This page
addresses the cost of production and also marketing costs. We engaged a
plastics engineer who has done all the engineering drawings for the
tooling. He got a quote from a Sydney based plastic injection moulding
company
which was for AUD $25 each unit.
But of
course the production cost doesn't end there. Here is our
estimate:
Action
or
Part
AUD
$
USD $
*Moulding in plastic (polycarbonate)
25.00
17.30
*Three springs
.15
.10
*Three pieces of bent wire
.25
.18
*Assembly cost
2.50
1.85
*Shrink
wrap in plastic sheet
.10
.07
*Shipping carton (to hold six)
2.00
1.45
*Royalty for the designer
2.85
2.00
*Cost to find distributors
4.15**
2.90**
*Amortization of tooling cost
1.00
.70
*Freight allowance
2.00
1.45
____________________________
TOTAL
40.00
28.00
** You (as
manufacturer) are going need a budget to find distributors whose
sales reps will make presentations to individual owners or operators of
public
toilets. Distributors can be found in a few minutes in any city just be
looking
up toilet
tissue
supplies or janitorial products in the yellow pages. A stand or booth
at a trade fair can also be good, hundreds can be signed up in a few
days. Distributors are also easy to find on the internet.
Finally be warned that once Rollfast becomes established and "known" you will have
distributors contacting you from everywhere begging you for the product;
you will have a problem keeping up with demand - that is what happened with Mark I.
It is suggested that you pack Rollfast six to a carton for shipment to the
distributors to save on carton costs. We did this with Mark I and specified that all
orders had to be a multiple of six and that worked perfectly.
