Prototype and production cost estimates

A project log for The BYTE

A hands free universal interface

oneohmoneohm 09/11/2020 at 05:530 Comments

I believe that an initial production batch for early adopters should be possible for around $150 - $200 each. This would help to cover the injection mold tooling and manufacturing equipment costs. Later batches could be offered at a lower price, hopefully dropping below $100.

Initial estimates for pricing at different quantities:

~ 100 units
~ 500 units
~ 1000 units
$150-200$120-150< $100

Throughout development of this project, my objective has been to create something innovative that will improve the quality of life for people.  But in order to realistically make my project available to any who will benefit, I must also prioritize affordability.  

Rather than working to add features and complexity, I have put a lot of effort into simplifying the design, being careful to preserve core functionality. A reduced part count not only lowers cost but, more importantly, increases reliability. 

The cost for the individual parts of my prototypes includes quite a bit of overhead: shipping charges, larger-than-required minimum order sizes, and non cost optimized part selection.

For additional pricing details the costed BOM is available on Github: Prototype BOM

Material costs for production quantities (on the order of 1000 units) will be much lower, but there are also additional considerations that need to be taken into account when transitioning to production. Assembly, testing, packaging, shipping, and support costs are often overlooked or underestimated when bringing a new product to market.

While I would love to be in a position to make the final product available for free to all, it is important to be realistic. In order to introduce a quality product to the market, back it up with responsive support, and still be able to invest in ongoing development/improvements, the sale price must be at least somewhat higher than the raw manufacturing cost.  That said, I hope anyone who desires to make their own BYTE at home would be able to follow my published instructions.