Young entrepreneurs at the beginning of their journey discover that cracking the conceptual challenge and patent registration is only the first challenge awaiting them ahead, and immediately after comes the financing challenge of product development, namely turning the idea into a finished product. So let’s put things on the table right now – to the question of how much it costs to develop a product, there’s no answer, and the reason for this is that according to the product type, the market it belongs to, and the complexity level in its development, product development costs for it can vary across a wide range that starts at tens of thousands of shekels and can end at billions of dollars.

Product Development Costs – Important Figure Already from the Start

After what we said at the opening of our words, in every new product development process, it’s still very important to get as reliable a picture as possible regarding the expected costs of the process, already at the beginning of the journey. Generally, development of a typical consumer product can cost from several tens of thousands of shekels to several hundreds of thousands of shekels. Technological product development can cost millions of dollars, and pharmaceutical drug development can cost billions of dollars. To a large extent, the capital that will ultimately be allocated for development depends very much on the extent to which you manage the development process correctly and with professional support. Up to a certain stage, you can definitely play with things yourself in a do-it-yourself creative work model, but from a certain stage where feasibility proof and prototype building are already required, there’s no escape from investing the required capital and recruiting professionals to the process.

What are the Cost Components of New Product Development?

Generally, the product development process is based on several key stages that can receive different weight in development processes of different products:

• Idea and initial research
• Experiments for initial feasibility proof
• Initial and detailed engineering development
• Prototype
• Product presentation (website, demonstration videos)
• Commercialization (exhibitions, distributors)

Throughout this process, costs progress from a scale of hundreds of dollars to a scale of tens of thousands of dollars in the final stages.

Importance of Professionals in the Development Process

Many entrepreneurs, when they’re full of motivation and sparkle in their eyes, feel they can do everything themselves and ultimately discover this is the biggest mistake they made. A product development engineer and importantly a team with experience in the product type and diverse fields or materials you’re working with are sometimes required when developing a product. Obviously, a product development team, for example a product designer or product development engineer, has a cost. In our office, there’s a diverse team in different fields providing services from the idea stage to model development, prototype, and product. And indeed, as we said initially, product development costs in projects that aren’t managed professionally and correctly are much higher, not because they constitute the reality’s imperative, but simply because the process is managed incorrectly and inefficiently. Process delays, lack of professional knowledge, self-learning, time, and development errors – all these are the most expensive components in any new product development process, and you can avoid all of them if you manage the process correctly with professional support, who hold all the required knowledge both around process management and around the development work itself.

For many years, Av Tipus company has provided services to entrepreneurs and inventors at the beginning of their journey and to mature companies in Israel and outside Israel. This includes the company accompanying complex development processes from end to end, making available to the entrepreneur all required professionals, and ensuring efficient and economical management of the development process until its successful commercialization stage. If you have an idea you believe in and want to turn it into a successful product, Av Tipus company has the most efficient, best, and yes, also cheapest solution for you. Contact us today at 03-9711011 and we’ll be happy to tell you about it.