Kits ready build, why are these so expensive?

Kits ready build, why are these so expensive?

Maybe a good question in return would be: are you wearing t-shirts with a price tag under 2 euros? If the answer is yes, please stop reading immediately.
Otherwise, as usual it depends on your perspective. Suppose I ask you to work for less than 10 euro's / hour, would you do the job?
Let's zoom in a little on to an average kit.
We find a body, some interior, a base plate, some wheels and tires, windows and some small parts.
Most important is the shape of the body. Most kits are hand-crafted and molded, so the raw kit has loads of overhead material we need to cut away before painting.
Next, as the material is usually some 2-component chemical, we need to stir this before applying it to the mold. Likely not all is used in one pull, so this chemical has to be stored for a while.
These chemicals are effected by the storage conditions, so the first one drafted is usually okay, where the later ones are created by a slightly reduced quality of this chemical.
Also, the mold is created by a rubber-compound, wearing out pretty fast while used for copying the master.
Anyhow, we need to straighten this body and make it look as close to its original as possible. With some sanding and grinding we can get this and usually we also need to repair some flaws and replication issues. Usually this takes at least an hour to accomplish.
Next we need to make the related parts fitting, after which we can prepare the body for the base paint.
Once dry we often find some imperfections that we want to resolve before applying the final paint.
So let's say after two hours of hard labor, some paint and other used material, we have a painted body.
While leaving this to dry, we can move our focus to the other parts.
So we paint interior, assemble the base plate, mount the tires etc. and likely a next day we can bring the windows to the body.
For each step we apply a different paint and glue, and after a while the model starts looking like the intended result. At least I hope.
Counting the effort, we are already up to at least 3 hours, some paints, some glue-drops an maybe additional material not provided in the kit or lost in our first attempt.

Lets make a small calculation:
- Creating a prototype with all its components, a few weeks of labor including looking for photos, measurements, drawings etc. Let's say we want a series of 100 copies.
  So by our defined labor rate, a few weeks = 80 hours x 10 euro/h = 800 euros, with projected series of 100 = 8 euros per model.
  Materials for the prototype creation, some travelling maybe, so say 100 euros, with projected series of 100 = 1 euro per model. 
- Rubber compound 80 euro's / kg, used for 1 model at least 500 gr, total 40 euros, lasts 40 retractions, say 1 euro per model.
- Resin compound 100 euro's / kg, good for roughly 20 copies with some overhead, say 5 euros per model.
- Some decals printing and maybe some metal work, say 5 euros per model.
- Window-plastic creating and boxing the kit, bag for the parts, bubble-wrap for protection, say 5 euros per model.
- 3 hours of construction for 10 euros / hour / model, makes 30 euros per model.
- Paint, glue, other small stuff 10 euros per model.
Total so far: 65 euros for only 1 model, where we have not counted the loss of material while using (you never prepare the exact quantities needed with 2 component-material), the wear of the tools applied, the coffee in the break and the water of our toilet, the insurance of the building where we work, the writing off of the paint-cabin, the electricity for the tools and light.

Compared to a production model completely assembled in a cheap labor country and some distribution all over the world, this may seem expensive, but I hope with the summery above you will consider that without the love and low rates applied, a ready build kit for around 75 euros is still a cheap model car. It is after all a true limited edition, handcrafted and exclusive.

Cheers.

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