How to Cost Your Product Properly (Design-to-Cost Explained) | Paul Adams

Getting your product to market is one thing. Making sure it’s profitable is another. In this episode, Adrian is joined by Paul Adams to break down how product costs really work, and why so many teams get it wrong. From BOM and tooling to logistics and hidden costs, they walk through what goes into your final unit price and how to avoid nasty surprises before launch. They also explore practical design-to-cost strategies, including value engineering, supplier decisions, and smart trade-offs that can significantly reduce costs without compromising quality. If you’re developing a product and want to protect your margins, this episode will help you think about cost the right way: early, holistically, and strategically.   Episode Sections: 00:00:12 — What Is Design-to-Cost? 00:00:49 — Why Costing Is Often Overlooked 00:01:55 — The 4 Core Cost Drivers (BOM, NRE, Tooling, Logistics) 00:05:24 — Value Engineering & Smarter Design Decisions 00:08:54 — Reducing Assembly Cost & Complexity 00:10:10 — Supplier Strategy: Cost vs Quality Trade-offs 00:12:20 — Tooling Costs & Budget Pitfalls 00:15:04 — NRE Explained: Hidden One-Time Costs 00:19:40 — Logistics: The Most Underestimated Cost 00:22:52 — Design for Cost: How to Reduce Product Cost 00:28:08 — Why You Must Think About Cost Early 00:31:47 — Biggest Costing Mistakes to Avoid   Related content… Design for Manufacturing (DFM) Why Product Idea Validation Is Crucial Before Spending Big on Development Product Design Cost: 10 Factors That Affect Electronic Products 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   This episode is brought to you by The Sofeast Group and includes links in the show notes to our blog posts and resources, and recommended books. For help with manufacturing in Asia, inspections, auditing, new product development, contract manufacturing, 3PL warehousing and fulfillment, visit sofeast.com.    Get in touch with us Connect with us on LinkedIn Contact us via Sofeast's contact page Subscribe to our YouTube channel Prefer Facebook? Check us out on FB