Let me preface this by saying I have no idea what I'm talking about. Here is my thought process on this:
The market for 5c chips on the lower end sets, like the ones you describe is likely not large. If it was (presuming marketing competence, which may be a stretch), then stock 5c chips would already be in production on these. I think this is a debatable point though.
Let's use an average cost per rack of 100 of these lower end sets to be $15. If you were able to purchase enough labels to get the retail price point to $0.05 each, then you are looking at an add-on cost per rack of 100 of $10 (two labels per chip). Not a huge absolute cost difference, but puts them at $25 per rack, and presumes a couple of things:
- Someone wants to have 5c low end chips or relabel existing 25c chips as the colors are ugly (which I agree is generally true).
- Someone has to know that relabeling chips is an option. Are people looking at chips in this range aware of that option?
- Someone who wants them has to be able to find them for purchase.
- Someone has to be willing to take the time to relabel the chips themselves.
I agree completely with your assessment that the "drive to the top" mentality for chips is not sound, except for collectors or people in that mind set. Not everyone thinks, "If I'm willing to spend $15/rack on low end chips, I might as well spend $30 for stock china clays or ceramics, and if I'm, willing to spend $30/rack, I might as well spend $70 per rack on better ceramics, and if I'm willing to spend $70 per rack on those, I might as well spend $100 per rack on uses casino chips, and if I'm willing to spend $100/rack I might as well spend $170 per rack on stock CPCs, and if I'm going to spend $170/rack, I might as well spend $200+ per rack on completely customized CPCs." I am not disparaging the logic that, if you want to have the best possible chips you can, and it is reasonably within your reach, then you should save the money you would have spent on something else in the meantime and put it toward saving up for the nirvana set. That makes sense to me too. But to say that, to the extreme, if you are willing to spend $15/rack you are crazy not to spend $200+ per rack is silly.
On the other hand, I doubt that many people who are looking to go lower end on a home set care too much about the color of the quarters or are willing to relabel $5000 chips as 5c. I think they would be more likely to say "Hey everybody, the $5000 chips are worth a nickel, okay?" I do think that there are people, like you, and maybe even me, who think that relabeling these inexpensive sets with lower denominations in colors that aren't ugly is a very reasonable thing to do and perhaps the best bang for our buck. I think those people are a tiny fraction of the market and not worth pursuing with stock replacement labels (but refer to my opening statement, I don't know what I'm talking about).
I think the better route would be to produce new stock designs with labels and colors that would appeal to this type of buyer. Maybe work with whatever factory makes them to do a new run and market those. A similar idea, that would cost more and shrink your potential profit, but also reduce your risk, would be to make a deal on a large bulk buy of these $15/rack chips, design and purchase a bulk buy of new stock labels, pay someone to relabel them (or do it yourself somehow), and then sell them for $25/rack.
If you go either of those routes, consider whether the designs are superior enough to merit the $10 add-on charge and if people would pay it. If people won't pay that, they definitely won't pay for the labels alone and do it themselves. I don't mean to say that no one will do that, I think some will and they will not be crazy for doing so. But I think that market is small, and you will end up with stacks and stacks of fairly bland, inexpensive labels, that will turn to dust before you sell them all.
I'm just killing time on a Saturday afternoon and thought it might be interesting to do a mental walk through of this. Take what you like and leave the rest.
- Ragman