Product development · Prototype cost
How much does a hardware prototype cost? What drives it
What a hardware prototype costs comes down to three parts: engineering hours, parts and fabrication, and testing and certification prep. Each depends on the drivers below, and you get a written estimate after an initial evaluation.
- What it's made of
- Engineering hours, parts and fabrication, and testing and certification prep
- It depends on
- Mainly the number of boards, the enclosure, the certification target and the revisions
- Your estimate
- A written proposal for the first phase, after a call with an engineer and an initial evaluation
Cost structure
What makes up the cost of a prototype?
Six parts. Some are engineering time; the others are parts, fabrication and testing.
- Engineering: specification and design
- Requirements, architecture, schematic, board and mechanical design, and design reviews. The more mature the spec, the fewer hours go into changes along the way.
- Boards: fabrication, parts, assembly
- Board fabrication, components and assembly. At prototype quantities the unit cost is far higher than in a production run, and scarce parts or rush delivery push it up further.
- Mechanics and enclosure
- 3D printing is fast and relatively cheap for a first revision. CNC machining, sheet metal or a mould suit parts that need strength, precision, a final finish or volume, and cost more.
- Firmware
- The scope of the code: how many sensors and motors, which communication protocols, a user interface, remote updates and power requirements. Well-structured firmware is also the base for the next revision.
- Testing and certification prep
- Bring-up, testing against the requirements, a test fixture where needed, and pre-compliance testing. The formal test at an accredited lab is a separate cost, charged by the lab.
- Revisions
- There is usually more than one revision. Each one repeats engineering hours, boards, assembly and testing, so it's worth budgeting for at least one round of fixes.
Cost drivers
What makes a prototype cost more, or less?
Seven factors account for most of the difference between projects. Some of them are choices you can make, and that's how you control the cost.
- Number and complexity of boards
- One simple board is very different from several boards with high-speed circuits, high power or dense components. Every extra board adds design, fabrication and testing.
- Wireless connectivity
- A ready-made, pre-certified radio module is simpler than a radio designed onto the board, which needs antenna design, tuning and extra certification testing.
- Battery and power
- A battery product needs charge management, low sleep current and run-time testing. A mains-powered product needs a power supply, isolation and the matching safety requirements.
- How the enclosure is made
- 3D printing, CNC machining, sheet metal or an injection mould. The method follows quantity, strength and appearance, and a mould is an investment that pays off only in volume.
- Number of revisions
- A change in requirements after the board is ordered usually costs a revision. A mature spec and a design review before every order keep the number of revisions down.
- Certification target
- A product that needs FCC, CE or UL is designed differently from the first schematic: protection, filtering, isolation and documentation. A target set late often costs an extra board revision.
- Quantity
- One unit for a demo, a few for testing, or dozens for a pilot. Quantity changes the manufacturing method, the unit cost and whether you need a test fixture.
Beyond the prototype
What does product development cost, beyond the prototype?
The prototype is the first phase. Getting to a product you can sell also takes validation, certification and manufacturing preparation, and each has its own cost.
When you budget for hardware product development, look at the whole road, not just the prototype:
- Engineering prototype (EVT): units that work and prove the design does the job.
- Design validation (DVT): stress, environmental and pre-compliance tests on units close to the final product.
- Certification: the test at an accredited lab, and sometimes a fix and a retest.
- Manufacturing preparation (PVT): DFM changes, a production test fixture and procedure, and a first batch.
- Series production: a unit cost that depends on quantity and on choices already made in the design.
That's why you commit to one phase at a time. Each phase ends with a deliverable and a written proposal for the next phase only, and you decide whether to continue.
Budget
How do you keep a prototype on budget?
Four rules: start with a POC, use ready-made modules, work in phases with gates, and design for certification from the start.
- Start with a proof of concept: a POC on dev boards tests the riskiest idea before you invest in a custom board. Sometimes testing that one idea is enough.
- Ready-made modules first: an off-the-shelf radio module, power supply or computer-on-module saves design and testing in the early revisions. Replace them with a custom design when the volume justifies it.
- Gates between phases: each phase ends with a deliverable and your decision, and there's a design review before every board order. A change in requirements is caught on paper, not in another revision.
- Design for certification from the start: protection, grounding and filtering in the first schematic cost far less than a fix after a failed lab test.
Getting an estimate
How do you get a cost estimate for a prototype?
Send us four things and an engineer will get back to you. After an initial evaluation you get a written proposal for the first phase.
- A description: what the product does, for whom, and what the prototype has to prove.
- Requirements: whatever you already know, such as size, power, environment, connectivity and certification target. A partial list helps too.
- Quantities: how many units you need now, and how many you expect in the first batch.
- A target date: a demo, a funding round, a pilot or a trade show, if there is one.
If you already have sketches, a schematic, code or an earlier prototype, include them. We sign an NDA on request when the project calls for it. We work with founders and companies abroad too, remotely and in English.
The proposal covers scope, deliverables and an approval gate for the first phase, and the phase's duration is estimated in the same initial evaluation. There's no commitment to a whole project up front.
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Hardware prototype cost: FAQ
Why is there no price list for prototypes?
Because two "similar" prototypes can differ a lot in cost: the number of boards, the enclosure, certification and the number of revisions change the picture. Instead of a generic price list, you get a written proposal for the first phase after an initial evaluation of what you need.
One figure for the whole project, or phase by phase?
Phase by phase. Each phase gets a written proposal with scope, deliverables and an approval gate, and you commit to one phase at a time. A single figure for the whole project up front would have to assume things nobody knows yet, such as the number of revisions. At the end of each phase you know more, and the proposal for the next one is more accurate.
Who pays for parts and board fabrication?
It depends on what suits you. Parts, boards and manufacturing can be included in the project cost, or handled separately from the engineering work.
If you prefer, we handle all purchasing and manufacturing on your behalf, from ordering components to following up with the manufacturers. The option you choose is set out in the written proposal before work starts.
How many prototype revisions should we budget for?
Usually more than one: the first revision reveals things you can't see on paper. Budget for at least one round of fixes, and decide on each further revision based on the findings of the last. A design review before every board order and structured testing on every revision keep the number of rounds down.
How much does certification of an electronic product cost?
Again, there's no single figure. It depends on your target markets and standards, for example FCC for the US and CE for Europe, on the product type, on whether there's a radio or a mains connection, and on how many retests are needed. The test itself is done by an accredited lab, which charges for it separately. Our preparation, design for compliance and pre-compliance testing, is there to reduce surprises and retests.
Can we get an estimate without revealing the idea?
Yes. For a first estimate, a general description of what the product does, its requirements and quantities is enough. When details need to be shared, we sign an NDA on request when the project calls for it.
Want an estimate for your prototype? Tell us what you're building
Send a short description, the requirements you already know, quantities and a target date. An engineer will reply, and after an initial evaluation you get a written proposal.
Usually a reply within 3 working hours, by email or phone