How Do You Charge for Consumable Parts and Materials Used in the Prototyping Phase?

Learning Centre > How Do You Charge for Consumable Parts and Materials Used in the Prototyping Phase?

Parts and materials used while prototyping a product will be charged to you, the client, at cost +50%.

Parts and materials used while prototyping a product will be charged to you, the client, at cost +50%.Parts and materials used while prototyping a product will be charged to you, the client, at cost +50%.
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This is a question that we get asked a lot when our clients are developing a new product and want to use an outsourced and contracted R&D team such as Innovolo.

Parts and materials used while prototyping a product will be charged to you, the client, at cost +50%.

Why does Innovolo put a markup on parts and materials?

We put a markup on the parts and materials that our clients use for prototyping because it is not cost-effective to purchase small quantities of parts and materials for relatively low quantities of products.

There are also other factors to consider, such as the fact that there are shipping costs and admin involved with getting the parts and materials to us, which will need to be included in these prototyping costs.

How can I avoid this parts and materials charge?

If you want to source the components yourself issue them to us free of charge and we can assemble the prototype and test your designs for you.

However, this is not always the best option as it can cause delays and increase the prototyping time.

In addition, you will need to be certain that the components are the correct specification for what we are designing.

In short, it can create extra complexity and a higher margin of error creeping into the project.

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This is a question that we get asked a lot when our clients are developing a new product and want to use an outsourced and contracted R&D team such as Innovolo.

Parts and materials used while prototyping a product will be charged to you, the client, at cost +50%.

Why does Innovolo put a markup on parts and materials?

We put a markup on the parts and materials that our clients use for prototyping because it is not cost-effective to purchase small quantities of parts and materials for relatively low quantities of products.

There are also other factors to consider, such as the fact that there are shipping costs and admin involved with getting the parts and materials to us, which will need to be included in these prototyping costs.

How can I avoid this parts and materials charge?

If you want to source the components yourself issue them to us free of charge and we can assemble the prototype and test your designs for you.

However, this is not always the best option as it can cause delays and increase the prototyping time.

In addition, you will need to be certain that the components are the correct specification for what we are designing.

In short, it can create extra complexity and a higher margin of error creeping into the project.

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Farm+Stable is a client of Innovolo, a product development as a service provider offering R&D teams globally extra capacity, capability, and momentum in their product development and obsolescence management projects. As a company that specializes in the development and engineering of products for the agriculture and construction industries, Farm+Stable has benefited from Innovolo's expertise in helping to bring new products to market quickly and efficiently. In particular, Farm+Stable has been able to rely on Innovolo's team of experienced engineers to help with the design and development of a new line of products that are designed to be more durable and longer-lasting than previous models. With Innovolo's help, Farm+Stable has been able to bring these new products to market in a timely manner, and they have been well-received by customers. Thanks to Innovolo's innovative product development solutions, Farm+Stable has been able to stay ahead of the competition and continue to grow their business.
Innovolo is a product development as a service provider. It offers R&D teams globally extra capacity, capability, and momentum in their product development and obsolescence management projects. Its services are used by clients in a variety of industries, including automotive, aerospace, consumer electronics, and medical devices. One of its clients is Kawneer, a leading manufacturer of aluminum products for the architectural and construction industries. Kawneer has been using Innovolo's services to help develop new products and to manage the obsolescence of its existing products. Thanks to Innovolo, Kawneer has been able to speed up its product development cycle and to reduce its costs. As a result, Kawneer has been able to bring new products to market faster and to better meet the needs of its customers.

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