I am currently developing a product, a software/hardware design concept that is quite complex.
I began working on this concept months ago in my apartment using a simple arduino board and a few small gadgets and electrical components ... but I was way in over my head because this is a HUGE project that requires a multitude of engineers and a full team to get it done.
The concept is already mainstream and has a huge following. Its actually a product duplicated a few times on kickstarter and indiegogo, all being quite successful on those crowdfunding platform (~ $500k+ average); My idea, however, combines whats already on the market with a twist, a niche thats already in high demand.
I have spoken with a few factories in CHina about developing the hardware and software for this product but it comes at a high cost... VERY HIGH cost.
$40,000 to develop the software and hardware and an additional ~$20,000 for the mould.
That was what all the manufacturers were asking so this is the actual going rate. I have thought about this long and hard and have decided to go ahead with it. Of all the manufacturers, I have found one that is ideal and can turn my idea into concept in about 6 months (Other company wanted a year).
So here is my plan, get together $20k by the end of the week (They only require 50% of development down). After receiving first prototype in about 3 months, Ill start a huge kickstarter campaign showcasing my product. I have plans on bringing on someone onto my team who has experience in launching products plus I have been doing extensive research on creating the most effective campaigns possible.
My funding goal would be to raise atleast $400k via crowdfunding and hopefully with excellent marketing and hardcore campaigning, Ill have a lot more than that. Afterall, if my competitors can make $500k with a product not as technologically advanced as mine, then I know I can. Plus I'll be fixing the issues that their customers are currently having with their product, which is alot.
So if all goes as plan, Ill only be spending $20k out of pocket with the "hope" that I have a successful kickstarter campaign.
I know its possibly not the smartest idea to base the success of a new business on a kickstarter campaign but after months of working 24/7 on this concept, speaking with engineers, developers, and manufacturers... I know this product, I know my market, and I just know that this product will be a hit. The market research has already been done, its a proven concept, and the demand is there.
Heres a breakdown of the developmental cost:
[FONT=Calibri, sans-serif]1
CBA Designing and Alignment, testing : 15,000.00 USD[/FONT]
[FONT=Calibri, sans-serif]2:Software for this device and software customized for functions clients requested: 15,000.00 USD [/FONT]
[FONT=Calibri, sans-serif]3: structure designing: 5,000.00 USD.[/FONT]
[FONT=Calibri, sans-serif]4: components samples cost and engineering prototype(5 sets). 5,000.00 USD [/FONT]
[FONT=Calibri, sans-serif]T[/FONT][FONT=Calibri, sans-serif]otal in sum: 40,000.00 USD[/FONT]
Expected Unit cost (MOQ 3000), $95/pcs = $285,000
Mould: ~$20,000
Importing and other miscellaneous fees: ???
Grand Total: >$345,000
Please let me know your thoughts on this. All feedback is welcome!!!
p.s. Expected to resell at $199/pcs
Edit: I gotta admit that Im scared out of my mind to drop so much money on an idea, but a very successful man once said to me: If you knew that there was a million dollar behind that door waiting for you, but the key to open the door cost $50,000. Would you be the one complaining about how expensive the key is, or would you be the one making shit happen to get that $50k. I chose the latter.
I began working on this concept months ago in my apartment using a simple arduino board and a few small gadgets and electrical components ... but I was way in over my head because this is a HUGE project that requires a multitude of engineers and a full team to get it done.
The concept is already mainstream and has a huge following. Its actually a product duplicated a few times on kickstarter and indiegogo, all being quite successful on those crowdfunding platform (~ $500k+ average); My idea, however, combines whats already on the market with a twist, a niche thats already in high demand.
I have spoken with a few factories in CHina about developing the hardware and software for this product but it comes at a high cost... VERY HIGH cost.
$40,000 to develop the software and hardware and an additional ~$20,000 for the mould.
That was what all the manufacturers were asking so this is the actual going rate. I have thought about this long and hard and have decided to go ahead with it. Of all the manufacturers, I have found one that is ideal and can turn my idea into concept in about 6 months (Other company wanted a year).
So here is my plan, get together $20k by the end of the week (They only require 50% of development down). After receiving first prototype in about 3 months, Ill start a huge kickstarter campaign showcasing my product. I have plans on bringing on someone onto my team who has experience in launching products plus I have been doing extensive research on creating the most effective campaigns possible.
My funding goal would be to raise atleast $400k via crowdfunding and hopefully with excellent marketing and hardcore campaigning, Ill have a lot more than that. Afterall, if my competitors can make $500k with a product not as technologically advanced as mine, then I know I can. Plus I'll be fixing the issues that their customers are currently having with their product, which is alot.
So if all goes as plan, Ill only be spending $20k out of pocket with the "hope" that I have a successful kickstarter campaign.
I know its possibly not the smartest idea to base the success of a new business on a kickstarter campaign but after months of working 24/7 on this concept, speaking with engineers, developers, and manufacturers... I know this product, I know my market, and I just know that this product will be a hit. The market research has already been done, its a proven concept, and the demand is there.
Heres a breakdown of the developmental cost:
[FONT=Calibri, sans-serif]1
CBA Designing and Alignment, testing : 15,000.00 USD[/FONT][FONT=Calibri, sans-serif]2:Software for this device and software customized for functions clients requested: 15,000.00 USD [/FONT]
[FONT=Calibri, sans-serif]3: structure designing: 5,000.00 USD.[/FONT]
[FONT=Calibri, sans-serif]4: components samples cost and engineering prototype(5 sets). 5,000.00 USD [/FONT]
[FONT=Calibri, sans-serif]T[/FONT][FONT=Calibri, sans-serif]otal in sum: 40,000.00 USD[/FONT]
Expected Unit cost (MOQ 3000), $95/pcs = $285,000
Mould: ~$20,000
Importing and other miscellaneous fees: ???
Grand Total: >$345,000
Please let me know your thoughts on this. All feedback is welcome!!!
p.s. Expected to resell at $199/pcs
Edit: I gotta admit that Im scared out of my mind to drop so much money on an idea, but a very successful man once said to me: If you knew that there was a million dollar behind that door waiting for you, but the key to open the door cost $50,000. Would you be the one complaining about how expensive the key is, or would you be the one making shit happen to get that $50k. I chose the latter.
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