EquipmentFly Fishing AI ChatGPTIndustry

A Simple Answer That Confounds the Most Experienced in Fly Fishing Business

It’s Scale, Baby. The Good Old Principle of Economic Scale!


1. Economies of Scale in Fly Fishing Gear Manufacturing

Let’s say you start a small fly rod workshop producing 100 rods a month. You handle most of the work yourself—cutting blanks, wrapping guides, applying epoxy. As you grow and produce 1,000 rods a month, here’s how economies of scale kick in:

Lower Average Costs

  • Bulk purchasing: You now buy cork handles, graphite blanks, and guides in larger quantities, getting discounts from suppliers.
  • Specialization: You hire staff who specialize in wrapping, finishing, and quality control—making each task faster and better.
  • Machine efficiency: You invest in better rod-turning equipment and epoxy curing stations, speeding up production.

Spreading Fixed Costs

  • Rent, utilities, and insurance stay mostly the same—but you’re producing ten times more rods, so the cost per rod drops.

⚙️ 2. Returns to Scale in Fly Rod Production

Suppose you double everything—your space, your workers, and your raw materials. What happens to output?

Increasing Returns to Scale

  • You might more than double production because:
    • Your team becomes more efficient.
    • Your workflow gets optimized.
    • Machines are used closer to capacity.

So instead of going from 1,000 to 2,000 rods, you might reach 2,500 rods—thanks to better systems and synergy.

Decreasing Returns to Scale

Eventually, if you grow too large without managing complexity, you may see less efficient gains. Maybe:

  • Coordination gets harder.
  • Mistakes increase.
  • Logistics become a bottleneck.

At this point, your costs might start to rise per unit, even with more production.


📦 Real-World Implication

Fly fishing gear brands that scale up wisely—like Sage or Orvis—achieve competitive pricing, consistent quality, and broader distribution. Smaller boutique makers can’t match their unit cost, but may still compete on customization, craftsmanship, or niche appeal.


Maybe you already knew this, but it helps the new fly fisher understand exactly WHY, the NUMBER ONE REASON WHY, fly fishing gear is generally a lot more expensive than conventional gear. The only way to fix this? Increase the numbers of fly fishers across all demographics – making an entry into the fly fishing sport. This principle applies to so many categories in the fly fishing category. Fly rods is one of the better examples, with more data, that ChatGPT latched onto for writing this piece. And I don’t misunderestimate my favorite economic history (US from 1800) prof, Dr. Dale Odom. He lit a fire to learn that still burns.

END NOTE: Indoors for awhile here at stinky Fish Camp North … not only is there a new knee in the house today, I am battling a substantial summer head-cold. The hospital, and my cold, all have me thinking about more wholistic topics today, and feeling charged-up about bringing these new and controversial topics to you. Have you taken the time to get a look at my Wholistic Fly Fisher Playlist on YouTube. That Playlist is starting to take on some depth, and I hope some, or at least ONE of those videos helps your thinking when it comes to the fly fishing long haul we’re on.

shannon

https://www.shannondrawe.com is where to find my other day job. I write and photograph fish stories professionally, and for free here! Journalist by training. This site is for telling true fishing news stories, unless otherwise noted.

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