Developing a new product is an exciting journey, but it’s also a complex process that involves a variety of costs. In this blog, we’ll break down the typical expenses associated with New Product Development (NPD) and how they’re typically allocated across the various stages of the design process. Although costs can vary significantly depending on the type of product and complexity of the project, our wide range of experience allows us to manage any unpredictability and keep your project on track. Our experience also allows us to complete work in a very effective way, ensuring your idea progresses smoothly from concept to production. All the stages which form part of your product design journey are quoted for individually and the payment for these stages is usually split into 50% upfront to kick off work and 50% upon completion of the stage. This allows our clients to progress their projects at a pace they’re comfortable with and ensures costs are more manageable too.
The Costs of New Product Development
Developing a new product is exciting, but it also involves a range of costs at different stages of the design and development process. The total investment depends on what you are creating, how complex it is, whether it includes electronics, and the scale at which you want to manufacture it.
At Idea Reality, we do not use one flat fee for product design. A simple kitchen accessory and a complex electronic device are fundamentally different projects, so we price our work in clearly defined stages based on your product’s actual needs. That gives you more clarity, better control over spend, and the flexibility to progress at a pace that suits you.
How much does it cost to develop a new product?
As a general guide, a simple non-electronic product can often reach an initial working prototype for £15,000 to £20,000 + VAT. A product that includes electronics will often require a significantly larger investment, typically from around £50,000 + VAT before production.
Highly complex, industrial, or regulated products may require larger budgets depending on development scope, testing, and engineering requirements.
How does Idea Reality price product design projects?
We do not use generic fixed packages. Instead, we quote projects in clearly defined stages based on what your product actually needs.
This gives you more control, clearer budgeting, and the ability to progress at a pace that suits your funding and goals.
Typical Idea Reality pricing by stage
| Stage | Typical cost |
| NPD Workshops Concept Design Concept Development Prototyping and Further Developments Manufacturing Specification Logo Concept Design Brand Guidelines | £1,000 – £1,850 +VAT From £4,500 + VAT £2,250 – £6,000 + VAT Quoted after initial design stages £1,500 – £4,500 + VAT From £3,250 + VAT From £1,500 + VAT |
Prices shown are guide prices only. Every project is reviewed individually and quoted according to scope, complexity, and requirements.
The first stage is usually quoted as a specific figure. Later stages are often estimated as ranges, then quoted specifically as the project progresses. Prototyping and electronics development are normally quoted via RFQ before you commit.
What stages are involved in product development costs?
Most product development projects move through a number of practical stages. Not every project needs every stage.
How much do product development workshops cost?
help align the brief, gather technical requirements, identify challenges early, and get our design team up to speed quickly.
They are especially useful when a project is still being defined.
- Half-day workshop: £1,000 + VAT
- Full-day workshop: £1,850 + VAT
If you already have a clear brief, a workshop may not be necessary.
How much does concept design cost?
Concept Design is where we explore a range of creative design directions and turn your idea into realistic rendered visual concepts.
You will typically receive a polished presentation showing how the product could look with materials, colours, and finishes applied.
For a simple product, concept design typically starts from £4,500 + VAT.
At this stage we also consider feasibility and likely manufacturing routes, not just appearance.
How much does concept development cost?
Once a concept is chosen, we refine it further and engineer it so it is suitable for prototyping.
This stage often includes CAD development, resolving mechanisms, and improving practical function.
Typical cost: £2,250 to £6,000 + VAT
How much does prototyping cost?
Prototyping costs vary significantly depending on materials, complexity, tolerances, and whether electronics are involved.
For non-electronic products, costs are usually driven by:
- Materials
- Machine time
- File preparation
- Finishing
- Assembly
For electronic products, costs may also include:
- Electronics design
- PCBAs
- Firmware development
- Assembly
- Testing
Because prototyping varies so much by project, these stages are usually quoted via RFQ before you commit.
How much does it cost to prepare a product for manufacture?
As a product nears production, we can prepare manufacturing specifications and make design-for-manufacture improvements.
This can include adjusting designs to suit tooling, production methods, and factory capabilities.
Typical cost: £1,500 to £4,500 + VAT
Production RFQ stages may cost more if multiple factories or manufacturing routes are being compared.
How much does it cost to produce a product?
Only once we have completed a Production RFQ will we be able to provide a better idea of the tooling and set up costs for your product design. We always advise on manufacturing processes through the design journey, based on our experience.
Other than tooling and setup costs, it’s important to consider the cost of producing each unit of your product. Estimating these costs can often be informed at an early stage by reaching similar products in the market or products that share the same components. Factors like size, weight, and order volume will also influence shipping and warehousing expenses.
Branding and Marketing Materials
How much does branding cost for a new product?
Branding is an optional service we provide, helping you create a strong brand identity for your product’s market launch
Typical starting points:
- Logo concept design: From £3,250 + VAT
- Brand guidelines: From £1,500 + VAT
We can also support you in the creation of packaging and other launch materials.
What makes product design costs go up?
The biggest factor is usually whether the product includes electronics, but several things can increase the total cost.
Electronics
Products with PCBAs, firmware, batteries, sensors, or connected features require more development and testing than purely mechanical products.
Complex prototyping
Prototype costs rise when parts need specialist materials, precision machining, custom finishes, or integrated electronics.
More design iterations
Additional rounds of changes during development can increase time and cost.
Broader RFQ scope
Comparing multiple factories or manufacturing methods requires more supplier work.
Product complexity
More components, tighter tolerances, unusual materials, or advanced mechanisms increase engineering time.
Compliance requirements
Regulated products may require more research, design considerations, or specialist testing.
What helps keep product design costs down?
There are several ways to make development more cost-effective.
No electronics
Mechanical products are usually simpler and cheaper to develop.
A clear brief
If you already know what the product needs to do, less early-stage exploration may be needed.
Existing components
Using off-the-shelf parts can reduce custom engineering time.
Sensible manufacturing methods
Choosing practical production methods early can avoid costly redesign work later.
In-house prototyping where possible
Suitable prototypes can often be produced faster and more affordably in-house.
Adapting an existing product
Sometimes modifying an existing solution is more cost-effective than starting from scratch.
How does Idea Reality compare with other product design agencies?
Idea Reality sits in the mid-market for UK product design agencies.
That means we offer more engineering rigour, manufacturability thinking, and development support than lower-cost concept-only providers, without the overheads of a large consultancy.
Our projects are priced stage by stage, which gives both inventors and established businesses more control over budget and timing.
We focus on creating concepts that can genuinely move forward into development and manufacture, not just attractive visuals.
Frequently asked questions about product design costs
Why can’t product design be priced as one fixed fee?
Because every product requires different stages, prototype complexity, engineering input, and testing. A simple mechanical product and a complex electronic device are fundamentally different scopes of work.
Are prototyping costs included from the start?
Usually not as a fixed number. Prototype costs vary too much depending on materials, processes, complexity, and testing needs, so they are normally quoted via RFQ.
Do you quote in stages?
Yes. Projects are priced stage by stage. The first stage is usually quoted as a specific figure, while later stages are estimated and then quoted more precisely as the project develops.
Do I keep ownership of my idea and IP?
Yes. You retain ownership of your idea and the IP we develop for you. We also sign an NDA before project details are shared.
How long does a typical stage take?
Most development stages take around 3 to 6 weeks, depending on complexity and scope.
Can product design costs be reduced?
Yes. Simplifying the product, avoiding electronics where possible, using existing components, and starting with a clear brief can all help reduce cost.
Ready to talk about your product?
If you could like a clearer idea of what your product may cost to develop, start with a free design consultation.
We will review your idea, advise on likely stages and prepare a tailored proposal with clear costs for each phase.
Project Review & Proposal
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By James Lamb
Founder
