4 Critical Points Overlooked When Preparing a New Product Development Budget

When planning budgets for new product development projects, we observe that some cost items are not included in the initial calculations, especially for medium and small-scale businesses that do not operate in this field continuously. Here are 4 critical points to consider:

Erdem Güven

3/21/20251 min read

Prototype Costs:

Prototypes will be used not only for visual control and display, but also for user feedback, performance and certification tests. In addition, at the end of the tests and reviews, it may be necessary to produce new prototypes due to design changes or products that fail the tests and become scrap.

Testing and Certification Costs:

Testing and certification processes that will be carried out by external organizations in order to offer your product to certain markets or to meet certain customer demands may bring costs beyond the planned budget.

Intellectual Property Costs:

Procedures such as patent, utility model and trademark registration to prevent the designed product from being copied may require additional budget along with consultancy and procedural costs.

Design Change & Modification Costs:

Even if a new product successfully passes the conceptual design and testing processes, it may require additional design revisions due to problems identified prior to mass production or changes in the supply chain. This may require repeating the testing process, modifying or even remanufacturing production tools such as molds and lines. Even the best designs can change shape during the production process!

Why Is It Important?

Failure to include these cost items in the initial calculations may significantly alter the feasibility analysis and final pricing of the product.