"How much will it cost?" is almost always the first question. The honest answer is "it depends", but that "depends" can be broken into clear factors. Knowing them in advance means arriving at the first meeting with the right expectations, and making decisions that save money.
The factors that set the price
1. Hardware complexity
A board with a microcontroller, a few buttons and an LED is a completely different project from a board with a fast processor, external memory, three high-speed communication channels and power circuits. What makes it more expensive:
- Number of PCB layers. A 2-layer board is cheaper to design and manufacture than a 6-layer board.
- High power. Currents of tens or hundreds of amperes require thermal design, protection and testing.
- RF and high-speed communication. Antennas, impedance control and fast lines take more design and measurement time.
- Precision analog. Sensors that must be measured accurately in a noisy environment.
2. Firmware
The code that runs on the device is often the hardest part to estimate in advance. A device that turns on an LED based on a sensor is a few days of work. A device that manages communication, updates remotely, stores data and meets hard deadlines is months of work.
3. Communication, server and app
As soon as the product connects to a phone or the cloud, two more systems are added: the server side and the app. Sometimes it is possible to start with a simple interface and leave the full app for a later stage.
4. Enclosure and industrial design
An off-the-shelf enclosure is cheap and fast. A custom enclosure requires industrial design, mechanical design and an injection mold, which alone can cost tens of thousands of shekels.
5. Certification
A product sold to the public usually needs EMC and safety testing. A product with a radio also needs frequency approval. Medical devices add a whole layer of regulation. Design for certification from the start, because fixing a design after a failed test is much more expensive.
So how much does it cost?
As a reference point in Israel: developing a working electronic prototype, including specification, board design, the first boards and the firmware, usually costs around ILS 20,000–30,000 for a product of medium complexity. A system with several boards, a server and an app, or with regulatory requirements, will cost more.
How to protect the budget
- Start with a specification. A small stage at a fixed price, at the end of which you know what is being built and the estimate for the rest of the way.
- Test the big risk first. If there is one part that may not be possible, test it before designing everything else.
- A prototype is not a product. A prototype has to prove the idea works. Optimization for production comes after it has proven itself.
- Split into stages with deliverables. At the end of each stage you get something you can check, and decide whether to continue.
- Choose a lean team. In a small company with one engineer who owns the hardware and the firmware, most of the budget goes to engineering rather than to management layers and coordination. Small vs large company.
Summary
Development cost is set mainly by the complexity of the hardware and code, communication, enclosure and certification. The best way to get a real number is a short conversation about your specific product. Book a free intro call.
Written by Roman Alperovich, founder and lead engineer at ProtoMakers.