Fly shops are called fly shops for a reason. Customers often beeline to the fly bins when they enter a shop. The 2012 March-April Angler Trends Report speaks volumes on this subject. A staggering 58.1% of anglers that were surveyed bought flies in that two-month period. What is the number one product in sales? That’s right folks, flies.
Lance Gray conducted his own research study for Angling Trade. He is some of what he found out. On average a mid-sized retail fly shop carries 51,700 flies. If a dealer pays $.85 cents wholesale per fly the dealer would have $43,945.00 inventory cost. At a retail price of $1.75 a fly the dealer would have $90,475.00 in inventory and a total profit per year if he sold all the flies in inventory of $46,530.00. On average fly sales make up 22 percent of a shop’s total sales.
Cash can be lost or made quickly at the fly bins. Flies are terminal tackle—terminal tackle is tackle that is easily lost, damaged or just plan worn out to the point that the product can’t be used again. Every retail fly shop knows that. It’s the shop that has control over its flies that make money!! The shop with flies that scarcely turn over loses money; it’s as simple as that.
Look for Lance’s complete report in the next issue of Angling Trade. Lance includes suggestions to improve the way you buy and sell flies in your shop.