For those of you that have been at this awhile, what all do I need to do to set up a business to get wholesale pricing? It looks like I'm going to be building a lot more rods than just for myself, so I need to look at saving as much money as possible on components.

I have dealt with a mom and pops dealer, and really like them, guides and blanks are usually pretty cheap compared to mudhole or similar, but the orders are somewhat delayed. Understandably, they wait till they have a good size decent order (from multiple people), place their order, and then get all the stuff in for all their orders to fill. Feel free shoot me an email at jeremywreed@gmail.com.

Also, for those that get wholesale, how much would I actually be saving by buying wholesale?

J.W. Reed
Benton/Louisville, KY

I too have an interest in the answers to J.W's questions. I understand each state is probably different as far as business start up, but what kind of savings can be had through wholesale pricing?

matthew.geissler@gmail.com


Matt Geissler
Sun Prairie, WI

You need to have a state sales tax ID and city/county business license for the actual custom rod business. You'll also need to contact the IRS and get set up to collect and pay the FET on fishing rods. Those documents are generally what is required for a wholesale account from a dealer.

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

call an accountant, the IRS, a priest of whatever cloth you choose and the Al-Anon. You're gonna need all of 'em.

For starters, check with your municipality (city, county, etc.) to ensure that you CAN have a home-based business of this sort ... some don't allow it. If they do allow for it, you will most likely need a local license or two, a state license or registration AND a FEID with registration to collect excise tax (Form 720) as mentioned previously.

Secondly, you aren't going to "save" a dime. The reasons for obtaining licenses should ONLY be that you are going to actively build rods for the public and then it becomes a legal requirement. The discount allowed for wholesale doesn't offset all the additional expense of operation AND the exposure to various liabiilties. You can save as much by attending ICRBE and purchasing in volume, buying discontinued and distressed merchandise, making purchases once/twice per year to save on shipping, joining a buying group, etc.

To give you an idea ... a moderate wholesale order is about $1,000 retail. Anything less and you are "dabbling" at best.

Think long and hard about opening a business of ANY kind. It is a lot of work and responsibility. You have to file paperwork quarterly and annually, keep immaculate records, take inventory at least once a year AND open yourself up to general liability and audits.

I can't think of a single item that isn't available to a retail buyer AND at a reasonable price.

When you contact dealers, or suppliers, like those listed here, keep in mind that the savings may not be as great as you first thought. A lot of the materials do not have that much of a markup. The suppliers have good prices already. When you ask for wholesale pricing, you actually are asking for discounts. Discounts in a lot of businesses usually depend on volume. If you buy 50 blanks at a time, you may get a better cost per each, than if you buy 4 or 5. Some of the suppliers are dealers, not manufacturers. They buy at dealer cost; mark it up some, to sell to us builders. They need their margins to survive also. You also really need to be able to track costs, and determine you’re pricing.
We build about 25 rods a year, maybe a few more. This is a small amount. We shop for bargains. A lot of the suppliers do run specials. Keep an eye on them. If you see a blank you like, buy a few. The dollars you save on shipping can be a lot more than the discounts. Try to buy the components at the same time. Pay shipping once. You can pay more to have it shipped, than what the cheaper components actually cost.
In my state, you register a business with the county. Some places, also the city. Then apply for a state sales tax id. Then as Tom said, you must deal with the fed id for the excise tax. This must get filed each quarter, if you build a rod or not. Then you still need the accountant, to help with everything else. Businesses do need to do things a bit different. All states and cities have some different regulations. This is where the accountant, or business consultant earns his pay.
There are a lot of excellent builders on here. I have really learned a lot from them. If you find a few good suppliers, work with them, they will really help you also. Use their expertise. That is free, and one of the best things you can do to help you start a business. They all want you to succeed also. Use the glossary, FAQ, and library on here. Tom has really put together a great resource .
I have a couple different small businesses, and one thing always is true- take your time, do the research, as you are doing, and try to do it right the first time. Start small, and produce an excellent product.
Good luck, and have fun

This is a question I've asked one of my suppliers also. "What does it take to make a living at this?"
The biggest difference between them and myself is volume and reputation.
You can't make a living at building rods without both and it can take a while to get
the reputaion you need to get the customers.
I build about 20 rods per year, he builds about (15) rods per week, plus repairs.
I enjoy the craftmanship, he builds what he's asked by the customer and no more.
Extra decorative wraps, trim bands and custom shaped grips are standard on the rods I build,
As a custom builder making a living at it you must charge appropriately for your added labor.

In summary building rods for a living becomes a job not a hobby. As many have said above there's also the forms,taxes,
reporting incomes, etc. It's a lot of work. For me that would take away the fun and enjoyment of custom rod building

The very first thing you need to do is to step up to the altar, raise your right hand, place your left on the Clemens bible and take the vow of poverty.

Best of luck to you, I know you will enjoy the venture.

kevin knox Wrote:
-------------------------------------------------------
> The very first thing you need to do is to step up
> to the altar, raise your right hand, place your
> left on the Clemens bible and take the vow of
> poverty.
>
> Best of luck to you, I know you will enjoy the
> venture.


uh oh

Hm,

I think Steven hit the nail for me on this, I started my rod-building craft last year September. Since then after getting my studio set up for building and working out some of the minor and major obstacles, I am constructing on average about 3 to 4 rods a month but no more than that. With that in mind, that's about max for me and for sure the pace I want to keep. The reason I say this ? Is exactly what Steve is saying; I enjoy it immensely and I do make money at it ! But to answer your question can you make a living at it at this level (the level I am at)? My conclusion thus far is NO. Can you make extra income to supplement another ? YES and I do ....it pays the Utilities and that's enough for my financial standing.

Reputation is one key feature to create in this business and it carry's allot of weight especially in the rural areas were word travels fast. I have already experienced this and you can get consumed very fast with customers. The fact I will not go past the level of 3 to 4 rods a month is my own choice because I enjoy the craft and spending my time making the rod to the best of my ability. I have had vendors ask me to get a business type license so they can sell to me whole sale and save me money, I looked into this and I came to the exact information the fellas are mentioning here right now. In my mind its good advice to at least keep in check as you make your steps. I do know one thing it will be about the volume of rods built, repair and the reputation to keep it going. My thoughts on the subject for this morning, hope it helps!

Rick H.

rwheil@msn.com

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