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Cost Estimate Engagement

A detailed look at the product Bill of Materials (BOM) to provide the customer with pro forma capital requirements to bring the product through production and get it into the hands of their customers.

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Great for

  • Companies with a final prototype that are planning for scaled production
  • Companies trying to establish a budget

More details

  • Based on your documentation, Dragon will help you to establish your budgetary Cost of Goods Sold (COGS) pricing, including: Tooling, Materials, Shipping & Packaging, Labor, Overhead & Profit, Scrap, High-level Payment Terms, etc.
  • The budgetary projections will provide you with the high-level capital required to bring the products into production
  • You will receive: Insights regarding your BOM, a comprehensive report on estimated costs, recommendations for next steps

Benefits

  • The goal is to understand the potential range of costs based on the experience of the Dragon team, estimates based on proxy products, and focused research on limited critical components. This information enables teams to better understand pricing and to make tradeoffs on costs vs. features
  • This engagement can be useful for companies seeking budgetary insights to inform internal project approval or investor due diligence prior to fundraising, and/or setting pricing

Engagement Framework

  • Flat fee for service with pricing based on product complexity/number of components
  • A bound engagement, or can be combined with other services as part of a custom engagement
  • With prerequisites provided by the customer, the estimated length of engagement is 2-4 weeks

Pre-requisites

  • BOM (80-90% complete, .xlsx or .xls format)
  • Design files: CAD package (80-90% complete, ideally .stp format)
  • An integrated works-like/looks-like prototype
  • Volume projections

I'm glad we went through Dragon. They really helped with understanding all the costs associated with this product domestically and overseas. If we break MOQs for overseas manufacturing we will definitely pursue with Dragon's RFQ and PM services.

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