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Posted 02 March 2009 - 08:48 AM
Presentation is not everything, only about 99%, were new business is concerned. Customers will pass over your bait if the finish and presentation is not professional. The 50c clamshell, or the $2 molded box, makes a statement, that you mean business. Knock 50c off the price and sell it in a plastic bag, see which sells more.
Given that your bait is a proven fish magnet, repeat business will not be that bothered, they come back because your bait works and they have confidence. But NEW business is required for success, to expand your repeat business. Go with the clam shell.
Posted 02 March 2009 - 05:57 PM
Thanks for all the great info. You guys have great input and bring up some great points. I read on here somewhere else that a 40% mark down from retail is common. Have any of you heard this??
If I have a lure that retails for $3.99, I can sell it wholesale to tackle shops for around $2.40 ??????
I realize each shop may have their own opinion, but what do you guys think??
Posted 02 March 2009 - 06:56 PM
My vote is for the clamshell.
Bags will puncture from the hooks unless you staple a bag to a large card-I've seen that work well for spinnerbaits. The card has your logo, bait description, yata yata..... If you fold the top of the card over the top of the bag, you'll have double the strength and the bag is less likely to pull free of the staples.
10%-Company Website (cost of website-approx)
Choose your retail price (example $10) and work backwards. Don't forget your FET which is based on our net profit-not gross. It looks very professional if you have your programs written on a sheet a paper that you can present to the retailer. I tried to explain some of this several weeks ago but can't find my link.
These are just rules of thumb. Every retailer may vary their program in a effort to work with you. If sales are good and both parties are making money, these relationships can last for years and become treasured if you manage them correctly.
Posted 02 March 2009 - 07:15 PM
If you can find a bait shop to sell them for you, with no investment
involved on their part, you could probably work out some sort
of deal, say 25% to them and the rest to you. The advantage
you have is, custom made.
Posted 02 March 2009 - 08:16 PM
I found a local shop about 2 years ago that let me hang my stuff on their shelves. I told them what I wanted out of them and then they put a price on them that they thought they could get. I packaged them and printed a liner for each package. In 2 years I have sold 11 of the 22 that I originally took in. I go in occasionally and collect on what I have sold. I have also done a couple of shows and sold person to person. I get a higher price at shows and person to person than I do at the tackle shop. In the tackle shop I have to directly compete with the other name brand, well known products. At that point, the only thing promoting your bait is its package and its looks. At least at shows and person to person you have a connection to your buyer, which often times makes the difference.
Posted 02 March 2009 - 08:49 PM
Since no one really answered the original question I will say this; I like to clear $15 off each bait [above the cost of the bait], but it usually ends up around $10. If you can paint in sets of 3, then you can make some $$. If your doing baits one at a time, it will be tough.
People will pay $30-$35 for a good paint job on a Lucky Craft. They won't pay $12 for a Norman with the exact same paint. Point is, it takes the same amount of time and money to paint a lucky as it does a norman.
One final thought, why does everyone try to copy the factory colors?? If you can't make it better or different there is no reason why they should pay more.....
Posted 03 March 2009 - 09:13 AM
Figure out how much time it takes to make each lure, how much you want to make an hour, how much the materials for each lure are, how much profit you want to make per lure, and that's your price. Shipping and handling are extra.
If you can't get enough to pay your costs and make a profit, don't do it.
Why make something fun into slavery?