unitie$
First of all, the term “pocketing” implies that they are keeping the 20 percent and there are no expenses that tear into their ability to keep a business operating. if we were to apply straight fishing industry retail numbers, then tournament organizations would all close their doors. The straight up truth about fishing industry retail business is the 40-points rule; everyone makes 40-points on a transaction - that is the overall goal of fishing industry tackle an gear sales. a manufacturer has to factor in his cost of goods, marketing and warranty costs, his own, and employee salary burdens as well as facilities costs, insurances and all other expenses into each product he markets. Then he needs to profit in order to put more product back into circulation. He sells to the dealer at a level that affords him the chance to do so - the hope is that he averages 40 percent markup when he sells the product wholesale to the dealer, who has to account for the same issues when he prices and puts them on the shelves. overly simplistic explanation; but you get the idea. We tell tournament organizations that they need to do the same with less margin, and they are already razor thin as it is. Factor the same things, staff, equipment, fuel, lodging, permits, insurance and a host of other things and tournaments organizations have very little opportunity to actually profit anything unless they can do an effective job of attracting sponsors to offset some of those things. Usually, that comes with time. The higher quality of an event an organization puts on, the longer they stay in the marketplace, and the more credibility they bring
summer 2013
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