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Posts: 929
Location: Rhinelander. | Now I'm not talking the fancy bait jobs the guys are showing in basement baits but your rgular store bought bait. As a former manufacturer I know the cost on making them and whats involved. I say all the more power to you for getting what you can but what is too much. Awhile back I had a post on about guys that copy baits and seel a few and keep some for themselves. At the time I came down down on them for selling them to friends. I am begining to rethink this if the prices continue to get On the insane side of pricing. As I said I know how much it cost to produce them and package them and to pay the taxes ans all that. I am just saying I wonder where it will end. Pfeiff |
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| Why...why why why I wonder....why? why why why why... |
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Posts: 2
| I'm not the smartest guy in the world but I'll take a stab at this.
1) Prices of materials keep going up.
2) People are dumb enough to pay high prices on stuff like this.
If I'm a baitmaker and have a good product and consistently can get 5 dollars for one of my baits, I'll begin to wonder if I can get 6 dollars for the same thing. And then 7, and 8, and 9, and on and on until I cover my costs and I can maximize my profit. It's simple economics. |
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Posts: 337
Location: Central WI | How much do you think is made on each Double Cowgirl? |
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Posts: 1529
| being a manufaturer, i have been hesitant to increase costs. even though material cost increase according to markets the economy downturn has forced folks to hold pricing. buying in bulk helps and smart maufacturing will help ones edge, the oil increases are hard on folks. packaging, paints ,lexan, are all contributing to increased costs. with wages in a tailspin and gouging oil prices its hard on fishermen, to travel. if a guy can try to not gouge and has quality products he may have a slower year,in sales but be able to survive the downturn. |
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Posts: 55
Location: SW Michigan | They could give them away this year and I couldn't afford them. Looks like I'll be fishing with my "homies". |
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Posts: 37
Location: Mid Wales, UK | You taken a look at bait prices in the UK recently? The general rule is take the US price, remove the $ sign and replace it with a £. Hardly fair since £1 is worth around $2 right now 
Until a solution to the ever increasing oil prices is found, then the cost of virtually every product you buy is gonna carry on going up and up.
Edited by Luke 4/2/2008 8:35 AM
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Posts: 619
Location: Verona, WI | Plus how many of the baits out there are made of plastic/rubber which are petroleum based - you get the double whammy of higher transportation shipping costs for the bait, higher COGS for the lure, and rising costs in the retail channels and the price goes up.
I look at these things as cyclical. Prices will continue to rise as manufacturers either try to maintain or grow their margins on baits. Then some creative entrepreneur will figure out a way to make a product better with that increased competition driving prices back to a more natural level. The best example would be Musky Innovations - overseas manufacturing has reduced their COGS and increased gross margins but quality has gone down. Shack Attack and Live Action Lures have come into the market with big rubber baits with improved quality at comparable prices. Then Tacklebooty comes in and beats them on price for a similar product. Competition in action.
Shane
Edited by ShaneW 4/2/2008 8:50 AM
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| This is what the stock market is all about...A guess as to how much people are willing to pay. Don, i think you are missing the main point when it comes to cost of baits. Labor and how much a person feels the time they take to make the baits is worth. Everyone feels they are worth a different amount for the most part...This is in every market...Some contractors cost less than others...some teachers make more than others...but speculation is a big part of the economy...makes it fun... |
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Posts: 1184
Location: Iowa Great Lakes | I just ordered a product from my local baitshop, I did so for the fact of keeping my money local so to speak. I could have ordered the same rod online and with shipping cost would have been roughly $225, my local guy is selling me the same product for $120. I know he's still making a buck as is the guy he buys from. Makes a guy wonder what true mark up is and why they really need that much mark up. I do know my local guy will see alot more of my money. |
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Posts: 1462
Location: Davenport, IA | Is making a few bucks a crime? I have yet to see a bait manufacturer that I feel is making too much money. Don, I'm sure you didn't make millions of dollars selling baits. I'm sure you didn't even make as much as you'd have liked to.
Edited by Schuler 4/3/2008 12:01 AM
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| Let's see, try excise tax, utilities for the buildings, insurance on the buildings, insurance for the employees, salaries, shipping of the finished product, shipping of materials in, cost of materials and advertising. Product development too. Manufacturers just don't throw stuff together and hope it works; at least they shouldn't. Time is needed and time is money in manufacturing.
Oh yeah, how about pro-staff wanting all of their stuff free because "I guide, give me baits" or "I fish a musky tournament, give me baits" or "I will put a sticker on my truck/boat, so give me baits". Better yet, "give me money because I don't use your baits, but I will say that I do."
Can't forget about all of the groups, clubs, tournaments, organizations that want free product. "Give us product and we will put up your banner".
People think that these manufacturers have very little for expenses. Nothing is cheap or free to make. |
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Posts: 2384
Location: On the X that marks the mucky spot | OK so there's 2 major arguements in the muskie world right now concerning baits:
1. Why are the prices so expensive
and
2. Don't buy baits made in China
Which do you want, a better price or "Made in the USA" because you can't have both.
Think about how much it takes to live. For every $10/hour you're making roughly $20,000/year. How many baits can you make in an hour? 2-3? Then add in all the misc time to pack, ship, sell, etc. Now figure how much NET profit you need from there. That just covers labor.
Now raw material prices have gone crazy. Stainless really went up last year and this year steel is going to go up 25%-40% by some estimations. We all know what petrolium is doing so you're plastics are going to go up too.
The bottom line is that everyone's used to the Walmart model in everything they buy, that being it should be CHEAP and I should be able to buy as many of whatever I want because I'm me. The only way to really reduce costs anymore is by getting the labor cost out of it. That my friends isn't done by making it in the USA.
If you're bitching about the prices of things now just wait another few years. This country is in for a HUGE awakening... |
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Posts: 4053
Location: Land of the Musky | Just to add to Muskie Treats...
I make my Grunt in my garage and I can hardly afford to touch those baits anymore as they cost way too much to make and nobody wants to pay me $40 for them. I have about 100 finished and 200 blanks and I am not sure I will even finish up the blanks I have this year due to the time alone to finish them. I have all the terminal tackle from years past so at leaast I have "cheaper" terminal tackle vs buying in 2008. Not easy making lures in the USA and I have looked at having others do it for me in the USA but at those prices I would have to charge about $60+ for my Grunt just to make it work for me. I think it is just business as usuall though. The good will thrive and the ones who have no clue will fade away. For me a lot comes down to project managment skills.
James |
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| Crying about the price of a muskie lure you don't need that will sit in a box somewhere 340 days a year while the guy making that lure makes about $2/hour...
it doesn't get any more American than that |
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Posts: 1184
Location: Iowa Great Lakes | Heres a different spin, I am a board member for a Non profit orginazation. We do raffles and such to raise funds. A few years ago we called on Bow manufacturers to get a hunting bow to put on a raffle. We couldn't get them free but most would sell us one at cost. We ended up getting a $600 retail bow for $197. 2 years ago we did an autographed shotgun sighned by a well known shotgunner, our cost for the shotgun was about $500 under retail. I know Non Profits do get things at lower costs but you and I both know their still making something or at least covering costs. I read a financial statement while in High School on what it cost to make 1 pair of Nike Air Jordans, at the time they retailed for $140 ( alot of money 20 years ago) that pair of shoes cost Nike $9 to make. |
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Posts: 1663
Location: Kodiak, AK | shaley - 4/3/2008 3:50 PM
.....retailed for $140 ( alot of money 20 years ago) that pair of shoes cost Nike $9 to make.
That's alot of money now! |
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Posts: 663
| Shaley, I just can't get over your statement about your rod purchase. I'm a proponent of buying from independents and heck I work for one. But your scenario seems a bit suspect. If that local guy is selling you a rod for $120 that's cool but without knowing what rod it is we can't tell if he's giving you a special deal or charging the msrp. If it is msrp then you are saying that at a delivered price of $250 the online dealer is charging you $105 to ship the product. I know that shipping rods is expensive and getting more so all the time. They are oversized and let's face it none of the carriers (UPS, Fed Ex, etc.) are giving away their services. But for $105 that's just not a credible number. I guess I could understand if you are shipping overseas or they are having somebody hand deliver it to you by private messenger service. What gives? Your numbers don't say anything unless we know what rod brand and model you are getting for that $120 price. Don't mean to call you out man but it just doesn't make sense.
Edited by Pete Stoltman 4/4/2008 8:43 AM
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Posts: 4053
Location: Land of the Musky | Re: Shipping a rod
Cost for Parcel Post with USPS is $97.82 for a 108"x4"x4" package that weighs 3lbs from MN to CA and about $60 from MN to MI. Not cheap to ship. You also have to add in the cost of the box which is about $10.
I hate S/H myself. Real pain in the ars. Many do not realize too taht if you go parcel it costs more than Priority 9 times out of 10. You get free boxes and tracking with Priority and you have to pay for those with Parcel thus putting the total a little higher for Parcel than Priority. Not to mention going to the post office 6 day a week 
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| Re: Shipping a rod
Cost for Parcel Post with USPS is $97.82 for a 108"x4"x4" package that weighs 3lbs from MN to CA and about $60 from MN to MI. Not cheap to ship. You also have to add in the cost of the box which is about $10.
yes...but.
if you're smart about box size and the rod isn't extremely long you can ship Priority.
to ship Priority the package has to be under 108" total length + circumference.
so...if you get a 8" circumference tube it can be 100" long (8'4"). tube or triangular boxes are much more efficient than square boxes for this purpose.
that would probably only cost you about $12 to ship, depending on distance.
just be sure of your measurements before you get there...over 108" puts into the Parcel Post category, and as noted, that's very expensive.
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Posts: 1663
Location: Kodiak, AK | I've shipped rods to clients in tubes up to 74" or so, and it's been like $12-$15 Priority Mail in a PVC tube. |
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Bait prices