earthworm77 Posted January 21, 2008 Report Share Posted January 21, 2008 Boone, excellent story. I formed my company much the way you did. Bhorlings, I don't mean to discourage you. Just think about what you are doing before jumping into it. There is so much more than just pouring to consider. Someone said it before.....just because you can pour plastic into the hole of a mold...doesn't make you a hand pourer. You should have a market plan and samples will work but you must understand you might hand out 100's without a sale. For my own business I started fishing local tournaments and I only used my own baits. I make everything but crankbaits. If there was a jig bite, I was deadly with my own model, plastics and tubes, got that coevered......spinnerbaits, hair jigs....buzzers. I made them too. I won a ton of those tournaments and my baits got some exposure. I sold more baits from the back of my pick up after a weigh in than handing out samples. I like to throw in a few samples with an order I get. I find this works out well. Quote Link to comment Share on other sites More sharing options...
bhorlings Posted January 22, 2008 Author Report Share Posted January 22, 2008 Great ideas Earthworm. I am not discouraged. I feel like it is more of getting my head out of the clouds. Learn to crawl before I walk or run is what I have to remind myself. Thanks for great input. Quote Link to comment Share on other sites More sharing options...
fishinfool/2 Posted January 22, 2008 Report Share Posted January 22, 2008 dont forget that tax ID# you may forget but your state sales tax people won't. 10 years ago i owned a computerized embroidering business. had fun maed lots of hats shirts and ect. for fishing clubs ,tourneys ect. got biger opened a store.registered a new address.and went on.5 years later sold that and before i knew what happened got a letter that i owed over 50,000 in unpayed taxes. didn't fill out propre papers gov. had me owning two businesses. cost me thousands to get it cleared up. now that i am making fishing baits bet your hiney i watched my back. just watch what you call a business befor you do the paperwork GOOD LUCK Todd Quote Link to comment Share on other sites More sharing options...
bhorlings Posted January 22, 2008 Author Report Share Posted January 22, 2008 Good idea. I will definitely look into it. Quote Link to comment Share on other sites More sharing options...
alsworms Posted January 22, 2008 Report Share Posted January 22, 2008 Craig (earthworm) brought up a great point. Samples WITH an order is always excellent business! Quote Link to comment Share on other sites More sharing options...
Spike-A-Pike Posted January 22, 2008 Report Share Posted January 22, 2008 bhorlings. Good thing there is a bit of a gambler in you, just don't let 'em see you sweat when you bluff... Geek to geek, make sure that you put a book keeping and accounting system that works for you with inventory control, vender, and customer listing, right from the start and not the other way around... Before you "open the doors", make sure your business is ready for busniess. Quote Link to comment Share on other sites More sharing options...
Mac10 Posted January 22, 2008 Report Share Posted January 22, 2008 To test the waters....start with local shows. Pics of fish caught on your lures will go a long way....especially those with your lures still attached to the fish. It's always a good thing, having pics....also slows down the traffic on their way by. Put your products up front and the pics just a little behind. Secondly, include pics of other species caught if any. Also, having a few mounted fish seems to be a homey touch. If your lures benefit from a special presentation, such as slow fall deadstiking, be sure to include techniques.....tips are a good draw as well and often are the highlights of the show for some. A three by five card under a pic telling the technique/presentation also helps. Also, selling several types of lures helps, even though one of your creations may be the bread and butter lure. Quote Link to comment Share on other sites More sharing options...
GB GONE Posted January 22, 2008 Report Share Posted January 22, 2008 People selling worms and stik baits on ebay cut everyones throat including there selfs. 50 sticks for 10 bucks and even 25 sticks for 10 bucks thats bad news and it messed everyone up in the bait business. Thank you Del!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! While I do sell on eBay, I try not to give away my stuff. Many times baits sell for more than what you can get them for on my site. If you do knock your prices down, many will email you about bulk buying and so you knock your prices down again... From that point on, you have to give that price break to everybody that knows the guy you sold those baits to. Others will email you for the same deal and avoid your website all together. It is a slow downward spiral that is tough to get out of. A sale just to sell can hurt you in the long run so be careful. Just some of that MBA marketing stuff I took back in college going to work finally! Now if the government could go back to Economics 101 we would be all set!! Jim Quote Link to comment Share on other sites More sharing options...
JDBaits Posted February 21, 2008 Report Share Posted February 21, 2008 Not to hijack this thread but what about the hobbyist who sells his hand poured baits? Should he register as a business and fill out the appropriate paperwork with the IRS as if it was a business? Where is the line between hobby and business? Quote Link to comment Share on other sites More sharing options...
saint308 Posted February 21, 2008 Report Share Posted February 21, 2008 If you sell baits, you are a business. That is income regardless as far as I know. If it is cash and not much can you get away with it. Maybe, but it is illegal. Saint. Quote Link to comment Share on other sites More sharing options...
Delw Posted February 21, 2008 Report Share Posted February 21, 2008 Jd i believe they draw the line at 750 bucks a year you would have to double check however. I know there is a limit just dont remember the exact amount. it has been posted on this forum in the past Quote Link to comment Share on other sites More sharing options...
Legendary Posted February 22, 2008 Report Share Posted February 22, 2008 I believe in Ohio it is more like $500.00 for state atleast. Quote Link to comment Share on other sites More sharing options...
Spike-A-Pike Posted February 22, 2008 Report Share Posted February 22, 2008 JD The IRS allows for the hobbyist who sells his hand poured baits... On the 2007 1040, line 21. Other income. List type and amount (see page 24) $_______.__. It's just that simple. Quote Link to comment Share on other sites More sharing options...
JSC Posted February 22, 2008 Report Share Posted February 22, 2008 OK Fellers .... The way I understand it >> If you sell a lure, as defined by the IRS, you are to pay the Federal Excise Tax of 10% of what You sell it for. Don't mess around with the IRS on this. Register with the IRS ... get the Fed # (Which you can use to buy materials, such as hooks & etc) you send the supplier a copy of the exempt form ..... The form you use to pay this every Quarter (Unless you do a LOT of business which there is another way to pay but You have to file every Quater) is IRSForm 720. Hope this helps and if any one knows of a way around it legally .. let us know. =:^) JSC Quote Link to comment Share on other sites More sharing options...
JDBaits Posted February 22, 2008 Report Share Posted February 22, 2008 Great thread and keep the advice comming!!! My main idea behind selling is to cover my cost and in turn get a free hobby. I couldnt possibly fish all the baits I want to pour. On second thought forget fishing, id rather be pouring!!!!!!!!!!! Quote Link to comment Share on other sites More sharing options...
Orion Posted February 22, 2008 Report Share Posted February 22, 2008 Great thread and keep the advice comming!!! My main idea behind selling is to cover my cost and in turn get a free hobby. I couldnt possibly fish all the baits I want to pour. On second thought forget fishing, id rather be pouring!!!!!!!!!!! Wow... that's a first. Someone who'd rather be pouring than fishing. Quote Link to comment Share on other sites More sharing options...
rr316 Posted February 22, 2008 Report Share Posted February 22, 2008 Thank you Del!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!While I do sell on eBay, I try not to give away my stuff. Many times baits sell for more than what you can get them for on my site. If you do knock your prices down, many will email you about bulk buying and so you knock your prices down again... From that point on, you have to give that price break to everybody that knows the guy you sold those baits to. Others will email you for the same deal and avoid your website all together. It is a slow downward spiral that is tough to get out of. A sale just to sell can hurt you in the long run so be careful. Just some of that MBA marketing stuff I took back in college going to work finally! Now if the government could go back to Economics 101 we would be all set!! Jim Ebay people crack me up, I sell on ebay, but always at my price (and not plastics either), you will get every "tournament" fisherman in the world trying to milk ya for deals. I had a pretty persistent guy tell me one time that I better change my "outlook" on selling baits at "deal" prices (he wanted them for less than what it cost me to make em) because the economy is horrible and noone will pay full price for anything.... I told him I will just go fishing then:) Quote Link to comment Share on other sites More sharing options...
kendo Posted February 22, 2008 Report Share Posted February 22, 2008 Hello all and thanks everyone for all the great info! I have to agree with Del and ghost on a lot of different things. I have started a business in the past and passed the point of small business death (3 years.) Honestly it all comes down to promotion. Like Del said dont go out spamming because no one can stand that at all. But go out make a name for your self and while you do that make sure your company is legit. Start some kind of corp (yes this cost money but with a law suit for someones kid eating your bait and ending up in the hospital, they will take everything you have) . I am in california the state of the highest paying state in junk lawsuits so I understand this 100%. For me I am not selling or in the market now maybe later but already I have people asking me to sell them some of my hand pours just because of word of mouth. I have a lot of friends that constantly fish and pass the word along about my baits. One catches a large fish on a boat and everyone runs over and asks "What are you using". It simple get out there and promote, use friends with word of mouth. Word of mouth will make or break your business in my opinion. If you have a good product people will pay for it. And if they ask for free samples tell them you will give them a free sample with purchase of 100 or more baits. This will still give them the option of something free to lure them in (no pun intended) and possibly add orders. Most people that ask for free samples are not interesting in purchasing anything and never will be interested. 1 last thing. Treat your good customers very well and they will pass on the word. Look at Del, he is a great guy period and everyone says the same and I am sure this boosted his sales 40% at minimum. I like to look for deals but would rather spend an extra 20-40 dollars with Del because I know he will treat me good and give me the best service I could possibly ask for. Most people will agree. Quote Link to comment Share on other sites More sharing options...
