Lure Companies - Price Markup / Any contact info? Help needed.....

[benito]

Hey Folks-

Does anyone have any idea how much the Lure companies sell their lures to Retailers for? For instance, if a lure costs me $5 at Bass Pro Shops, how much on average did the lure company sell it to BPS for? $4, $3, less? I'm sure this varies, but just looking for general, ballpark - how much do these companies sell their lures to the retailers, vs. the retail price?

I've got a long-shot idea for a way to sell/market lures, but have no idea what typical wholesale vs. Retail is in this industry.

Also, if any of y'all have any contacts/friends/relatives within the lure/tackle industry, I would love any help you may have!

Thank you in advance!

BEN SMITH (Bensmith630@hotmail.com)

[Mattlures]

most are marked up 40% so a $5 would have cost the store $3

[Lund Explorer]

Good luck with your plan Benito.

From my experience in marketing a product, I can tell you that you better have some really deep pockets.

Pricing?  Shipping? Terms?  They're all based on volume.

[burleytog]

most are marked up 40% so a $5 would have cost the store $3

Aye, 30-100% is the usual.

[RobE]

Oh man.. one area of discussion that I never dreamed that I would see here. Since you seem genuinely interested though, Ben, I'll lay some basic business info on you and wish you the best in your potential endeavor.

There are three major factors that play into the sucess of any business, of any size. The first two are Overhead and Tunover which are directly related to the third which is Purchasing Power. There is also a fourth element, which should actually be #1, called Customer Service.

Overhead is your cost of doing business. Rent, advertising, insurance, payroll, utilities, etc. These cost' are not fixed and you have no control over them once you are dedicated - other than budgeting out advertising or not having heat in the Winter. Not a good idea.

Turnover refers to the dollar-amount of product that you are able to move within a period of time as specified in a contract with a supplier. When you order more, you get a larger price break.

That's where Turnover meets Purchasing Power. One crankbait cost' $3. Two cost' $2.50 each. If you want 50, they're $1 each. If you can't sell all that you bought, tough luck. I don't want them back. You're more than welcome to sell them for less than you paid for them on your SALE! shelf.

That's where a lot of business owners make thier biggest mistake. Don't ride on the advertising hype of ANY product. Stick with what your customers show a need for via repeat purchaces. There's your Turnover. Buying 1000 of the newest jig that KVD loves, but don't fit your market, might find you selling 600 of them 'at cost' or less, just to generate cash flow and make room for the next Hyped-Up thing. We call that a Managerial ****-**. It happens. And it will happen to you. It's part of learning your business... fishing supplies, bicycles or stereo equipment. Doesn't matter. Keep it to a minimum.

Customer Service is your KEY! The Customer isn't always right, but you must let them think so. If a particular customer tries to take advantage of you, you'll know it. You'll know what to do.

Don't be afraid to do Special-Orders for good customers that might like to try a certain product that you don't stock. Let them know that you appreciate thier business and that you will gladly order the item for them and sell it at your cost plus a little for shipping. All you should ask for in return is an honest evaluation of the product and how highly they would recommend it to others. You are now generating Consumer Loyalty. Not in the product but, in your Business!

EDIT - In any business, the minimum profit margin to stay afloat and expand (slowly) is 20%. Profits are not usually recognized until 35+% for brick and mortar stores. On-line stores may profit in the 15% margin range but greatly suffer in knowlegeable folks on the phone. What is Customer Service from a guy that you Turkey-hunt with worth? Keep the little guys in business, America!        

[5bass]

[movedhere] General Bass Fishing Forum [move by] five.bass.limit.

[Branuss04]

most are marked up 40% so a $5 would have cost the store $3

Aye, 30-100% is the usual.

One shop comes to mind   :

[BassNub]

If it's under 3 digits then it is usually 100% markup, if its under 4 digits it's usually 100-50% markup, 4 digits and over is usually 50-10%.

[The_Natural]

40-60% is the retail standard. More important is how cheap companies can make their baits. Take Strike King for example. I think as a whole they produce the cheapest and most poorly constructed baits of any lure manufacturer. They have their baits made in Mexico for next to nothing (China is the promise land compared to Mexico manufacturing). Their crankbaits cost in the neighborhood of .30 cents to manufacture, and they charge $3 to retailers. If you look, Strike King has the largest group of Pro-Staffers of any hard bait company, and they can afford to pay them big bucks due to their profit margin (they pay KVD $439,000 a year). I don't mind paying the markup on quality baits, but companies that put cheap manufacturing as a priority over quality irks me. If you buy enough baits, you can tell which one are cheaply made.

[TrippyJai]

Oh man.. one area of discussion that I never dreamed that I would see here. Since you seem genuinely interested though, Ben, I'll lay some basic business info on you and wish you the best in your potential endeavor.

There are three major factors that play into the sucess of any business, of any size. The first two are Overhead and Tunover which are directly related to the third which is Purchasing Power. There is also a fourth element, which should actually be #1, called Customer Service.

Overhead is your cost of doing business. Rent, advertising, insurance, payroll, utilities, etc. These cost' are not fixed and you have no control over them once you are dedicated - other than budgeting out advertising or not having heat in the Winter. Not a good idea.

Turnover refers to the dollar-amount of product that you are able to move within a period of time as specified in a contract with a supplier. When you order more, you get a larger price break.

That's where Turnover meets Purchasing Power. One crankbait cost' $3. Two cost' $2.50 each. If you want 50, they're $1 each. If you can't sell all that you bought, tough luck. I don't want them back. You're more than welcome to sell them for less than you paid for them on your SALE! shelf.

That's where a lot of business owners make thier biggest mistake. Don't ride on the advertising hype of ANY product. Stick with what your customers show a need for via repeat purchaces. There's your Turnover. Buying 1000 of the newest jig that KVD loves, but don't fit your market, might find you selling 600 of them 'at cost' or less, just to generate cash flow and make room for the next Hyped-Up thing. We call that a Managerial ****-**. It happens. And it will happen to you. It's part of learning your business... fishing supplies, bicycles or stereo equipment. Doesn't matter. Keep it to a minimum.

Customer Service is your KEY! The Customer isn't always right, but you must let them think so. If a particular customer tries to take advantage of you, you'll know it. You'll know what to do.

Don't be afraid to do Special-Orders for good customers that might like to try a certain product that you don't stock. Let them know that you appreciate thier business and that you will gladly order the item for them and sell it at your cost plus a little for shipping. All you should ask for in return is an honest evaluation of the product and how highly they would recommend it to others. You are now generating Consumer Loyalty. Not in the product but, in your Business!

EDIT - In any business, the minimum profit margin to stay afloat and expand (slowly) is 20%. Profits are not usually recognized until 35+% for brick and mortar stores. On-line stores may profit in the 15% margin range but greatly suffer in knowlegeable folks on the phone. What is Customer Service from a guy that you Turkey-hunt with worth? Keep the little guys in business, America!        

This reminds me of first year Finance.  

[benito]

Thanks to everyone for your help/knowledge.....

If anyone has any contacts or knows anyone in this business, would love to contact them.

Take care, and thanks again!

BEN (Bensmith630@hotmail.com)

[benito]

Does anyone have any leads/contacts in this area?

Either looking for direct folks within lure companies, or Sales Reps/Distributors....

Thanks-

BEN (bensmith630@hotmail.com)

[Grey Wolf]

Have you made an effort to contact these companies yourself ? I don't think you are going to get any info here unless one of our advertisers here responds to your request.