Hot Wheels is a toy brand that produces a wide variety of different miniature vehicles. Since the cars are small, they can be made in large quantities at lower costs than their larger counterparts can.
But how can Hot Wheels still be sold that cheap despite the cost of everything rising so much?
Since Mattel purchases so many raw materials for all of their toy lines, they can keep the price of Hot Wheels toy models incredibly low. They also produced millions of Hot Wheel cars a year so the scale at which they produce them helps keep costs low as well.
The vehicle bodies are typically made of molded plastic on their cheapest cars as is the interior, glass, wheels, and chassis. Normally the only thing made of metal is the axles.
Since virtually everything is made and molded from plastic it allows them to get these materials at inexpensive bulk rates because they are buying so much. If the company is buying large quantities of raw materials, they will pay less per unit of product they make than a company that only buys smaller quantities.
The reason for the bulk rate discounts is that the materials are used on many different products. Mattel is in the manufacturing of more than just Hot Wheels vehicles. Other products they use also get cheaper bulk rates of materials due to this buying strategy.
Another reason why Hot Wheels are made so cheaply is because they use a lot of automation and inexpensive foreign labor so they can make their products at a lower price. This also allows them to compete in the market even with the cheapest of generics.
Despite the fact that they use the cheapest products possible, Hot Wheels are still durable and do not break easily. The company is keeping its costs as low as it can so that they can be competitively priced.
Many Mattel toys are made in Malaysia and Thailand and that is because these locations have a lower cost of labor compared to the United States which also helps keep the cost of the toys low.
What Has Mattel Done To Make Hot Wheels Less Expensive For Manufacturers?
Hot Wheels are a toy line of die-cast cars initially designed and built in America by toy company Mattel. The price remains affordable because the cars themselves are small as well as produced by the millions.
The manufacturing process of Hot Wheels has gone through some changes over the years. Now, the toy is made much more cheaply with less metal and more plastic parts.
The company has done several things to make Hot Wheels cheaper.
First, they have tried to lower the costs of making their cars. The cost of plastic components such as the bodies and wheels has been reduced. It is because of the decreased amount of material used to make them.
It is also due to the cheaper foreign labor that they use to manufacture the cars.
Second, they have made it harder for companies outside of Mattel to build and sell a similar product. It has been done by adding mechanisms that are more sophisticated and using the colors and details specific to Mattel.
Third, they have done many advertising deals with different companies, which helps promote their product.
Mattel has discovered ways to create cars less expensive for the manufacturers over time, by going from a metal body and chassis to using more affordable parts.
In the 1960s, Hot Wheels cars had almost all metal parts, but they now have more plastic. Also, before, the axles were pretzel-shaped, but now they are simple bars. The change from metal to plastic was one of the first changes that made it more affordable.
The wheels had also decreased in costs because now you only need a simple straight-through axle with a wheel attached permanently, which would be much cheaper than ones before where they had an inner wheel & snap-on the outer portion.
Hot Wheels cars are little toys that don’t require many materials to make. All the cars need is metal, a variety of plastic colors, and a small quantity of paint, chrome plating, plus some assembling and packaging.
Mattel probably only pays a few cents for each car in materials, but they can sell them for $1. The exact price as always, even before the 1970s!
Another interesting tidbit.
Considering that a Hot Wheels car weighs around one ounce, and 56k of these cars would weigh the same as an actual automobile, their $1.19 price would be approximately $66,640. If you contemplate they can’t move on their own and don’t have doors to open, they are actually more expensive than a real car!
Why Are Hot Wheels So Popular
Hot Wheels are popular because anyone can play with them in a variety of ways. There are different types of cars with various colors and styles.
Some look like older cars that have been reproduced while others look like no car ever made. The tiny cars can be made in large quantities and distributed around the world at a low cost.
Children can play with Hot Wheels for hours and hours.
They also often come in creative shapes such as a car or airplane, leading children to realize the vast possibilities of what can be done with different objects.
As adults, we can play with the cars without children by decorating them or customizing them. People can also collect them and keep them as a memory of their childhoods.
Some people even enjoy the artistry of the cars and paint jobs because they are pretty cool.
One effect conducive to its popularity is their low cost and that they can be found in almost every store. You can find them for a cheap price all over the place too.
The vehicles are also not too complex to make, so they are easy to put together. Children can take them apart and play with them. They can also have a lot of fun watching other kids play with them.
Anytime you buy anything made out of plastic, you will save energy because plastic isn’t as energy-intensive as other materials. It uses less energy because it doesn’t require many resources to create and recyclable, reducing our harmful greenhouse gas emissions.
Hot Wheels is an excellent example of this. Mattel wins here because it makes these vehicles in its numerous factories without using a lot of energy.
Conclusion
Mattel’s Hot Wheels have been popular for a long time. They are easy to put together, and the costs are low to make them, so they are easy to sell. The cars have many features that appeal to different age groups and are valuable to collectors.
They are also made out of plastic, which doesn’t require a lot of energy to create. Overall, it is a toy that’s cheap and also has many possibilities to play with.