Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Developing New Products and other Invention topics.
In the beginning stages of evaluating a new product idea, it can be difficult to figure out how much it will cost to manufacture your new product. At some point, you will need to develop new product manufacturing estimates with a professional manufacturer. But for evaluating the viability of your new product idea, here's a way to get a sense of what you may be getting into.
According to asktheinventors.com, most products need to retail at four to five times the cost of producing them. So, if you can find a similar item (physically speaking) and divide its retail cost by four or five, you can get a very rough idea of your manufacturing costs. For this rough estimate, you will be looking for a product that uses roughly the same materials in a similar quantity.
|Jennifer Mathes, Ph.D.|