tinboatrobb
Well-Known Member
Will be nice to have a choice on where to buy. Hope the over priced store in town will feel the hit and lower thier prices.
New Fishing Store
- Thread starter Tailspin
- Start date
Being an independant business operator myself, I have to say the price game is only part of it.
To a complete Luddite, walking in to the "other guys" will probably get them started on fishing, they have very knowledgeable staff who will help them pick out a rig and some lures to get going. Having extra staff who will sit and listen to someone talk is NOT cheap, and having someone take the time to explain some of the aspects of fishing gear isn't free either. I've seen this plenty at the "other guys" in Victoria.
RVP can probably back me up on this one, sport fishing is a specialty business, with plenty of opportunities to give good advice and take time (20 minutes 6 times a day is two hours spent out of 8!) to explain things. This all has to be built into your primary source of income, which is, selling fishing gear.
I don't want to start anything, but in my business (specialty retail/service), we really DON'T want pro's who know it all, tell us off if something isn't quite right (in their eyes), or demand a lesser price because they bought something five years ago. For fishing gear that doesn't require a lotservice, I order them bulk from places that specialise in low price, no service marketing. How much support do you really need for a couple hundred teaser heads, or a few hundred pre-tied salmon leaders anbyway? But when, just about every other week, I bring in a busted rod or similar piece of equipment to the "other guys", I usually see someone getting me a replacement off the rack as I walk in the door.
I can think of several of my competitors (In the retail business of my day job) who are having trouble because they play the price game. I'm willing to bet that everyone in the sport fishing business gets pretty much everything from the same places, at very similar prices, there is only so much price slashing you can do before it becomes not worth it to operate anymore. Who CARES if you move 100 TDR Mooching Combo's in a week if you only make $10 on each one, and each one costs you $12 when you have to send the thing back because someone stepped on it. You may as well sell 20 of them, make $40 each, and be able to take care of your customers without it stinging your bottom line.
Having people come because they like the service, the staff, the selection, and the after sales service is the trickier part of the business, but more often then not, the formula of long term success. You will see most of the ESTABLISHED businesses around Victoria are far from the cheapest guys, they have found the best ballance of price, service, and other important aspects of what they do.
This isn't an endorsement of the "current fishing retail kingping in Victoria", just maybe an eye opener on all the aspects of being an independent businessman.
For the cheapest price, get in line for an hour at Wal-Mart.
Last but not least, in a town the size of Victoria, I don't think a single retailer can "put the heat on the competition with prices", because Victoria is just to darn spread out to drive all over hell's half acre to get things.
To a complete Luddite, walking in to the "other guys" will probably get them started on fishing, they have very knowledgeable staff who will help them pick out a rig and some lures to get going. Having extra staff who will sit and listen to someone talk is NOT cheap, and having someone take the time to explain some of the aspects of fishing gear isn't free either. I've seen this plenty at the "other guys" in Victoria.
RVP can probably back me up on this one, sport fishing is a specialty business, with plenty of opportunities to give good advice and take time (20 minutes 6 times a day is two hours spent out of 8!) to explain things. This all has to be built into your primary source of income, which is, selling fishing gear.
I don't want to start anything, but in my business (specialty retail/service), we really DON'T want pro's who know it all, tell us off if something isn't quite right (in their eyes), or demand a lesser price because they bought something five years ago. For fishing gear that doesn't require a lotservice, I order them bulk from places that specialise in low price, no service marketing. How much support do you really need for a couple hundred teaser heads, or a few hundred pre-tied salmon leaders anbyway? But when, just about every other week, I bring in a busted rod or similar piece of equipment to the "other guys", I usually see someone getting me a replacement off the rack as I walk in the door.
I can think of several of my competitors (In the retail business of my day job) who are having trouble because they play the price game. I'm willing to bet that everyone in the sport fishing business gets pretty much everything from the same places, at very similar prices, there is only so much price slashing you can do before it becomes not worth it to operate anymore. Who CARES if you move 100 TDR Mooching Combo's in a week if you only make $10 on each one, and each one costs you $12 when you have to send the thing back because someone stepped on it. You may as well sell 20 of them, make $40 each, and be able to take care of your customers without it stinging your bottom line.
Having people come because they like the service, the staff, the selection, and the after sales service is the trickier part of the business, but more often then not, the formula of long term success. You will see most of the ESTABLISHED businesses around Victoria are far from the cheapest guys, they have found the best ballance of price, service, and other important aspects of what they do.
This isn't an endorsement of the "current fishing retail kingping in Victoria", just maybe an eye opener on all the aspects of being an independent businessman.
For the cheapest price, get in line for an hour at Wal-Mart.
Last but not least, in a town the size of Victoria, I don't think a single retailer can "put the heat on the competition with prices", because Victoria is just to darn spread out to drive all over hell's half acre to get things.
Charter Tofino
Well-Known Member
Heck if it was easy i bet every guy on here would try and guide for a living or run a fishing shop. Ive looked into it and it must be danm hard to make a good profit and have a functional business. More work than meets the eye
Wow if this is true Shane o' mac's gonna have too move with a fishing store literally in his backyard??What's he gonna do??Maybe work part time there too offset the costs of gear he will be buying there!Haha!!Nice too see another store too keep the other guys from price gouging!However ive always been treated decent by the boys and ladies at fitters.
Time
Well-Known Member
No question you pay a price for service and selection and quality products. IO have the selection and service has always been good. As has Gone Fishing.
If you want low-bid for everything, then all that will be left will be Cdn Tire and Walmart. I find that the 'independent' stores prices most often are close to, or less, seldom more than 10% more than the chains for most of my purchases, eg, teaser heads, flashers, coyotes, etc. And if its bigger purchases, rods, reels, the chains don't stock them anyway.
Best of luck to the new guys. They probably won't take much business from IO, but they may fron C. Tire and Walmart in Langford.
Of course, internet shopping is going to change the whole retail scene anyway.
TipsUp.
Sounds like a business plan.
OOPS. Should have included RVP's shop in the good guys.
(Does that get me a free coffee Bob?)
If you want low-bid for everything, then all that will be left will be Cdn Tire and Walmart. I find that the 'independent' stores prices most often are close to, or less, seldom more than 10% more than the chains for most of my purchases, eg, teaser heads, flashers, coyotes, etc. And if its bigger purchases, rods, reels, the chains don't stock them anyway.
Best of luck to the new guys. They probably won't take much business from IO, but they may fron C. Tire and Walmart in Langford.
Of course, internet shopping is going to change the whole retail scene anyway.
TipsUp.
Sounds like a business plan.
OOPS. Should have included RVP's shop in the good guys.
(Does that get me a free coffee Bob?)
B
beadhead
Guest
I felt compelled to register as a user after a year of reading this forum. At first I thought there was to much arguing and name calling. I loved the info being shared and appreciated it. After reading the posts on this thread, I felt I should shed a little light on this topic, and give the retailer a little break from the bashing. Kudos to Island Outfitters for the great job they have done in supplying the market. If any one truly believes they are setting their own prices to maximise profits, you are mistaken.
The tackle industry in Canada is controlled by the suppliers, who lock up product rights for sole distribution forcing the retailer to buy from them, instead of direct. Some stores have manged to buy merchandise dealer direct, but this is far and between. Your product you buy, usually gets handled by two to three sources before it gets to the retailer, and everyone is tacking on their percentage. It is not uncommon for ie a jacket to start at $20 and finish at over $200. The wholesalers know that you cannot get the product elsewhere, so they charge what they want. The retailers end up beating each other up over price, for the never ending battle of gaining customers to their location.
Tackle has often been referred to as the 2nd lowest margins behind groceries, and relies upon volume turn over. Every year the suppliers push up the prices but the market can't bear it, so its the retailer who has to lower their margins of profit, because the end user finally says that $8 is to much for a little piece of flattened metal called a spoon.
So I applaud any guy who wants to start a tackle shop, but I can definately state emphatically that if they try beat Island Outiftter prices, they will find themselves in trouble within two years. Rather concentrate on excellent customer service and knowledgable staff.
PS Thats my two cents worth- ha ha[8D]
The tackle industry in Canada is controlled by the suppliers, who lock up product rights for sole distribution forcing the retailer to buy from them, instead of direct. Some stores have manged to buy merchandise dealer direct, but this is far and between. Your product you buy, usually gets handled by two to three sources before it gets to the retailer, and everyone is tacking on their percentage. It is not uncommon for ie a jacket to start at $20 and finish at over $200. The wholesalers know that you cannot get the product elsewhere, so they charge what they want. The retailers end up beating each other up over price, for the never ending battle of gaining customers to their location.
Tackle has often been referred to as the 2nd lowest margins behind groceries, and relies upon volume turn over. Every year the suppliers push up the prices but the market can't bear it, so its the retailer who has to lower their margins of profit, because the end user finally says that $8 is to much for a little piece of flattened metal called a spoon.
So I applaud any guy who wants to start a tackle shop, but I can definately state emphatically that if they try beat Island Outiftter prices, they will find themselves in trouble within two years. Rather concentrate on excellent customer service and knowledgable staff.
PS Thats my two cents worth- ha ha[8D]
K
Klink
Guest
I like Tyee Marine in Campbell R. I go there because they shoot the ****, let us know where this fish are, help me out with regulations and whatnot, and they give me good tips on gear, I dont care what fishing lures cost, everything that is fun is costly, Fishing, Golf, Women, Hockey, Women...
Personally I believe when you start digging too deep into shiz it will eventually stop what you love from being fun, for example, why should I pay for a 150$ Dinner when I can make a 20$ dinner at home and still get laid...
Klink
Personally I believe when you start digging too deep into shiz it will eventually stop what you love from being fun, for example, why should I pay for a 150$ Dinner when I can make a 20$ dinner at home and still get laid...
Klink
Dogbreath
Well-Known Member
That was my point exactly Beadhead, the tackle industry here is something of a racket.
For instance when I was buying for a local store I asked a tackle rep if he could get me a Daiwa Sealine SLD 30-11 reel.
He got back to me with a quote that was over $150 more than US retail!
He saw the look on my face when he told me his price and said "I guess that's too much, eh"?!
When I bought the reel from www.charkbait.com it included free mono spooling, a free reelskin and free delivery to Blaine WA.
mr killer
Active Member
If the fishing indistry is anything like the one I work in the distributors are all still working on a 60 cent dollar gouging every Canadian and lining their pockets, All retailers use the same margin so all likely have similar pricing maybe a few cents different here and there, low balling prices is no way to stay in business these guys have to make their profits to stay in business there is an unbelievable amount of over head required to keep a shop open and operating and all these expenses come out of a shops profit margin. I have no idea who has the best prices but I do know which shop has the best service and that's where I go first. There are alot of other great shops on the island with great selections like the outfitters who seem to have just about everything in stock, so if this new shops opens and is going to use low ball prices as their strategy they won't be in business for long and they won't be making enough money to stock their store with all the gear, it sounds like they have potential to do quite well and the outfitters probably won't even notice them.
K
kelsey_d
Guest
they will do well no doubt.....there's more than enough room for a new store around here...i'm surprised it didn't happen years ago...it will do well just because it's new. as long as the service is there and the price is right..i'll be there! it's about time i say.
totally tyee
Active Member
It did happen years ago. Back in the early 90's there was a store at Hatley Park called Juan De Fuca Sport Fishing Center. It lasted abnout 2 years.
as far as how the tackle industry works in BC, you guys could not be farther from the truth. There is not a single national name brand product that distributors handle that has a 60% margin. Most products are available from multiple wholesalers except for the brands that are sold manufacturer direct like Sage, Bare, Simms, etc.Most wholesalers are lucky to make 25% on any name brand they sell and to larger dealers it's closer to 15%.Items like downriggers have a 5% margin at wholesale and are practically given away at retail. Retailers make a reasonably profit but their margins on items like Shimano are very slim also. For the small volume, size of the province, and overall cost of doing business in wholesalers are not gouging or making huge dollars in any way. A perfect example is the distance from Seattle to Portland, a short 4 hour dirve, has roughly 7.5 milloin people within 1/2 hour of I5. You need to drive through all of BC, ALberta, Saskactewan and Manitoba to find that number of people. Now not all are anglers, but just try paying the freight costs from Victoria or Vancouver to Winnepeg and compare that to freight charges from Seattle to Portland. If anything, fishing tackle is sold way too cheap in BC for the cost of doing business. It takes a big effort to be able to do a good job at either retail or wholesale in the fishing tackle industry in BC.
mr killer
Active Member
rln I didn't say a 60% margin I said a 60 cent dollar I meant the exchange rate that the wholesalers use when converting US to Canadian currency, retail prices are all dictated by the distributors and over the past 4 years prices haven't come down at all even though the exchange has changed 40% so that tells me the wholesalers importing product into canada are working off a 4 year old exchange rate, I could be wrong but I doubt it.
sorry about the 60% margin deal, I misread. Costs from manufacturers have gone up every year to pretty much offset the dollar increase. Costs from some lure companies have gone up 25% for the upcoming 2008 year. Almost every canadian maker of fishing tackle has raised prices on average 8% and the price increases from USA companies have gone up as much as 25%. Brass costs for lures has quadrupled in the last couple of years and lead has more than doubled. Be ready for 10lb cannonballs to have a suggested retail of $39.99 at your local store for 2008. There only 3 canadian made products that matter in this market not going up in price for 2008 are Oki Tackle, Rhys Davis and Krippled lures. All the rest have price increases and be ready to see Hot Spot flashers go up near $2.00 at your local tackle shop.
mr killer
Active Member
no prob, I know there's a theorie in wholesale that if you bring the prices down it cheapens the product so right now is a very profitable time to be a wholesaler if you are importing from the US the savings the exchange should be getting us aren't translating and it's the distributors we can blame for that,
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