Excise

[Brimfisher]

Ooof, That kinda made my head hurt............Uh Oh!

Thanks for the info. I got some back peddling to do.

[Catch'em]

Yes this forsaken excise tax! It's really putting the squeeze on my business. When I started my business I thought I knew what I was getting into... set my prices and went to pouring. THEN!! Excise happened. I was told it's 10% of final sale price. A $3.00 bag of lures now has a sales tax plus shipping. Then you pay your 10%. With the governments hands in it, materials, packaging and labor there is no longer profit on a $3.00 bag and with a price increase its really hard to compete. Had I known this before I jumped way out and took this hobby to the next level I would have pulled the plug. I'm really struggling with this as my CPA is educating himself to try to make this work for me I'm having a hard time keeping this going because of the government. So if you have more tips to help survive the government please share. I had a good thing going on until this came about.

To put this onto perspective I sold a $92.00 plastic worm and craw order the other day... that is $9.20 in just excise tax I am going to have to give to the government! There has to be something I'm doing wrong because I had a great business plan and it worked until I found out about excise tax.. while it still works it's almost not worth it now. As a newer guy in the business I know I'm going to have struggles but between this and packaging I see profit being pennies on the dollar.