What's a guess for the production cost of a race TC?
#1
What's a guess for the production cost of a race TC?
This may be a little extreme, but while surfing on the banzai online shop I came across a Yokomo BD5 worlds edition for 7xx USD. I begin wondering how much it actually costs to produce these kits that are selling on average $450 on the market?
#4
About $6.50; the rest is spent on crack and hookers.
#5
Tech Adept
#7
The cost of materials isn't that much, but they need to amortize the cost of R&D, salaries, marketing, race teams, etc., plus the costs of the plastic molds over then expected number of items sold.
An individual mold for one part can cost more than $25K if they don't machine it in house. The cost of plastic used in an individual part may only be a few cents. Also, as mentioned above, they will also charge whatever the market will bear.
An individual mold for one part can cost more than $25K if they don't machine it in house. The cost of plastic used in an individual part may only be a few cents. Also, as mentioned above, they will also charge whatever the market will bear.
#8
Tech Elite
iTrader: (38)
From what I can tell the actual cost to make the kit is 66% less than the price of the car. That's labor, materials, and the print on the box. Where the money comes in is R&D. That adds another 33% to the price. So, basically they make on average 33% profit off each car. This is common for just about everything sold in any market. You have remember that some countries have extremely low labor cost.
#9
Tech Elite
iTrader: (77)
From what I can tell the actual cost to make the kit is 66% less than the price of the car. That's labor, materials, and the print on the box. Where the money comes in is R&D. That adds another 33% to the price. So, basically they make on average 33% profit off each car. This is common for just about everything sold in any market. You have remember that some countries have extremely low labor cost.
#10
33%! That's it!?!
#11
As others have said, it's mainly the cost of the machines, molds and r&d you are paying for. If companies could sell millions of kits, the prices would be substantially lower but when you only sell hundreds or a few thousand at most, all that expense has to be spread over a smaller amount of product.
That being said, there is more than $10 worth of materials too. The graphite alone is probably $40 or more. Plus $20 or more worth of bearings.
Remember the old gold tub RC10? The bushing model was like $80 or so less than the bearing version.
That being said, there is more than $10 worth of materials too. The graphite alone is probably $40 or more. Plus $20 or more worth of bearings.
Remember the old gold tub RC10? The bushing model was like $80 or so less than the bearing version.
#12
Tech Elite
iTrader: (38)
Iv'e always wondered how many kits a manufacturer actually sells.
From business classes I have been in, the general profit margin should be 33% or more for a manufacturing facility, whether it's rc cars or condoms, that is where I got those numbers from.
As for the yokomo parts being expensive, I think they are a Japanese company, and labor in Japan is no where close to as cheap as China or Mexico's.
From business classes I have been in, the general profit margin should be 33% or more for a manufacturing facility, whether it's rc cars or condoms, that is where I got those numbers from.
As for the yokomo parts being expensive, I think they are a Japanese company, and labor in Japan is no where close to as cheap as China or Mexico's.
#13
Don't let the cost spoils our love for the hobby.
I work at a hobby store, just passed my 11th anniversary in early Jan. The markup on r/c kits, radio, engines, chargers, etc are much lower than replacement parts. Even hop-up parts are discounted pretty well where replacements are priced at full retail/msrp.
Hobby distributors get r/c products less than 50% of msrp. I think your 33% might apply for them.
I need to save up for the next kit > RC8SCE
I work at a hobby store, just passed my 11th anniversary in early Jan. The markup on r/c kits, radio, engines, chargers, etc are much lower than replacement parts. Even hop-up parts are discounted pretty well where replacements are priced at full retail/msrp.
Hobby distributors get r/c products less than 50% of msrp. I think your 33% might apply for them.
I need to save up for the next kit > RC8SCE
#15
Tech Master
^^ Funny stuff.
I think it's cheap when you consider what else you can buy for $350. That's about 20 cd's (if anyone uses them now), or 15 DVD's, or 4 bottles of good Single Malt, or a couple of hookers.
I get more enjoyment out of my car than a few those things.
I think it's cheap when you consider what else you can buy for $350. That's about 20 cd's (if anyone uses them now), or 15 DVD's, or 4 bottles of good Single Malt, or a couple of hookers.
I get more enjoyment out of my car than a few those things.