Discover the key cost considerations in industrial product design and product development. From the initial idea and design through to prototyping, production, certification and logistics: each stage involves its own costs, depending on complexity, choice of materials and scale. Gain an understanding of how these factors collectively determine the overall development process and budget, and which choices influence the final investment in a new product.
Product development costs vary greatly from project to project and depend primarily on the technical complexity and the number of development hours required. A simple product design may require only a few thousand euros in research and development, whilst complex projects – such as medical equipment or industrial systems – can run to several hundred thousand euros or more. It is important to distinguish between a redesign of an existing product and the development of a completely new product with innovative technical features. New functionality often entails additional technical challenges and therefore higher costs for industrial product design, but it can also open up opportunities for new patents and new markets.
Would you like to know how much it will cost to develop your product idea? We’d be happy to help you through the process – from the initial idea right through to delivery of the product.
Developing products with integrated electronics and software, such as mobile applications or embedded systems, requires a specialised process with a corresponding budget. This is because both hardware and software development are resource-intensive processes, carried out by specialised and highly qualified engineers.
At GBO Innovation makers, we oversee projects in which the electronics are precisely tailored to the application, including the design of a suitable electronics enclosure – often in the form of a bespoke plastic enclosure produced using injection moulding. Our design expertise, combined with the right electronics development partners, makes us the ideal partner for smart, efficiently manufacturable products.
Together with our regular partners in electronics and software, we can assist you with:
Whether you’re developing an innovative IoT product, a smart medical device or an industrial solution, we’ll handle the integration of electronics, software and housing in a single, streamlined process.
Creating a product prototype is a crucial step in the product development process. Prototyping allows design choices to be tested and optimised at an early stage, before you invest in large-scale production. This reduces risks and saves costs in the long run.
Depending on the technique and level of detail, prototyping costs can vary considerably:
The final cost of prototyping depends on various factors, such as the chosen technique, the dimensions, the choice of materials, the complexity and the time required for finishing. Furthermore, you should bear in mind that virtually every development process requires several rounds of prototyping to perfect the product design; the level of finish may vary depending on the model’s function. At GBO, we guide you through this iterative process, from initial sketch to fully functional prototypes, tailored to both technical, functional and visual requirements and preferences.
Testing and certification are essential during the final stages of product development. Every product must comply with relevant regulations and safety standards before it can be placed on the market. This process ensures that your product is safe, reliable and legally approved.
Depending on the product type, various forms of product testing are carried out, including:
Clinical trials may also be mandatory for medical devices, which significantly increases costs. The automotive industry is subject to specific requirements, such as crash tests or rollover tests. Although the costs of product certification can be substantial – often running into tens of thousands of euros – these investments are essential for a successful and lawful market launch. They represent a fixed item in the overall development budget for new products.
At GBO Innovation makers, we help you take the necessary certifications into account right from the start of the process. This way, we avoid any surprises down the line and ensure that your product development runs smoothly and in accordance with the regulations.
The cost of producing a mould is a key part of the product development process, particularly for plastic products manufactured using injection moulding. An injection mould is a bespoke tool that determines the quality, reproducibility and efficiency of the end product. But what exactly determines the price of such a mould?
The final cost depends heavily on the complexity of the product. A simple mould for a single component usually requires a relatively modest investment. If the product becomes more technically challenging – for example, involving complex ejection mechanisms, the integration of metal inserts or very tight tolerances – the investment increases significantly. For multi-cavity moulds – which can produce multiple parts per cycle – the required investment is usually higher due to the additional technical complexity and production efficiency. For technically advanced moulds, such as those for medical devices or industrial applications, the investment can rise further due to the high demands on precision, reliability and finish.
In addition to the design and technical requirements, the mold material also plays a major role. Molds are manufactured from aluminum (for smaller series), P20 steel, or hardened steel; the latter category, in particular, ensures a long service life at high volumes but also entails higher initial costs. The finish, size, cooling channels, ejection systems, and tooling precision all contribute to the final price. Having a mold made is therefore not a standard purchase, but a custom investment. Especially in serial plastics production, it pays to invest in a high-quality injection mold, as this directly influences production costs per unit, lead time, and final quality. Those who opt for smart engineering and a good mold design get the most out of their product development in the long run. Would you like to know what it costs to make a mold for your product? Contact us – we are happy to advise you on the right choices regarding design, material, and production approach, as we can deliver complete products in addition to product development.
When developing a plastic product, it is not just about design and moulding costs, but above all about the unit production cost. These are determined by the cycle time in the injection moulding machine, the plastic material used (such as ABS, PC or TPE) and any post-processing or assembly required. In addition, packaging, outer packaging and logistics play a significant role in the total cost price.
A simple product with a short cycle time is more efficient to manufacture than a technically complex component with longer cycle times or tight tolerances. The choice of material also has a significant impact: engineering plastics generally require different processing specifications than standard materials. As production volumes increase, the unit cost usually falls due to economies of scale and a more efficient allocation of fixed production costs.
In addition, logistical considerations form an important part of the overall production and distribution process. Weight, size, packaging and mode of transport – by road, sea or air – have a direct impact on costs, delivery times, efficiency and flexibility within the supply chain. Transport within the Netherlands requires a different approach to distribution within Europe or imports from Asia, where factors such as distance, volumes and the required availability play a major role.
Sea freight is generally suitable for larger volumes and long-term planning, whereas air freight is more commonly used for urgent deliveries, high-value compact goods, or where time is of the essence. In addition, factors such as customs clearance, import duties, temporary storage and distribution upon arrival play a significant role within the logistics process. By taking these factors into account at an early stage of product development, you can avoid surprises and create a more efficient process with shorter lead times and a transparent budget.
Wondering how your product can be manufactured and distributed in the most efficient way? We’d be happy to work with you and provide a clear overview of the entire process.
