Hi folks! I enjoy reading all these threads about rods. I have no stake in this at all, but I wanted to give you a little (okay, long) insight into the world of rod building.
I have handled some TUC rods but never fished them. $100 seems like a lot for an ice rod to most of us, so with that in mind…
I paid $4 for a small bottle of water at the theater in Rogers. For water! Last weekend I was craving a mocha so I got one. Almost $6! For coffee! And $3.95 for a little plastic container of maggots! =)
But seriously, here’s what you may not know. The wholesale markup on fishing rod components is terrible. No one is getting rich there. And the builders are paying for shipping, and MN state tax on those parts.
One little known fact is that our Federal Government has decreed that if you buy a bag of guides, some cork, and some blanks, and assemble that into a rod that you will sell – you are now a manufacturer. You are required to have a Federal Employer Identification Number (FEIN, or the Federal Tax Identification Number). And you have to collect the FET (Federal Excise Tax) on Sport Fishing Equipment for every rod sold. Then you need to file a quarterly Internal Revenue Form #720 to report and pay the tax. And they are watching you! I made an error on some submissions after THEY changed the process and didn’t tell me. I received a very threatening letter stating that they were going to make my life miserable if I didn’t get my act together. I had to take a day of vacation so I could stay home, call the Feds, and be ON HOLD for hours to get it straightened out. They would not let my wife (book keeper) talk, it had to be me because the business was in my name.
When you get done building and selling a rod you have enough profit to go get a mocha and a tub of maggots, which is why I shut my rod building business down after 8 years. =)