A correction. My first example was incorrect, the tax is based on the wholesale value so the rod price should come down around $20-$25 depending on what kind a deal the retailer has with the company.
I agree with JC that some custom builders don't pay the tax, many don't know the tax exists. How many of you folks who sell an old rod charge and pay sales tax?... When I sell a custom rod I make sure the buyer knows an excise tax as well as state sales tax is added to the invoice. One thing I learned from my (real job) business is to be up front about state and fed. taxes and keep a paper trail to cover my butt.

I think barring competion most companies will not lower the price, if people are willing to pay the listed retail price they won't mess with a good thing at least in the high end rods.

Because of high fuel prices and the preceived high cost of heating this winter I have seen a 70% drop in sales in my business. I think non essentials like fishing rods will be hurting with or without a price drop in the coming months... FB.