flatsrat76 Posted January 24, 2010 Report Share Posted January 24, 2010 Just wondering how many guys have made the jump from hobby to a business. Is it possible to earn a decent income pouring Jigs? Yes I copied this from the plastics post. I wouldn't mind doing it part time but I just do it for fun and for me and my buds to use at this time. Would It be easier to outsource to spin casters? Would you still have to pay the 10% FET if you did outsource and not manufacture yourself? Flatsrat76 Quote Link to comment Share on other sites More sharing options...
Jig Man Posted January 24, 2010 Report Share Posted January 24, 2010 (edited) I looked into it a few years back. I had some retailers set up who were willing to buy in decent sized lots. After checking out the state and federal regulations, I did the math and I decided to keep my day job and my hobbies; (making baits and having time to use them). Edited January 24, 2010 by Jig Man Quote Link to comment Share on other sites More sharing options...
cadman Posted January 24, 2010 Report Share Posted January 24, 2010 I sell my baits and this is the info I can give you. Don't quit your full time job. I make and sell them because I have a passion for this hobby, and can make some extra cash to pay for my supplies. This is a very tough business. I have seen so many guys come and go. The problem is guys have ideas of big profits and grandeur. It doesn't work that way. There are times when you bite of more than you can chew. You have to have excellent quality, you have to deliver on time whether you have problems or not, and you have to have excellent selling skills and customer service. You will not make tons of money, you have to work long hours and if you have problems with a particular mold on that day you have to finish the order whether you pour it or find someone else to help you because you have to fill the order. Customers do not want to hear excuses. Especially when you are custom making it for them. If they have problems with you, you will never see them again and even if they don't have problems with you, many guys look elsewhere to get it cheaper. So there are a lot of things that come into play. Even though my quality is top notch, along with my customer service it would be tough for me to be busy every day. Finally, like anything else, there are days when everything falls apart and doing this gets really old. If you are going to do thousands of jigs weekly then yes find some one that can spin cast them for you. You can not pour 2-3 K jigs weekly on a pert time bases hand pouring, it is just too much plus you will have to paint them and package them. These are just my thoughts. You can however make some money and have fun doing it, just don't go over your head. Quote Link to comment Share on other sites More sharing options...
smalljaw Posted January 24, 2010 Report Share Posted January 24, 2010 I believe cadman has the perfect perception on why this remains more of a hobby than anything else. I had several guys that I make jigs and spinnerbaits for that own businesses and offered to display my work for me but I declined, I love my hobby, I sell some baits to pay for supplies so I can keep building because this is fun for me and I fear that if it becomes a job I will no longer want to do it and it will quickly go from fun to work. Believe it or not but the industry needs us, they need guys who make custom rods and tackle as a hobby because thats were the innovation is, that were they get ideas from, the custom crowd, and we also serve the tournament industry, I know for a fact that most of the lures I sell are to friends and others who fish tournaments and they buy custom tackle to gain an advantage over the competition, they want to fish with something the fish haven't seen. I think what I like the most is the fact that 3 different people can make the exact same jig from the exact same mold and they will all be different, the individuality really shows up when you make your own tackle and thats why most of us do it in the first place, but I never invisioned making a living from it because as I said before, making a living from it is not only extremely hard but it will turn my fun time into work and its just no fun. Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted January 24, 2010 Report Share Posted January 24, 2010 The simple fact of the matter is the overhead is too high for the small amount of profit involved for the small MFG. The 10% Excise tax(which many don't pay) is the killer.You have to be selling other items w/a considerable mark-up - $20-$30 per item to support yourself entirely from a small tackle MFG business. Quote Link to comment Share on other sites More sharing options...
flatsrat76 Posted January 25, 2010 Author Report Share Posted January 25, 2010 To Everybody Great read, I was just thinking about giving it a shot since I have a ton of time on my hands and its so cheap to start up a business..... Flatsrat76 Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted January 25, 2010 Report Share Posted January 25, 2010 its so cheap to start up a business..... Flatsrat76 Good Luck.The grass isn't always greener on the other side of the hill! But remember,you'll reach a point where you'll have to invest considerable $ to stay alive. You can show a loss for 3 out of 5 years. They you have to show a profit 2 years in succession or the I.R.S. declares it a hobby.You'll need to invest major $ if you want to make real money at it- and that's no guarantee. Look into total injection cost Including 40 CNC molds) before you start slinging money in the air. It's fun when it's a hobby and you sell a few to support your habit but a serious deal when fixed cost take a minimum 15 -20% off of the top. and your working 7 days a week for a small return.Setting up a shop w/safe and proper ventilation is no cheap deal either. Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted January 25, 2010 Report Share Posted January 25, 2010 Good Luck.The grass isn't always greener on the other side of the hill! But remember,you'll reach a point where you'll have to invest considerable $ to stay alive. You can show a loss for 3 out of 5 years. They you have to show a profit 2 years in succession or the I.R.S. declares it a hobby.You'll need to invest major $ if you want to make real money at it- and that's no guarantee. Look into total injection cost Including 40 CNC molds) before you start slinging money in the air. It's fun when it's a hobby and you sell a few to support your habit but a serious deal when fixed cost take a minimum 15 -20% off of the top. and your working 7 days a week for a small return.Setting up a shop w/safe and proper ventilation is no cheap deal either. You'll need to do lead and plastic baits as well Quote Link to comment Share on other sites More sharing options...
Ogajiga Posted January 25, 2010 Report Share Posted January 25, 2010 I've been pouring full time for a dozen years and can suggest that even at the best of times a home hand casting bizness will be marginally self supporting with maybe a bit left over for an annual modest vacation expense. Notice I said "self" as I doubt if one can support a family or maintain regular chunk payments like a mortgage. There are off season slow periods with only a trickle of sales and times that require exhausting all day & most of the evening effort to keep up. Ultimately, profitability is more dependent on marketing connections than work ethic. Quote Link to comment Share on other sites More sharing options...
BLT Posted January 27, 2010 Report Share Posted January 27, 2010 I do 95% saltwater tackle. I am in 6 shops, and have people in other shops in another state that may want me in, and a relative that wants to try to get me in at Va. beach area. I work a full-full time job, meaning a lot of hours, and between that and the tackle I make now, I just don't know if I want any more business. Right now, it's fun, and I don't want to cross that line where it IS a job. Lucky for me, most business is from May-late September, so I can take a month off or so, then spend the cold winter months stocking up for the next year. It's fun, make some extra $$ on the side, that's about it. I just could not see all the time I would have to put in to make enough to make a living. So what happens if you do claim a loss and they consider you a "hobby". Anyone know what that changes tax wise? What do they do? Quote Link to comment Share on other sites More sharing options...
JSC Posted January 27, 2010 Report Share Posted January 27, 2010 "So what happens if you do claim a loss and they consider you a "hobby". Anyone know what that changes tax wise? What do they do?" I belive the only thing is that you cannot report it on your income tax. Anyone else know different ? JSC Quote Link to comment Share on other sites More sharing options...
flatsrat76 Posted January 27, 2010 Author Report Share Posted January 27, 2010 Great info guy If I do it, I will take my time and do as much research as possible. I am also doing a ton or research about taxes on this website and it is kind of overwhelming to me so I may try to follow my dreams of being a pro hand model for home shopping after all j/k but thanks for the ins/out of this hobby/business. Flatsrat76 Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted January 30, 2010 Report Share Posted January 30, 2010 "So what happens if you do claim a loss and they consider you a "hobby". Anyone know what that changes tax wise? What do they do?" I belive the only thing is that you cannot report it on your income tax. Anyone else know different ? JSC If it becomes a hobby and you declare no income,you can't deduct your expenses and components from your income taxes. Quote Link to comment Share on other sites More sharing options...
ravenlures Posted January 31, 2010 Report Share Posted January 31, 2010 Just wondering how many guys have made the jump from hobby to a business. Is it possible to earn a decent income pouring Jigs? Yes I copied this from the plastics post. I wouldn't mind doing it part time but I just do it for fun and for me and my buds to use at this time. Would It be easier to outsource to spin casters? Would you still have to pay the 10% FET if you did outsource and not manufacture yourself? Flatsrat76 Quote Link to comment Share on other sites More sharing options...
ravenlures Posted January 31, 2010 Report Share Posted January 31, 2010 Don't worry about taxes first get the business. Like the rest said it will be hard, so don't quit your day job. I am retired now and I sell what I make at flea markets, I like that better I plan on doing about 5 or 6 this summer. I make them in the winter and sell in the summer. More time to fish. I just did three last year and had fun talking to the guys, but they are there looking for a good deal. They just don't know how much time and cost go into a lure. I know this did'nt help but its tough out there. Crazywaynee Quote Link to comment Share on other sites More sharing options...
Terry Anderson Posted February 1, 2010 Report Share Posted February 1, 2010 Don't worry about taxes first get the business. Like the rest said it will be hard, so don't quit your day job. I am retired now and I sell what I make at flea markets, I like that better I plan on doing about 5 or 6 this summer. I make them in the winter and sell in the summer. More time to fish. I just did three last year and had fun talking to the guys, but they are there looking for a good deal. They just don't know how much time and cost go into a lure. I know this did'nt help but its tough out there. Crazywaynee I would just like to find someone to buy "poured" heads from and tie my skirt ideas onto their heads! I pour enough to keep myself in jigs and other baits, but would like to offer up some jigs for guys who want some budget jigs, that cannot afford custom hand pours. Just a thought. Quote Link to comment Share on other sites More sharing options...
