cost of jigs

[liftbite56]

If you have already done this...let me know what your figure came up with...On my way home last night went to a local tackle shop...they don't cater to crappie fisherman. None the less they had a section for soft plastic's and jigs, and terminal tackle...just looking for a new bait (they did not carry) so looked at their prices of jig heads...1/16, 1/32 10ct. and the 4 ct. heads.... the 10 count was 3.99 the 4 count was 2.49....I went back and pulled my invoices to see what I was paying for my Matzuo and Mustad hooks 1000 ct...figured the lead per 1/16 oz had to guess at the powder coating cost...cards and bags for packaging...there really is a huge mark up...I guess the wholesaler gets his then the shop gets theirs...plus the hooks in those I figure are made in China and maybe a half a penny cost who knows....with shipping costs taxes etc...I have no way to figure what my time should cost....to do the eye's but everyway I figure it comes up,,,Matzuo jig finished .09 cents...Mustad finished .10 cents my cost... with out package cost, is this right in the same ball park as you? Reason I'm asking a local wholesaler who has helped me in the past asked why didn't I put some heads in his shop...no one is selling the hooks I offer or the 1/24th head weight...I just don't know what price I should ask for? anyone have any thoughts on this would be helpful...thanks liftbite Hey if I'm out of line with this subject matter sorry I'm learning guys...and most of it is coming from this site,,,due to ya'lls experience and good humor...

[brushnjigs]

First off you will be 1099. That means you will have to add 10% for the excise tax, then the other taxes in your state. Next will be the additional cost of utilities. Its is a 10k per day fine operating with out your 637 excise form and #. Next will be the cost of the laminated bag and if you have it printed expect a 50 thousand minimum. Now add your labor time to it, and dont forget the additional labor cost and taxes if you get that busy. Then you will need an accountant to keep track of all the mess that the government has created. There is a lot of hidden cost that goes unnoticed Should I go on??

[liftbite56]

Thanks, thats the things I never thought about! I wonder how these people make money? I file now under a sole propritorship . had all the cards for packaging done two years ago ...50,000 is right. but at .02 cents each! 3"x4" card with my logo, details, lead warning everything. That was for web sales if it ever takes off. I think I'll just keep doing for friends only...

[fish_4_all]

When I tried to make fishing tackle for a business I did it this way:
I paid all excise taxes from the wholesaler. Didn't want to mess with it and easier to have a receipt saying it was already paid.
Overhead costs were minimal, I did all the work at home so no additional costs for electrical, rent or anything else. Bagging was $0.07 each, bought in bulk and printed my own cards.
I picked one shop and only supplied them. In my case I was making spinners.
Price I sold them for was based on what I need to make and keeping the price lower than most other comparable products.
I never did make any money at it but the shop I worked with only bought from me for 16 months or so.
As for my time, if I calculated that in I would have had to charge a lot more than anything in the store.

Best advice, don't get in over your head to the point it is no longer fun.
You can make money at it and keep it fairly simple but trying to get rich off it will turn your fishing time into working time. Maybe the shop that wants you to put the stuff in there will hire you to make them so they can sell them. Is the best of both worlds if they will do it.

[fishhunter775]

You can buy from a wholesaler and pay the excise tax to them and be ok as long as you dont change what you buy.For example you can buy hooks and pay the excise tax when you buy them,but if you put lead on them or tie anything to them and resale it,then you owe the excise tax for it.
You can be listed as a sole prop but unless you have a 637 tax number and are filing a 727 each quarter then you are not running 100 percent leagl and can be fined if caught.Also it doesnt matter if you sale just a diollar or several doallars they still want there cut.

[shipahoy41]

Did it three years as a business and 40 years as just a hobby. Closed the business two years ago. Did not produce in the volumes most larger bait shops needed as well as increased hidden costs, web fees and taxes. Royal pain in the butt when crap from overseas was what being sold in sporting goods stores.

Made hair jigs as well as ice flies. Lately been making soft plastic baits. You have to be in the right place at the right time with the right connections and a recognizeable name to make any serious money in the baitmaking business. You spend more money on supplies and equipment than you recoup in the first few years. Advertising costs are not cheap and a majority of people expect you to just give your product away.

I enjoy making what I need and use to fish with. Uncle Sam ruined it for many small business men. I'm just saying.....

[fish_4_all]

Things must have changed but it has been 10 or so years since I tried my hand at business selling. There is no way I could do this as a business for retail markets. Friends and family and maybe a few sales on the water is all I will ever see and most of time it is trade for taking me fishing. Or more like here is my stuff, have at it, thanks for dragging me along. Most of the time they want me to go or at least enjoy fishing with me, I hope they do anyway.

[Redman]

Man don't let anyone know that you are working with lead or you will get a visit from the EPA. Seems as if they would just leave us alone that we may get this economy back on track. Because of regulation the small guy doesn't even have a chance.Only big companies and foreign ones will survive.

Redman.

[liftbite56]

well, all I can say is thanks, I won't venture in that direction...I'll keep the passion to my circles of friends and thats it. That's enough info to strike fear in amyone....By the way I know that there is no money in making jigs...just the feeling I get when a BIG crappie jumps on something I made by hand!!!

[fishhunter775]

liftbite well there is some money to be made with them but you have to make lots and lots of them,but the most important thing is you have to be able to get rid of all the ones you make ha ha.I guess Ive been one of the lucky ones I do around 750,000 a year,not as many as the big guys but all I wont to do anyway.And yes it most certainly cuts away your fishing time.Im lucky to get to go 5 or 6 times a year now, but I do enjoy making tackle so guess I will keep sling the lead and tying them up.