Product Development Basics for Hardware Entrepreneurs
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Underestimating the costs of bringing a product to market is a pitfall many entrepreneurs make. This one mistake can seriously derail a startup. Hardware products are notorious for being costly, so it is wise to estimate your costs before jumping in. Technology innovations, such as 3D printing, have helped lower some of the associated costs, but there are still others that many entrepreneurs aren’t aware of.
Below is a list of some of the major costs associated with launching a hardware product.
If your product has electronic components you are also going to want to factor in these additional costs.
Here is what our President & Chief 3D Officer, Collin Kobayashi, has to say about hardware development costs, “Costs fluctuate with the specifications and requirements of your individual product. For example, a product that connects via Bluetooth takes more engineering than a device that just displays LEDs. It is always best to consult with design and manufacturing experts to get a clear answer on what your specific development costs will be.”
These costs do add up and it is easy to see why so many startups have turned to crowdfunding for their inventions. While crowdfunding is a fantastic resource, you need to nail down all of the costs required to bring your product to market first. Too often entrepreneurs underestimate the costs of bringing their product to market, and even after a successful crowdfunding campaign, can’t deliver on their promise to customers.
The most obvious example of underestimating costs is the Coolest Cooler, which was wildly successful and raised more than $13 million on Kickstarter in 2014, but over a year later many backers still have not received their coolers. Only after the Kickstarter campaign ended and manufacturing began, did the founders realize they set the price tag too low for the coolers—this one mistake has quickly turned into a nightmare scenario for the startup and the customers that pre-ordered through Kickstarter.
While all of these costs can and will fluctuate based on your specific product needs. These estimates are provided to help give you an idea on how much each stage in the product development process will cost, so that you and your team can plan accordingly.
Have questions about bringing your product to market? Let’s chat! Send your questions our way, info@3d-inovations.com
If you are looking for assistance in launching a product, check out our manufacturing and commercialization accelerator, Startup Connector.
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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.
Startup Connector is a Manufacturing Accelerator helping companies commercialize—turning ideas into products.
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