The product must be able to be manufactured at a reasonable┬ácost to allow a competitive retail price within its category and to ensure a profit. Your initial research at toy outlets should provide a good idea of price range within the product’s category and a rough prototype is important, too, for presentation purposes if you are trying to sell your item to a toy manufacturer.

Some prototypes, such as one for a board game, can usually be made at home, but some toys, such as those requiring custom-made moulds or pattern designing, may require professional input. To detemine the manufacturing cost, you will have to research suppliers and contractors for production cost estimates. For example, if you want to produce a board game, you will need to price printing, spinners, timers, tokens, boxes, assembly, and so on. For a stuffed animal you need fabric, stuffing, accessories: eyes, nose, mouth, voices, squeakers, musical movements, assembly, stitching etc. Most plastic toys are compression, extrusion, injection, rotational or blow moulded, which usually requires a custom made mould. Wooden toys, because they usually require a great deal of custom handwork and high-priced raw materials, can be quite expensive to produce.