help on starting a tackle business

[Munkin]

2 hours ago, smalljaw67 said:

You are talking about hand injection, I know of a small company that makes their own products but they work 7 days a week and they have over 300 molds. If you want to make a living you have to make an investment, so if you start out with 2 sizes of stick worms, a creature bait and a worm, you would need between 6 to 10 molds of each in order to be able to produce enough to make a living at it. In order to have a custom mold made, you will need to pay to have the cad work done and depending on how many cavities you want it can cost a lot, figure around $500 to $1000 depending on the complexity and number of cavities and then figure you'll need 6 or more molds. In order to manufacture enough baits that you can sell to make a living from it, figure you'll need a facility to put at least two large Zorn injection machines, and have $4000 molds made that will allow you to shoot between 50 and 100 baits per round, then the packaging, you'll heed about $300K to get started. I know you don't want  to hear it but in order to make baits to make enough money to pay for materials and pay yourself enough of a salary to make ends meet, you'll need to sell an awful lot of baits and here is the kicker, you'll have to figure out pricing, you just can't decide to charge whatever you want. You need to break down the cost per bait for your material expense, then you have to break down your overhead, things like electricity, storage, packaging, shipping and other expenses related to the production of your baits. Then when you have all that figured out it will give you the basic cost per bait to make, but then you need a sale price, so you have to figure in federal excise tax, along with other taxes and that is figured out by you or an accountant as you have to figure the lowest amount you need in order for your business to operate and still provide you enough money to live on. When that number is figured out then you have to figure out you estimated quarterly tax, city, state and county tax and depending on where you live, you may even have to pay a manufacturing permit or a zone approval fee because you can't manufacture on that scale in a residential area. This may sound like a lot of crap and it is, but that is what you have to go through in order to make a living at this. Most smaller companies outsource to a bulk manufacturer and they will have their baits shot to their specs and colors and then shipped to them where they will package and distribute the baits themselves. That way you have lower overhead but you also have a lower profit margin but a lot less headache and investment. The scale you are looking to do it is what is called a "hobby business" where you can make enough for your supplies and a some spending cash but you still need a day job, just too much expense and it isn't possible to make the kind of volume you need to make it your job. Remember, Zoom probably gives away more baits in a month than you could make with 1 person helping you in a year, just let that sink in. Now, as I said before, if you are determined enough you can do it but it won't happen overnight, it will take long hours and a lot of work to do but it can be done if you have enough drive.

$4000 is the low end for a Zorn mold.

 

Allen

[primetime]

Make sure you understand the industry..It doesn't work how most people think...Most companies do not have their own facility to pour plastics etc...Zoom is not pouring plastics in a zoom Building, nor is Strike King etc...Learn about OEM's...Read Tackle Retail magazine and other's that discuss who is building what and where they are built etc. If you see a company selling skirts and you want to buy them in bulk to make your own jigs, you need to start thinking about "How are they selling 100 Tabs for $12..Obviously they are making money, so then you need to make sure you have enough money to get to the source...Buying direct from OEM's is going to require the most money, largest MOQ, and don't expect to get any deals from wholesale companies for the most part as a start up without having relationships etc...Don't order those 200 Crankbaits from Rapala in an assortment because odds are you will have 190 in firetiger color...

Some of the best deals you will find are from calling companies and asking for an overstock list, or any blemishes....It is tough to compete for pricing when companies like Locket lures who make Big Bite and a bunch more sell to the public at wholesale pricing...But you can do well if you have a plan, and make sure you build trust and do not go overboard buying "What you like to use"...That is the most important advise I can give...Think along the lines of "What items does everyone need, that are used to catch fish in all areas of the world, and how can I combine them to offer something different"...If you want to compete on say Ebay to start out, if selling 100 Stick worms for example, think of accesories to add to your listing since you will not get more than .20 per soft bait no matter how nice it is these days. Shipping,Taxes, pay pal fees, store fees, ebay fees....all add up...Plus mistakes...You need to buy smart and make your first investment smart, start with $1000 and make your goal to turn it into $1500 in a few weeks...Then Try to double that and add 1 more item..Always try and sell a few items first that you buy at regular prices just to make sure they will sell. You don't want to put up a ton of stuff to find out that other guys are already selling it, or they do not move as fast as you would think...Terminal tackle is the safest bet imo...Swivels, Snaps, Hooks, Hitchikers, Blades..Tackle craft stuff...Soft plastics is too much work and not enough margin. Plus you get stuck with too many since the industry changes so fast..Hollow belly swimbaits were the rage a few years back, now you can't move them unless  you give them away. Always buy colors that look the best, you are trying to catch Fisherman not Fish...

Black and blue works great, but everyone sells a black and blue worm...So get some worms that are in a different color and give it your own name...Don't call it watermelon Red just because that is what the packing slip says, some companies call it Green Pumpin Red, you get the idea...Give it a better name...Motor Oil Red Flake flash would work well...Toss in a few free cheap items that everyone needs and you are set....Just a few examples...Click on the items you want to sell on Ebay even if not selling their, and then click Advanced on the right, and then click Sold listings...See what they are selling for and how often. You will be amazed at how low prices go on everything from lures, line, reels etc...Overstockbait.com is a good place to see what you are up against..and that is retail...Fishingdiscount.net is another, but you will notice the same items in all overstock places for a reason....

I would say pouring plastics is way to costly and the odds of making money are super super slim...Unless you are gifted and can do some awesome pours...It is hard to make money off the hardcore angler from a site like this...You are looking to catch the regular guy looking to buy some tackle for the summer and he likes to buy a few colors and in bulk...It is hard to beat 100 5"Stick worms for $15-$20 in perfect shape, with free priority shipping...Hand pours are expensive, I have only seen a few guys make it online, most guys that have their own line of soft baits are having them poured for them....

I tried to start a business and make it full time wholesale and retail, and it has turned into weekends and Ebay....Say what you want about Ebay but you get more exposure than anywhere else, having a website is great, but getting traffic and your name out there is too tough...After every Ebay order then direct them to your website with a card in the package and 10% off next order etc...You need to think of it as a hobby to make a few hundred bucks a week to supplement your regular Job...My goal every month is to make enough to pay all my bills so I can buy more fishing stuff that I get stuck with...It is a tough business even if you understand it, but imo, to start out, you can't beat Ebay...If you are buying right...Hope that helps, but you don't need much to get started...I got started 15 years ago when a shop closed down and I scored 300 spools of line at 90% off...Took it from there...

[primetime]

On 3/29/2016 at 9:18 PM, Kevin22 said:

Theres only two places in this industry where an average joe can make a living. Bluebasser hit one. Carve and design swimbaits. The other is painting lures. Both are skills though, but both can be learned and mastered with time and practice. 

You can't make a living with soft plastics, you can't hardly break even after taxes. You'll find that there are a lot of people "hobby pouring" and making basically the same baits as you are, but they aren't paying taxes or trying to make a real profit. They will  undercut you to the point you lose money. Who is going to pay $5 a bag for GP sticks when you can buy the exact same baits from some kid on ebay selling them for $1.75 a bag because daddy bought all the materials for him.

If you have unique ideas you better drop a few grand and get a patent lawyer and a patent now. As soon as a pro staffer for one of the big companies sees the bait and ships them off to R&D, you will not have an unique bait anymore. 

The baits on ebay being sold in bulk are not hand poured..think about it...How could anyone pour 100 senkos for $20 free priority shipping...That would not make any sense....People are all buying from OEM's, some are blemishes, some are overstocks, some are perfect....They are being purchased by the Pallet. You can buy them from a bunch of places depending on what and how many you want but even at 100 for $20 and $6 shipping, it is too much work to sell them alone. Ebay is good as a hobby and part time business, but I have yet to see anyone suceed on Ebay with hand pours...Except Bogs baits...And he is just really good and gets a premium. Most guys selling hand pours can't make 10 stick worms for what most guys can buy 10000...No Joke.

[Kevin22]

I want to say mine costed me right at 10-12 cents each to make, for 5" sticks, when I poured.

[smalljaw67]

On ‎4‎/‎11‎/‎2016 at 4:07 PM, primetime said:

Make sure you understand the industry..It doesn't work how most people think...Most companies do not have their own facility to pour plastics etc...Zoom is not pouring plastics in a zoom Building, nor is Strike King etc...Learn about OEM's...Read Tackle Retail magazine and other's that discuss who is building what and where they are built etc. If you see a company selling skirts and you want to buy them in bulk to make your own jigs, you need to start thinking about "How are they selling 100 Tabs for $12..Obviously they are making money, so then you need to make sure you have enough money to get to the source...Buying direct from OEM's is going to require the most money, largest MOQ, and don't expect to get any deals from wholesale companies for the most part as a start up without having relationships etc...Don't order those 200 Crankbaits from Rapala in an assortment because odds are you will have 190 in firetiger color...

Some of the best deals you will find are from calling companies and asking for an overstock list, or any blemishes....It is tough to compete for pricing when companies like Locket lures who make Big Bite and a bunch more sell to the public at wholesale pricing...But you can do well if you have a plan, and make sure you build trust and do not go overboard buying "What you like to use"...That is the most important advise I can give...Think along the lines of "What items does everyone need, that are used to catch fish in all areas of the world, and how can I combine them to offer something different"...If you want to compete on say Ebay to start out, if selling 100 Stick worms for example, think of accesories to add to your listing since you will not get more than .20 per soft bait no matter how nice it is these days. Shipping,Taxes, pay pal fees, store fees, ebay fees....all add up...Plus mistakes...You need to buy smart and make your first investment smart, start with $1000 and make your goal to turn it into $1500 in a few weeks...Then Try to double that and add 1 more item..Always try and sell a few items first that you buy at regular prices just to make sure they will sell. You don't want to put up a ton of stuff to find out that other guys are already selling it, or they do not move as fast as you would think...Terminal tackle is the safest bet imo...Swivels, Snaps, Hooks, Hitchikers, Blades..Tackle craft stuff...Soft plastics is too much work and not enough margin. Plus you get stuck with too many since the industry changes so fast..Hollow belly swimbaits were the rage a few years back, now you can't move them unless  you give them away. Always buy colors that look the best, you are trying to catch Fisherman not Fish...

Black and blue works great, but everyone sells a black and blue worm...So get some worms that are in a different color and give it your own name...Don't call it watermelon Red just because that is what the packing slip says, some companies call it Green Pumpin Red, you get the idea...Give it a better name...Motor Oil Red Flake flash would work well...Toss in a few free cheap items that everyone needs and you are set....Just a few examples...Click on the items you want to sell on Ebay even if not selling their, and then click Advanced on the right, and then click Sold listings...See what they are selling for and how often. You will be amazed at how low prices go on everything from lures, line, reels etc...Overstockbait.com is a good place to see what you are up against..and that is retail...Fishingdiscount.net is another, but you will notice the same items in all overstock places for a reason....

I would say pouring plastics is way to costly and the odds of making money are super super slim...Unless you are gifted and can do some awesome pours...It is hard to make money off the hardcore angler from a site like this...You are looking to catch the regular guy looking to buy some tackle for the summer and he likes to buy a few colors and in bulk...It is hard to beat 100 5"Stick worms for $15-$20 in perfect shape, with free priority shipping...Hand pours are expensive, I have only seen a few guys make it online, most guys that have their own line of soft baits are having them poured for them....

I tried to start a business and make it full time wholesale and retail, and it has turned into weekends and Ebay....Say what you want about Ebay but you get more exposure than anywhere else, having a website is great, but getting traffic and your name out there is too tough...After every Ebay order then direct them to your website with a card in the package and 10% off next order etc...You need to think of it as a hobby to make a few hundred bucks a week to supplement your regular Job...My goal every month is to make enough to pay all my bills so I can buy more fishing stuff that I get stuck with...It is a tough business even if you understand it, but imo, to start out, you can't beat Ebay...If you are buying right...Hope that helps, but you don't need much to get started...I got started 15 years ago when a shop closed down and I scored 300 spools of line at 90% off...Took it from there...

Unless something has changed, Zoom does manufacturer their own baits, if you go to their website and look up company history they tell you that they went from a 55 gallon drum to a 40,000 sq. ft. facility and over 100 employees and they are making baits. There are a lot though like Strike king, who don't make their own and use bulk manufacturers to do it for them but Zoom isn't one of them, and Yum use to make their own also but now I'm not sure.

[primetime]

On 4/13/2016 at 7:21 AM, smalljaw67 said:

Unless something has changed, Zoom does manufacturer their own baits, if you go to their website and look up company history they tell you that they went from a 55 gallon drum to a 40,000 sq. ft. facility and over 100 employees and they are making baits. There are a lot though like Strike king, who don't make their own and use bulk manufacturers to do it for them but Zoom isn't one of them, and Yum use to make their own also but now I'm not sure.

I know that Zoom was outsourcing some baits as of last year (That is not a bad thing, They have a solid standard of Quality Control but Zoom has so many baits I am sure they own the molds and production for some models). I wonder if they are part Owner of an OEM maybe, 100 people is pretty big, but I wouldn't be surprised either way, they are huge. I know the local fishing Shop received a bunch of boxes of Zoom Lizads, Fluke Sticks, and Trick worms in bulk this year and he only buys from one place, but they could be old, I didn't look at the label on the back of the box. The Owner also saves stock in a warehouse so people don't mix colors and ruin all his baits in one month. Zoom is a company that seems to focus on price and tons of colors as well as models and they do a great job. I am sure they want to eventually make all their stuff in house to keep prices even more competitive as the market get's more saturated with competition. Companies like Gambler and Z-Man, and even Culprit and V&M are now really stepping up the marketing and quality of baits etc. I know many companies use several OEM's which would make sense as you don't want to have any supply issues, I would think Zoom probably sells the most soft baits per year as a main brand, but that is just a guess, BPS has to be right there with them. I would guess that Strike King and GYB capture the largest margins. 

Every company has their own Niche, It seems to change every year, and is different in every region. Here in Florida Gambler is super popular, and it seems Missile baits is really taking off as well ever since John Crews switched from the BB Cricket for punching. It is amazing how powerful marketing can be, Strike King does a great Job of marketing and people are willing to pay a premium because they do have designs that are truly unique and they don't need to have a ton of colors since they focus on selling a Perfect bait that is flawless. They have a Really high level of quality control and I am not just saying that since Strike King baits are popular on this site. They reject baits that look perfect for the slightest variations in Flake or shading. When you buy their baits in clam shell packages you can be certain they are all perfect. I never look at my baits when I open a package, but some some guy at BPS was examining them when I was there, and I was surprised when I actually looked.

I alway's wonder how GYB ended up with so many colors. Who makes a color that is Smoke with Large Blue, Small blue, black flake, then have a version that is the same with some gold or something...I wonder how many were intentional? I believe the color Pumpkinseed was actually an error back in the day, but companies took it to market and I am glad they did....Sorry for the ramble, I type fast and soft baits and Marketing etc. always get me thinking....