An idea only lives in your mind until it gets materialized. No matter how brilliant and groundbreaking the idea is, the path to transforming a concept into a tangible product can be tricky, except when you get help from a reputable design agency or an industrial designer. Sometimes, it is helpful to take a step back before getting carried away by excitement and figure out how much money could be involved in a product development.
It is difficult to say whether the cost will exceed any given amount. The problem is that even small changes in the product’s dimension, prototyping method, material, and appearance can trigger a series of significant expenses unless you have professionals to take things under control. Every product development process presents its challenges, and the exact cost depends on a collection of factors such as design complexity, selection of materials, prototyping technique, and timeline to completion. Hiring a design firm sounds like an additional expense, but it probably is the only thing to prevent you from overspending in the first place.
The Average Cost of Product Development
If you want a general estimate, the ballpark figure would be $30,000 for a modestly complex non-electronic product with a completely brand-new design rather than a copy of an existing one. For example, you are developing a unique round-shaped Rubik’s Cube (so it is not a cube at all) of which the individual pieces – when properly arranged – would resemble the look of Planet Earth seen from space or the new product in question a miniature V-block internal combustion engine with real moving parts like valves and pistons. Still, it has an unusual configuration of 13 cylinders.
The $30,000 mark is likely the minimum to develop a relatively simple product. The money should cover every process, including design, prototype, performance/usability test, and (very) low-volume production of the product’s final version. Mass manufacturing and launching a new product require much more money. Also, the more sophisticated the product is, the higher the investment. Developing a modern complex electronic product is notoriously expensive, reaching hundreds of thousands to millions of dollars; much goes to electrical engineering alone. One of the most notable examples is the iRobot Roomba Vacuum Cleaner, which cost a jaw-dropping $50 million to develop.
On the other hand, a non-electronic product development is typically more budget-friendly than an electric gadget or anything controllable via a smartphone app. For instance, designing a simple kitchen utensil might cost around $ 5,000 to $ 10,000, while a more complex consumer electronics product could range from $ 20,000 to $ 50,000. Hiring a firm to handle the development process might cost anywhere from $30,000 to $60,000 in the United States and Canada. For the money, the firm can help turn your idea into an attractive, functioning, “manufacturable” product design. The services generally include CAD modeling and visualization, prototyping, and manufacturing schematics. If you partner with a firm, the cost might even cover the expenses for market research.
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Industrial Designer’s Rates
Designing and developing a product involves a series of tasks that fall within the expertise of an industrial designer. According to the BLS (Bureau of Labor Statistics), an industrial designer typically undertakes the following exercises:
- Consult with clients about product design parameters
- Sketch design ideas and produce 3D models or visualizations
- Create physical prototypes
- Conduct usability tests to identify issues and collect information on users’ satisfaction with the product.
- Research materials and equipment to be used for manufacturing
- Perform design analysis to evaluate functions, safety, appearance, and practicality
- Present a finished design or final prototype
An industrial engineer may work with other professionals from related fields, such as mechanical engineers and prototype design engineers, to determine whether the design is manufacturable at an efficient cost. Some industrial designers are self-employed, so you can hire one without working with a design firm. The hourly rate of an industrial designer can vary depending on factors such as their experience, location, and the project’s complexity. Based on the latest available data (May 2020) from BLS, the median wage of industrial designers in the United States is $36.50 per hour.
Industrial Designers’ Pay (United States)
| Percentile | Annual | Hourly Rate |
| Highest 10% | $125,780 | $60.47 |
| Median | $75,910 | $36.50 |
| Lowest 10% | $43,680 | $21.00 |
Note that the median wage only estimates the profession’s typical (rather than average) rate. Experienced industrial designers most likely occupy the highest 10% category.
The work of an industrial designer ends when the product design is certified for safety and ready for mass production. However, certification and manufacturing are beyond the scope of the hourly rate. An industrial designer can help you handle the certification process, establish a partnership with a manufacturer, and oversee the production run. Still, all those things require funds outside the industrial designer’s budget.
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Certification
No matter how experienced and reputable, an industrial engineer cannot certify your product for safety or compliance with national and international standards. You will need third-party certification agencies to inspect the product and issue the relevant certifications. The cost of certifications can vary depending on the product specifications. For example, a basic safety certification for a non-electronic product might cost around $ 500, while a more comprehensive certification for an electronic product could exceed $ 10,000. The cost varies from less than $100 to more than $15,000, depending on the product specifications.
Suppose the plan is to sell the product in the United States, Canada, Europe, or any of those regions. In that case, certifications can improve the chances of making sales, given the market’s competitive nature. Certifications are only crucial for electronic products. However, this is only partially true because even simple things like mechanical toys and showerheads are subject to various standards relevant to the products’ intended usage. Some of the most common certifications that may apply for non-electronic products include:
- UL (Underwriters Laboratories) badge indicates that a product meets the standards set by the organizations, including but not limited to the flammability of plastic materials and fire endurance.
- CSA (Canadian Standards Association) mark signifies compliance with functional safety standards applicable in Canada and the United States. The association also certifies products made through environmentally friendly manufacturing processes and mechanical components equipped with reliable safety measures to prevent dangerous failures.
- WaterSense logo proclaims the product’s conformity with EPA’s standards for efficiency and performance. The certification is issuable to non-electronic products such as showerheads or faucets.
- Green Seal stamp declares the product’s low environmental impact as observed from its minimum toxicity and resource conservation.
Unless the safety, efficiency, and performance standards require compliance by law, product certifications for those aspects are voluntary. That said, your product could get certified by recognized organizations to gain a competitive advantage.
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Low Cost yet Efficient
Everyone, from the tiniest startups to the largest corporations, wants to keep development costs low and get optimized results. There is no need to waste money when you can save it. One of the primary keys to efficiency is lean product development practices. A lean process involves minimum waste and a short development cycle without sacrificing product quality.
While it is not impossible to keep it lean on your own, there is the likelihood of overlooking essential details that can make a design more efficient. Furthermore, you may need more tools to exercise the principle, such as CAD systems, CNC machines, a high-grade 3D printer, and general expertise in market research. Another thing to consider is how a tiny error in modeling or a seemingly minor compromise in the material can lead to costly design revisions.
Although an experienced industrial engineer might only personally own some possible tools for physical prototyping, he likely knows how to access all the required resources efficiently. The same applies to a design firm with a complete product development facility. Even if the firm doesn’t have an extensive facility, it has the experience of partnering with prototype makers, material suppliers, and custom manufacturing companies. More importantly, an individual industrial designer or a design firm understands how complex and intricate a product development process can be; they know how to minimize the cost by keeping the unnecessaries at bay and focusing on the essentials.
Collaborative Effort
Good product developers should keep you involved throughout the process, from the concept phase to certifications, until the design is ready for manufacturing. Based on your description of the product idea, they will be able to offer a comprehensive quote on the development cost. After the initial discussions, an experienced product engineer can define all the steps required to build the product and how much each step should cost. To avoid unpleasant surprises, you will get a full expense breakdown from the get-go.
End Note
Engineering designer services answer all the questions presented by the market research. There is some truth in how the market can dictate a new product, but engineering expertise opens the door to creativity. Following the concept creation and market research, it is the industrial engineer’s turn to take over the process and devise a solution to tackle every challenge the market may throw at your idea.