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| Thinking about selling some custom lures to a local bait shop and was wondering how to properly price them. I have a friend who is in sales within the industry and he told me that a bait store looks to make about 40% per lure, or at least thats pretty standard.
1. Does anyone know if this means that for say an $18.00 wholesale bait, they would sell it for $25.20 (18x.4=7.20) (18+7.20=25.20), thus 40% profit...
2. or is it $18.00 wholesale, they sell it for $30.00 (30.00x.4=12.00) (30.00x.6=18.00) (18+12=30), thus 40% of the total price with $12.00 profit
With the later actually meaning that they are making 80% profit.....
Just curious which senario is actually the case for anyone who might know.
Thanks |
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Posts: 941
Location: Freedom, WI | number 1 . 30% to 40% in most cases. |
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Posts: 786
Location: Minnesota | I try to give a 35% to 40% mark up from my price. This will allow me to make about $20/hr making my Grunts. Now if I throw in my time on a website, cleaning up the garage, running to go get supplies, etc I make about $10/hr.... Then I get to pay my FET, Federal, State, gas to go get supplies, etc..... Now I owe my wife $5 for helping me out... |
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Posts: 1530
| welcome to the world of wholesale. theres also distributorship if you so chose. they handle regional sales.. |
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| Thanks for all the replys, its a lot of work but it sure is addicting....at least its a hobby in which you can re-coup some money. |
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| the worst part is shipping baits to people. If you sell on ebay add another hour to the lure for having to box, address and ship the dang thing. This is the worst part about making baits imo.
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Posts: 786
Location: Minnesota | I can box up about 8-10 Grunt per hour. Key is getting the free USPS Priority supplies. Boxes go together in a second and eBay and PayPal print off your label in about 1 minute. Just takes a little time to set it up. Is a pain though sometimes I must admit. |
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Posts: 2112
Location: The Sportsman, home, or out on the water | If you are looking to get rich in the baitmaking business, you had better have a lot of folks hypeing your product. The shop I work for is selling most of the inventory at minimum mark-up. Our low price is what keeps the shop afloat, and competitave with the bigger stores.
Pricing is variable. Dont give a "box store" a great deal (especially if they made you get a upc) when two little shops are moving more product.
Also, do not compete with a shop that carries your product. Sell to the people you know, for what your shops are carrying it for.
Edited by muskynightmare 9/28/2007 12:35 AM
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Posts: 4266
| Back when I was dreaming, I thought that I could supplement my income after I lost my job, by selling lures.
I had some interesting offers. One guy expected me to drop my price 33% so he could recoup his costs. The one thing that he didn't understand was that I had already quoted him my price reduced 25%. Then he was mad that I couldn't fill his "oredr" of 500 lures so he could see how much he could "fetch". I asked if I got money back if he could sell them at a higher price, and he laughed. I told him that was OK, because if I was lucky, I could make 100 lures a year.
Enter guy #2....."How much do you sell your lures for?"
"That sounds fair, what could I get them for?" I knocked $5 off. "That sounds fair."
"How much would you sell them for?", I asked. $10 more than I was going to sell them to him for. "How soon could you get 100 of 5 different colors to me."
"Spring of 2008.".....this was in the fall of '06. We both laughed and I gave him 5 for his box. 2 weeks later he called and told me that he sold all 5 for $150. Guess he didn't have room in his box.
That is why I make a few lures here and there, I leave lures in people's boats after fishing, I donate them to auctions and I even give them to kids who lose tackle boxes or to to guys who leave drool puddles in my basement.
I can't produce in volume, and I will never make enough money or product to try to make it any resemblance of a business.
I love making lures, but it will always be first and foremost a hobby, a labor of love, a past time and nothing more. But for some reason, I just made 25 10"ers to take up to Cass Lake with me. All different colors and all ready to catch big mama. But I think that I will send a few up to the PI outing for you muskieteers, because last year somebody got real lucky on one. That's more important to me than somebody's mark-up.
Beav |
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Posts: 1530
| very good words beaver. |
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