# Need advice on starting my lure making business.....



## FishinAddiction (May 9, 2006)

I know fishing better than I know ANYTHING! It is my #1 passion in life and I think about it 24/7. I'm obsessed with it. So I have decided to turn my passion into a business. I have so many ideas for great lures in mind from topwater plugs, to spoons, to flounder rigs, to soft plastics of all kinds. My question is pretty open ended, but what kinds of things will I need to get started? Like what kinds of tools,molds, materials, etc. Thanks so much for your help in advance. Also, where can I get these materials?


PS....I already have a name in mind for my company.....Alpha Predator Lure Co.


----------



## rattler (Jul 3, 2004)

pm redskinfan228...he makes and sells his flatty rigs...


----------



## FishinAddiction (May 9, 2006)

thanks bro!


----------



## Digger (Jan 4, 2000)

Find a lure you enjoy making. I do Bucktails and I may take it to the next level(I need a good source for lead).


----------



## FishinAddiction (May 9, 2006)

I think I would enjoy making flounder rigs the most, but I actually would enjoy making almost any kind of lure.


----------



## RuddeDogg (Mar 20, 2004)

*Lures*

I like Redskinsfan make my own lures and I do sell them on the side. I tie rigs of all kinds from flounder, to striper, drum, weakfish, Top & bottom and many others. I also make custom rigs as well. Most of the guys I tie for are guys I work with. I tie them rigs and I go fishing with them on their boats. I would suggest buying your supplies in bulk as it quite cheaper. Good luck.


----------



## FishinAddiction (May 9, 2006)

what would be the best way to market them and hopefully get them into tackle shops for sale?


----------



## RuddeDogg (Mar 20, 2004)

*That's a goona be tuff.........*

At least it is for me. All the shops around me make their own and my rigs are almost have of what they charge. That tends to pi$$ them off a little. I not ou to make a huge profit but I can say this.....most of better setups have been bought from money that I have made. A good thing to do is hit the local flea markets. Last year I had a guy from a local head boat buy all the drum rigs (black drum) that I had. He bought 300 9/0 drum rigs at $2.00 per rig. Not a bad day at all. I keep alot of rigs in stock that way if someone comes and says I need x amount of x size striper rigs I can go to my bins pull them out and still have pleny on hand.


----------



## bigjim5589 (Jul 23, 2005)

*Starting your own tackle company!*

I was in the tackle business for 15 years. I made all kinds of flies, lures & rigs. Any help I can give just ask.

Here's a few things you'll need to know.

1) Copy someone else's patented, or trademarked stuff & you may end up in court, and it may cost you a lot of money, lawyers aren't cheap. Make sure what you make & sell doesn't infringe on another companies products.

2) There is a federal excise tax on fishing tackle, it's a manufacturers tax, and when you start making & selling tackle, you'll be required to pay the tax. For lures, flies & terminal tackle the tax is 10% of the sale price. You'll need to file IRS Form 720 each quarter & pay whatever you owe when you file.

You can apply for a tax number, I believe it's IRS Form 637, which allows you to buy components excise tax free, or if you pay the tax when you buy components, you can get a credit on what you pay against what you owe for the items you manufacture. 

3) You will need a Federal Employer Identification Number, it's required for filing excise taxes, even if you don't have employees.

4) You'll never make as much money as you think you'll make right now while the idea of going into business is new, unless you get lucky & come up with something really unique & something everyone wants & needs. Good luck with that!

5) Forget about fishing, even if you have moderate success, you'll be spending all your "free" time making products for other folks to use to go fishing. There is a price for success.

6) There's nothing wrong with running a tackle business & making tackle because you enjoy doing it! If you make enough money to keep it going for 15 years or longer, and can buy what you want to fish with, the few times you'll get to go, then you can consider it a successful business!


----------



## RedskinFan228 (Jun 28, 2004)

Ruddog makes some nice stuff. Like these guys are saying you wont make as much money as you think. There are ways around the tax issues. For instance if you are only selling to friends or at flea markets ebay etc... then you can call it a hobby. You wont be able to write off allot of the stuff you could if you are in "business' i.e. licensed , incorporated ....

However in order to sell to tackle shops they want you to have a license and proof that you paid the excise tax or else they will have to. 

Ypu will make a bigger profit margin selling directly to the public. Selling to baiit shops piers etc... you have to sell at a lower cost because they have to mark them up in order to make a profit. Just go tackle shopping and see that the cost for a bucktail or flounder rig is pretty cheap. Now factor in that you have to pay for the materials, excise tax, income tax etc... and then of course you have to sell it to the bait shop at a minimum of 30-50 percent less than they sell it for and you see not going to get rich quick. But nice way to cover your spending on equipment and fishing gear. 

Ken


----------



## JAM (Jul 22, 2002)

A good way to get it into shops is comps. If ya give lures to the local TS owner and workers they will fish it.. If they have sucess they will push the product.. I know that kida sounds crapie but it does work.. Friend of mine James owns a comp called Shore Lure Comp. He started giving them out to the local fisher people and we started catching fish mackrell and blues.. They flew great they flew far and they caught fish..When we give the fishing reports we give lure that worked and hence the Glass Minnow.. 
I would say that the metals would be better to get into, cause the flounder pomp. rigs are so cheap to begin with that there is no profit margin.. Soft plastics will require molds and lots o equipment.. Make sure ya keep it fun other wise it could ruin your passion.. Good Luck and enjoy.. JAM


----------



## derekxec (Apr 26, 2006)

or you could come up with an idea and try to sell it to a lure company


----------



## oOMPHOo (Dec 14, 2005)

I would try to start small and see how much luck you have. Spend a few weekends making up all of your rigs

Fish the piers...bring a cardboard box and set up your rigs on the box for sale. Lots of inexperienced fisherman come unprepared, capitalize on that. 

Find the mom and pop baitshops, and let them try your lures free, then ask if you can put up a little flyer or leave a business card.

Post ad's on Craigslist.com in the sporting goods section of your city. 

post flyers on the light poles near the piers, and fishing spots. 

Give a few rigs and a card to LARGE groups of fisherman.

If it doesn't work on a small level, it's probably not worth investing in on a larger level.


----------



## bigjim5589 (Jul 23, 2005)

I don't mean to sound negative, so if what I add sounds that way, it's not intended to be. I just want you to know that there are alot of things to consider, and some can get you in trouble, both financially & legally if you're not careful.

*"There are ways around the tax issues. For instance if you are only selling to friends or at flea markets ebay etc... then you can call it a hobby."*

The problem with this is that the Infernal Revenue doesn't look at it this way! If you make tackle & sell it, you are required to pay the taxes! They don't care what you call it! If you only sell a few things on an occasional basis that's one thing, but if you start to advertise items for sale, and try to operate as a business, on a regular basis the IRS will eventually catch up with you. 

I did a small once a year fishing show for a few years with a Trout Unlimited chapter in DE. They held it in a private school gym for several years, then it got too big, so they moved it a state university gym.
Because it was held in a state run facility, the state sent all the vendors letters telling them they had to have business licenses. I got my letter 3 weeks after the show. It cost me some money, but it could have cost me a lot more if they had taken legal action, and they said they would if I didn't pay the $35 for the yearly license. The state of DE also notified the IRS! Sounds ridiculous, yes, but things like this do happen! Paper trails will get you caught!

*"Fish the piers...bring a cardboard box and set up your rigs on the box for sale." *

Keep in mind that some local & state governments require peddlers licenses or similar, if you set up, make sure you have whatever license you need. It doesn't look good to have the police writing you a ticket or arresting you while you're trying to sell tackle to the locals! There are people who will turn you in, especially if you're competing with them for business!

*"or you could come up with an idea and try to sell it to a lure company"*

Good idea, but harder than it sounds! I was on the mailing list of a few invention companies, and got all kinds of info sent to me about lure & other tackle ideas & inventions. I still get inquiries and even samples from folks who think they have a great idea for a lure or other tackle. I saw some good ones, but none I was willing to take a risk on.

Most are good ideas, most work fine, but most I've seen have already been done, or would have a very limited consumer base. 

Before a tackle company invests a lot of money, they have to be sure they can get a good return, that's just good business. Any idea would have to first be thoroughly researched to be sure they can _legally_ produce the idea, which is very expensive to do, then proceed. It would have to be a very special & unique idea to get considered.

Once you start making tackle as a business, you are no longer a hobbyist, you're a manufacturer! You have to be aware of all the laws & regulations that apply to you. You are now competing with all other tackle makers for a limited amount of return, and it's easy to get yourself buried in legal & financial trouble if you don't do it right! :--|


----------



## sand flea (Oct 24, 1999)

Not trying to be a hardass here, but keep in mind that when it moves from a hobby to a business, the rules about advertising here will apply.

If you like to tie a rig here and there, that's fine. But if you become a real business, you will not be allowed to post on the Marketplace any more.

A hobby that becomes a business can be very rewarding. It can also make you want to jump in front of a bus. Trust me on this one.


----------

