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Techniques for reducing product unit costs

Value engineering and Cost Reduction

Long term savings and increased profits

Increase profit margins and be more competitive

Reducing costs for electronics increases profits or allows you to reduce the price you sell at. Both will help you stay ahead of the competition.

Component costs are only part of the picture. We look at contributions to the cost including unnecessary features, manufacturing and assembly times. There may be quality issues driving re-work or rejection. We can reduce expensive connectors and components.

Our endeavours can lead to considerable cost reductions whilst still satisfying the needs of your consumer.

Ask us how to beat the competition 

Some sources of product cost
Review your product costs instead

Stop before you change a product

Cost reduction projects themselves cost money. There could be design, prototyping and testing costs. Where hardware is changed there will also be compliance costs.

Before changing the product it’s worthwhile to quantify both the expected cost improvements and the associated costs and risks using value engineering. This ensures that the margin improvements bring a return on the project investment and goes on to generate profit.

Savings Delivered by borrowing an Engineer.

Very low volume products with no design issues may not benefit from cost reduction techniques.  Conversely very high volume products can often generate significant profit improvements.

How we significantly reduced costs for a Smart Technology company.

Our other cost reduction focused services include:

Design review – See the whole picture

Extend product life – Get obsolescence protection

Power consumption reduction – Battery power letting you down?

7 ways to reduce product unit costs

Our full blog summarised

  • Eliminate costly but redundant features
  • Are your components weighing you down?
  • Utilise new technology to your advantage
  • Consider compliance early
  • Is your product development process too lengthy?
  • Be careful who you chose to partner with for manufacture
  • Get expert advice throughout the NPD process
  • Speak to us if you have questions
Value engineering that saves you money
Why is product cost reduction important?
Clients we've helped

Case studies from Ignys Ltd

Lets Work Together

Speak with us