
F & S offers a line of supplies for most pets with easy to use web sites and catalogs that reach likely millions--I get them and have never bought anything from them, I have seen in my area TV ads for F & S, pick up most hobby mags or go on most reef related BB and they are advertisers and sponsors (overall point being they do have a huge presence in the face of many hobbyists, not all but certainly many more than most LFSs). If you look on their web sites you find a huge variety of products dry and live, in many instances most stores would be hard pressed to have such a selection.
2. Race uses you!
Yes, he said it here, you get folks into the hobby and he needs us all for that and then via his marketing abilities, selection of goods at relatively low prices (and in some instances significantly lower prices than what many small stores can afford--I know there are some items he sells that I can not quite get wholesale at what he charges retail), and customer service he takes them away, at least to some extent. Not a day goes by that I don't have customers come in that buy from F & S for most of their dry goods and even some livestock--how many others in my area buy from them that I never see at all. The vast vast majority of them are very happy with F & S, they come in to prowse and maybe pick up a fish or coral or something they don't want to wait for a day or two to get by delivery and because they personally still like to see a real store now and then. Race knows that he needs us all to some extent, he knows that we have to get the folks started in the hobby and keep their interest while he sucks the cash from their pockets and leaves them cash poor by the time they decide to stroll in for amusement from time to time.
3. Race is and will continue seeking to control supply
From pressuring manufacturers to alter pricing, to pressuring livetsock wholesalers about who and what they might sell. Look, wholesalers, retailers, anyone in this business at some point must sell there stock to stay in business--to a major degree it is a perishable commodity we deal in. Race comes in as a volume buyer, as a wholesaler do you turn him down--business reality in most cases says no way. You play ball---(do dropshipping--hold a section for his stuff--etc.), get the regular paycheck, and don't worry how this move might affect the industry as a whole. As they say, show me the money baby, do you deal with the devil--you bet when he pays big time and the average LFS struggles to keep up and pay their bills. How many of your suppliers drop ship or have a section held for F & S? You be surprised if you went there and checked--its growing.
4. He is Changing Hobbyist Expectations
Do you offer a 30 day guarantee on your corals? How about 14 days on fish? Maybe you replace an entire tank when a heater malfunctions?? How about replace an item a customer says died a week ago and does not bring in the dead animal?? Huh, well do you?? NO, you bet you don't! Well, my friend--guess what, all these and more are true facts that F & S do daily for their customers. Know what this is designed to do? Take the fear of buying online away from anyone that ever deals with them and locks in customers for a long time. No, I not saying they are all perfect, but with this type of line up they are doing far more than any LFS i know of. You say but there is nothing that will replace that face to face time I spend for hours educating my clients. Sure, and you have some loyal customers. But, my point here is that this is very invasive and if you think many of your customers do not also buy online you may be in denial and if F & S gets them hooked it may change their buying patterns with you. I have seen it first hand--heck some of them bring in the styro boxes with F & S printed on the side and I'm standing there talking for an hour to them about XYZ for their tank and then maybe they buy something from me and off they go to shop online for a better price or to see a wider selection or whatever--maybe because it is just cool to shop online. And no I'm not whining that I'll have to close my doors tomorrow because of it, simply saying it is something that is happening slowly. Certainly there are already the Petcos and Petsmarts, etc. that are challanges to the average LFS, but their owners don't come on here and rub our noses in it that I know of.
Everything he does is legal, I assume, and it is business after all. I guess I lament that maybe we are on the verge of witnessing the Walmartization of our industry--steamrolling us. I recall years ago when you wanted to rent a video you went to the local mom and pop video rental shop. Then Blockbuster and Hollywood video came on the scene and guess what--the vast majority of the mom and pops went under, at first folks said I like mom and pop and i'll never stop shopping their but lets just check out that fancy new place, well over time mom and pop just seemed old fashion and so we all went to the new places becasue they had so much more and then one day I noticed mom and pop were gone----are we next??
Aww, what the heck am I worried about, I do this just for the fun of it anyway.
Or at least that is my take having had front row seats to all this 
