Custom Baits - Forum
General => General Discussion => Topic started by: lure maker bass on 08/17/12 12:07 UTC
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On average how much money is made selling baits and lure on just this website?
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On average how much money is made selling baits and lure on just this website?
On just this site.. I'd guess very, very little...
Jim
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CCM sells molds. Most on the site make baits, but if they sell them they are to stores, individuals, etc. The site is primary dedicated to making the baits. Is that what you were asking?
Jason
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I often wonder what the best route to take in plastic baits. Wholesale vs retail. Florida is a bit different in it's retail/wholesale make up. Everyone is here, everyone.
There is a lot of business, lots of boat/trade shows, lots of really good flea mkts from Oct-May (u can wholesale to vendors...u can't show at all of them) I understand that retailers don't want to compete with a line that sells direct...can't blame them. I guess a combo of both imight be the ticket!!
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Im still learning, ive found facebook to be effective for selling,being close to kentucky lake also helps some.
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interesting Ky Lake is a fish factory. Ever see Hank Jr. up there???
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That it is, i do love the summer long off shore ledge/structure fishin bite.Havent seen him up there, ive ran into quite a few pros there & done baits for one thats about it
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Don't forget that EVERYONE that sells fishing "lures"....including plastic baits MUST pay the Federal Excise tax (10%)
http://www.irs.gov/publications/p510/ch05.html
http://www.irs.gov/pub/irs-pdf/f637.pdf
The fines get ugly ....really fast!!!! And....no pun intended....the IRS folks love to "troll" websites, flea markets, sporting good stores etc. looking for names to check on.
So...if you're not willing to pay...DON"T play!
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Don't forget that EVERYONE that sells fishing "lures"....including plastic baits MUST pay the Federal Excise tax (10%)
http://www.irs.gov/publications/p510/ch05.html
http://www.irs.gov/pub/irs-pdf/f637.pdf
The fines get ugly ....really fast!!!! And....no pun intended....the IRS folks love to "troll" websites, flea markets, sporting good stores etc. looking for names to check on.
There also a hobbiest side too, where you can sell but your profits don't exceed your cost.
So...if you're not willing to pay...DON"T play!
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if u buy hooks, lead, plastic baits in bulk, you can pay it on the front end. Amazing how the politicians found a way to extract ca$h from the people.
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You better double check on the "hobby exemption"......and once you add any value...the game starts anew.
If you sell baits...you should consult a CPA or Tax Attorney to make sure you are ok.
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Awh yes and now you know why I barter or work out production problems that is a whole new ball game because you never actually make any cash and you never always have what you need on hand . But you do get to be a part of the best gall darn bunch of folks around .
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if u buy hooks, lead, plastic baits in bulk, you can pay it on the front end. Amazing how the politicians found a way to extract ca$h from the people.
Better double check that....I think they get to pay...and as a manufacturer ...you get to pay again!!!
http://www.irs.gov/businesses/small/article/0,,id=203117,00.html
Artificial lures are all devices (from whatever materials made) that are designed to be attached to a fishing line and that simulate an article considered edible to fish or that otherwise are intended to induce a fish to attempt to confront, swallow, bite, or consume the device. An artificial lure usually includes one or more attached hooks. Artificial lures include, but are not limited to, plugs, spoons, jigs, feathers, spinners, soft-plastic lures, and spear fishing decoys. Rev. Rul. 88-52 1988-1 C.B. 356
The "manufacturer" gets to pay the 10% on the value of the finished good....what you charge for it.
As I mentioned before ...if you are in the business...you better check....I don't think there is any "hobby exception" ...nor a cost/sale price determination....it's just plain 10% on your selling price.....period.
There are some other threads on this issue on this ...and other forums...
There is one somewhere on how the IRS had a field day at local flea markets nailing guys selling baits.
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If I buy 5000 jig hooks at Shorty's...I believe I pay 15% FET. I abide by the law...trust me!!! Haven't made any jigheads in years...bought them from a spincaster.
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I checked...it was 10%. Andrew, you sound real...errr, "passionate" about this one. I'll pay what I owe...but i wouldn't turn anyone end if they didn't pay it.
BTW, I haven't sold any baits yet..I have been going broke buying molds, lol!!!
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Not trying to be a smart-butt but in case someone really wants to know...Heres how it works for jigheads.
If you pay the FET when you buy the hooks you arent done paying the tax. If you change anything about it... (pour lead) and raise the price you owe 10% above your hook cost.
Lets say You buy a box (1,000 count) of hooks for $20.00 and you pay the 10% which would be $2. After you pour lead on them lets say you charge 10 cents each for a total of 100.00. Your tax will be $10.00 minus the $2 you already paid when you bought the hooks. Bottom line is that the FET is 10% of your final product produced.
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u r correct. we pd 10% over invoice when we bought hooks and 10% on jigheads when we sold them.
It's been a long, long time since I sold the stuff. Then we started to buy from spincasters and pd 10%. I will NEVER pour lead again.
BTW, there is an exemption you can apply for on the F.E.T. but I am not sure how it works.
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Andrew...that was confirmed by my tax guy
I didn't know you could graduate college to be a doctor of money, not medicine. This guy is ..LOL
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A CPA is for sure a doctor of money. Not an easy task to pass that exam!