What It Really Cost Me to Invent a $30 Toy #

A few years ago I invented a plastic toy that makes building Hot Wheels tracks more fun.

Occasionally, I get feedback that my TrackJack is too expensive.

In fact, the first ever Amazon review I got said it was a clever, useful, and well-made product ... but too expensive — so they gave it 2 stars.

The price was $24.99 (currently it's $29.99 and 4.4 ⭐s)

Now, you may know that there's not a lot of room between $0 and $25 ... because ... math 😊

Of course I realize that most people are not aware of the costs of bringing a product to market.

Some think the inventor pockets the entire selling price.

The reality is that we might profit a few dollars per sale if everything goes perfectly well.

Here's a list of all the costs to bring my TrackJack from idea to customer.

🟢 PREPARING INVENTORY

• Manufacturing (sample, make, assemble)

• Packaging (make, ship, assemble)

• Barcode Fees

• Shipping to Warehouse in USA

• Shipping to Warehouse in Canada

• Customs Brokerage Fees and Tariffs

• Inventory Receiving Fee

• Storage Fees (recurring)

🟢 SELLING

• Reseller Listing Fee (Amazon, Walmart, Etsy)

• Reseller Sales Fee (per order)

• Shipping Materials

• Order Fulfillment Fee

• Shipping to Customer

🟢 BUSINESS OPERATIONS

• Refund Risk and Costs

• Marketing Costs and Risk

• Business Operation Costs

• Foreign Exchange Fees

• Insurance Costs

• Accounting Costs

🟢 INVENTING

• Idea & Market Research

• 3D Modeling

• Prototyping

• Testing

• Find Manufacturer

• Manufacturing Mold (limited lifespan)

• Safety Testing

• Product Naming

• Product Photography

• Brand Design (fonts, logos, messaging)

• Legal & Trademark

• Patent Application

• Packaging Sourcing

• Packaging Design

• Packaging Die

🟢 FOUNDER / INVENTOR

• Personal time to manage all of the above

• High probability of failure

🟢 PROFIT

• If everything goes perfectly well with a product that sells for less than $30, you might make a few dollars per sale.

• Then you lose some of that to income taxes.

❓ WHY DO IT

• Inventing something from nothing that delights people is pretty rewarding, even if you don’t make much money from it.

• Personally, I’m doing this as a side hustle so I’m not dependent on financial success. I wouldn't describe it as "fun" — I do it because I value the experience.

🚩 MY ADVICE for Inventing Physical Products

1. Sell your product for 2 to 5 times what it costs to make and deliver it to the customer. That’s assuming your final price is considered reasonable by most customers — I feel I have to keep my TrackJack under $30, which doesn’t give me much wiggle room.

2. Create a small and light product that sells for at least $100 so that shipping costs, storage fees, and tariff uncertainty have less influence on your profitability.

PS: I also invent board games and software games — I have different advice for those types of products.

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I'm Mathew Georghiou and I write about how games are transforming education and learning. I also share my experience as an entrepreneur inventing products and designing educational resources used by millions around the world. More about me at Georghiou.com

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