Why resin kits are expensive - with actual numbers

[robertburns]

This thread will show actual expenses from some of my resin model kits. I get asked every once in a while why resin kits are so expensive. I wanted to post real world numbers for a few reasons:

1. To show resin kit buyers what kind of expenses casters may have. In our world of made in China cheaply manufactured products, people expect low prices. Anything low production and made by hand will be more expensive. Not everyone realizes this. 

2. To give potential future resin casters an idea of what to expect. It's not my intention to dissuade anyone from becoming a caster. If it's your calling, then you should try. Having these numbers will help you. If this is a turn off and not be your thing, then I hope this thread will save you time and money. There is a learning curve to consider as well with lots of rejects, unusable molds, spilled materials before you get a system down. All this adds to the cost.

 These numbers are mine alone. Other casters costs will vary due to different resins and silicones, vendors,  techniques, etc. Different patterns have differences as well. Molding an old rare kit will be different from making a kit conversion pattern. Styrene vs 3D printing will differ. I will include different model kit project to cover different techniques and scenarios  

This thread will have multiple posts so I dont type too much at once. Questions are welcomed.

In addition to costs, I'll add a few benefits and things I've learned from each project.

 

Thank you for reading

Edited January 23, 2017 by robertburns

[oldcarfan]

I worked for a friend's resin kit company for a couple years before I got married in 1999. Other than the cost of making the pattern which was significant, the silicone was the biggest expense. For us, we were making 1/350th ships so the cost of photo etching and metal parts also had to be factored in. A typical kit wholesaled for $150-200.

[robertburns]

Case study number 1:

1/25th scale Futurliner

$165 including shipping

 

Master pattern cost:

N/A for this project. Masters were paid for with the proceeds from the first run of the kit. The expenses included CAD costs, 3D printing costs, masters prep time, etc.

Master prep cost:

I took the previous masters and glued the separate body panels together. This way the model body was a single unit and is poured as a single casting as opposed to 8 castings. This save me labor and reduced the cost of the kit.

Master prep. 8 hours of work X $15 per hour = $120. Paid a helper $140 for an additional 8 hours of work (finishing and paint inside and out).

Total $260. Divided by 100 castings (assuming it will survive being molded 4 times and that I wish to cast that many) the cost per kit is $2.60 

 

 

[robertburns]

I worked for a friend's resin kit company for a couple years before I got married in 1999. Other than the cost of making the pattern which was significant, the silicone was the biggest expense. For us, we were making 1/350th ships so the cost of photo etching and metal parts also had to be factored in. A typical kit wholesaled for $150-200.

yes, silicone is pretty expensive and is my 3rd highest expense, after 3D printing and labor

Edited January 23, 2017 by robertburns

[robertburns]

Silicone:

This kit has 3 molds and 6 parts. Body, black glass, and 4 wheel tires.

As stated above, the body is one piece and is 17.5" long x 5" tall x 4.25" wide.

I choose to make the glass black to make it a slammer because adding an interior would have made the kit more expensive and out of reach for most builders. Shooting clear glass is a hassle for me because the clear I use takes longer to degas, longer to cure, and requires an oven. The buyer has a choice to make their own interior and glass if they wish.

There are 4 wheels in the kit, while the original had 8. I reduced it to 4 so it could mount to the sides and be displayed without a chassis. 

Costs:

Material

Body - $228.90

each mold can make one body and generally lasts for 25 good shots. Keep in mind, this mold is large. Divide $228.90 by 25 gives us $9.16 per kit

Tire/wheels - $77.67 

Each mold can make 4 sets and generally lasts for 25 good shots. Divide $77.67 by 100 gives us $0.77 per kit.

Glass - $61.00

Each mold can make 3 good casting (2 rejects) and can last for 25 shots.  Divide $61.00 by 75 is $0.81 per kit

Silicone total is $367.57 

Per kit cost is $10.74

 

 

Edited January 23, 2017 by robertburns

[robertburns]

Molding prep:

It took a total of 8 hours to prep the parts for molding, build flow gates, boxes, mix and pour silicone, and demold the parts. 8 X $15 per hour is $120. Divide by 25 kits to get $4.80 per kit.

Note, cost of other supplies are N/A like latex gloves, paper towels, mixing sticks, cups, mold release spray and wax, metal or wood boxes, wood cores, hot glue, tape, etc.

Casting prep. After the parts are demolded, the molds are prepped for casting. Fine finishing of the molds and making a box top and bottom for each mold. 2 hours X $15 is $30 divided by 25 $1.20 per kit. 

Casting labor

2 hours X $15 is $30 divided by 25 is $1.20 per kit. 

[robertburns]

Casting costs:

Resin gets bought in 10 gallon kits and it's about $400.

Body is 1000 grams (including spillage) $11.87

Wheels are 300 grams $3.56 divided by 4 is $0.89

Glass is 200 grams $2.37 divided by 3 is $0.79

Total per kit is $13.55

 

 

[robertburns]

Misc expenses not listed above:

Supplies & materials like latex gloves, resin tint, safety equipent, tools, boxes, shipping packaging, shipping tape $N/A

Ebay fee $16.50 per kit

Pay Pal fee $5.09 per kit

Shipping $16.65 (included but I can charge for this if I need to)

Donation to Doctors Without Borders $16.50 (optional through eBay)

Handling (packaging, shipping, and time on eBay) 1 hour X $15 is $15 per kit

pressure pot, vacuum chamber, maintanence, etc $N/A

Master pattern research, blue printing, CAD model, 3D printing, scratch building, etc $N/A (paid with proceeds from previous run) 

Note: These numbers are based on selling at $165. I sometimes take a Best Offer, so some of these numbers may change)

Edited January 23, 2017 by robertburns

[robertburns]

Total invested - $1027.57

Resin $400

Silicone $367.57

Master Prep $260.00

 

Kit sells for $165.00

Costs $102.63

 

Master Prep $2.60

Silicone $10.74

Mold prep $4.80

Casting prep $1.20

Resin $13.55

ebay $16.50

Pay Pal $5.09

Shipping $16.65

Donation $16.50

Handling $15

 

Total cost to make $102.63 (profit is $62.37)

 

 

 

[robertburns]

Now that the costs are out of the way, I'll share the benefits:

Making someone happy with a one of a kind model

Taking pride in making a kit

Knowing someone will build and display my work

Having fun while creating something out of nothing

Making a new item available to the community

Serving the community

Learning about engineering and problem solving

Learning about marketing and sales

Keeping my hands on skills sharp

Donating to a good cause.

 

The next case study will be a regular sized car model, so the expenses will be more in line with average resin kit makers.

Thank you for reading

Edited January 23, 2017 by robertburns

[lysleder]

It is very interesting to see your price broken down like that, but why is it that you keep consumables out? I mean - if by making each kit will you will go through, say three mixing sticks and six latex gloves along with various other supplies. Then shouldn't those be counted as a necessary expense just like the silicone? As in - one mold cost so much and will last so many pulls, and one box of gloves cost so much and will last so many kits, yes?

[my66s55]

He didn't call them pulls, he called them good shots and used a number of 25 per mold.

Edited January 23, 2017 by my66s55

[bobthehobbyguy]

Great topic. Really informative. Lots of things to factor in so that you aren't going to loss money on the deal.

Always have to laugh when people complainvabout the cost of products are without understanding what the costs are for producing it are.

[dieseldawg142]

....

Edited May 10, 2018 by dieseldawg142

[robertburns]

It is very interesting to see your price broken down like that, but why is it that you keep consumables out? I mean - if by making each kit will you will go through, say three mixing sticks and six latex gloves along with various other supplies. Then shouldn't those be counted as a necessary expense just like the silicone? As in - one mold cost so much and will last so many pulls, and one box of gloves cost so much and will last so many kits, yes?

Good question. In my case, my work has a molding and casting department where I'm allowed to work off the clock. As long as I bring my own resin and silicone, I'm allowed to use the equipment and small consumable supplies as a perk of the job. Really good deal as this process uses a lot of those. Thank you for the question

[Pete J.]

Robert- Very good post and I would like to point something out that a lot of uninformed people discount when looking at models.  You are valuing your time at $15 an hour!  Try to get skilled craftsman here on SoCal for any where near that price!  Anyone with skills is going for $50 minimum.  I have always contended that people with skills are under valued and you made that point abundantly clear.  

[my66s55]

Robert- Very good post and I would like to point something out that a lot of uninformed people discount when looking at models.  You are valuing your time at $15 an hour!  Try to get skilled craftsman here on SoCal for any where near that price!  Anyone with skills is going for $50 minimum.  I have always contended that people with skills are under valued and you made that point abundantly clear.  

His labor should not be included in the cost of goods sold.

 

[Pete J.]

His labor should not be included in the cost of goods sold.

 

Why?  You think he should work for free?  

[my66s55]

Why?  You think he should work for free?  

He's not working for free Pete. He has a profit margin in the neighborhood of $65. I wouldn't call that free.  

Edited January 23, 2017 by my66s55

[vintagercr]

Interesting.

[bobthehobbyguy]

its imaterial whether its his labor or someone elses he has the right to bill. Profit margin is the return on investment not to compensate him for his labor.

Also what if down the road he has to hire somebody to do that work. How does that get covered.

[my66s55]

Lets set this straight right now. I am, as of the 13th of this month, a 72 year old practicing public account. I have operated my small business accounting practice here in Central Florida for over 25 years. I earned a 4 year degree from an accredited university and majored in both accounting and economics. 4.0 g.p.a. in econ and 3.7 g.p.a. in accounting. People pay me good money for this type of information. Bob, you are so far off base that it's pathetic. Profit margin is the difference between sale price and c.g.s and is earnings. That's why a person goes into business. Interest is a return on investment. Either way, profit margin or r.o.i., it's all one thing. Earnings.   

[bobthehobbyguy]

So what if he pays somebody else to do that labor. Would you not  include that cost? I doubt you would not charge for somebody elses labor so why is his different.

[robertburns]

He's not working for free Pete. He has a profit margin in the neighborhood of $65. I wouldn't call that free.  

how would I know if I made a profit if I didn't quantify the hours that I spent making it?

[my66s55]

Someone else's labor would be included in c.g.s. A person working for themselves is considered a sole proprietor and thus his labor is not considered in c.g.s. If the producing entity was a corporation, his wages would be included. A corporation is an entity in itself and even though the person may be the sold shareholder in the corporation, they are separate.