Hey guys,- Tom, sorry about earlier

I am currently going through the paperwork about to get my business liscence so I can get wholesale pricing, I am planning on starting to sell some custom rods to friends etc. What I am wondering is just how good is the discount, and what stores offer the best wholesale pricing. Im looking at opening accounts with Mudhole and Merrick Tackle. Mudhole mostly because they sell Winthrop Tool guides.

I have heard that I will be "very happy" with wholesale-so im guessing its like 25% off or so? If ya'll have any suggestions on vendors, I'd be very interested.
Thanks in advance

Stephen Altenbach

I have been wondering exactly the same thing. It only costs me $40 for a business license in the little town I live in, and I would rather be legal, so I am making my application for a license in the City Council meeting tonight. I guess I will find out soon what kind of discounts wholesale price represents.
Steve Broadwell

You'll find out in a couple of weeks. It's a big secret, but you need your secret Wholesale decoder ring in order for anyone from "the other side" to reveal the secret to you.

You won't find that much difference in price between vendor's. What is more important is the service and how well they are stocked. Good prices don't mean much when you have to deal with back orders. Pricing depends on the particular items. Some things are not much off and some are fairly good.

Remember that there are other things to consider such as Sales Tax and the Federal Excise Tax that you must collect on every sale (Read the article in the library above on the Federal Excise Tax). Book keeping and keeping accurate records enters into the picture also.

Good Luck!!
Mike

You had to pay for the business license, at a city council meeting? All we have to do in NY is fill out some paperwork,a dn we get our decoder ring in the mail a month later.

To make sure im on the right track here...So far I've got my Certificate of Organization from Georgia (business liscence). I made it an LLC. And now Im working on getting my tax resale ID #....is this right?

I don't know about GA but in Texas you go to the county clerks office and file a DBA (doing business as) this ensures no one can use you business name but you. then you can file for a state sales tax certificate (number) then you can if you want open a business checking account. After the DBA and sales tax number are issued you then can apply for a Federal Tax ID number. If it is like it is here you must renew your DBA every 10 years

I'm in GA. too. The form I filled out indicated that it was a license for business and a resale certificate. The little bitty town I live in only has about 400 people, but they only give business licenses after a presentation is made at the monthly city council meeting. I have been to past meetings, and it is not too much of an ordeal. They are just trying to keep "bad" businesses out, and not have people with big retail operations out of a house.
I just missed the August meeting, so put my whole project on hold. I did make up cards, set up a website, etc. This is the kind of stuff I do in my normal business, so it comes easy. We will see how the rod building business goes. Just want to build 4 or 5 rods a month until (and if) it gets going well enough so I can retire from the sales/marketing job and do this full time.
Steve Broadwell

Almost nobody sells at full retail, so in many cases the wholesale discount isn't going to be as deep as you might think. If you can get 25% off what you're paying now, you'll have done well. Do not be surprised if you only save 10% to 15% on many items.

Anyone who sells rods must file and pay the Sportsfishing Excise Tax. The article is in the online library here. There was a recent change, however, that now caps the tax per rod at a maximum of 10%.

....................

Tom, is that 10% or $10? Thought it was $10 but been a while since I read it.

Thanks,
Mo

Steve,

Don't quit your day job!! Very few builders come close to making a living at it!!!

Mike

Mike Barkley Wrote:
-------------------------------------------------------
> Steve,
>
> Don't quit your day job!! Very few builders come
> close to making a living at it!!!
>
> Mike


Mike;
With one daughter in college, and another one in high school, there's no way I could quit my day job. But, once their educational expenses are over I would like to be able to get more into this. I am thinking about reel repair also, but definitely don't have the time for that now.
I am not too worried about the tax/accounting aspect. I used to be in accounting, long ago, and this wouldn't be too scary.
So, at the very least, I will build a few more rods, have fun, learn more things, etc.
BTW, my business license application was approved tonight, and I came up with two potential new customers at the meeting!

Good Luck Steve!

Raymond Adams
Eventually, all things merge, and a river runs through it..

$10 maximum, I hit the wrong keys. Thanks.

.........

Steve,

Good Luck! I wasn't being negative but have seen more than a few guys that were going to set the custom rod business on it's, only to never be heard from again. You have the right idea, go slow and build up to it.

Mike

Here in Alabama it's DBA also. I've done this "RodBuilding & Repair" thing for several years now and have a few dozen customers and my name is known to some of their friends & relatives. But, I'd need 4 or 5 times the business to just pay the bills, much less make a living. LOL. Rodbuilding is my best hobby and keeps my boat maintainance up to date plus a bit more. Someday!?!! Ralph

If at first you don't succeed, go fishing, then try, try again.