# S1 E6: Pivots, Trials, Errors, and Validation in Product Development with Madhavi Gavini

- Show: [The Builder Circle](https://hardwarepodcasts.com/podcast/the-builder-circle)
- Published: 2023-06-13
- Length: 1h 05m
- Page: https://hardwarepodcasts.com/podcast/the-builder-circle/2023-06-13-s1-e6-pivots-trials-errors-and-validation-in-product-development-with-madhavi-ga
- Listen: https://rss.com/podcasts/thebuildercircle/991137

## Summary

Madhavi Gavini, CEO of Droplet, discusses the company's journey from a medical device concept to a consumer skincare platform, detailing three major pivots: shifting from rare skin diseases to daily skincare, moving from a B2B dermatologist channel to direct-to-consumer sales during the pandemic, and scrapping an over-engineered chip-reader system to reduce costs. She explains how Droplet manages insourcing core engineering and capsule automation while outsourcing precision manufacturing to partners like East West, and emphasizes the importance of rigorous lifecycle testing to prevent firmware failures. Gavini highlights the sunk cost fallacy, noting how scrapping half a million pre-ordered chips allowed the company to pivot the app’s functionality from simple tracking to multi-mode treatment, ultimately creating a more valuable product for users.

## Outline

1. Introduction: Madhavi Gavini and Droplet's Origin Story
2. Defining the Problem: From Drug Design to Transdermal Delivery
3. Pivot 1: Shifting from Medical Devices to Consumer Skincare
4. Pivot 2: Moving from B2B to Direct-to-Consumer Sales
5. Pivot 3: Scrapbing the Chip-Reader System and Sunk Cost Fallacy
6. Insourcing vs. Outsourcing: Engineering, Manufacturing, and Partnerships
7. Hardware Horror Story: Firmware Freezes and Beta Testing Failures
8. Failure Modes, Risk Management, and Warranty Strategies
9. TL;DL: Key Takeaways for Hardware Founders

## Topics

- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Embedded firmware](https://hardwarepodcasts.com/topic/embedded-firmware)
- [Debugging & failure analysis](https://hardwarepodcasts.com/topic/debugging-and-failure-analysis)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)

## Most relevant to

early-stage companies

## Mentioned

- Droplet (company)
- East West (company)
- Tufts Medical Center (company)
- FDA (other)
- Alibaba (other)
- CVS (company)
- Amazon (company)
- Whole Foods (company)

## Related episodes from other shows

- [Dakota Welker | User Needs, Design Inputs, Verification & Validation](https://hardwarepodcasts.com/podcast/being-an-engineer/2026-09-25-dakota-welker-user-needs-design-inputs-verification-validation) (Being an Engineer)
- [144 - Auto-Injectors, Pen Injectors, Challenges in Product Development, Sponsors and CDMO's with David DeSalvo](https://hardwarepodcasts.com/podcast/lets-combinate/2024-07-10-144-auto-injectors-pen-injectors-challenges-in-product-development-sponsors-and) (Let's Combinate)
- [Tips for Early-Stage Smart Device Prototyping](https://hardwarepodcasts.com/podcast/over-the-air/2021-03-24-tips-for-early-stage-smart-device-prototyping) (Over the Air)
- [3: Onward](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-10-28-3-onward) (Thoroughly Considered)
- [176 - The Fastest Way to Ruin Drug/Device Development (And How to Avoid It!) with Eric Sugalski](https://hardwarepodcasts.com/podcast/lets-combinate/2025-02-19-176-the-fastest-way-to-ruin-drug-device-development-and-how-to-avoid-it-with-eri) (Let's Combinate)

## Citing this page

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