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Costing

Why two wooden toys that look identical differ 40% in cost

Two quotes, same photo, 40% apart

A buyer sends one photograph of a chunky animal puzzle to three suppliers and gets back three quotations, the highest 40% above the lowest. The photograph is identical. The product is not.

Forty per cent is the spread between a toy built to hit a price and one built to survive a returns desk. It is never one decision: it is ten small ones that each look defensible alone.

Wood species, thickness and yield

Rubberwood, beech, pine, birch ply, poplar ply, MDF: different cost per cubic metre, different machining, different behaviour in a dry container.

  • MDF — cheapest, flat, takes print. Chips at edges, swells if wet, needs sealing on every face.
  • Rubberwood — the workhorse here: inexpensive, tight grain, paints cleanly, denser and slower to soften than beech.
  • Beech — density and clean edges, the default where the edge radius matters.
  • Birch ply — stable in thin sections, layered edge often part of the design; the adhesive grade matters.

Thickness is the quietest variable. A 9 mm piece and a 12 mm piece look identical in a photo, but the thicker one survives the drop test, holds a knob without splitting and uses a third more board — and board is roughly a fifth of FOB.

Sanding passes

Two passes or four. A cheap line runs 80 grit then 120. A good line runs 80, 120, 180, 240 and touches the edge radius and every drilled hole by hand. Sanding is labour, and labour is the first thing a quotation shaves.

The difference shows after painting: skip 180 and 240 and the grain lifts under the first coat. Buyers do not return a toy for looking rough; they return it because a child got a splinter from an edge that was cut, drilled and never touched. Sanding is 4–6% of FOB, so halving it saves the most expensive 2% in the file.

Paint type and coats

Water-based acrylic is the default for EU and US compliance. Solvent covers in fewer coats and costs less per litre, and brings VOC handling, longer flash-off and harder conversations with a laboratory.

Coats are where it shows. Two covers. Three survives a two-year-old with a damp cloth. A clear topcoat takes the sheen from plastic to wood and is the most common omission in a cheap quotation. Paint and finish run 10–15% of FOB.

Print, decal or engraving

Direct print on board: cheap, flat, thin on ply. Pad printing: a plate per colour, good on curves. UV digital: no plates, higher per unit, for short runs. Laser engraving: no ink, a setup file and machine time.

Engraving is cheap per unit once the file exists, carries no ink compliance question, and cannot be picked off. A printed face gets tested, re-tested and eventually mouthed; a decal on a curved edge peels.

Hardware and small parts

Plastic knob or beech knob, zinc-plated screw or stainless, glue alone or glue plus dowel: a few cents each, and a test outcome. A press-fit plastic knob is exactly what the torque and tension tests pull off; a beech knob on a stainless screw passes twice over.

A metal screw brings nickel and lead questions, a plastic insert phthalates, a magnet its own rulebook. If a quotation does not name the hardware, the price is for the cheapest part that fits the hole.

Packaging does double duty

White box and sticker, or four-colour box with a die-cut tray, a window and a barcode. On a low-cost item that is 6–12% of FOB, and it is the line buyers cut first, then pay for at the distribution centre as a repack or relabel charge.

Ask for it as a separate line at three levels: polybag with header, white box, colour box with tray. A quotation that folds it into one figure cannot be compared.

QC level and who inspects

AQL 4.0 on a sample from the shipment, or AQL 2.5 plus 100% piece inspection on edges and small parts. The second costs 2–4% more and removes most returns labelled "sharp edge" or "loose knob".

Then who inspects. A factory checking its own production is doing what it can. One that accepts SGS, Bureau Veritas, Intertek or your own agent offers a different risk profile, with a cost to match.

MOQ and tooling amortisation

Setup costs divide by quantity: cutting files, laser programs, print plates, a packaging die, a colour match. Across 500 pieces they spread thin; across 5,000 they vanish into the unit price, which is why 300–500 is a normal MOQ for private label. Ask for tooling as a line, and who owns it afterwards. If the factory does, your design is a switching cost.

Freight per cubic metre

Wooden toys are light: you are paying to ship air. A 20 ft container holds roughly 28 CBM of usable space, a 40 ft high cube around 68, so on a low-density toy freight per unit follows carton volume, not FOB.

Packaging is therefore a freight decision: a colour box with a tray adds 15–25% to carton volume, and on a small toy at a few thousandths of a CBM per unit, every change in the ocean rate moves landed cost.

A worked comparison: quote A against quote B

The same 30 × 22 cm twelve-piece animal puzzle, same artwork, two specifications, 1,000 pieces FOB Ningbo. Both are shown as a share of quote A, set to 100.

Cost lineQuote AQuote BWhat changed
Timber18.923.09 mm MDF to 12 mm ply
Sanding4.96.3Two passes to four
Paint12.216.7Two coats to three
Decoration6.74.0Print to engraving
Hardware3.34.8Plastic to beech knobs
Assembly12.28.7Unchanged in method, fewer pieces to rework
Packaging8.410.3White box to colour box
QC2.22.9AQL 4.0 to 2.5
Overhead10.07.1Unchanged
Inland freight2.21.9Larger carton
Margin18.914.3Similar percentage
FOB100140+40%

Then the line the table hides. Quote A packs at about 0.0032 CBM per unit, quote B at 0.0058. Freight scales with that difference, so the landed gap is wider than the FOB gap — and at a 4× landed multiplier, quote A and quote B end up on noticeably different shelf tiers.

What the buyer actually gets

Quote B does not chip at the edge after a drop on tile. The engraving survives teething. The knob passes torque and tension. The colour box goes to shelf without a repack charge, and the 100% edge check removes most sharp-edge returns.

Quote A is a legitimate product at a legitimate price for a price-led channel. The expensive mistake is not buying A. It is specifying B, paying for A, and finding out at the returns desk.

The 40% is not a markup: it is board, paint and finish, packaging, sanding, hardware and inspection, with engraving giving a little back.

Next step

Send a photograph and your target landed cost and we will tell you which of these lines the target breaks, which is more useful than a quotation you cannot compare. Start from the puzzles range, check quality and certifications for what sits behind each spec, or request a quote with quantities at 500, 1,000 and 3,000 and the packaging level you want.

Next step

Need a quote on a specific SKU?

Send the item, the quantity and the market. You get an FOB quotation, MOQ, carton data and lead time — not a brochure.

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