Hardware Entrepreneurs:

Do You Know Your Costs?

Know the costs to develop, scale, and manufacture your product to answer two key questions: how much money you need and how much money you can make!

  • What will it cost to design the electronics?
  • How much will the enclosure cost to design?
  • What will prototypes cost?
  • What is the cost to develop the retail package?
  • How much are regulatory certifications and which ones are needed?
      • What is the cost to setup manufacturing?
        • How much will it cost to manufacture?
        • How much profit can you make?  How much can you sell it for?

Hi, I'm John Teel. I'm an Electronics Design Engineer that has designs in millions of products on the market, including some from Apple.

Don't Let This Happen with Your New Product 

The most common mistake made by hardware entrepreneurs and startups is to underestimate what is involved in creating a new market-ready product.

The consequences of this underestimation are you will either run out of money before the product is ready, or you'll later learn your product is too expensive to manufacture profitably.

Hardware entrepreneur Yash Kotak had a vision to make smart internet connected switches for personalizing electronic appliances. However he didn't properly plan his costs and these were the results...

“We had underestimated the work, time and funding that goes into making a market-ready hardware product.  Hardware products sell at 4 to 5 times the component costs. How did we not know this?  Our price estimates were wildly off the mark. And when all this realization came together, we were in a crisis.”

- Yash Kotak, Founder of Lumos (from 7 Reasons Why My IoT Startup Failed)

CAUTION: A hardware product should really sell for about 4 times the final landed production cost, not just the component costs.  The component costs are only one part of your landed production cost. Ignoring the other costs is a recipe for failure!  More on this below...

Three Costs You Must Know

There are three broad costs you need to know so you don't go broke developing a product you can't manufacture at a profitable cost.

Development costs to go from concept to prototype

Scaling costs to go from a prototype to a manufacturable product

Landed production cost is how much you pay per unit delivered to your warehouse. 

If you underestimate the development costs or the scaling costs you'll go broke before you make it to market.  If you underestimate your landed production cost then your profit will be lower than you expect, or worse yet completely non-existent, or even worse - negative!

"Underestimate Your Costs and You'll Either Run Out of Money, or You Won't Make Any Money!"

Entrepreneur Anders Hsi, creator of a social connectivity device called the Amiloom, underestimated the cost to develop his product with these consequences...

“Not having a detailed plan, we did not know our real costs for our business, and we were not able to raise as much money as we needed. After several failures in development, we did not have enough resources to complete development and to bring beta products to market. “

- Anders Hsi, Founder of Amiloom (from 3 Reasons My Tech Startup Failed)

Breakdown of the Costs You Must Know

  • Development Costs
    for the electronics design, enclosure & mechanical design, prototyping, programming, and retail package design.
  • Scaling Costs
    Regulatory certifications for the electronics, setting up manufacturing, injection molds, liability insurance, and patents.
  • Landed production cost
    This is the cost you pay for each unit landed at your warehouse.  It includes the cost for the electronic components, as well as the cost for the assembled PCB, plastic molded parts, stamped parts, product assembly, testing, packaging, scrap, returns, duties, freight, and warehousing.

Planning a crowdfunding campaign?

If so, then you better know how much money you need to develop your product and purchase inventory.

Too Many Entrepreneurs Fail...

...because of improper financial planning, so I decided to create a solution.

The solution is a detailed, accurate estimation of your development, scaling, and landed production costs.  This needs to be a priority before you actually go off and develop the product.

If you have the skills and experience to do this yourself then great for you!  However, most hardware founders have no experience developing and manufacturing a new product.

If you fall in the common category of a founder that has never developed, scaled, and manufactured a new electronic product, then I have the solution for you.

Here's the Solution:

PREDICTABLE COST REPORT

The Predictable Cost Report is a fully custom report that is created specifically for your electronic product.  After completing a detailed online form with information about your product (and an included NDA to protect any information you share), we perform an engineering analysis and provide accurate estimates for your development costs, scaling costs, and final landed production cost.

Accurately estimating the landed production cost requires considerable engineering effort since we must determine all of the critical electronic components required by your product.  We also must calculate the cost to produce your enclosure and retail package, fully assemble the product, test it, ship it (usually from Asia), then warehouse it. 

The Predictable Cost Report gives you accurate estimates of all the following costs:

(specifically for your product)

Development Costs

The Electronics

- Schematic design
- PCB design
- Prototyping
- Testing & debug

The Enclosure

- Industrial design
- Mechanical design
- 3D Modeling
- Prototyping

The Retail Package

- 3D model design
- Artwork design
- Prototyping

Programming

- Firmware development
- Mobile app design

Scaling Costs

Certifications

- FCC
- UL / CSA
- CE
- RoHS

Manufacturing Setup

- Low volume molds
- Mid volume molds
- High volume molds
- Assembly fixtures

Landed Production Cost

- Components
- PCB
- Molded parts
- Stamped parts

- Retail package
- Assembly
- Testing
- Scrap

- Returns
- Freight
- Duties
- Warehousing

All landed production costs are estimated for volumes of 100, 1k, 10k, and 100k units.
Manufacturing in the U.S. is assumed for 100 and 1k pieces, Asia for 10k and 100k units.

What People Are Saying About the Predictable Cost Report

John Doe UI/UX Designer

“The Predictable Cost Report is a no-brainer as a first step!”

Predictable Designs offers the most efficient and painless route I’ve seen for developing a new electronic product."

David Heisley
- Former Sr. Design Engineer for Texas Instruments

“The Predictable Cost Report is perfect for those developing new electronic products.”

“Whether performing early stage vetting of return on investment, developing detailed cost breakdowns or looking for an objective outside assessment, it will prove its value.”

Ray Crampton
- Former VP of Engineering at Nitronex
John Doe UI/UX Designer
John Doe UI/UX Designer

“The Predictable Cost Report has helped us move the company down our envisioned path.”

Predictable Designs has played a key role in getting our product to the next level.

Armani Williams
- Co-founder, LocShark

John Teel
Founder of Predictable Designs

About John Teel

I’m John Teel, a product design engineer, serial entrepreneur, and the founder of Predictable Designs.

Previously I was a senior design engineer at Texas Instruments (TI) where I designed several super successful electronic devices now used in millions of products on the market.  I've also helped dozens of entrepreneurs develop their new hardware product.

Finally, I also developed my own product, had it manufactured in Asia, and sold in over 500 retail locations in three countries.

Get your Predictable Cost Report for only

$499

BONUS: Includes 2 weeks of email consulting with me to ask questions about your report.

100% Money Back Guarantee

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You are fully protected by our 100% Satisfaction-Guarantee!

Frequently Asked Questions

Do I share my product details?  If so, are they protected?  Do you sign an NDA?

Can I ask questions about my report?

Will my report include a cost breakdown for every component?

How accurate are the estimates?

If I'm not happy with the report can I get a refund?


P.S. Bringing a new hardware product to market, especially one with electronics, is not an easy or cheap process.  The cost of this report is insignificant in the scheme of the total costs.  But it could save you tens of thousands of dollars if it gives you realistic expectations on the costs to make your product a success.

Questions or Feedback? - Please contact me here.  I really appreciate any feedback.