Licensing Economics

The Math Behind
MoldCycle Licensing

Licensees keep $252 per unit sold. MoldCycle earns a $17.50 royalty. At 10,000 units annually, that's $2.52M in licensee profit from one product line.

$252 Licensee net / unit
36% Net margin
5% Royalty on wholesale
$2.52M Profit @ 10K units/yr
$700
Retail price point
$350
Wholesale price
$252
Licensee net margin / unit
4 mo.
Time to first unit delivery

Unit Economics

Per-Unit Breakdown

Every unit sold runs through a simple, transparent structure. Licensees set their own retail pricing above the wholesale floor. The numbers below reflect the standard $700 retail configuration.

Revenue & Cost Per Unit

Per Unit Sold
Retail Price Consumer-facing price set by licensee
$700
Wholesale Price Licensee purchases from MoldCycle at
$350
Royalty (5% of wholesale) MoldCycle royalty on net wholesale
$17.50
Gross Margin Retail minus wholesale
$350
Est. Distribution & Overhead Packaging, shipping, sales (est. 14%)
−$80.50

Annual Projection @ 10,000 Units

A licensee selling 10,000 units per year — roughly one mid-size retail channel — generates $2.52M in net profit from a single SKU. MoldCycle earns $175,000 in royalties from the same volume.

$2.52M Licensee annual profit

Market Positioning

Professional-Grade at Consumer Price

MoldCycle sits in a category of its own — priced like an appliance, performing like industrial equipment. Comparable options are either too expensive for consumers or too limited for professionals.

Option Price Range Target User Capability Verdict
Precious Plastic (DIY) $3,000–$5,000 Hobbyists / Makerspaces Limited, manual Too expensive, limited
MoldCycle (Professional) $600–$800 Residential / Commercial Full closed-loop, automatic Sweet spot
Industrial Injection Presses $15,000+ Factories High-volume industrial Wrong market
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Professional-grade at consumer price point. MoldCycle competes on a dimension no existing product addresses: compact, automatic, closed-loop plastic recycling at appliance pricing. There's no direct competitor in this band.
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Patent Pending — US Provisional Filed April 2026. MoldCycle's closed-loop architecture is protected. No competitor has filed an equivalent claim. Licensees benefit from this IP moat on day one — it locks out copycats and strengthens exclusivity negotiations.

Licensing Terms

Standard Licensing Structure

MoldCycle licenses the technology, brand, and manufacturing specification. Licensees handle distribution and customer relationships in their territory.

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Royalty Rate

5% of Net Wholesale

Calculated on the net wholesale price after standard channel discounts. No minimums on the base license — royalties scale with your volume.

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Territory Rights

Exclusive Available

Exclusive territory licensing is available for qualified partners. Territories are defined by geography or market segment. First-come basis for high-demand regions.

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Annual Advance Option

$50K Annual Advance

Licensees may opt for an annual minimum advance of $50K to secure exclusivity. This offsets against royalties earned — it's a floor, not an additional fee.

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Time to First Unit

4 Months

From signed agreement to first deliverable unit: 4 months. Includes production setup, quality verification, and initial inventory fulfillment.

Ready to Run These Numbers
on Your Distribution Channel?

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