vishezfish Posted December 30, 2005 Report Share Posted December 30, 2005 My brother in law owns a tackle shop in NJ and he wants to sell my soft plastic baits there.... that sounds great but.... I'm not sure how that works?? Would he buy them from me? Or do i put them in his store and split all $$$ from there?? Thanks for your help on this matter!! Quote Link to comment Share on other sites More sharing options...
alsworms Posted December 30, 2005 Report Share Posted December 30, 2005 I have mine in a few stores. It really depends on what the retailer wants to do........and if you're willing to work with them. A few stores buy my stuff up front at a 25% discount. There's a couple others that don't pay me until they get paid. Those pay me my regular price, and their markup is usually between 25 and 30 percent. Your best bet is to always get paid first, if possible. Since he's your bro-in-law, I'm sure you could work something out in that direction. There really is no right or wrong way to do it as long as you don't sell yourself short. Chris Quote Link to comment Share on other sites More sharing options...
wannabefishing Posted December 30, 2005 Report Share Posted December 30, 2005 mine will be in a couple stores this spring (for bass opener) and it'll be a straight upfront exchange of goods for cash, makes life simpler.... mind you at one store they'll be sold in "bulk bins"... works for me Quote Link to comment Share on other sites More sharing options...
vishezfish Posted December 30, 2005 Author Report Share Posted December 30, 2005 Great advice... Thats what I was thinking!! Thanks you guys for your help! Quote Link to comment Share on other sites More sharing options...
Will Posted December 31, 2005 Report Share Posted December 31, 2005 For the guys that sell their stick baits to stores, I would imagine that will buy them from you in bulks of 50, 100 or more... How do you price them? What do you charge for orders of 50, 100 or more? Any advice would be greatly appreciated. Thanks. Quote Link to comment Share on other sites More sharing options...
B&D Custom Lures Posted January 1, 2006 Report Share Posted January 1, 2006 If you want to get your product in stores I would recomend a purchase out right instead of a consignment type base. Consignment only ties up your working capital and even though you are happy to get your product in a store and have to do a consignment be very careful. Consignment is hard to keep up with and even when you know the owner very well when it comes to someone owing money things change and it can bite you quickly . If the store owner can't afford to pay for the product up front or questions will it sell? Make an offer to reduce the first order price to help them and you get your product on thier shelves. I delt with the ones that questioned and also coulndn't afford it at the time and we went consignment and then they couldn't or wouldn't pay their bill or folded and went out of business before you even known they were and you've just lost your capital investment and that will and can destroy you., Tread lighly Quote Link to comment Share on other sites More sharing options...
mickeyg Posted January 2, 2006 Report Share Posted January 2, 2006 I agree with B&D that consignment is not the way to go. It would be an accounting nightmare of trying to figure who owes what when etc. I outright sell my baits giving dealers 10-45% markup allowances. Since I only deal with mom-pop shops with little cash, they usually only order what they can fit on the peghook. I have always given new dealers the option to sell back my baits so they don't have any financial risk--only inventory carrying risk. Hope this helps. Good luck, Mickey Quote Link to comment Share on other sites More sharing options...
mickeyg Posted January 2, 2006 Report Share Posted January 2, 2006 I agree with B&D that consignment is not the way to go. It would be an accounting nightmare of trying to figure who owes what when etc. I outright sell my baits giving dealers 10-45% markup allowances. Since I only deal with mom-pop shops with little cash, they usually only order what they can fit on the peghook. I have always given new dealers the option to sell back my baits so they don't have any financial risk--only inventory carrying risk. Hope this helps. Good luck, Mickey Quote Link to comment Share on other sites More sharing options...
millsryno Posted January 2, 2006 Report Share Posted January 2, 2006 How are you handling shipping and excise tax? Is it all just priced into the product or does it have it's own line item on the invoice? Quote Link to comment Share on other sites More sharing options...
B&D Custom Lures Posted January 3, 2006 Report Share Posted January 3, 2006 1st question are you paying the excise tax or are you filling exempt? 2nd question is are you planning on dealiing with shops oversees ? The excise tax is something I pay and its just consumed into part of my inventory cost etc. The one thing I've found with mom&pops and large company's as well is that when they look at your price sheet they may think your price is higher than your competition and you may be but we offer free shipping to our dealers and have no min. $ amounts. and that is what gets the order from them. So many company's have min. and I think they loose alot of sales because of that. The one thing I can tell you is that if you plan on getting rich in the lure business,well its just very hard to do.If you want to make $$$ the best way is buying in bulk and package under your name and cut down the labor,But if your like me you have pride in your workmanship and want to offer handcrafted products that you create! I so badly want to open a retail store here but it takes $$$$ and then what if it doesn't work? Well maybe some day? What type of products are you making and is there any competition in your area that might hinder you getting your product in stores? If you need a mailing list of deals feel free to give me a shout Quote Link to comment Share on other sites More sharing options...
millsryno Posted January 3, 2006 Report Share Posted January 3, 2006 How would you qualify to file exempt on the excise tax? Is the excise tax calculated from the price you sell to the shops for? Quote Link to comment Share on other sites More sharing options...
B&D Custom Lures Posted January 3, 2006 Report Share Posted January 3, 2006 you can pick up the exempt form from your local post office or library,IRS..But all this does is allow to purchase without paying tax but you'll just end up paying it at the end of the year. I wouldn't worry about the 10% tax its not enough to full with unless your are doing a serious amount of volume As far as charging sales tax to your wholesale dealer you just get the resale form and keep it updated 2 times a year. Quote Link to comment Share on other sites More sharing options...
guiley Posted January 12, 2006 Report Share Posted January 12, 2006 B&D, I sure hope you're paying the 10% FET because I wouldn't want to be on record as advising folks to ignore the IRS. Anyone have any horror stories about someone getting nailed for not paying the FET? My advice would be to stay legal. Quote Link to comment Share on other sites More sharing options...
