Cost of manufacturing broadheads
Equipment
Good Day Fellow archers,
Out of curiosity I would like to know what is the actual cost of making a broadhead and I know it varies so lets say for example An iron will at the one end and a slick trick at the other end being a mass produced broadhead.
NB: I am not intending to make my own broadheads nor I am I suggesting that a manufacturer cannot charge what they feel like. Everyone is entitled to make a profit etc etc.
Just was thinking was is the actual cost of making them. The same can be said for any other piece of equipment. I just broadheads would be interesting to know.
Any valid and informative information would be welcomed ??
Thanks
Whatever it is china has figured out how to do it for 1/10 th the cost based on eBay pricing
Just include all the costs. Raw material, machines, facility, design and production staff, utilities, marketing, sales, accounting, HR, packaging, fulfillment, liability insurance, etc, etc.
Sometimes the actual product isn't the main cost of producing and selling a product.
I understand the manufactures need to make a profit, but no way is there even $10 worth of metal in a $30 broadhead... Price of materials to profit is way out of line if ya ask me...
The cost of material has almost zero to do with the cost of the broadhead…
—Jim
A 1952 Micky Mantle card sold for $12 Million.
MSRP less a 30% profit margin.
What was the cost of materials in that card.
Own a business? What Glunt said has validity
^^^ which part; sunk, fixed, or variable cost?
Cost to mnfr in China is cheaper than you think
I've helped my hunting partner with his new broadhead, made in the USA, available in 2024. Zero chance I'm going to say what it costs to make.
Looks a bit like the old Kolpin design...
"Whatever it is china has figured out how to do it for 1/10 th the cost based on eBay pricing "?
China has no patent protection, so their 'design' cost is zero. And it's a safe bet that the blade steel is inferior, tolerances are looser, concentricity is literally 'hit or miss.'
Anyone remember those cheap Buck knife knock-offs from Pakistan?
Any quality low profile cut on contact (COC) broadhead from a heavy bow will penetrate sheet metal like that, that is nothing more than a marketing ploy for the uninformed...
Heck there are pictures out there (and maybe videos) of old school Bear Razorheads and even 3-blade Snuffers sticking halfway in concrete blocks...
Well Mr Umar Docrat from "other " (if that IS your real name) I couldn't begin to guess at what the materials cost, labor, and fixed costs would be in the USA. Do you have any idea what they are in "Other"?
Mr. Umar Docrat was the name of our cover band we did Bobby Sherman and Partridge Family songs.
If a guy had a CNC shop already, a production run of something like a broadhead would be cheap and easy. If someone was starting from scratch that CNC shop would be a huge investment and would likely take forever to pay off with just broadheads. If a guy was using conventional machines, labor and skill costs go way up. So really... it just depends.
Actual raw materials would be cheap. There would be some heat treat required, as well as some finish work and inspection. I'm guessing the actual stock material would be the cheapest part of broadhead.
Quote Highlife: “ Mr. Umar Docrat was the name of our cover band we did Bobby Sherman and Partridge Family songs.”.
Oh oh, I thing Mr. Umar Docrat was the name of our cover band we did Bobby Sherman and Partridge Family songs. Highlife just slipped up and answered from his “Other” identity.
I have multiple buddies that either mnfr overseas or work for companies that do.
The challenge to mnfr in the US is cost of labor being 20x.
The challenge to making stuff overseas is the Quality control- you better have that dialed in. The other- as mentioned- is lack of patent protection. If you do make stuff over there be prepared for them to use the same design on the same production line…and then selling the same product for 1/4 or less than what you charge. Heck, look up Rage BHs on Aliexpress.
Then; many products are made overseas…then ASSEMBLED here to get around import duties for finished goods and so they can make the made in USA claim.
.
Catscratch - a start up machine shop for just precision made broadheads would never meet an ROI. Broadheads just aren't that "needed" to fetch a revenue stream to payback that equipment.
But then again, I'm not a business "owner" so...
I showed one of my broadheads to a guy that ran a machining machine. He said that it would cost about $.60 to make that head. However, it would require a $10,000 minimum order before they would go through the trouble to set up. The head was not one like the VAP which is machined from a single piece of metal. The Iron Will head is machined in parts and then assembled so it takes less machine time than the one piece provided they are made out of the same metal. As state above most of the costs are not from making the heads. Retail shops usually have close to a 100% markup.
All Broadheads have a material cost of $9.65 per head.
I don’t know if there’s any legitimacy to this whole thread or not, but I do know that Ace Standard broadheads have been around essentially unchanged since the 1930s. I don’t know how often they need to re-tool, but while tooling is no doubt a major expense, it probably lasts them a while.
So I don’t think they’re getting fabulously wealthy selling heads at $40/half dozen, and I have been quite happy supporting them as a small, US business.
100% margin means zero cost. 100% markup is 50% gross margin. This thread is fascinating. ??
Corax, me also but I have Zwickey's. I would use Ace's also. I cannot see launching a $40+ head out through the woods or into a rock!!! Also, the dead deer with my Zwickeys were the same dead as any other head.
Hardly Ambush lol I actually find some of these threads hilarious. People bitching about the cost and how they feel thier being ripped off. Here's an idea come up with your own design pay all the costs it takes to get it to market. Than you can tell all of us how you can't make any money selling it cheaper. Now back to hunting.
I don’t care what the manufacturing costs area and if I were making them, I’d not share that cost with others. If you don’t like the cost, make your own or take up another hobby.
Who cares, even Iron Wills are worth the money to me, that spike of adrenaline and excitement when you launch an arrow at a living animal is cheap at twice the price, who’s not an addict of that..
As a former retail shop owner, I would have been excited to have 30% margins...
Thanks for the comments all of you.
Seems like it might have offended some of you. Never meant that. I just wanted to know like what is the actual profit margins, costs etc.
@fuzzy, is “other” not the option outside USA. Not sure what the costs are here to make broadheads in RSA. Didn’t even do a check. I just buy from my local archery stores who keep good quality US products like magnus, g5 iron will easton etc etc.
WapitiBob…..I hope your hunting partner does well. Their cough drops were terrific….
Sorry Dox but you "smelled" like a scammer/bot. Lots of those here lately. Returning to the thread established you're legitimate. Sincerest apologies. To answer your question, production cost is a small percentage of retail price point. Maybe 15%.
There is a very limited market for broadheads, especially true for broadheads appealing to traditional shooters. Gene Wensel once told me that after paying another company to manufacture and assemble his Woodsman broadheads, and then factoring in advertisement costs, he was making only or buck or two per 6 pack of broadheads. Hardly a lucrative business for him and a motivating factor for him to sell the broadhead rights to 3 Rivers Archery.
Part of the cost is material. Most will make their broadheads with something that comes in bar form or plate form (Iron will). Others will use dies to cut them from steel sheet and weld/spot weld/braze together (Zwikey) making them cheaper. I make mines from billet (read big freaking chunk) that needs to be saw cut each from. Material is very expensive and runs about 15$ each before you do anything to it . Add to that packaging, some fancy (Iron Will) , some simple and cheap (Zwikey). Regardless of what you do with the packaging, (95% or more goes to the garbage), you must pay for it too.
Juancho I follow this. I wonder if folks would buy heads with minimal packaging. Say heavy shrink wrap or something.
I think i can speak on this topic with alot of experience as 2024 will be our 40th year making broadheads since I started Magnus in 1984. I am going to list some of what goes into the cost of broadheads without giving you a cost. Our broadheads are made in America.costs include Cost of the building if you own the building or lease the building, cost of materials, cost of labor, cost of unemployment insurance, cost of workmans comp. cost of product liability insurance, cost of overhead including electricity, gas, cost of screw machines, cost of oil for screw machine, cost of tooling for screw machines, cost of computers and all equipment related to being in business. this is just a partial list, people have no clue the cost of cooling oil for the screw machine it runs 1200 bucks a month. There are costs i have not even listed. tooling costs as an exsample is high and one cost which every broadhead manufacturer has is federal excise tax, and no you donot collect it when you sell a broadhead, like a sales tax is collected, it is in your cost of making a broadhead and it is a 11% tax and is required by law to be paid each and every quarter of the year. WapitiBob you might want to tell your friend to get registered for a registration 637 which is to pay excise tax or 720 tax. . Not complaining on any of this just saw the post and replying, we have been very blessed for going on 40 years in business, we are not perfect but we do our very best to make quality broadheads and take care of the bowhunter. We have been very blessed to have hard working americans working at Magnus. Thank you
They've been making the industries best target points for a few years now, he's up to speed on the taxes.
Compared to the other costs associated with hunting, the Broadhead cost is minimal. I just killed my 4th deer with the same Iron Will 125 head. $33 per head when I bought them but divided by the number of times reused, it’s not expensive. I don’t begrudge anyone running a business an appropriate profit margin
The cost is irrevelant!! Its the reason , try drag racing or deep sea fishing and see what it costs Come on America STRIVE to buy American made. Its almost impossible to do. If one is worried about cost Sit on a curb with the rest if the freeloaders and beg
I'm a toolmaker by trade (tool and die)....the broadheads I shoot are milled out of solid piece of steel...the cost to make the fixtures to machine these broadheads is expensive...not sure on the length of time to machine each broadhead....it all adds up....and unfortunately that's why broadheads cost $20 or more per broadhead.
Smith Bros. Precision Archery Points new broadhead, DOOM. Smith Bros. is very well known in the target archery world, especially on the west coast. I have no affiliation, haven't tried the head yet, but I can about guarantee it will be top shelf quality and a great price point considering you get 3 heads, a set of replacement blades, extra screws, and tools for assembly for $60.
Hope sales went well this year, Bob!
Mike at Magnus ....garbage removal/pickup....and there are a bunch more areas of cost...soooo many not running their own business are not aware.
Here's a true broadhead cost story...this happened in either the late seventies or the early eighties,...don't recall for certain. I was sitting in the office of Andy Simo (the guy who started the New Archery Products company and introduced the Razorbak and Thunderhead series of broadheads, amongst others). We were discussing broadheads and in particular his Thunderhead model. We were not really discussing broadhead prices/costs but he did mention a few numbers in that regard. Then he got a smile on his face and said, "Would you like to see a $25,000 broadhead?" I couldn't imagine what he was talking about but said, "Yes." He reached into the center drawer on his desk and retrieved a Thunderhead 125 broadhead. He handed it to me and I studied it carefully. It looked exactly like every other Thunderhead 125 broadhead I'd ever seen! I recall him saying something like, "That one cost me a small fortune, it was the first complete one off the production line. The next one and the next few thousand were a lot less." I've remembered this story for many years and it'll probably stay with me 'til I tip over. He was quite the guy,...Andy Simo of NAP,...I've never ever heard anyone ever say even the slightest negative word about him. It seems he is universally remembered well. RIP Andy.
Many times the cost of materials has little to do with the price of a product. There are soooo many things that go into it. Take for example facility and all related expenses. Machinery. Insurances of all types. IT expenses, and software. Payroll for all staff. Marketing costs. Shipping inbound and outbound. Too may to list. So, no disrespect intended, but the question has little merit. If the materials cost pennies it doesn't matter. Even a company that has zero material costs (think service companies) deliver a product that has MANY hidden expenses as a part of the price.
And electric bill,and heating bill,and garbage collection ,water/sewer bill,property taxes,income taxes ,workman's comp insurance,unemployment insurance,....and at least 52 other items that I have not listed here.
SteveB is correct as is Trying hard. The cost of doing business is far, far greater than many realize.
How does a guy go from asking about the cost of manufacturing, to get beat up on by some? I think it’s a great question! Has no one ever ask about the cost to manufacture a car? If so - according to some your just bitching and must got sit on the curb.
And your internet costs so your employees can be on bowsite instead of putting together broadheads lol. What a crazy question...what is the cost. The only cost anyone would ever know is the cost at the store when you buy a pack.
Here's a link to Ali Express [the online company direct from SE Asia and China] For those that don't click on links; 2 blade BH's- 12 for $18 Rage type design BH's- 6 for $11.99 Combo Designs similar to Evolution outdoors and Bloodsport- 6 for $12.95
I have a few buddies that have manufactured various products over there including BH's. I know for a fact that some of these "Knock offs" come right off the same line as the folks selling them in the US. In some cases its stolen intellectual property rights, they run them for the US company, then keep the line going and run some to sell for themselves.
But the point is- it doesn't cost much to manufacture a BH overseas.
Well I don’t make broadheads but I hand make hunting knives for a living so I price like this:
I charge Enough that I can feed my family at my production rate and keep my lead time to 6-8 months. As I get busier and that lead time grows or my cost of goods/taxes go up I increase my prices to bring that back into a reasonable range. In a knife, cpm style stainless steel, you may have $30-$60 in that billet. On something the size of a broad head, in a tool steel like A2 you might have $1.50-$2.00 in steel cost… a simple carbon steel like 1050 probably less than a dollar. I may be wrong on that and if I am please feel free to correct me but from my understanding that is my guess. I would think to be profitable and survive in the “broadhead” selling world you would have to have $2 into a $12 broadhead to sell to make it today with all the other costs involved. Thanks Guys. Be blessed Rob m
Nope.....just listing some of the things related to the cost of a product .
"Hope sales went well this year, Bob!"
Yes Nick, they were very well received.
"I know for a fact that some of these "Knock offs" come right off the same line as the folks selling them in the US. In some cases its stolen intellectual property rights, they run them for the US company, then keep the line going and run some to sell for themselves. "
This, BUT remember that when making them for their own sales, they probably don't hold the same tolerances, they may use worn tooling, substitute cheaper steel, etc. etc. Plenty of corners can - and will - be cut. Buyer beware.
(And that sidesteps the *moral* issue of cheating the designer. 'Intellectual property' may be a non-issue to Communists, but it is a cornerstone of our economic system. Sorry about the soapboxing.)
""I know for a fact that some of these "Knock offs" come right off the same line as the folks selling them in the US. In some cases its stolen intellectual property rights, they run them for the US company, then keep the line going and run some to sell for themselves. "
Sometimes its not a "knock off" at all. Sometimes when a run of any product is done, there are a certain percentage that are slightly out of spec but still very usable. Rather than throw them away, they are sold as blems or under a different name.
Know nothing about pricing. I do know IMHO anyway every time a new one comes out I ask why..
It seems to me just about every design has been pretty much covered .
Beendare is barking up the right tree. Then factor in that the overseas manufacturers usually run a huge batch through say "Op 3" which is a less polished but fully functional to keep the cost of production low. They finish the branded product to the manufacturers spec, and make their money. China is not a free market capitalist economy , either.....modifier 277...... The manufacturer pays all of the landed cost to do the production run and make some profit.......the manufacturer then has $0 or close to it in the left over product.......which is now sold inexpensively and everywhere.
"every time a new one comes out I ask why."
Marketing. Remember the one that looked like the Space Shuttle? So much 'design' is just eye candy.
Look at the heads that were in the catalogs 25 years ago, then look to see which are still being made.
What will I see if I do that? Point?
You'll see what heads have stood the test of time. As opposed to 'fads'. Reminds me of something I read decades ago - "Flash today, trash tomorrow. Real quality endures." It's why my old Woolrich shirts still keep me warm, just for instance.
I have heard of guys making broadheads out of spoons.
Yeah, dana’s post on ripping off intellectual property and lesser quality is accurate- I agree that hurts American companies.
On the other side of the coin There are companies in the US that sell the cheap Chinese BH’s at a huge markup.
I have a buddy that says he has lost millions from the Chinese ripping off his shoe designs.
Its a fine line. I’ve seen the $2 BHs perform as good as anything on deer size critters. Why some think they need a $20 BH???
I buy cheap 2 blade generic heads but also American made Muzzys and Thunderheads.
Andy Simo was one of the first people I ever met in the industry prior to my career in it. It was on day 1 of 2012 ATA in Columbus, and he took the time to sit and talk with an aspiring 'archery industry' engineer when he could have been meeting with dealers and distributors. I'll never forget that. Also got to have dinner with Mike Ellig (founder of Black Gold) later that trip and heard some awesome stories from another pioneer.
Anyways, this thread was interesting to read considering I used to have visibility to the exact mfg costs to make Slick Tricks, for example.
A lot has changed since the day Gary passed and ST was sold. I jokingly begged the new owner to keep the little kid drawing of the deer and big blood drops on the packaging - because as a consumer I didn't want to be paying for faces of "celebrities" on the packaging. His response to me: "yeah... thats why you're in engineering and not marketing, jackass" :)
On another note.... I wonder, why does the Smith Bros Doom seem to be a clone of the B3 Destrukt design... which came out a few years ago. Hmm
