---
title: "What It Really Cost Me to Invent a $30 Toy"
url: "https://books.playgoventure.com/3/newsletter/277/what-it-really-cost-me-to-invent-a-30-toy"
---
# 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