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Fly Tying


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Posts posted by cburgess

  1. The MSRP is normally keystone at 3x wholesale; some can go as high as 5x; keystone is a simple multiplier used to quickly estimate a resell price. This is all factored into the Cost of Goods Sold and a reasonable profit margin. Competition can drastically cut into the profit margin - discounts - the primary reason why many small local fly shops close up. If you figure 4x COGS you can end up with approx 30% net, which is considered a reasonable and necessary net profit target. It is a real balancing act for any small business - like walking a tight rope.

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