How much does it cost to develop and manufacture an electronic product? (2022)
predictabledesigns.com
predictabledesigns.com
For a normal hard plastic like ABS, you basically have two options: a "soft" tool or a "hard" tool. These are both usually made of steel, even aluminium can be too soft at temperature and pressure for good parts.
The difference is that a soft tool is a fairly normal steel that can be milled on a standard 3D CNC machine. This makes it maybe $10k and a few weeks to make, given a suitable design. You can make probably 1000 parts with a tool like this (maybe more depending on the part and the tolerance needs).
A hard tool is made from a very hard "tool steel". There are some different alloys in use but there all extremely difficult to machine - the main method f is Electro-discharge machining. This is a rather involved process, usually involving milling heads that can then spark erode metal to he same shape (look up EDM if you haven't seen it, it's cool). This whole process is more like $300k and takes 3-6 months for a 1-2 action tool. It's likely to be the biggest capex line item for setting up mass manufacture.
For prototyping and low volume manufacture, I strongly recommend Model Solutions in South Korea (https://www.model-solution.com/en/m/main). For us they used to turn around injection moulded parts in quantities of 1k+ in 2 weeks (including postage), at very reasonable prices (used to because I haven't needed them for a couple of years).
If we had wanted to make the parts out of PVC we would have had to use stainless steels tools from memory and that would have been more expensive.
Our 2-piece "high-run" tool, built out of tool-steel cranked out its 1M iteration a few months ago before we retired it. The tool cost 6k USD to produce.
Our 2-piece "low-run" tool, of a larger physical size cost ~10k USD to produce. ( For the curious - https://i.postimg.cc/MT8RT50P/tool.jpg )
These prices also included the model prep (IE, taking an STP of the final product, inserting the ribs, internal structures, closures, etc required to make a real product) and tool design (Modeling the tool itself gates, etc etc).
Perhaps it's the complexity involved, as injection-molding can scale from small parts to giant parts, but our pricing experience seems vastly different.
I should have stated above that I am neither an injection moulding expert, nor even a mechanical engineer. My experience is as tech lead for years of projects needing injection moulded parts, so I've worked through options with mechies, recommended things for purchase etc. Would be very to happy to learn of cheaper ways of getting stuff made!
I've ordered many high volume tools that were way less than 50k, more like 5. Things in this world have vastly changed in the last 2 decades. Places like Xcentric Mold, Xometry, Fictiv, Baro, etc. all offer very good quality tooling production and molding, very quickly, and the line between soft and hard tooling is much more blurry now. A lot of the advice others are posting here re: injection molding is true for 20 years ago, but doesn't really reflect the current state of the market.
The tolerances on the high-run part are non-critical (but still need to match the other part for a seamless ultrasonic weld). It's got curved surfaces, and the surface texture was EDM'd on.
Likewise, not at all an expert - but have about 10 injection-moulded products under my belt; I just got back from China pricing out two new projects tooling projects. My email is in my profile if you ever want to reach out!
Alternately, would this be the point where you'd get the same tooling made up but this time in hardened steel? Or is it common to jump straight for the high-end tooling material?
Depending on the complexity of the part, you can easily spend that much in NRE labor just to design it
> Thank you so much for applying to be a Founding Member at the Hardware Academy.
> There were only 20 slots available for the first batch of Founding Members, yet within just 24 hours I had 130 people apply.
> Although you were not selected as one of the first Founding Members, you will still be given a great discount and early access to the Academy. You will only pay $35/month or $309/year.
As far as I recall, there was no disclosure of a limit on the number (only on time). They say people don't remember what you say, but they never forget how they made you feel. I felt like this was some combination of deception to pump up his email list and/or bait and switch on the offering.
A few tricks I've picked up for dealing with being mid-scale:
1. Rubber stamps are cheap and a low-environmental-impact way to brand packaging. Stickers are cheap too, but less low-impact. If you live in a major city, there's probably a stamp maker near you with a 1 or 2 day turnaround.
2. Packaging inserts can be laser cut out of cardboard in small quantities, if you can find a hack space near you with a shared laser. You can do cardboard design using the sheet-metal tooling in fusion 360, but do the prototyping with scrap cardboard and an exacto knife - it's way faster than starting digitally.
3. Cardboard sourcing is harder than you'd think - you run into minimum order issues just like with buying custom boxes.
4. For enclosures, see my other comment: https://news.ycombinator.com/item?id=36115141
Very roughly for feasibility I would say the sale price should be four to five times the oneoff BOM cost, plus allocate $50k upfront for NRE including certifications. Experienced hardware developers can do better than that, but if you've not done one of these before you need to budget for errors.
Hard to translate into numbers, but generally plan on some amount of throw-away work, get some experienced advice if you can, and grow slowly until you understand the risks.
One thing notable that I didn't predict well was competitors that would sprout up selling for way too low. They wouldn't last long, eventually disappearing, but hard to compete with that.
This is notable because the enclosure costs for injection molding can dominate costs otherwise. Eg, getting a PCB manufacturered and assembled from places like JLC is cost effective at any volume. There's no comparable option for injection molding.
This is interesting to me, and the article implicitly touches on it; the parts that seem most important: PCB design and firmware writing, other than the time costs, are dwarfed once you introduce injection molded enclosures. Or if you need certification for an intentional radiator.
https://www.modernsounds.co/pluto https://reverb.com/ca/item/67880740-krischer-micro-3340-anal... https://chompiclub.com/
Another variation is to use a combination of a PCB or metal for the top panel, and wood for the rest of the enclosure. Examples:
https://www.landscape.fm/noon https://crowselectromusic.com/products/ovum/ https://koma-elektronik.com/?product=field-kit
Example: https://www.azeron.eu/
You might be better off printing MJF.
Concept to sales in stores can be a multi-year cycle. There are late night meetings with factories in China. Patent issues that can require workarounds that seem absurd to those of us in software. Iteration time of product concepts that require a physical prototype can take months of work between a designer and the manufacturer.
And then there is one of the most important final steps of having the product end up in stores across the world: shipping!
Pre-COVID a shipping container ran between $6-9k, during COVID it ballooned up to $36k. Margins suddenly got waaaay smaller and that had a trickle down effect where even retailers were then pushing for higher margin to compensate —- squeezing her company on both ends.
Don’t even get me started on Amazon….
Quadruple that number again to estimate your retail price.
Mine is almost none. Oven, microwave, dishwasher, wristwatch, drones, 3d printer, soldering iron, wrist gyro with LEDs, oscilloscope, thermostat, router, smart light bulbs, game controller, headphones, microphone, power brick for laptop etc.
There are plenty of basic circuits like this which don’t really need to adapt or improve over time. I like these a lot. What concerns me are those which rapidly go obsolete or lose utility.
I’m also not so sure things need to be useful forever. Many older technologies are totally obsolete and therefor not practically useful anymore. The key thing is, if this is no longer useful, how can we recycle it? How can we remove it from the world without it being a burden?
That’s probably the hardest part.
Edit: just realized a calculator is arguably a perfect candidate for being an app. I suppose my point was that it is still working well, though. A stud finder or an oven as someone else suggested is a much better example.
Most of the apps I have purchased in the past no longer honor it and have switched to a subscription because it doesn't pay for yearly maintenance.