Living off making New Inventions?

[Pursuivant]

Originally Posted by vicky_molokh

That sounds like an approach that is directly opposite to how GURPS normally works.

Ah, you're trying to develop detailed rules for profiting from inventions!

If that's something that players want to do on a regular basis, and which is important to the campaign, then it makes sense to get deep into the simulationist side of things.

Essentially, it takes the Gadgeteering rules two steps further - Can you make money from your gadget? If you can make money from it, how much money can you make?

If you're trying to model small inventions which represent progressive improvements to existing technology or "gimmicks" which are just repackaged existing tech then I'd suggest it requires critical success - or equivalent - at some point in order to get anything above "normal" profit in a crowded market.

CS with the invention roll = you've come up with something that represents a genuine advance in the field, however incremental that might be. Perhaps something you could patent.
CS with Market Analysis = you've discovered a lucrative potential untapped market. You can benefit from "first mover" status.
CS with Merchant = you hit on a business model or process which gives you a serious (but probably temporary) competitive advantage.
CS with Propaganda = your advertising campaign is a hit. People buy your product as much for the ads as the product itself.

As to normal expected profit, a successful Market Analysis or Merchant skill might tell you how much a given invention is likely to be worth. In turn, that invention has to be worth enough to pay salaries + profit + overhead for everyone involved. At that point, you figure out monthly finance requirements, divide by the number of widgets you hope to sell and that's the manufacturer's cost of the item. Assume that each step in the business chain doubles that cost. Roughly, if a widget costs $1 to make, it costs $2 at wholesale, or $4 (or, realistically, $4.99 MSRP, but on discount at $4.29 with free shipping) at retail.