This is a question that we get asked a lot when our clients are developing a new product and want to use an outsourced and contracted R&D team such as Innovolo.
Parts and materials used while prototyping a product will be charged to you, the client, at cost +50%.
Why does Innovolo put a markup on parts and materials?
We put a markup on the parts and materials that our clients use for prototyping because it is not cost-effective to purchase small quantities of parts and materials for relatively low quantities of products.
There are also other factors to consider, such as the fact that there are shipping costs and admin involved with getting the parts and materials to us, which will need to be included in these prototyping costs.
How can I avoid this parts and materials charge?
If you want to source the components yourself issue them to us free of charge and we can assemble the prototype and test your designs for you.
However, this is not always the best option as it can cause delays and increase the prototyping time.
In addition, you will need to be certain that the components are the correct specification for what we are designing.
In short, it can create extra complexity and a higher margin of error creeping into the project.