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

🟢 SELLING

🟢 BUSINESS OPERATIONS

🟢 INVENTING

🟢 FOUNDER / INVENTOR

🟢 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.

🚩 My Advice for Inventing Physical Products

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.
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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