# The Costs to Develop & Manufacture a New Electronic Product

- Show: [Predictable Designs Podcast](https://hardwarepodcasts.com/podcast/predictable-designs-podcast)
- Published: 2022-12-07
- Length: 20m
- Page: https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2022-12-07-the-costs-to-develop-manufacture-a-new-electronic-product

## Summary

Host John Teel breaks down the three major cost categories for developing and manufacturing electronic products: development, scaling, and landed production. He details specific expenses including electronics, software, enclosure prototyping, and retail packaging design, emphasizing that entrepreneurs often underestimate these initial outlays. The discussion then shifts to scaling costs, highlighting certification fees and the significant expense of injection molds required for mass production. Finally, Teel analyzes landed production costs, covering components, PCB assembly, labor, testing, scrap rates, packaging, freight, and duties, warning that ignoring these figures leads to financial failure.

## Chapters

- [0:01](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2022-12-07-the-costs-to-develop-manufacture-a-new-electronic-product#t=1) Introduction: The Fatal Mistake of Underestimating Costs

## Topics

- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Design for manufacturing & NPI](https://hardwarepodcasts.com/topic/design-for-manufacturing)
- [Materials & manufacturing processes](https://hardwarepodcasts.com/topic/materials-and-processes)
- [PCB design & layout](https://hardwarepodcasts.com/topic/pcb-design)
- [Packaging design](https://hardwarepodcasts.com/topic/packaging-design)

## Most relevant to

early-stage companies

## Mentioned

- Predictable Designs Podcast (other)
- John Teel (other)
- Hardware Academy (other)

## Related episodes from other shows

- [IDology #2 - Prototyping in product development](https://hardwarepodcasts.com/podcast/idology/2022-11-15-idology-2-prototyping-in-product-development) (IDology)
- [S2E51 The Hardware Academy | John Teel](https://hardwarepodcasts.com/podcast/being-an-engineer/2021-12-03-s2e51-the-hardware-academy-john-teel) (Being an Engineer)
- [186: Sleeping on the Factory Floor](https://hardwarepodcasts.com/podcast/embedded-fm/2017-02-09-186-sleeping-on-the-factory-floor) (Embedded.fm)
- [IDology #11 - Most common mistakes in product development](https://hardwarepodcasts.com/podcast/idology/2023-03-28-idology-11-most-common-mistakes-in-product-development) (IDology)
- [17: Three Honda Civics](https://hardwarepodcasts.com/podcast/thoroughly-considered/2016-08-31-17-three-honda-civics) (Thoroughly Considered)

## Citing this page

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