Throughout the product development and manufacturing process, reducing costs, improving efficiency, and maximising profitability are core goals for most buyers and brand owners. As a professional OEM/ODM cleaning appliances factory, we’ve been providing end-to-end manufacturing solutions to global clients for 20+ years. During that time, we’ve observed a recurring problem: when bringing new products from concept to mass production, many focus primarily on visible costs, such as unit price, R&D expenditure, or logistics fees.
However, it is often the hidden costs, such as communication costs, assembly inefficiency costs, quality control costs, or product change costs, etc., that hinder long-term profitability. They may not be a must, but they are easy to occur in most projects. And these costs aren’t always obvious from the beginning, but as the project progresses, they may delay the time-to-market, even directly impact overall profit margins and market competitiveness.
In fact, from a new product introduction (NPI), there are a few key stages during development and production where better coordination and control can effectively reduce or even eliminate most hidden costs.
Product Definition Stage: A Clearer Product Definition
One thing many businesses fail to recognise is this: unclear product definitions at the start of development are often the cause of various hidden costs. Vague requirements, unclear core functions and performance expectations, and a poorly defined target user profile inevitably lead to repeated communication, design deviations, and even costly reworks. All of these drive up communication and change management costs significantly. There is one case of a client who commissioned a custom UV disinfection device for pet products. During the initial discussions, they failed to clearly define the device’s primary vs. secondary functions or its specific application scenarios. This ambiguity led to repeated back-and-forth and design revisions, ultimately delaying the launch by 6 months and causing significant budget overruns.
So, how can we avoid hidden costs during the product definition stage? 1. In the Product Requirement Document (PRD), clearly outline the product’s application scenarios and target user profile. This will help R&D and design teams visualise the product more accurately. 2. The PRD should specify primary and secondary functions, along with key performance requirements, that will support tech teams to work for feasibility analysis and prioritisation. 3. Ensure that internal teams (marketing, sales, technical) and the OEM/ODM supplier fully align on the PRD, and freeze critical elements early. Avoid late-stage feature additions or direction changes. Done properly, these steps can eliminate most hidden costs at their source.
Product Development & Design Stage: Apply DFM and DFMA Effectively
Between the idea and the final product, multiple transition phases can give rise to hidden costs. Many costs that seem unavoidable during mass production are incurred during the product design stage. Overly idealistic designs that focus only on premium functionality or aesthetics and lead to a disconnect between design and manufacturability. This often causes problems like poor assembly fit, low production efficiency, and a high reject rate. These are commonly seen when product designers and manufacturers don’t work in sync.
To manage hidden costs at this stage, the key is effective use of Design for Manufacturing (DFM) and Design for Manufacturing and Assembly (DFMA): 1. Apply DFM principles during structural design to ensure components are easy to tool, mould and other production, and avoid overly complex features. 2. Use DFMA techniques to evaluate reasonableness and efficiency of the assembly process, and involve production engineers early to optimise workflows. 3. Use 3D printing, AI/MR, or other prototyping tools to validate designs and align them with PRD expectations. Conduct joint design reviews before locking in structural solutions or initiating tooling. Ensure that engineers from the project management, structure, electronics, and manufacturing disciplines jointly assess the plans to minimise costly post-tooling changes.
Pre-Production Stage: Rigorous Small-Batch Pilot Runs
Some buyers or brand owners, eager to fast-track product launches, may push for immediate mass production without pilot testing. This can lead to serious risks: discrepancies in standards between suppliers and manufacturers, undetected issues in tooling or injection moulding, unproven assembly processes, or quality control standards that haven’t been validated at scale.
But in fact, most problems like these can be avoided through small-scale trial production. Take, for example, an ODM project involving a kitchen fruit and vegetable washer. Before full-scale manufacturing, a pilot run of 50–100 units was organized(The quantity scale needs to be set according to the actual product characteristics). Real production line workers simulated the complete process, while project and quality teams carried out testing, ageing simulations, and usage scenario evaluations. Problems identified during this run will be corrected in time, preventing far more serious losses during mass production.
While batch sizes should be tailored to product complexity, a disciplined pilot run process is key to controlling hidden costs.
Steady Production Stage: Control Iterative Changes
All business operators hope that their products will continue to improve, so continuous product improvement and optimisation are a natural strategy. But poorly managed product iterations can easily lead to rising hidden costs that eat into profits: 1. Waste cost of stock due to uncoordinated and frequent design updates. 2. Repeated changes to process and quality documentation increase the risk of errors. 3. Frequent re-certification for compliance, leading to higher costs and delayed shipments. 4. Disruption of stable production cycles, affecting inventory planning.
Striking a balance between improvement and cost control isn’t hard. Use tiered change management and iteration cycles: 1. Strictly limit major iterations that affect production cycles or core materials. 2. Consolidate minor updates (e.g. packaging, add-ons, accessories) and implement them periodically instead of sporadically. So that will not only reduce hidden costs while improving the product, but also will avoid confusing customers with frequent changes in product appearance or positioning.
The visible costs are important, but it's often the hidden & unpredictable costs that will eat into your product’s profitability. Getting and managing the key points of each stage: product definition, development, pilot runs, and production iterations. This is important for achieving cost control and operational efficiency.
This goes beyond internal processes. It requires selecting a manufacturing partner with deep experience, strong cross-functional coordination, and robust process management. Experienced OEM/ODM suppliers can incorporate DFM/DFMA principles early on, identify risks through comprehensive pilot runs and maintain consistency through rigorous change management. This approach systematically eliminates hidden costs, enabling your products to enter the market faster, more reliably, and more profitably.
ATYOU Health Technology is a specialised OEM/ODM supplier of cleaning appliances, backed by over 20 years of technical expertise. We have extensive R&D and manufacturing experience and a standardised NPI process, our one-stop R&D and manufacturing services that will help you control both visible and hidden costs more effectively. If you’re planning to launch a new product, please feel free to get in touch with us to learn more.
No. 1-A, Kechuang Center, No. 289 Wengjiao Rd., Haicang Dist., Xiamen, 361000, Fujian, China
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