Do you want to know how much money bait shop make in profit yearly? If YES, here is an analysis of the income potential of bait & tackle business owners.
Americans love to fish, and fishing is generally allowed at certain times in the year. At such times, a lot of people head to the waters to catch themselves some lunch. Of course you can’t fish without the right equipment, and that is where bait and tackle shops come into play.
A bait and tackle shop is a fisherman’s go-to supply shop for bait when it comes to fishing. Normally, a bait and tackle shop is located near boat launches, piers, and lakes so they can be close to their clients. If they are licensed, a bait and tackle shop can make extra money by selling drinks and beer to fishermen. Some bait and tackle shops also known to sell snacks.
It is on record that over thirty million people aged 16 and older went recreational fishing in 2006, the latest year for which the U.S. Fish and Wildlife Service has data. They spent $42 billion doing so, of which 45 percent, or $18.8 billion was spent on fishing equipment, or more precisely, bait and tackle shops.
Building a bait and tackle shop can profit greatly if you set it up in an area ripe with opportunity. If you want your business to be successful, your products and shop need to be designed to catch fishermen, not fish, because you have little business with them. That means you have to run your business just as any retailer: choose the right location, promote and create an appealing atmosphere for your customers.
How Bait and Tackle Shops Make Money?
Before we look at how much a bait and tackle shop can make, let’s find out how they make their money. It is a known fact that many bait and tackle shops make money by selling bait alone. Some bait stands, in fact, only have a single tank with live bait.
Others, meanwhile, offer lures, hooks, line, and even spare rod pieces. Depending on the location, a bait and tackle shop will offer different items. Ocean fishing is different than freshwater fishing, and it needs additional gear. Some bait and tackle shops also make additional profit by selling food and drinks. Some shops sell beer and liquor. Other shops may open a café so as to serve coffee and breakfast fare to the early risers.
While rare, some shops are also seafood restaurants. It all depends on the shop’s location as some locations can allow you to go all out. Bait can be charged by the bucket, or it can be charged by individual fish, worm, etc. Tackle is sold on a per item basis.
Bait and tackle shops are known to charge customers between 25 and 95 cents for live bait, per bait. Fishing lures can be priced between 95 cents and $10. As for tackle, prices range from $15 to $80, depending on what you’re selling. If you’re selling rod necessities like spinning reels, you can sell products up to $100.
How Much Money Do Bait & Tackle Shop Business Owners Make Monthly/Yearly
A good bait and tackle shop can make about $45,000 per year, if it’s small. Larger franchised bait and tackle shops, meanwhile, can make over $200,000 in profit per year. A lot of a bait and tackle shop’s success depends on its availability—as well as the area’s fishing needs.
Commercial fishing is a big business, but it might not be big in your area. Instead of expanding your floor space off the bat, look for better locations. Host special events like contests, and sponsor charitable community work.
Additionally, expand your sale of margin-rich merchandise either by buying it much cheaper or changing your merchandise mix to include a much higher percentage of high margin products. Alternatively, purchase a larger number of closeouts, join a buying group or consider either direct import of port of entry purchases, all of which will yield large margins.
If you want to be a retailer with considerable net worth, focus on any product or category that will generate sales and consumer following. Experiment a lot: jettison the failures and embrace the winners. If your net worth is not increasing year over year, it’s time to reassess both what you are doing and how you are doing it.