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tater · 11-12-10, 06:34 PM

Take a RL example. ANyone here ever buy a die-cast model? I have some 1:72 scale WW2 aircraft. F4Fs, Zeros, etc. They were ~$25.

$25.

I used to make models for a living—not "build" models, but actually manufacture anatomical models (for biological supply companies, etc). $25 retail would mean I'd have to wholesale for $12.50. As my accountant kept telling me, that meant that my direct cost to make the product would need to be $6.25.

Those models are PAINTED, plus decals. You have to cast the metal, injection mold the plastic (canopies, control surfaces, etc), then clean/deburr the casts, assemble, paint, decals, then package it for $6.25. Labor is gonna be over 50% of your cost. That means the metal/plastic needs to cost you ~$3 a pop (packaging alone is probably $0.50+), leaving ~$3 in labor. What's a decent, skilled wage? I used to pay people ~$10-$15 an hour for the most part (~20-30k a year). Most were 20-somethings, many were students. In the middle, at $12/hr, that means <15 minutes total labor to build a nice, 1:72 scale model and package it for sale. The more you think these workers should be paid, the faster they need to crank them out to keep our $25 price point. Even at $25, it's not like Dragon Models sells millions of these (maybe thousands), it's a niche, and they are "expensive" as toys go.

You simply cannot make something like that in the US for $25 retail. It's impossible unless you think there is a mass market for $50+ die cast models.

So, this is a case of outsourcing production or not having the product available at a cost regular people can afford.

I think in general, the relationship between what gets made abroad, and standard of living at home is pretty complex. It's not a simple"outsourcing is bad, m'kay." Nor is it "outsourcing is great!"

Looking at how people live now, vs when I was a kid, I think people have more "stuff" now—and better stuff—than we did growing up, and we were absolutely "upper middle class." Still, my parents didn't spend like people do now. Probably because decent stuff cost more.

11-12-10, 06:34 PM	#10
tater Navy Seal Join Date: Mar 2007 Location: New Mexico, USA Posts: 9,023 Downloads: 8 Uploads: 2	Take a RL example. ANyone here ever buy a die-cast model? I have some 1:72 scale WW2 aircraft. F4Fs, Zeros, etc. They were ~$25. $25. I used to make models for a living—not "build" models, but actually manufacture anatomical models (for biological supply companies, etc). $25 retail would mean I'd have to wholesale for $12.50. As my accountant kept telling me, that meant that my direct cost to make the product would need to be $6.25. Those models are PAINTED, plus decals. You have to cast the metal, injection mold the plastic (canopies, control surfaces, etc), then clean/deburr the casts, assemble, paint, decals, then package it for $6.25. Labor is gonna be over 50% of your cost. That means the metal/plastic needs to cost you ~$3 a pop (packaging alone is probably $0.50+), leaving ~$3 in labor. What's a decent, skilled wage? I used to pay people ~$10-$15 an hour for the most part (~20-30k a year). Most were 20-somethings, many were students. In the middle, at $12/hr, that means <15 minutes total labor to build a nice, 1:72 scale model and package it for sale. The more you think these workers should be paid, the faster they need to crank them out to keep our $25 price point. Even at $25, it's not like Dragon Models sells millions of these (maybe thousands), it's a niche, and they are "expensive" as toys go. You simply cannot make something like that in the US for $25 retail. It's impossible unless you think there is a mass market for $50+ die cast models. So, this is a case of outsourcing production or not having the product available at a cost regular people can afford. I think in general, the relationship between what gets made abroad, and standard of living at home is pretty complex. It's not a simple"outsourcing is bad, m'kay." Nor is it "outsourcing is great!" Looking at how people live now, vs when I was a kid, I think people have more "stuff" now—and better stuff—than we did growing up, and we were absolutely "upper middle class." Still, my parents didn't spend like people do now. Probably because decent stuff cost more.