I ran into a couple of guys that are trying to open a hunting, trapping, and fishing store in a town a few miles away. This is deffinately a small operation. one of this areas best bass lake is just five miles away. and they currently offer a very low inventory and I was thinking I may be able to put some rods in there shop on consignment. I have never had any thoughts on this and wodered what all I may run into

#1 How would we decide a fair price for them and myself?

#2 What about theft, Who would be responsible,

#3 How would I control inventory?

#4

Ohio Rod Builders

Canton, Ohio

Whatever you do, you need to get everything in writing.

Now, you need to understand that most tackle carries a larger mark up than what you may be able to offer them. For instance, let's say you need to get $200 out of rod. They may well expect to make at least $100 on that same rod, so that would drive the price to $300. And don't forget to charge them excise tax at the rate of a full 10% or $10, whichever is less, on the price you sell to them for.

If the rods are truly consignment and they're simply selling them for you, they'll still expect some money for the transaction and would likely want enough to correlate to what they would have made had they sold one of their stock rods.

Theft, breakage (yes, rods get broken in shops) and that sort of thing would likely fall on you. So be very upfront and hash this out and get it in writing.

Most customers shopping for rods at such an establishment will likely expect you to guarantee your rods, not only against defects, but against breakage for a lifetime. Get that in writing to and spell out what your warranty terms are.

These are some thoughts to consider.

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

Tom,
This leads to a question that I have. What is the typical warrenty given to custom rod cutomers? I just had a friend grenade a very nice hmx I built for him. Manufacturer is shipping me a new blank. It was definitly/admittingly his fault so he is purchasing all the guides,grips,seats...etc. And since he`s a good friend I`m going to do the build for a very minimal charge. But I was curious as to what we put in writing. I`m just now starting to get in line with the buisiness side of things and I definitly don`t want to get bite in the butt( pun intended) later. BTW....Just recieved my membership package. Everything is perfect and thanks a million. Mike

IMO, you aren't going to like it. Most manufacturers sell rods to shops at 50% of the sticker price. That alone will stick a fork in you. Not to mention competing with the offshore inventory they have on racks. Couple the low margins with damage, shrinkage and warranties ... UGLY and then some.

Consider something different. Place a portfolio on the counter. The cover could have "Custom Fishing Rods" on it. With your information in smaller letters below that. Inside, plenty of nice photos of wraps, grips, seats, decals, etc. Maybe even toss in a set of shop photos, another page of testimonials, etc. Have a business card holder next to the portfolio and keep it full of cards. Cut a deal with the owner to give him $50, give or take, for each sale that you make. In addition, consider giving him a good deal on repair work. Be sure that EVERY job is returned with your information & website URL attached.

Total out of pocket ... a day to assemble the information AND $20 for a nice binder.

This approach will keep your relationship a WHOLE lot healthier and keep your sanity in the process. In addition, it allows you to completely manage the sales process AND build a database of clientele information for future promotional use.

Jim -

I agree with Jim on the portfolio vs. actual rods idea Ther is a local fly shop that carries some fairly pricey rods and he has consignments of several bamboo makers. I've seen thses rods and other custom graphite rods sit on his rack for over a year. I made a deal withthe owner to get all the repair businees that comes in. I had my son make up a really nice brochure with pictures and examples of what I do. Total cost was something like $20. My payment to the owner is really cheap, beverages at the christmas party and for special events and some classes. Over the years this has led to several custom graphite rods and more than enough repair work.
I guess what I'm getting at is that paper is cheaper than building and waiting.

I've been down this road. It's not good. Your rods will get broken in the shop and you'll be left holding the bag. Count on it.

Offer to do repair which gets you a ton of real business anyway. See if they'll let you put out brochures or cards and make it worth their while. Give the owner a really nice rod per year and that might be enough to keep everybody happy.

I give a ninety day warranty on my rods for parts and labor. Nothing against breakage if YOU break it. This is where it pays to really sit down with each customer and explain the things that break rods. A little education goes a long, long way.

Thanks everyone for your input, I will continue pondering. I am leaning to the side where it may not be such a good idea after all.

Bill

Ohio Rod Builders

Canton, Ohio