Most folks engage with us early in their product development process.
Much of the time, we are a great fit for the manufacturing but NOT the product development.
Naturally, we look to lean on our network and make introductions to product development firms.
The innovators inevitably ask us -- How do we choose the right Product Development firm for our project?
(that will be another post for another day. go talk to 3-5 firms, in different places, at different sizes, and see who you like)
The NEXT question folks ask is -- How much will this cost?
($100,000 - $1,000,000 is a canned answer)
Ok, really though, hourly rates range from $75 to $500+, why the disparity—and how do you decide what’s right for you?
Again, SUPER high level. Every project is different. BUT, at a glance...
Here’s a quick breakdown:
1️⃣ Hourly Rates Vary by Expertise:
Small firms/freelancers: $75–$150/hour
Mid-sized firms: $150–$300/hour
Large, specialized firms: $300–$500+/hour
The differences are often due to experience, location, tools, and risk management.
I am also seeing more firms do away with hourly and swap to a monthly retainer or per-project / per-stage fee structure.
2️⃣ How to Decide What Fits Your Needs:
Low Budget (<$50k): Startups and simple designs? Freelancers or small firms can work great.
Mid-Range Budget ($50k–$150k): For balancing expertise and cost, mid-sized firms are ideal.
High Budget ($150k+): Complex, regulated projects? You’ll need a full-service partner.
3️⃣ Find Your Perfect Match:
Define your goals: What stage are you in—ideation, prototyping, or scaling?
Evaluate portfolios: Look for firms with experience in your product’s niche.
Start small: Test with a limited-scope project before committing to the full journey. Maybe toe in the water with a feasibility study.
4️⃣ Domestic vs. Overseas Firms:
USA-Based Firms: Offer closer collaboration, reduced communication gaps, and a better understanding of local compliance requirements. Ideal for high-touch projects or when speed to market is critical.
Overseas Firms: Typically more cost-effective but may involve longer lead times, language barriers, or timezone challenges. Best suited for well-defined projects with clear deliverables.
💡 Pro Tip: Don’t overlook mid-sized firms for their mix of efficiency and expertise, especially for scaling production or optimizing designs for manufacturing.
What questions do you wish you could ask a PD firm?
I am toying with the idea of an interview series... Throw some questions in the comments that you'd like to have answered by subject-matter experts.