Tackle shop mark up on boilies

[murphyboy69]

Does anyone know what kind of profit tackle shops make off a bag of boilies. How much do they buy and then sell them for.

 

[iannate]

I doubt any shop truly knows how much profit they make off a bag of boilies, the maths involved is a lot more complicated and they just settle for profit made over a fixed period.

As a rough guide, shops are looking to double up, so if you look at a bag of boilies retailing for £10.00, they would have bought it for around £5.00.

Having said that, there are promotions on occasions, and bulk buying incentives; there may also be carriage charges unless they buy a certain amount.

 

[103841]

I doubt any shop truly knows how much profit they make off a bag of boilies, the maths involved is a lot more complicated and they just settle for profit made over a fixed period.

As a rough guide, shops are looking to double up, so if you look at a bag of boilies retailing for £10.00, they would have bought it for around £5.00.

Having said that, there are promotions on occasions, and bulk buying incentives; there may also be carriage charges unless they buy a certain amount.

Am I being thick, I just don’t get your reasoning. Isn’t it as simple as a shop buys in a product for x amount and sells it for xx amount, regardless of whether it’s boilies or any other product. I’d like to think any savvy shop owner will factor in his overheads and adjust his profit accordingly.

 

[peter crabtree]

I doubt any shop truly knows how much profit they make off a bag of boilies, the maths involved is a lot more complicated and they just settle for profit made over a fixed period.

As a rough guide, shops are looking to double up, so if you look at a bag of boilies retailing for £10.00, they would have bought it for around £5.00..

You are forgetting 20% vat. In order to double up the retail price would be £12.

 

[iannate]

I just don’t get your reasoning. Isn’t it as simple as a shop buys in a product for x amount and sells it for xx amount, regardless of whether it’s boilies or any other product.

That's the point. Unless you really want to be really OCD, you will not know how much profit was made on a particular product; it would vary from day to day depending on how many were sold.

I suppose with computerised tills it would be easier to drill down if you really wanted to, or if you only sold boilies.

You are forgetting 20% vat. In order to double up the retail price would be £12.

You are correct, I did forget; so to correct myself - As a rough guide, shops are looking to double up, so if you look at a bag of boilies retailing for £10.00, they would have bought it for around £4.17.

 

[S-Kippy]

You are forgetting 20% vat. In order to double up the retail price would be £12.

Which is what you'll pay round here. A kg bag typically retails at £11.99.

That said....back in the days when I was in gainful employment we reckoned a TS margin was around 35-40% net, across the board.

Big Dave gets his boilies specially rolled but has to buy a min 10 kilos at a time. They work out at about £7 a kilo which is a big difference for a bespoke bait though you need to be able to store them as they are frozen.

 

[Peter Jacobs]

When pricing goods in a shop then many criteria come into play.

It is not simply a case of buy for 5 and sell for 10 means a profit of . . . 5

Out of that n otional "5" has to come:

Rent for premises, and delapidations
Overheads; heat, light, power and things like advertising etc.
Payroll burdens; like taxes, NI, vacation pay, jury service cover and pensions etc.
Then add in depreciation on stock, and waste, as well as interest on business loans where applcable.
Then some amount of profit . . . .

If you consider the one man business working from home, for example rolling boilies, then it is obvious that he had few if any overheads so can price accordinigly.

 

[Jeff Woodhouse]

Whatever boilies are bought and sold for there seems to be a lot of price fixing in the bait trade. If a manufacturer says they cost £10 or £12 a kilo that's what the retailer has to sell them for; for all the above 'overhead' reasons stated. It does seem to me though that despite laws passed in the 1960s there is a lot of retail price maintenance in the tackle trade anyway; "Sell it any lower and you won't get any more." is the warning retailers get. Hence, a lot of retailers sell items at the RRP.

It always got me though when you saw a new pole being introduce and the 'limited' introductory price was £399 instead of £599, but never in the life of that pole was it ever sold for more...

 

[sam vimes]

It does seem to me though that despite laws passed in the 1960s there is a lot of retail price maintenance in the tackle trade anyway; "Sell it any lower and you won't get any more." is the warning retailers get. Hence, a lot of retailers sell items at the RRP.

There are an awful lot of tackle shop owners that hide behind this when it might not be quite as true as they want you to believe. One brand is renowned for its maintenance of pricing structures. I've heard plenty of anglers saying that there is no danger of getting discounts on their products. However, I can easily get discounts on their stuff if I go to the right outlets. Those that refuse to give any discount are doing so because they don't want to give a discount.

 

[Philip]

I dont know the tackleshop markup but I doubt there are many manufacturers that would be happy with just doubling their initial outlay.

Pure resellers maybe, but anyone putting in the effort to produce I think they would want a much larger profit.

 

[steve2]

If you want to see mark ups have a look the food and drink industry. Mark ups over 500% are common.

 

[mikench]

As is the clothing trade particularly high end stuff like ladies gear and handbags.

 

[rayner]

I saw it a lot when I was a worker. People who I new always rattled on about mates rates, not that they could ever do anything in return for me. It has to work both ways.
Folk always want a bargain but never give anything in return. OK I get a few quid discount from my local tackle shop, in return they get ALL my custom.

 

[flightliner]

I once made two counter length float/display cases for a tackle dealer many years ago. He asked me how much I wanted and I said either £100 or two Shimano Aero 6010 baitrunners which at the time were a little over a £100 each, he gave me the reels.

 

[terry m]

The notion that any retail operation that does not understand the profit of the different products is preposterous. Unless of course if the retailer is clueless, in which case they won’t last too long.

 

[Jim Crosskey 2]

Terry, i'm not sure the implication was that the profit was misunderstood... more that the margin might move around a bit, based on what kind of a deal you've got from the supplier. Worst case scenario is that the supplier has sold it to you at book price plus some carriage (because you weren't hitting the minimum order level to get carriage free). Best case scenario is that the company rep has been in to see you with a few bits and bobs that the supplier needs rid of, he's got them in the boot of the car and the unmissable price he can let you have them at today is "x".... However, in both cases, the dealer is (most likely) going to sell that product for £10.95 (lets say). In the first case scenario, he might only be making £2.50, but the reality is that not having that particular bait in stock would hurt his regular custom. In the second case, who knows? Maybe he makes £7 on it. He's a trader, selling for more than he's buying is his business.

I've not worked in the tackle trade, but did spend a considerable time working in retail. I think people might be surprised if they saw the fluidity between what a product is brought for and then sold for, it's moving about all the time. In the shop I worked in, a really good Saturday saw us do £10K in sales... I can assure you that the best value deals anyone ever got were at about 4pm on a Saturday when we were stuck at £9.5K!

 

[Phil Heaton]

Everybody including me loves a bargain and most of us shop around for the best deal which is usually the internet, all this does is reduces the amount of money going over local tackle shops counters. Unfortunately this means the local guy has to maximise his profits to survive, I do know some do pass on bargains but they are usually bought by them as a bargain in the first place and probably give a similar return.
Don't be too hard on your tackle shop, it may not be there when you really need it.

 

[108831]

The tackle dealer has to feed his family on our trade,when I was working I saw invoices(in fact sometimes I passed them to customers),they made a fortune on many of my jobs,until the owner passed away and left the business to his nephew,he has no idea what goes into doing a job and his estimates lost money big style.....