My husband is a custom rod builder, and I am trying to get validation of what it costs to make a rod, and how much should a person sell it for.

Does anyone know the exact cost breakdown of what it costs to build a 5 foot ultra-light pole? My feeling is these items should be taken into consideration.

1. Cost of Pole
2. Guides
3. Wraping (thread)
4. Glue/Gloss Material
5. Handle Assembly (Foam Stuff/Cork)
6. Reel Seat
7. Paint
8. Time to make it. (man hours)
9. Shipping Cost
10. Finance Charge (if using credit card) for purchases

Take into consideration these items are not purchased in bulk, they are purchased by piece.

Thank you,

Tina Morrone

Tina,

Why not just ask your husband? Escpecially for the man hours, What does he feel HIS time is worth? your costs could be 30 dollars to 300 dollars just on the parts depending on the quality of materials used in the production of the rod. honestly i would not even take a stab at this question.

Gregg

Tina
You have listed the major cost considerations. There are way too many variables in material and labor to come up with a valid estimate without knowing what figures apply in each case.
Many like myself enjoy rod building as a challenge and hobby for the satisfaction and pride in what we accomplish. You can't put a dollar value on that.
Stan

A great basis for figuring cost of doing business generally is Part II, Schedule C, Form 1040. It covers all business expenses under some 20 items and is a great way to organize such planning as costing out your products.

A blank can cost anywhere from $5 - $200 for an ultralight.

Guides can cost about $5-$50/set.

A grip can cost as little as about $2 or if you buy FLOR grade rings your looking at more than $3 an inch.

Reel seats cost anywhere from $3 to over $50 for a Struble reel seat.

Thread is cheap. Even with a decorative wrap you probably won't use more than 25 cents worth.

I use priority mail for shipping and most rods will ship for under $5 until you start adding insurance.

Glues and finishes will only be a couple of bucks at most for a 5 ft ultralight

Man hours, It depends on what you think your time is worth.

Most of the wholesale distributors will sell to you with no minimum order if you have a valid sales tax license. This can be a big savings and is where I make most of my money. I usually charge the retail cost of the parts +$50-$100 for fly rods. I almost never make anything else.

I would never take time or labor into consideration - otherwise, as he improves in his skills and can do more in less time, he'll be penalizing himself. Charge for the end product, based on quality and performance. I cannot imagine selling a custom rod for less than $100 above what the closest comparable commercial rod sells for.

........

There is no telling depending on what the market is in his area for his rods depending on what kind of quality his rods are. I decide what I charge when the rod is completed depending on how well it turned out. Are you trying to see if he's spending to much or if he can make a living at it?

Cost of components times two...works for me in the photo world and in the rod world as well, although both are not my primary source of income. My prices don't seem too outrageous to customers yet the low-ballers don't call back and I'm still making a bit of cash. Again, I'm not feeding my family on this, just my twin addictions, fish and film.

2 cents,

Tim

Just for the heck of it - take a look at the BassPro site and see what they sell there stuff for.

I keep it very simple. $100, plus retail cost of materials, unless it is a very time consuming rod which I shoot in the dark, and usually underprice. I also add shipping, if appropriate. John Butterfield

Tina,

A lot of very good advice up above which is very hard to argue against.

For my four penny worth I would say first of all we are not a seperate breed of businessmen or women as rodbuilders the same market foreces apply to us as anyone else when we want to sell our product. What we consider the rod to be worth matters little if our customers decide however good it is ,it is too expensive.
So we come back to business basics ,first find out what is the market price for custom rods made locally to a reasonable std of build and specification. Then work backwards and see if your costs will allow you to enter this market and make a living if that is your final intention.
.That is why Toms advice regarding labour costs is very relavant at the front end because until you can build at the right speed to produce quality comparable or better than the opposition you will price yourself out before you have begun.

Above all else market forces and prices will set your maximum resale retail price.

What you have to do is buy well and control your costs and yes even for a custom builder improve your productivity to enable you to make a decent profit.

Other costs you will need to factor into your business plan are tools both hand and power, Lighting cost of power, heating is important you got to set the high build in winter. and real estate even if building from a basement.

Many builders forget consumables like cellulose thinners, white spirit, masking tape abrasive papers, replacement blades, mixing pots tack rags, all have an effect on your bottom line and should be factered into your costs. Someone mentioned thread as being cheap well per rod it is but if you get into custom building per say then you will need to offer more than one colour and then it's not so cheap to buy several spools.
Don't forget business bank accounts tend to attract bank charges too and you may need to fork out for a book keeper or eventually an accoutant.

Finally you have to reach your customer base and believe me it is not true the old saying that build the best product in the world that the world will beat a path to your door. If that was the case there would be no advertising industry. So factor in costs of advertisemnts to and other marketing costs you could incurr.

Ok look I am not trying to discourage you only help you to see the broadest possible picture before dipping your toes in the water.

All the best.


Mike Oliver.