pricing lures

[Mic]

Need some help here.  How did you come up with your pricing on your baits?  I can take the price of matereal and get a base price and then add a profit margin.  That is the easy part, but I was wondering do you price your baits competetive to what is at wally world, bass pro shops, or cabellas?  I would think hand pour/injected, and specialty colors would be more.  What do you think?

[MicroSpoons]

dont try and compete with them, I price mine simply as whats its worth for my time to do them. Some I can do fast cause I have a lot of molds and some it doesnt matter how many molds I have as there is a lot of detail work. If you try to compete with others it will hurt you in the end. Thats why I make my own colors and combos and dot try to match xxx bait company cause they can do it cheaper than you if they wanted to.Make your own product and you wont have to price like the big companies. I have crappie size plastics that I get 80 cents each on, if they dont want them thats fine but if they do thats my price. Dont forget packaging and taxes as well.

[DobynsTriton]

I set my prices around the time it takes to make & the amount of plastic that it takes to make a full pack

[ctom]

I pretty much agree with what MicroSpoons has offered. Many of these big package companies have their plastics made in Asia and they get tons [literally] of plastic delivered state-side. You can't compete with the prices they pay.

I look at it this way: I am doing a custom product. I am not catering to people who shop at Walmart or Cabelas or Bass Pro. I am catering to someone who wants an entirely new and different product NOT found on those stores' shelves. The eyes alone sell more baits for me than anything but those eyes are money spent on my end. I'm not going to give the eyes away for nothing. Consider the cost of all of the components you have to invest in to make your custom baits and then look at your time. Don't forget labels and packaging. Maybe a website? Its all money that you tie up. But making a bait that is unique beyond the package stores is what today's anglers are wanting and they do/will pay what you ask.

I haven't hit the .80 cent mark yet on any of my baits, but I've been to the 60 cent mark on many and never heard a qwuibble about the price. Split colors and eyes amke a bunch of money simply because the common market sells stuff that just doesn't measure up anymore.

[captian chaos]

This is my equation
Standard Lines -Bait Material cost x 150% + $60Per Hour + Bag cost x 100% = Good profit
Custom Baits - Bait Material cost x 200% + $100 Per Hour + Bag Cost x 100% = Happy Days
I break all my material down into grams for costing this can be tedious but once it is done your costings are easy to work out just buy a GOOD set of digital scales.Remember you have to purchase and store the product i put intrest on to this as it sits as the money is no longer earning any in the bank, add in power and equipment costs and there you have it.
The way i see it if you have a good product and have spent the time to perfect you craft (I still have a LOTTT to learn) which takes alot of your precious time that once you have used you CANT get back, and not to mention the money, you deserve to make good coin out of it.
It may be different in the states because there is a lot more private custom bait makers over there.
Just remember to break every thing down to small increments for costing and you cant go wrong.

[JMason]

This was a great question and some really helpful answers. I also have a question along the same line. What leeway is there in naming your baits. Is there a copyright issue here that I should know about. Can I call a 3.5" Swim Shad a 3.5" Swim Shad or is that profiting from someone elses "Jasons" work?  John

[andrewlamberson]

As long as the name is not trademarked or copyrighted....you can call it what you want.

In the case of "swim shad" it would be (probably) along the line of a "generic description" and would not be able to be trademarked ...or copyrighted.

Disclaimer: Although I am the Intellectual Property Manager for a high technology plastics company, I am not an Attorney and therefore not offering legal advice. If you have any concerns, you should contact a trademark or copyright Attorney.

[Jason]

I don't mind if you use the name, description, etc. If I can help you be successful it is good for both of us.

Jason

[Mic]

All the responses were great!  Thank you all.  And the question about copy written names of lures was the next one I was curious about.  How will you know when a name is copy written short of a lawsuit?  Is there a way to check names to avoid any legal issues? 

You guys are great.

[andrewlamberson]

 Copyright, a form of intellectual property law, protects original works of authorship including literary, dramatic, musical, and artistic works, such as poetry, novels, movies, songs, computer software, and architecture. Copyright does not protect facts, ideas, systems, or methods of operation, although it may protect the way these things are expressed.

From: http://www.copyright.gov/help/faq/faq-general.html#what

You can search for a copyright there....or you can "google" the words and see what comes up.

Note: You can copyright your website and its contents (a good idea). You can do this just by claiming copyright (C) and the date and keeping records/copy's (important!) of your website. A simple print out or saved file will do.

Now here's the rub (amongst others...) A copyright is a really poor way to try to protect a "name", and is not meant to do so. But a good example of how you can run afoul of copyright would be to call your bait a Harry Potter Creature Bait. Although the author of Harry Potter probably does not have Harry Potter trademarked in this class of goods....I'd bet you would get a cease and desist letter from her Attorney!

If you were the first person to call your creature bait a very unique set of words (on a website, catalog or other platform) you could try to stop others from using it by claiming copyright (it would be weak...but sometimes just the nasty letter does wonders!).

So...to really protect the name of the bait in the class of goods you sell in...you would need a "trademark". A trademark is not expensive (as these things go)...but it's unlikely an average bait guy wants to spend the money!


The name of a bait should be "trademarked" to be protected.


FYI...

A "design patent" is is a patent granted on the ornamental design of a functional item.....the "way it looks".

A "Utility patent" is how something works and must be unique and novel , and "not obvious".

So our friends at the big bait company's can (and should to protect their design and marketing investment) file both a Trademark on the unique name of the bait, and they can file for a "design patent" on it's appearance ...assuming it is new and unique.

Disclaimer: Although I am the Intellectual Property Manager for a high technology plastics company, I am not an Attorney and therefore not offering legal advice. If you have any concerns, you should contact a trademark or copyright Attorney.

[ghostbaits]

On the pricing, few words of advice. Price high. You can always come down but will have an extremely tough time raising prices. You will know if you are priced to high, no one will buy unless you make quality stuff that has some uniqueness in the market.

Jim

[ctom]

A trademark is not expensive (as these things go)...The name of a bait should be "trademarked" to be protected.

I have a trademark. Here in Minnesota it costs $50.00 to register it and it is good for 10 years.

Under your trademark you can list a world of coverages including names, colors, ....all sorts of good stuff. I have "trademark" colors for some of my jighead colors. Generally a person can amend his/her trademark as needed for a fee.

There are several types of copyrights to consider but unless is a registered copyright protection can be thin.

Everything costs these days and how much money is something worth really has to be a personal choice.