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Selling lures

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Codslayer View Drop Down
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    Posted: 04 Jan 2017 at 3:35pm
Hi I would love to know the ins and outs of selling my lures, I make hard bodies and spinnerbaits. I will be focusing more on the spinnerbaits as I no longer have the time to fiddle with hard bodies but will still make a few.
1. Do I need an Abn?
2. How do you guys get them into shops? Do they take a commission and roughly how much?
3. Any other costs or tips on getting them out there that would help a fellow lure maker out?
Thanks everyone bunch of legends on this page I hope someone can help me out.
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Tony View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Tony Quote  Post ReplyReply Direct Link To This Post Posted: 04 Jan 2017 at 5:32pm
Hi Ben

I can't help with question 2 and 3, although for question one I have some experience.

I recommend that you get advice from an accountant regarding abn/gst etc if looking to start a business, unless you are familiar with accounting practices, or are willing to take the time to read all of the relevant pages on various gov websites - and the buggers keep changing stuff.

If you are doing it as a hobby you probably will not require it.

This becomes a stronger requirement if you will be invoicing other business, or will be turning over more than $75000

Click this link for more info direct from the horses mouth (scroll down a little to read "Do I need an abn");
https://www.business.gov.au/info/plan-and-start/start-your-business/business-and-company-registration/register-for-an-australian-business-number-abn




Cheers, Tony

For the love of Fishing Lures.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote horrorhead Quote  Post ReplyReply Direct Link To This Post Posted: 04 Jan 2017 at 5:48pm
At last years Lure Expo, Frank Prokop recommended getting an ABN, bar codes for your products and to, as much as possible, sell your product in a blister pack, but this may not be feasible with spinnerbaits.
Martin-

you don't havta be pretty to fish
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Jeff Quote  Post ReplyReply Direct Link To This Post Posted: 06 Jan 2017 at 4:50pm
If you want to become famous and make thousands of lures for your main income ,, get an ABN ,, you will have to .
 If its just a hobby for a few spare dollars , dont worry about it .
Shops will want some sort of commission , of course , how are they going to make any money ?Wink

Seriously , I really doubt you could make a living out of making and selling lures . Just look around Facebook  and here and see how many people are doing it now .
Sell them on Face Book like everyone else seems to do and you wont have to declare a thing .
I like pretty painted sticks
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Doc Quote  Post ReplyReply Direct Link To This Post Posted: 07 Jan 2017 at 11:13am
Hi Cod slayer
Depends on how many you can make fortnightly most lure shops will not wait to long for stock if you don't get an ABN and barcodes none of the chain stores will want to know you. Most private shops want between 35% & 50% If you look at the sticker price of a lure at $10, multiply $10 by .5 or .35 to see the price they purchased it for.(If you think that's to much, have a look at his car, its not a beamer)
Most privately owned shops don't mind selling locally made lures for a quite a few reasons they have more untraceable cash, they would rather work with you than agaist, your product is usually made for local species, your local reputation and your trading terms consignment against credit.
The reasons for not dealing with you irregular supply, poor presentation or irregular finish, to many competitors ie (the local service station is selling them too.) When a friend comes around and you sell him a lure for $5 bucks, he will tell everyone (its like putting a glass of bundy in front of me and saying don't drink) So you need to have self control when people come around. You only have two choices give it away or send them to your reseller, in the end they are in business and that business puts shoes on their kids feet. So whether they deal with you or not is financial not personal.
GST not only gave the government extra revenue but also a look into monthly earning of every Aussie business rather than yearly The replacement of sales tax had so many exemptions it was not relevant
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Post Options Post Options   Thanks (0) Thanks(0)   Quote edgecrusher Quote  Post ReplyReply Direct Link To This Post Posted: 30 Jan 2017 at 2:17pm
Originally posted by Codslayer Codslayer wrote:

Hi I would love to know the ins and outs of selling my lures, I make hard bodies and spinnerbaits. I will be focusing more on the spinnerbaits as I no longer have the time to fiddle with hard bodies but will still make a few.
1. Do I need an Abn?
2. How do you guys get them into shops? Do they take a commission and roughly how much?
3. Any other costs or tips on getting them out there that would help a fellow lure maker out?
Thanks everyone bunch of legends on this page I hope someone can help me out.

Ok here goes:
1. If you turn over more than 20k you will be classed as a business so yes. Plus if you do things by the book, theres no watching your back waiting for someone to put you in. Under 20k get accountants advice.

2. Its tough, generally unless you are a local its a hard slog, too many people doing it, spinnerbaits especially, I wouldn't try, hardbody's you would have more chance. I find most will double the price you sell them for, if you sell them direct at $10 you are looking at them paying you 5. Sound good? And you'll kiss your direct sales goodbye, why would a shop support you if you are willing to sell direct?
As an example I closed my ebay store and website down after I got 5 shops, I will sell direct, however first question I ask is where are you from? If they are near a shop they get referred back there.

3. Get to know shops, prove your lures work, get the word out, make sure they are presentable, package them well, price them well, get customers to push shops to stock, if they have people ready to buy... makes an easy decision!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Powelly Quote  Post ReplyReply Direct Link To This Post Posted: 10 Feb 2017 at 1:32pm
This may not be applicable but, when GST came in (about 2000), I talked to the tax office about declaring my income from lures.  I was hoping that they would say yes, "you must declare that source of income", because then I could depreciate my 4WD and boat as necessary tools of trade.

The answer was "no, the tax office sees me as a hobbiest" and, unless I was earning more than $10,000 per year, it would cost them money.

I'm sure that figure has increased in 17 years.  Call the Tax Office and ask them.

If you want your lure making business to earn you  a living, then of course you will have to have an ABN.  Selling lures through tackle stores will put a huge dent in any profit that you might make. I've sold through shops and it's not worth busting your arse for the few dollars that they pay.  Try selling through local pubs, corner stores etc for a commission.  Sell online.

It's a tough gig trying to make money out of making lures.  Just too much competition.

Good luck with it.

Travers
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Doc Quote  Post ReplyReply Direct Link To This Post Posted: 16 Feb 2017 at 4:37pm
Travers is right having an ABN or ACN is not bad thing as the amount of deductions you can make on your taxes increases 10 fold when you have one. Washing machines,office desks ,computers ,clothing ,fuel ,cars "log book required", air conditioner for your office ,part of your electric bill Mind you the paper work also increases but the forms you need to fill out each month for GST are not rocket science and most accountants will walk you through them with no charge if they are doing your end of year tax return. A question to ask your future accountant is where should I have my registered business address. If they answer anything other than his office, FIND ANOTHER ACCOUNTANT. It is not a crime to spend as much money as you make, and have a shed load of toys.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Blinky Quote  Post ReplyReply Direct Link To This Post Posted: 17 Feb 2017 at 8:19am
If you are going to buy components in bulk e.g. hooks, there are some mobs around that don't want to know you if you don't have an ABN.......
Blinky.

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