A Year in Review.

It has been an interesting year here at the BaitBaller headquarters. There have been many obstacles which we have overcome and some we are still working on relentlessly. Being a new company, we are still finding our way and forging our path through the unknown. We have had some amazing opportunities that for one reason or another have not worked out how we had hope but which, in the long run, have turned out to be for the better, and made us stronger.

This post is a brutally honest account of those challenges, the journey so far and our ambitions for the future.

Elon Musk is infamously quoted as saying, 'Being an entrepreneur is like eating glass and staring into the abyss.' And oh my, have there ever been days like this…Too many to count. But there have also been good days and even great days. If there is one thing we have learnt during the process of building BaitBaller, it is to recognize your wins and to celebrate them, not matter how small, these keep you going through the tough times. In spite of the many challenges, we remain steadfast in our vision for the future, with a smile on our faces and a spring in out step.

Here are a few of the biggest obstacles we have faced an overcome so far.

‘WebGate’

We have had to rebuild our website three times before we had something presentable. The first two builds were ‘completed’ by ‘reputable’ development companies, but were laughable on delivery and it became clear that neither company were willing to complete the job to spec.

Adapt and overcome,
In the end we decided to build the site ourselves, learning the ins and outs of web development along the way. But that is not where it ends. For those of you that run an ecommerce store, you will know that having a nice shiny website is not even the half of it. Enter, Meta and Google. If, for whatever reason you would like your brain to feel like a plate of freshly scrambled eggs, just try setting up your backend Meta and Google services—required for advertising and analytics. Holy moly, there were moments that nearly brought us to tears, but we made it through in the end, a little wiser for our troubles.

Relocation

After an initial launch into the Australian market, we decided to focus our efforts on the US market, basing our operations out of the States and Panama.
The first question was: What does it take to set up a foreign-owned U.S. company as a non-resident alien, and what are the tax implications of operating both domestically and internationally?
I found this information to be heavily gatekept and convoluted, with everyone and their dog attempting to wedge themselves in between the beginning and the end of this process to get their pound of flesh. But we persevered, paid the piper, and made it out the other side.

The Product Pricing Paradox & Cost of Sale

Pricing premium handcrafted fishing lures is another significant challenge. This niche, relatively new on a commercial scale, demands a thoughtful business model. Our goal is to provide a platform where makers can showcase their craft with and sell their products with minimal administrative burden.
There are a few companies who are excelling in this space, such as Malosi, Missing at Sea and, Tides Lures, to name a few. Hats off to them, as it’s no small feat.
The process demands significant time, effort, and financial investment.
At BaitBaller, our goal is to simplify and streamline this process for Makers while establishing ourselves as the go-to hub for premium handcrafted and small-batch fishing lure brands worldwide.
As the title of this section suggests, pricing is often an inconvenient truth for all of us. It’s easy to assume that higher pricing equals higher profits, but the reality is that the cost of getting products to market is significant. For our business, the cost of sale can exceed 50% before taxes.

The True Cost of getting to Market

Pricing is based on the real-world cost of doing business. Even though we are constantly working to streamline our processes and reduce overheads, these costs add up quickly if not managed correctly and can result in slim profit margins in the grand scheme of things.

Cost Considerations

• 1. Wholesale Cost: The starting point (cost of physical stock).


• 2. Shipping & Import Costs: Substantially increase the landed cost.


• 3. Packaging: Even small items like security stickers and packaging add up.


• 4. Warehousing, Fulfilment & Distribution: Even small items like security stickers and packaging add up.


• 5. On top of these, we still must account for: These crucial services add up quickly too.


• • Taxes (e.g., corporate income tax).


• • Payment gateway and transaction fees.


• • Website development & maintenance.


• • Marketing.


• • Regulatory compliance.

In short, what you see on the website and social media is just the tip of the iceberg.

The unseen work—like managing logistics, ensuring quality control, and handling customer service etc make up the bulk of the process.
This is why pricing a lure at $80, for example, isn’t about greed—it’s about covering the costs of doing business in this industry while ensuring that small-batch and premium-quality handcrafted lures are offered in a way that guarantees the makers get their fair share.

Key Takeaways for Makers

1. 1. Establish Wholesale and Retail Price Points:
   • It’s essential to set clearly defined wholesale and retail price points with a sufficient gap to ensure profitability for all parties—makers, agents, distributors, and retailers. This is particularly true as we expand into wholesale and distribution, where many U.S. retailers follow keystone pricing—meaning they aim for a 100% markup on the wholesale price.


2. 2. Agree on a Recommended Retail Price (RRP):
   • A consistent RRP helps avoid unnecessary competition between makers and resellers while maintaining fair market value.


3. 3. Work with Regional Agents or Distributors:
   • Signing agreements with regional agents ensures a consistent approach to pricing and distribution while offering the added benefit of compliance with local consumer laws, such as managing returns and exchanges.


4. 4. Focus on Quality Control:
   • Always ensure that the quality of each batch of lures meets the required standards before sending them to distributors and resellers. Poor quality can harm your brand’s reputation and damage relationships. Open communication and transparency can help resolve any potential issues early.


5. 5. Build Strong Relationships with Partners:
   • Loyalty and trust with your agents, distributors, and resellers are essential. These partnerships are built on mutual success, so always prioritize transparency and quality in your dealings.

2025 and Beyond

The future looks bright at BaitBaller. Our plan for 2025 is to build on our successes and lessons learnt over the past year, and to develop the BaitBaller Platform into an effortless and effective turnkey solution for qualifying lure makers. This will include the introduction of a Consignment Model, which will provide more opportunities for more makers, and will allow us to expand our product offerings to our engaged and focused customer base. By managing the technical and administrative aspects of the online retail process, Makers will have more time to focus on their passion of crafting the world’s finest handcrafted and small batch fishing lures…And hopefully to find a little time to enjoy a few fishing adventures themselves.

Here’s what we envision:

• • Wholesale Procurement Model:
  Currently, we operate solely on a wholesale procurement model basis, purchasing stock outright. While this approach works well, it does limit the number of brands we can onboard within a specific timeframe. To address this limitation and expand our capabilities, we plan to introduce a Consignment Model.


• • Consignment Model:
  Qualifying Makers will be able to send batches of products on consignment, and we handle the entire sales process.


• • Warehousing:
  Each maker will have access to our robust warehousing infrastructure, providing full transparency and control over inventory, even when it’s stored on the other side of the world.


• • All-Inclusive Services:
  Costs for warehousing, distribution, fulfilment, and marketing will be included in our service.


• • Returns and Compliance & Customer Relations:
  We will ensure full compliance with local and international consumer protection regulations, including tax requirements and customer support such as returns and refunds.


• • Marketing Integration:
  Each brand will be included in our marketing strategies and campaigns at no extra cost to the Makers.

We are also working tirelessly to establish key partnerships within the recreational fishing industry, focusing on the US and Latin America. For brands that meet production capacity benchmarks, this could lead to inclusion in our wholesale distribution network. Imagine seeing your brand on the shelves of major retailers across the U.S. and internationally!

Commitment to Collaboration, For the Craft Masters

Our ambition is simple: to provide a service that makes sense to the makers.
We want you to choose to work with us because it benefits your business.

One of our core values is collaboration over competition. What’s good for one is good for all. This approach fosters mutual success and ensures everyone benefits from the relationship. At the heart of this vision is a self-sustaining system where your success drives ours, and vice versa.

We would love to hear your thoughts, after all this is a Makers platform at its core, and your opinion is important to us as we build the future of the Premium Handcrafted and Small Batch Fishing Lure industry, so go ahead and share your opinion in the comments.

Final Thoughts

As we wrap up 2024, we want to extend our heartfelt thanks to everyone who has supported BaitBaller on this incredible journey so far.
Your continued encouragement fuels our vision for the future, and we’re excited for what’s to come.

Wishing you all a joyous festive season, a Merry Christmas, and a prosperous New Year. Here’s to a successful 2025 for us all—see you on the water!

Tight Lines

The BaitBaller Team.