How much does it cost?

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gburch
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How much does it cost?

Post by gburch » Wed Apr 29, 2009 7:06 am

I'm sure the topic's been talked about before, but as a newcomer here, I hope you'll excuse my ignorance. I'm curious about how much is known within the collector community about what the actual cost is to develop and produce our 1:18 goodies.

Teamski
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Post by Teamski » Wed Apr 29, 2009 7:19 am

IIRC, it costs somewhere in the area of $150K to get the molds done and production started.

-Ski
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gburch
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Post by gburch » Wed Apr 29, 2009 8:27 am

Teamski wrote:IIRC, it costs somewhere in the area of $150K to get the molds done and production started.

-Ski
WOW -- that's much higher than I would have expected.

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Post by flayrah » Wed Apr 29, 2009 8:36 am

New production is very, very expensive. That's why some of the conversion/modification/add-on parts being produced by board members are such a good service. Not necessarily a new model, but something different enough to vary the collection. And why the totally new custom aircraft are so expensive.

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Post by gburch » Wed Apr 29, 2009 4:25 pm

So ... continuing my pestering with questions to try to get a handle on the economics of this business ...

Is the $150k figure to just get molds done? If so, how much more does it cost to get all the way through injection, painting and assembly in China?

I'm sure there's some major factor of scale (no pun intended) involved. What were the size of the 21C's (for instance) runs on their planes and other pieces?

In other words ... how do all these factors add up to the landed cost to get a containerload to the US from original conception?

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Post by Jason of Admiral Toys » Wed Apr 29, 2009 7:04 pm

gburch wrote:So ... continuing my pestering with questions to try to get a handle on the economics of this business ...

Is the $150k figure to just get molds done? If so, how much more does it cost to get all the way through injection, painting and assembly in China?

I'm sure there's some major factor of scale (no pun intended) involved. What were the size of the 21C's (for instance) runs on their planes and other pieces?

In other words ... how do all these factors add up to the landed cost to get a containerload to the US from original conception?
Dear gburch,

Here are a few answers to some of your questions:

Is the $150k figure to just get molds done?

The cost of the mold is in direct relation to the size of the aircraft or part being molded. For example a pilot my cost $6,000 to tool (the process of making the molds) all the way up to $200,000 the cost of tooling a B-17 in 1:18. These are just tooling cost. This does not include the cost of the master model.

Manufactured before tooling begins, the master model will run between $400 and $20,000. These are your CAD and hand made one of a kinds used in the tooling process.

If so, how much more does it cost to get all the way through injection, painting and assembly in China?

Here is part of a post I made several years ago. I wanted to give everyone a look at a simplified flow chart for the process of making models. The flow chart will show you the steps required to produce a model:

1. Master model (referred to on this site as a prototype) is produced.
2. Modifications of master model
3. Tooling of the molds (the big expense)
4. Then we take a couple of shots (injections) to see how the molds are taking the plastic.
5. T1 which is the first official shot is completed (technical injection)
6. Modifications of the molds after T1.
7. Engineering samples are produced.
8. Modification of engineering samples.
9. Design is produced, what paint job is going on the model.
10. Tampo-printing screens are made and spray masking tools are produced. A tampo-printing screen is kind of like a money printing plate. It is a thin metal sheet that has a cut out of what you want printed on the model. Then a silicon head comes down on the screen after paint is wiped over the screen. That silicon head then presses down on the model. If either screen or head needs modifying this means starting over with all new parts.

Spray Masking is the process used for painting large areas. The spray masking tools are kind of like kitchen tongs that hold the model, and have the areas to receive paint cut out of them. This allows for fast painting of stripes, noses of aircraft etc. Each requires tooling and modifications which equates to time.

11. The production line is set up. There is not one production line from start to finish. For example the cockpits might be produced on the third floor of building 2 and the wing assemblies will be produced on the second floor of building 1. All the large components come together after they are painted and assembled to the main production line floor for final assembly.

12. Final assembly
13. Shipping the product (after design, printing and production of both the shipping and sales box)

Now take most of these steps and multiple them by two: One flap is two halves to be tooled, two halves to be injected, two halves to masked, painted and tampo-printed, two halves to be assembled. Now multiply this by the other wing, elevators, rudders, landing gear, canopies, ordinance, airbrakes, ailerons, ammo doors, spinning beast of furry up front, pilot etc…

Each step during pre-line assembly and final assembly should take no longer then 10 seconds per step. Each step is calculated and given a cost.

I'm sure there's some major factor of scale (no pun intended) involved. What were the size of the 21C's (for instance) runs on their planes and other pieces?

I was told by 21st’s factory that their productions would vary; however, would average 50K units with multiple paint schemes. Admiral Toys is well under those numbers (about 40K under)

In other words ... how do all these factors add up to the landed cost to get a containerload to the US from original conception?

I cannot tell you the final cost. However, the cost for a High Q container (the largest container available) is approximately $3,200 to $6,000 landed cost, not including the cost of the models inside the container.

Now, do not forget to add the cost of insurance, overhead and royalties to The Boeing Company or any other licensors and you will begin to see what is involved in calculating the cost of manufacturing.

I hope this gives you a small insight into the cost of production.

Regards,
Jason

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Post by gburch » Wed Apr 29, 2009 7:19 pm

Thanks, Jason -- that's a lot of info and very interesting.

In the back of my mind, I had this idea of developing a subscription scheme for funding new products. We should talk about it over lunch! The trial I had set for Monday settled -- call me.

GB

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Post by Jason of Admiral Toys » Wed Apr 29, 2009 7:29 pm

gburch wrote:Thanks, Jason -- that's a lot of info and very interesting.

In the back of my mind, I had this idea of developing a subscription scheme for funding new products. We should talk about it over lunch! The trial I had set for Monday settled -- call me.

GB
I will give you a call tomorrow. I have some ideas as well.

Regards,
Jason

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Post by flayrah » Wed Apr 29, 2009 7:33 pm

Jason, thanks for the detailed information and outline. Very informative. Let me take this a different way: What costs are we looking at for a re-paint? All modeling and die work has been done, model has already been produced in a different paint scheme. Is that something workable for collector's group, or are we still looking at prohibitive costs??

Apparently bbi did their Aussie aircraft with production runs of only 250 each, but they might have access to less expensive design and labor.

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Post by immeww2 » Thu Apr 30, 2009 8:47 am

Very informative. Thanks for sharing. Too bad the production of one model can't be featured on the TV show "How It's Made". I would love to see the actual production at work. :wink:

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