Cost Reduction

With our background in consumer products, cost reduction is built into the very fabric of our development approach.

Before launching Venture, the company’s founders accumulated long experience developing low-cost products for large consumer markets. Thanks to this experience, we know how to select the appropriate technology for a project, source components strategically, and choose the right manufacturing strategy to deliver optimal unit cost.

In addition to driving cost as a fundamental design goal in our developments, we are often asked by our clients to cost reduce their designs: we saved one Fortune 500 company millions of dollars by enhancing and cost-reducing an extensive product line. For another client, we reduced a product’s unit cost from $50+ dollars to $18 dollars – a savings of 65%.

To control product unit costs, we consistently apply the following principles:

  • Focus on unit cost from the start of the project.
  • Clarify intended product volume and manufacturing strategy, including volume ramp-up strategies.
  • Design the product using the best, but lowest cost, technology to meet product requirements.
  • Consider functional consolidation to reduce component count.
  • Select and source key components to meet product design goals.
  • Design based on volume and manufacturing strategy (e.g., offshoring) to meet cost and rollout goals.