I'm getting pretty addicted to rod building. I have not sold any rods yet, as I think I still need a little more practice. I have built 8 rods in just under 2 months. So far I think I have spent well over $1000 on blanks and parts etc. Given this, is it worth getting incorporated as to be able to buy stuff at wholesale prices as opposed to retail, and maybe try to sell a few . If I never actually sell rods would it be worth the savings still over time?

IMO, for the intent you listed it isn't worth it at all AND it is counterproductive to the industry. 1) There ARE discounts available for retail purchasers; 2) The amount of time spent forming a business entity AND filing quarterly (possibly monthly, depending on your area) makes for a poor investment and; 3) You will actually have to pay taxes and fees that you aren't paying now.

IF you ever decide to sell to the public, it is REQUIRED that you become licensed and collect/remit taxes. Until such a time, I would HIGHLY recommend that you stay far away from the idea. You only open yourself up to a myriad of record keeping requirements, legal ramifications and audit potential.

Want to save money on components? Simply watch the sales, order in bulk to save on shipping AND attend ICRBE (the largest sale of the year, among many other facets).

Jim -

Also you well find at the end of the year and you do an inventory you have to pay taxes on those unsold items, if you have a business lic. If you consider opening up a shop, you need or should have reputation and a following. Once you have satisfied your client others well follow. I would also consider specializing on a certain type of fishing methods. Also product knowledge is one factor you need to keep upgrading. That means lots of reading and going as many custom seminars as you can afford. It took me close to 5 years before I saw a real profit. All I did was repair rods, reels and built Custom rods. I had a store front and sold no other fishing products. I had a great location I was less than 40 miles from the Pacific Ocean, I was close to 4 major Steelhead, Salmon and Sturgeon Rivers. Number one consideration is location, location and no other builders with in 40 miles

Good Wraps Bob

I agree with Jim. I've been doing it for four years and it's much more business than fun. Taxes, inventory, paperwork...more work than I thought. Small businesses get audited a lot! You can get some very good deals if you can buy in quantity, and or at the ICRBE.

A lot of good buying strategies mentioned in the thread, but what about blanks like St. Croix that do NOT go on sale. What is the approximate wholesale discount available on their blanks? Feel free to email me if you'd prefer not to post numbers.

Dan

As an average figure 20%

Good Wraps Bob

Dan Ertz Wrote:
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> what about blanks like St. Croix that
> do NOT go on sale.

Show up to ICRBE and watch the impossible happen. There ARE sales on EVERY single item of rod building concern - you just have to be available and have cash on hand.

Dan,
There have been St Croix blanks on sale off and on all series at Bingham's for a couple years now.

There are also St. Croix and Lamiglass blanks on sale at Mud Hole...there were anyway. Most of them are gone.

jeremy

Thanks for the replies regarding St. Croix blanks. St Croix has a loyal customer base everywhere, but in Wisconsin it's HUGE so it may be worthwhile to pursue a business license at some point. I'll keep an eye on the sites suggested and , I wish I could go to the ICRBE, but have family obligations.

Dan