Yes you are correct, metals are very cheap. But you are not accounting
for tooling costs and labor. that has to be accounted for. I will share
some estimated costs for you if let's say Hetrick was to build their own
line of harmonicas. I actually looked into this once. Please don't take
any offense to this or get angry. I think this is a great discussion and
I also think it is important for people to understand what it takes to
manufacture things.
Here is my example: Doing it very simply: Doing one model of harmonica
meaning one set of coverplates, one reed/reedplate design, one comb and
no low harps.
1) Cost of research and development $25,000-$50,000 (to make sure it
doesnt suck and holds up over time, this was very low estimate)
2) Cost of a punch press machine to make reedplates and reeds and covers
$10,000 (this is a very cheap one)
3) Cost of cutting dies to make blank reedplates $5,000 - $10,000 (this
is assuming I make only one set which means only long slot and no F# can
be offered)
4) Cost of cutting dies for coverplates $5,000-$10,000
5) Cost of reeds being machined or stamped (I did not get this far when
i did research). Let's say $20,000. This is just to make the machine
molds to make them mind you. This is the most difficult thing to make.
6) Cost of a crappy injection molded plastic comb. I am guessing here,
probably 5 to 10 thousand to make the first batch and the mold, then
cheaper after that.
7) Unless I am lucky enough to find all out of the box screws and don't
need to pay to have custom ones made...Add another $1-$2 thousand
dollars for decent coverplate screws that are male/female (I recently
had some made).
8) Cost of chroming or coating coverplates I have no idea....but that
has to be added in
9) Cost of marketing and distribution no idea there but also needs to be
accounted for
10) Cost of making a box and packaging. Im not sure, but I know Dave
Payne at HH said they had to settle on little leather bags that were 8
bucks a piece unless they outsourced to china. Lets say $5K if we are cheap.
11) Don't forget that I can't sell it for 30 bucks. It is more like
20%-40% less because I have to give a cut to distributors to get it in
your hands.
What do you think? There are many other costs, these are just a few. My
total tooling up cost (minus anything above I did not give an estimate
for) could easily be $100,000. This is just to get started making them
and in low production numbers, maybe a few hundred a month. I did not
add in the cost of metals, materials, other tools for tuning, riveting
and of course the labor charges to pay employees to get things made.