What does it cost for product development?
This is often the most asked question. However, it is a bit like asking how long is a piece of string. It is also very, dependent on the product its object and certainly its level of complexity.
To design a simple flashing LED would be very low cost but to design a new computer for an electric vehicle would be a costly exercise.
Having said that there are some common steps that all designs usually follow.
Initial Project fee.
Extron charges an initial project fee, depending on the complexity of the design this is from $1500 to $3000. This fee is mainly to ensure the client is serious about doing the design. Extron needs to spend time investigating the project requirements. While we are more than happy to talk to new clients about their designs for free to get them thinking, investigating for a complete design is time-consuming.
Specifications
This is the single most important aspect of any design. This document must contain the clients product requirements and operational characteristics. As a simple example of the flashing LED it would specify the time on and the time off and the colour and the operating voltage and maximum current.
From this document we do the actual design. When the hardware design is completed, we use this document to verify it meets the documented specifications. This document can also change during the development process. This document is critical to get it right, if this document is wrong the design will be wrong. Of every aspect of the design phase this is the single most important.
This also includes identification of any Australian standards and certification requirements. Any environmental needs or impacts.
This stage cost certainly varies but for relatively simple to moderate designs the range is $2000-$10,000.
Design Stage
This is the exciting stage taking an idea and turning it into a final product. Using the specifications developed the product will start to take shape and become reality. This stage is very dependent on the actual product and what is required to design to make it a working product. This might include electronic schematic design PCB design mechanical design enclosure and housing design. Software and or firmware development VHDL logic design etc.
This stage is almost impossible to cost as a general costing as every design is different. Time spent in this phase will determine the quality of the product and cost to manufacture etc. Good design will give you a good product. Trying to economise on this stage is generally not a good idea. Looking back over the last few designs we have undertaken. Most of these products have been in the moderate complexity the design stage costs vary a lot from low end $3500 to high end designs $250,000.
Certification
Product compliance costs mainly C-tick and EMC compliance. These vary depending on the needs and target market requirements. As a ball park C-tick $3000, broad range thermal testing -15C to +55C $6000 salt mist corrosion testing $1200. In our LED sample optical testing $4000.
These costs are very approximate and indicative and presented here as a starting guide, for more detailed costing contact us with the design requirement we are here to help you make your idea a reality.
