Some companies realize their developed product is too expensive and ask,
“How can we reduce the cost?”
But in most cases, that’s the wrong question, and it comes too late.
By the time you reach that stage, the product’s cost structure has already been largely defined by earlier design decisions: the components selected, the product architecture, and how it needs to be manufactured and assembled.
Trying to reduce cost at that point often leads to compromises, redesigns, or pressure on suppliers, none of which are reliable ways to build a sustainable product.
A more effective approach is to address cost from the beginning, by defining a realistic target and designing the product to meet it.
Join us as we explore why products become too expensive to manufacture, the most common mistakes teams make, and how to control cost early through better design and development decisions.
Listen to the audio here or on Apple Podcasts · Spotify · Amazon Podcasts · Deezer · iHeartRADIO · TuneIn.
Episode Sections:
- 00:00:03 – Introduction & industry context
- 00:01:15 – Why reducing cost late rarely works
- 00:02:09 – How costs get locked in early
- 00:04:58 – What “design to cost” really means
- 00:06:59 – Designing within cost constraints
- 00:10:29 – The biggest cost reduction levers
- 00:11:29 – Cutting features without losing value
- 00:14:35 – Main drivers of product cost
- 00:19:04 – Common mistakes that increase costs
- 00:26:19 – Why simplicity improves cost and reliability
- 00:27:19 – Practical design-to-cost strategies
- 00:30:29 – Case study: the Coolest Cooler failure
- 00:31:49 – Final takeaway: design for cost from day one
Further Reading
- Design for Manufacturing (DFM)
- The New Product Introduction Process Guide
- The Benefits of a Feasibility Study (during new product development)
- 7 Must Do New Product Introduction Tasks For Successful Product Launches
- The Design for X Approach: 12 Common Examples
- Elon Musk’s New Product Introduction Philosophy: What Can We Learn? [Podcast]
