Midwest Coral Farms shutting down.

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coralking said:
But im guessing that they weren't really selling below cost. If they were they would most likely have gone bankrupt. It might be a good idea to wait and see what actually materializes out of all this blogodrama. Wouldn't it be amazing if MCF pops up again as a newly invented business without all the critics and all the past histories from its early development?

I bet after the personal situation abates, hopefully successfully, Midwest or whatever entity might be born from it, may just create something the industry has yet to see; a company with integrity, values, customer care, and lastly, how to be more transparent when issuing a painful statement. Kudos to the P.R. person, proving entrepreneurs should be more careful when announcing intentions that have such an impact. Try as MCF did to create an appropriate statement, they failed. As for the bait, I'm guessing that the people at MCF truly want people to come and talk to them, and to get a better explanation than some of the bloggers here have created. It's not a sale and it is for sure customer appreciation. Today MCF and its people are more aware of the impact they have had on the local market and the messages, not just here, but in hundreds of emails from other customers as well, will not be tossed away. Most of all, MCF conveys apologies to everyone that was so negatively affected by this decision and for having been privy to some of the complexities in making the statement of closing. In hind sight, well we all wish for that gift. The MCF story may be far from over. I love blogging. This is the first time blogging and I have read some amazing blogs that I couldn't even imagine where they came from, like this one, and then again, some heartfelt blogs as well. Let's hope the story has a better ending than this week.
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Since you are determining integrity levels: is you name Mark or Gary?

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coralking said:
But im guessing that they weren't really selling below cost. If they were they would most likely have gone bankrupt. It might be a good idea to wait and see what actually materializes out of all this blogodrama. Wouldn't it be amazing if MCF pops up again as a newly invented business without all the critics and all the past histories from its early development?

I bet after the personal situation abates, hopefully successfully, Midwest or whatever entity might be born from it, may just create something the industry has yet to see; a company with integrity, values, customer care, and lastly, how to be more transparent when issuing a painful statement. Kudos to the P.R. person, proving entrepreneurs should be more careful when announcing intentions that have such an impact. Try as MCF did to create an appropriate statement, they failed. As for the bait, I'm guessing that the people at MCF truly want people to come and talk to them, and to get a better explanation than some of the bloggers here have created. It's not a sale and it is for sure customer appreciation. Today MCF and its people are more aware of the impact they have had on the local market and the messages, not just here, but in hundreds of emails from other customers as well, will not be tossed away. Most of all, MCF conveys apologies to everyone that was so negatively affected by this decision and for having been privy to some of the complexities in making the statement of closing. In hind sight, well we all wish for that gift. The MCF story may be far from over. I love blogging. This is the first time blogging and I have read some amazing blogs that I couldn't even imagine where they came from, like this one, and then again, some heartfelt blogs as well. Let's hope the story has a better ending than this week.
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Why doesn't someone go ask the owner how much, approximately, she netted over three years of business? That is NET= revenue - (purchases+overhead).

The cost of the a given piece of coral is just one part of it. There is freight, there are fees and duties if you are importing, there are inevitable losses, then it has to be processed and held before it can be sold so there is payroll, rent, electricity, salt, etc. And then of course there are other costs of doing business such as advertising, credit card processing, office supplies, telephone, web hosting and design, etc...

Behold the stereotypical unreasonable American consumer. Do you guys realize that companies from Ford and GM to Sears, JC Penny to Facebook operate for long periods of time at a net loss. I'm talking about tens of millions, if not hundreds of millions of dollars. This is why business is hard: you can make money; you can also lose money. MCF's problem is that they never had a plan to become profitable. Everybody likes you when you're giving it away.
 
fishbeard said:
agreed. No business is in business to lose money. Period. Even when we were all getting "sweet deals" from the guys at midwest coral farms, they were turning mad profit. If they were losing money every month the doors would have closed a matter of months after they opened for business. No business would sustain itself for nearly 3 years if their books were red every month.
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mad profit!!!! Woo woo!!!
 
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Tethered_Limbs said:
callin shenanigans on that 1, not saying that it doesnt happen. but to never make any money...........
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It is very common for a new brick & mortar business to run in the red for several years before turning ANY profit. I have no idea what the books looked like at MCF (nor do I care) but it is entirely possible that a 3 year old business could be losing money or barely breaking even. Just because a business buys something at a wholesale price and marks it up doesn't mean they are turning a profit.

IMHO...it makes absolutely no sense for any of us to bother speculating on this. What does it matter how much they made? Who cares...
 
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