Primarily Petroliana Shop Talk Forums Shop Talk Petroliana Forums General Petroliana Discussion Cost of producing Items for Sale.

I suspect some buyers do not have a good understanding of this.

Example, a set of globe lenses.

There is the cost of the glass and slumping, plus cost of screening.

Plus... the cost of preparing the artwork, burning screens, separating colors, etc, etc. Protoypes, work that needs to be redone, etc..

Anther example that I am more familiar with, a die cast piece.

Is it the cost of casting, plating..or more??

What about the prototype, the first three versions that did not perform as expected, the rework and redesign. The fine tuning of the mold to get a better result.


All this has to be reflected in the retail cost, they are hard costs that will only get absorbed easily if production numbers increase.

As for royalties, this is my opinion only feel free to correct.

I am thinking a royalty paid to use is 10% or under, more often 3-7%. To me that does not sound like a lot, actually a win-win for both parties. Paying a little to sell a lot is a great deal in my view.

Just my 2 cents ....

Dodogas....the royalty differs from company to company. Some charge a minimum amount which is what really hurts in this industry because the volume is pretty low on most items. For example, my General Motors license requires me to pay 8% of my total sales every quarter with a $1500/quarter minimum. My GM globe sales are rarely over $3500 each quarter, so 8% of that is $272. So in essence they make me pay about $1200 each quarter just for the privilege. I know it sounds stupid, but I'm looking at the bigger picture that having those globes allows me to piggyback other sales with it, that I am hoping offsets the lose in royalites!