How much would you charge for a prototype? - Page 1
Forum section: electronics / general

author: Alana
author_rank: Frequent Contributor
timestamp: November 15, 2012, 10:25:40 pm
content: I was asked to make a prototype of aquarium automatization system.It has to regulate temperature, switch on/off pumps and lighting and sound warning alarm if one of parameters: ph of water, salt in water, water level is out of bounds, preset in the device.Question is:How much would you charge for each level of developing this device from scratch to complete assembled in a box prototype. Work only, including etching boards at home.Assume that I'm doing it as a hobbyist so legal matters are not into consideration.

author: 8086
author_rank: Super Contributor
timestamp: November 15, 2012, 10:56:51 pm
content: Depends how long you expect it to take, and how professional the end result will be. Also the deliverables. Will you provide design files, or just manufacturing files? No files? Any support? Documentation? Are you asking for cost including parts or just develpoment and parts separately?As a roundabout estimate, assuming full dev and parts, programming, etc. and providing the design files at the end, give it a few months and about £4-5k probably for full development and delivery.

author: Psi
author_rank: Super Contributor
timestamp: November 15, 2012, 11:46:46 pm
content: i made a prototype which consisted of- RS232 input (with MAX232)- 10bit SPI DAC- One opamp- ATtiny2313 mcu with trivial code to read a serial string and output voltage based on the data- Usual power related stuff 7805 etc.It was made on home etched PCB and intended to prove the concept worked.I charged NZ$1500 for the prototype and NZ$150 for each unit i made professionally from then on.

author: Psi
author_rank: Super Contributor
timestamp: November 16, 2012, 02:22:06 am
content: Quote from: DiligentMinds.com on November 16, 2012, 01:52:36 amYeah, use a proper PCB manufacture if you can. The reason i made my own prototype PCB was because they wanted a proof-of-concept right away and i had zero time to get a board made. Once they were happy with the prototype i got boards made professionally for the actual productBut as for china companies knowing how to properly dispose of chemicals. hahaha.Yeah, i'm sure they "know" how to.

author: G7PSK
author_rank: Super Contributor
timestamp: November 16, 2012, 06:54:54 pm
content: Quote from: Psi on November 16, 2012, 02:22:06 amThat is what the Yangtze is for, insn't it?

author: Smokey
author_rank: Super Contributor
timestamp: November 16, 2012, 08:42:52 pm
content: What DiligentMinds.com said. Great post.The only things I would add, is make sure you look at similar commercial products for price, features, and quality and compare your solution to that. If the commercial solution sells for $1500 and your thing does the same thing, then assuming you have the same quality you could sell yours for $1500 as well. Don't cut your own throat on price just because the components are cheap. Sell it for what the market will bear.The other reason to look at commercial solutions is to make sure you both are on the same page as far as how much it would cost. Using the above fictional price of $1500 per commercial unit, if your prototype thing is going to cost $5000 after R&D cost to do the same thing and the guy only wants a couple, its not economical for either of you unless your thing has an additional $3500 worth of features or he plans on buying a huge quantity. Take the cost of a system of multiple commercial products that together includes all the extra functionality you are proposing as well. It might still be less than what you could do for a prototype.I'm assuming you are doing this as a hobby, but if you were going to start a company in the aquarium automation industry, you could use this first customer as a platform to help subsidize the R&D necessary to develop the technology that will go into your other products. You could give the guy a break on the R&D cost because you are going to use that same platform to make a bunch of money with other products and other customers.The easiest way to go if you are not a professional is to "no bid" anything that isn't for yourself or for a really close friend or something who knows it won't be professional quality and accepts that risk. You either learn the right way to make a commercial product from other experienced engineers who can catch your mistakes, or you make those mistakes yourself and run the risk of killing someone's $10K (or way more) system like AcHmed99 said.

author: Alana
author_rank: Frequent Contributor
timestamp: November 16, 2012, 08:54:19 pm
content: Tank you, i will use this knowlege.

author: EEVblog
author_rank: Unknown
timestamp: November 16, 2012, 10:26:23 pm
content: Quote from: DiligentMinds.com on November 16, 2012, 01:52:36 amFinancial (debt) only perhaps, that does not extend to personal legal responsibility.That seems to be a common misconception. That if you do something under a company name instead of a sole trader, that you are somehow absolved of all personal liability. That is not the case (at least in this country).If youdeliberatelyor knowingly do something that causes a major issue (that results in a death or injury for example) then that legal framework won't save you. That also extends to employees of a company.One company I worked for gathered everyone together and got a lawyer in to explain this to all employees once.Dave.

author: ejeffrey
author_rank: Super Contributor
timestamp: November 17, 2012, 01:26:49 am
content: Quote from: EEVblog on November 16, 2012, 10:26:23 pmDave is right on the money here, but it bears repeating. "limited liability" in the context of corporations applies to the investors/owners, not employees.

author: T4P
author_rank: Super Contributor
timestamp: November 17, 2012, 03:58:59 am
content: It's not true here either, if somebody wants to sue a company they can sue the entire company.

author: Alana
author_rank: Frequent Contributor
timestamp: November 22, 2012, 07:59:36 pm
content: Well - legal system varies from country to country, that's why legal advice that works in US or Australia may, and propably will not work here in Poland. This is why i asked to skip the subject.About the rest - i think i know where i stand, and i know me and my friend charged way too little for what i was asked for. Thank you.