3rd Party Profit Margins?

Discussion in 'Transformers Toy Discussion' started by iron maniac, Jan 15, 2012.

  1. iron maniac

    iron maniac Help Uncle Sixshot, Help!

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    Kind of a weird question but what kind of profits do you guys think the big guns like FansProject, Igear, TFC, Perfect Effect, etc are making off these figures and upgrade kits? Small profits, just enough to get by? Or are they seriously getting filthy rich off of these?
    No negativity meant here just very curious about this.

    Discuss.
     
  2. mx-01 archon

    mx-01 archon Well-Known Member

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    That these 3rd part guys aren't able to drop their full-time jobs so that they can give their projects full attention should probably tell you something.
     
  3. Grimwing

    Grimwing Scientist Supreme

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    Igear comes across as a bunch of pandering con artists. Yes.

    There is a over saturation in the market of new third party companies.
    So its likely a lot of them are collapseing under failed business models while we wait around for product information.

    I want to say fansproject and TFC are doing healthy buisness But I hav'ent heard anything from fans project in a while.
    So that makes me nervous. (I desperately want heartmaster. )
     
  4. QmTablit

    QmTablit Disguise: Check. Robot...

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    Enough to recoup the cost of making the figure to begin with including distribution and all that, plus a little some. Obviously more profit is made when the redeco/retool is released.

    In any case, I don't think anyone is getting filthy rich doing this.
     
  5. CZ Hazard

    CZ Hazard Sons of Unicron PTT

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    It's a second job, it probably pays as well as any second job with the added risk of if you fuck up a production run, you foot the bill. The amount of work that goes just into design, never mind tooling, is mind-boggling.
     
  6. Dr. Prime

    Dr. Prime Dr. Prime

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    They are definitely NOT getting filthy rich, lol. I have no proof, but imagine this is a hobby "with an upside" of making a little cash on the side, but nothing that will "break the bank" so to speak.

    I wouldn't worry about fansproject. We've had some insiders recently tell us that they are working diligently on some new and awesome products. They just like to be quiet about things until they have something solid to show us.
     
  7. dirgestone

    dirgestone Banned

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    I can't imagine they make much. Hasbro makes a profit the large sale of TFs these guys aren't making more than 3000 pieces I am amusing. The major collector market is not reallysomething that you can a mint from. I wonder why hasbro hasn't attempted to absorb the companies or hire these chaps though
     
  8. vm-01

    vm-01 Well-Known Member

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    That's why I hate when figures go out of stock. The secondary market makes more profit than the guys actually making the figures.
     
  9. wolfe

    wolfe Well-Known Member

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    Most of us have no idea what kind of profit they make.
     
  10. bellpeppers

    bellpeppers A Meat Popsicle

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    This.

    One has to figure that if they didn't make something, then they wouldn't be doing it.

    One thing I bear in mind is that there is more money in used cars than new cars.
     
  11. cheapdate

    cheapdate Banned

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    Man, that iGear hate comes out swinging. I'd love to know but we'll probably never get any official numbers.
     
  12. grimlock1972

    grimlock1972 "No Mas" My Wallet

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    This but if i had to guess I would say razor thin profit margin as they know they can't mark up the figures too much with out scaring off potential customers.
     
  13. LeTigre

    LeTigre Meat popsicle

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    Pretty much. I'd also add that it's none of our business, either.
     
  14. Liege Prime

    Liege Prime Well-Known Member

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    Haha, this. Some things make me think "hey that's a good price", some, not so much, but also sometimes I just wonder if we're just accustomed to the high prices so we accept it. That's just it though- I have no facts to really know one way or the other, but I certainly don't think they're getting filthy rich.
     
  15. process

    process Hanlon's razor Veteran

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    Don't know, can't know.
     
  16. Fishdirt

    Fishdirt Tin Toy Transformer

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    Don't know but I can say, from working in plastics, the material costs are definitely less then a dollar (used to make coin holder units for cars at a cost of 5 cents each but to order them through Ford they were 20 something dollars).

    The main costs come from Labor and the Die. Dies in america run from 25k to 6 figures but in China I have heard they are a quarter of the price but it could be even less. Cost of utilities has to factor in somewhere.

    I do know for a thousand run for a pvc designer doll (less parts to mold) like munny it costs 15k to 20k altogether for shipping to the USA from China.

    If I cared enough and had time I'd go to alibaba and ask for a quote from a few manufacturers on a toy similar to a third party. Seems the most accurate way.
     
  17. CZ Hazard

    CZ Hazard Sons of Unicron PTT

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    The only third party to give us a good quality, wholly original design in a nice box shipped for $15, when other people charge upwards of $20 just for a head, is I-gear. The bastards!

    There are too many third party companies, but that is a free market economy, the same thing happens to every business, how many mobile phone operators from the late nineties are still around? We haven't had any company come to market with a genuinely good product that has been poorly received, which to me suggests we are let to see market saturation. I would however completely agree with the statement about seeing failing business plans,as I think most of these business models adopt a "Field of Dreams" approach to marketing. I dare say forums like these are 90% of third party companies maketing "plan".
    Each company will stand or fall depending on the strength of their product, i-gear has invested lot's of money into new designs and could well stand the test of time. I think Fans Project / Make Toys are playing the game well. Each company is only one failed product run from disaster, you think retailers will trust Xovergen again?
    I imagine a lot of TFClubs profits have gone into fixing the faults on Structor and Heavy Labor, but that kind of commitment buys loyalty which suggests they too are in it for the long haul (no pun intended).
     
  18. dkr7

    dkr7 "Argh' Hexagonal Nuts!"

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    Calm down, igear is bascially a retailer for other peoples/companies work

    From the igear site:
    Caution: The Partner Products are not iGear Products, iGear are responsible for sales agent.
     
  19. Timesynch

    Timesynch Go For Broke! TFW2005 Supporter

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    I had almost given up hope people would realize that PP stood for "Partner Projects." iGear isn't solely responsible for Faith Leader, or Delicate Warrior, or the PP05 van brothers, or the Coneheads/Seeker clones -- for better or worse. If there's any fault on the part of iGear for stolen molds or whatnot, it's them acting as sales/marketing agents for said products. And I doubt they'd start naming names of their silent partners, so there's that. Seriously, the "iGear are all KO con artists! rabblerabblerabble!" sentiment is getting old.
     
  20. chonosmoon

    chonosmoon Well-Known Member

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    i dont think they are making much.
     

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