DingerBaits Posted February 3, 2015 Report Share Posted February 3, 2015 After only being in business 7 months I can tell that it is a rough industry. Even after the ridiculous amount of sales through my company and a great start to the year in sales the tackle industry is harsh. I love doing it, for me it's not really about the money, it is more about the relationships and people you meet along the way. I work a full time job and run my business officially as an LLC putting in almost 80 hours a week. I just look at my company as my "possible" retirement fund Quote Link to comment Share on other sites More sharing options...
Fishhead15 Posted February 4, 2015 Report Share Posted February 4, 2015 wow, salty just asked a question, didn't mean to strike a nerve. only wanted clarification on a statement you originally made. I haven't messaged you for tax advice, so I am not sure who that is directed at. I will do my own research, just thought I would get help from fellow builders who have been through it which is what the forums are about...my bad... I am not importing lures, that was the point of my question...and asking questions to make sure I continue to run a legitimate business. but it's all good, I will contact an accountant and see what they know Eric 1 Quote Link to comment Share on other sites More sharing options...
DingerBaits Posted February 4, 2015 Report Share Posted February 4, 2015 Most states have free programs (Wisconsin did) for small businesses and people who are thinking about starting them. I would also check on that, helped me out some too. Quote Link to comment Share on other sites More sharing options...
Salty's Posted February 5, 2015 Report Share Posted February 5, 2015 (edited) Biggun, I made some comments based on extensive experience in the business wholesaling and retailing. If you realized just how bad the problem is in this business you would echo exactly what I say here or anywhere else. You're exactly right too in that some good information is given here. But I'll guarantee you that none of it will be followed...costs money. Fishhead no nerve struck. Actually I'm disgusted at how low many stoop in this business. I threw away $100k in business last year because I have to charge people the excise I'm required to pay. Why should I sell products to people who don't do it legit and have to pay their tax out of my pocket. I got an email that you asked a question about this subject is why I said it here. Again off topic. This thread is about making money in the fishing lure business. I'm telling you it's not what it seems and you ain't making what you think you are. I work for .40 an hour. It's taken me 13 years to bring it up from .10 an hour. People think this is a get rich quick business. They get in, make a ton of sales then realize how much work it is and they're gone in 6 months or a year. MEANWHILE they just ate up a slice of a 6 billion dollar industry that could have been mine or someone elses doing it legit. Multiply this by thousands and thousands...you get where this is going? I bet if you walked into ANY tackle shop right now that I could help you pick out 25 products that were made and sold illegit. That's alot of peg space a real business could have... That's why I link the two together. A lot of good information here. I believe the question that started all this was could it be done. Short answer is yes, if you are willing to do all that is needed to be done to make it work. The only thing I don't understand is why is it that every time somebody ask about buying in bulk, producing in bulk, or selling lures it all goes to a tax debate? I understand this is information that would be needed if the person moved forward with there business plans, but dang. Some of you all make it sound like the first time he makes a lure the helicopters are going to start circling, or if he sells a $2.00 lure to his best friend the guys in the black suburban's are going to roll up and slam him on the ground. If you choose to make it a business then yes you will need to do all the same things any other business does. accountants, marketing, employees, payroll, overhead. Edited February 5, 2015 by Salty's Quote Link to comment Share on other sites More sharing options...
Skeeter Posted February 5, 2015 Report Share Posted February 5, 2015 "Making a living" is a shaky statement. How much money do you need to "make a living?" In my opinion you can make a living making lures. The higher the amount that you expect is relative to the amount of money, dedication, and work you are going to have to put out. There are already people and companies making money doing this. So it is a no brainer that it can be accomplished. The number one thing that you need is drive and determination. Then, you will need to use your brain to design your product. Next you will need some MONEY. There are so many participants on this site that make statements like; "I don't have much money", "need something cheap", and "too much work" that I feel that you can count them out of being any competition to you. Very few people have built a successful business on nothing. To me…. this is a no brainer too. Next, you will need a great product. Those that started on Tacklemaking.com and moved over here 15 years ago did so because they were tired of buying crap. They were tired of putting out hard earned money for garbage. The base for all of the stuff on this site came from the dedication and hard work from those individuals (especially the work of Red Gator that started this site to begin with.) The work that they did was so original and innovative that big bait companies came here to get information on test results and how it was accomplished. A lot of truly wonderful and innovative work was lost here due to sever crashes. SO DON’T MAKE A BUNCH OF CRAP AND SELL IT!! You may make money in the short run, but once your name is trashed by turning out crap you won’t be selling for long. Your name and reputation is everything, so protect it! All of this tax stuff is pointless. If you are trying to make enough money to make a living you will have to make yourself a legitimate business. Why, because by doing that you get huge discounts and tax breaks on buying material to make your product. If you pay full retail price on material to make your product you stand to loose huge amounts of profit. Plus, you could be caught by “The Man”. We all have an idea what could happen to us now if we don’t pay taxes on the money that we make at our current job. Same thing applies here. Once you make yourself a legitimate business you will need to keep detailed and accurate records of where your money is spent and how much profit you make. Take this information to a tax preparer and let them worry about it. Most of us do this now and the cost is a little more because more than likely you will file quarterly. However, as in everything, the more you know the better off you are. If you truly believe that those that are successful at doing this are going to just lay it all out here on the site for everyone to follow, you are mistaken. You will be their competition. Most businesses of any kind don't want to help their competition. That would not be very smart to their bottom line. So if you are one of the few that have the drive and determination to make it happen, get to it. Time to roll up the sleeves and get busy. You will learn as you go. I wish you the best. Skeeter 3 Quote Link to comment Share on other sites More sharing options...
Hughesy Posted February 5, 2015 Report Share Posted February 5, 2015 Well said Skeet. That covers it all!!!!!!! Quote Link to comment Share on other sites More sharing options...
Nathan Posted February 5, 2015 Report Share Posted February 5, 2015 Hit the nail on the head Skeeter..Nathan Quote Link to comment Share on other sites More sharing options...
Salty's Posted February 5, 2015 Report Share Posted February 5, 2015 yep very well said. Best post in the whole topic. Quote Link to comment Share on other sites More sharing options...
RayburnGuy Posted February 5, 2015 Report Share Posted February 5, 2015 Bullseye Skeeter. Ben Quote Link to comment Share on other sites More sharing options...
Fishin Big Posted April 7, 2022 Report Share Posted April 7, 2022 (edited) I know this is an old thread, but, many, many years ago I owned a Hunting and Fishing business as a Distributor. That was pretty successful until my partner thought he didn't feel the need to file his portion tax documents. The IRS frowns upon this and I was served a summons to appear in Federal Court! I personally have a friend that works for the IRS, I called her up and explained what was going on. Her advice was that I fill out the form she will send to me before the court date. It arrived with a separate hand written note; Do Not sign your name on any part of the enclosed form!! her directions instructed me to; Write from the bottom left hand corner to the top righthand corner," I am no longer a partner in this business" I had dissolved the partnership then and there .No forms or documents necessary. I made another attempt at continuing in the sales side of fishing equipment, however, that was at a time when big money was starting to run the small guys out of their way. And I caved in and took their money. I was ,by that time working two jobs, one as a welder and the other as a broke fishing business. My friend at the IRS, Laughed so hard when I called her and told her what I had done that, after a moment I did see the humor. She asked if I made any money from selling out? When I told her how much, She stopped laughing! My first business I started back in 1979 and closed in 1989, per the Partnership debacle. In today's world it's just a hobby for me even if I do make enough to pay for supplies. Edited April 7, 2022 by Fishin Big Quote Link to comment Share on other sites More sharing options...
ravenlures Posted April 7, 2022 Report Share Posted April 7, 2022 I have tried to keep it small just as a hobby but when you look on eBay the Chinese got the corner on the market. You can't beat their price if you try you lose money. So, I will just try and use up all the lures that I bought finish painting and sell anywhere I can, two more years then I will be done. Then at 81 years old I will just putt with a few of my own design till the end. I really like flea markets where I meet fellow fishermen and just talk fishing. I did do some wholesale, but you wait for the money and 40% of the profit goes down the drain with it. I can do three flea markets a week in my area at 15 to 20 bucks and do ok getting my price. I don't have a web site anymore so I will just try to go through face book. Making a living at this is tough way to make money like cards you come to a point in the game and you either go all in or fold. So best of luck with your business. Wayne Quote Link to comment Share on other sites More sharing options...
Hillbilly voodoo Posted April 7, 2022 Report Share Posted April 7, 2022 I make my stable paycheck as a heavy equipment operator but do to the hours I work I get 50% of the days off in a year. I do above average with lots of free time so it’s hard to give it up Lure making I do on the side to add a few $ to my pocket. I only sell straight to the customer now. I have sold to shops in the past but it cuts into profits. I could be a lot busier with minimal effort but like having a life on my days off. I prefer to sell less lures that have higher profit margins If I talk $ I make a year on the side making lures it’s better then most expect. A few things I have learned There is a ton of lures that are not worth making to sell do to high competition keeping profits low You need to be realistic about time and materials involved. I have lure I make for personal use that would not command enough profit to justify selling them If you are trying to sell lures that are just like everything else commonly available to your target market area people are going to buy from the big company names over you Buying in bulk makes a huge difference in profit margins. So being able to invest $ without worrying about a timely return helps There is a lot more to making $ selling lures then being able to catch fish. The information above is just a few small things to consider My full time job gives me the time to build and a good income so I don’t need to worry about fast returns on the money I invest into lure making. This makes it much easier for me to sell lures for profit Quote Link to comment Share on other sites More sharing options...
brushape Posted April 8, 2022 Report Share Posted April 8, 2022 I just give baits that I've made away as I can't afford to sell them! Quote Link to comment Share on other sites More sharing options...
RiverSmallieGuy Posted April 8, 2022 Report Share Posted April 8, 2022 Honestly, the best way to grow your lure company would be to come up with a completely unique concept that nobody has marketed or made and prove that it gets bit in certain situations that other baits that people commonly use in those situations wouldn't. Other words, innovation is the best way to go. Then, after you have your concept and you know it works, you need to protect your intellectual property, which is expensive. A lot of things have to go correctly to have a successful business. You need to learn a lot before you can sell baits. And, not only do your baits have to work well, they need to look good too. Your baits need to catch fish and fishermen. 1 Quote Link to comment Share on other sites More sharing options...
ravenlures Posted April 8, 2022 Report Share Posted April 8, 2022 I will DITTO RiverSmallieGuy. Wayne 1 Quote Link to comment Share on other sites More sharing options...
RiverSmallieGuy Posted April 8, 2022 Report Share Posted April 8, 2022 51 minutes ago, ravenlures said: I will DITTO RiverSmallieGuy. Wayne Haha... Wisdom from a teenager lol. Quote Link to comment Share on other sites More sharing options...
