By: Keir Hart
Are you looking for a company to help with your next product development project? Not sure what to expect? Not sure why these quotes you received are all totally different and way too expensive? We’ve seen a lot of these issues here at Flying Pig Designs and we decided to group them into some of the most common frequently asked questions we have heard or wish we were asked.
AWARENESS STAGE: What is my problem to solve?
In this stage of the purchasing process, sometimes called the Buyer’s Journey, an inventor or manager is simply trying to determine what they really need. You may know that you have a problem, but maybe you haven’t detailed exactly what it is. In this stage, you’ll want a design company that is used to working in “Early-stage” development. Not all companies are good at both early-stage and transition to manufacturing, as these are two very different mindsets. Ask for work examples, references, and listen to what your gut is telling you. If there are red flags already, it’s better to look elsewhere.
What are my Options?
There are a ton of available options for outsourcing design; everything from individual contractors to large companies. Finding the right pick for you will depend largely on your needs. If your project is small and straight forward, you might be better off with an individual. A contract designer will have much lower rates and can complete your project quickly, as long as it fits their skills. Larger companies can handle more complicated projects, as they have more people and thus more skills to draw from. However, they will be more expensive. Look around the web to see how your project compares to work examples listed on company websites. How does yours stack up?
Licensing vs Commercializing?
You don’t have to do everything yourself. While a lot of projects go all the way through commercialization, you might not have the funds to do so. A lot of our clients will go through development only through the first prototype and then go off to get investors. Once funds are secure, they come back to us and we bring them through commercialization. Alternatively, you could license your idea to another company who takes it the rest of the way and pays you a small fee each time they make a sale. InventRight is a great company that can help you license your idea. We highly recommend them!
Why is design so @#$%ing expensive?
We have seen a lot of frustrated inventors walk away grumbling about how expensive design and manufacturing can be. A lot of people only see the very beginning and very end of a product’s design cycle. Products don’t just jump off a napkin and onto the store shelves; there’s a lot of behind the scenes work that happens, including testing, manufacturing process development, logistics, and negotiations. A plastic injection mold tool for a small, simple part can start at $2,000. These costs can easily soar to over $100,000 for high-volume production. A great design company will account for all this work in their quotes. Beware of quotes that seem very low. Unfortunately, we have seen several clients who went with a smaller quote, only to be surprised by hidden fees within a couple of months of starting. In the end, they wound up paying more than the highest quote they received! Conversely, if a quote seems much higher than expected, make sure that the person quoting understood your real needs and give them the opportunity to make changes.
How do I find money?
While self-funding is a great way to start, you might not be able to go as far down the design path as you would like. What is a person to do? While there is a ton of competition for investment funds, there are many sources available. While the specifics of how to do this could fill up multiple blog posts, you can easily find the basics with a quick Google search. In addition to standard funding, there are other slightly less competitive options too. Check with your local State and City to see if there are any grants or funding options available to you. Your Alma Mater. Past employers. Companies you like. In addition, you can find design competitions across the US, online as well, that provide award funds. The Small Business Administration has some great resources for finding funds too.
CONSIDERATION STAGE: Who is the right person/company?
In this stage of the Buyer’s Journey, you’ve identified your problem and are now trying to find a suitable solution. You’ll want a design company that can take the reins and hit the ground running. Make sure that they have the capabilities to match what your product needs to survive the development process.
What does the process look like?
PDP, Agile, Lean, Six Sigma. While virtually every company names the process and its steps differently, they all move through a similar process. First, a company will generate a concept, make a prototype (or more), test it, and repeat as necessary. Throughout this loop, the design will be refined until it meets the requirements and can be successfully built at the desired price. These iterations may happen within two or three cycles, or they may take many more. It really depends on the product and the experience level of the designers. That being said, you can always expect some iterations to occur. Nobody can think of everything and refinement will always be necessary. You can’t refine without learning from your prototype and you learn by testing. Don’t skip the testing. You’ll want to minimize the cost of those iterations and maximize how much you can learn from each.
What are your capabilities?
Related to the above, a company’s capabilities are critical to reducing iteration time and maximizing learning. Do they have in-house prototyping capability? Do they have the right kind of design for your product (Industrial, Mechanical, Electrical, etc.)? Do they have processes that allow them to move quickly and easily disseminate information? After all, design is really about generating information. Manufacturing is about turning that information into a product. Garbage in equals garbage out.
Are your staff capable of handling my project?
The staff have as much or more of an impact on a project than overall capabilities. Trained and experienced staff can move quickly and eliminate ideas that they have already tried. Similarly, you’ll want some fresh blood to make sure all ideas are being considered. For more information on finding the right team, check out our other blog post.
What is our process?
Most folks usually remember to look at work examples and talk to personnel, but few remember to look over a potential design house’s processes. Are they lean and mean? Do processes even exist? Without good processes in place, mistakes can easily happen, data can get lost, and disaster can occur. Take the time to ask about processes.
DECISION STAGE: How do we buy?
Now, it’s time to buy. You’ll be working with the company to figure out how to do this. How will you work together? Who is responsible for what? How do you hit the eject button if needed?
What do you get for your money?
By this point, a lot of inventors and new managers are so excited that they often skip the simple step of identifying what the end looks like. Going through the exercise of making a contract, even a simple one, can help both parties get on the same page. Who is responsible for which part? How will this be communicated? What will you get for your money and how much do you owe by when? For bigger contracts, having a lawyer look things over can make a lot of sense.
What do I do if I want out?
Not all relationships are meant to be. For one reason or another, you may want out. Be sure how this occurs is spelled out in the contract and that it is reasonable for both parties.
Can you work at my facility?
Be careful requiring contractors to work at your facility. This reason is twofold in our minds. First, this can sometimes lead to confusion about whether the contractor is indeed a contractor or an employee. This can impact your taxes, among other things. Second, a lot of the best contractors and companies will simply not do this. They prefer to work from their own facilities, for a number of reasons, and will go elsewhere if they can no longer do this. So, the bottom line is that you can ask, but don’t require it.
LOYALTY STAGE: Why should I keep coming back?
Great! The job is finished and the project is over. What do you do with the next project? Now is the time to evaluate, if you haven’t already, what you thought. Did the project go well? What didn’t work that could be improved. Have a postmortem with your design house and give them honest feedback, good and bad. Would you use them again? Why or why not?
Why should I keep coming back?
No road is perfect, but did you at least get what you paid for? If so, it might be worthwhile to use them again. At Flying Pig Designs we aim to go above and beyond. Delivering more than you paid for not only maintains a solid relationship, but raises the bar for everyone involved. Also, did all personnel treat you with respect? Including the Executives and VP’s? Nobody should be cussed at in meetings or yelled at over the phone. Ever. Don’t stand for that.
If you would like to learn more, please check us out at Flying Pig Designs and let us know how we can help.
Keir Hart is a mechanical engineer and product development coach with 15 years of experience in consumer and medical device design. Keir is on a mission to grow a passionate, high-performing, human centered design company focused on improving the world around us and delivering clean, quality, manufacturable designs to our customers. If you need design assistance, be sure to look us up at www.flyingpigdesingsllc.com or on LinkedIn.