9 QUESTIONS TO EVALUATE A PRODUCT DEVELOPMENT FIRM
Finding a great product development firm can be a challenge. There are firms of all shapes and sizes, and prices can vary by hundreds of dollars an hour. Selecting the right one is a process, but one that is well worth it if you want to grow your business.
Below we have complied a list of questions you can use to evaluate any prospective firm. We have included answers to look for and pitfalls to avoid. We hope they bring you value and you use them to build a better business.
1. ARE THEY EXPERTS ON YOUR TECH?
Look at your project and try to think of what technologies it will require. Will it need complex mechanical mechanisms, hydraulics, pneumatics, electrical hardware , software programming, etc.? Now ask the firm if they have someone on staff who is experienced with those components of the design.
Technologies such as these all require a certain expertise. Without someone that is experienced in working within that discipline, the firm may have difficulty in designing that aspect of your product.
For example, Forge Product Development does not currently have a software engineer on staff. Therefore, if you know your product will require coding, then our firm is not the best fit for that specific project. On the other hand, we are very experienced with mechanical mechanisms, so we excel when it comes to that type of work.
2. HAVE THEY DESIGNED FOR YOUR MANUFACTURING PROCESS?
Look at the portfolio of the company and see if the products they have designed use similar manufacturing methods (such as machining, forming, injection molding, casting, welding, 3D printing, etc.) to what your product will need.
Each manufacturing method has its own design rules. Parts designed within these constraints will be easier and less expensive to produce by that particular process. It is important for the firm you choose to have experience with the relationships and limitations of the manufacturing processes your products need, so that they can design manufacturability into your components.
A simple example can be found in machining. Here, there is a recommended maximum diameter to depth ratio on drilled holes. Though these limits can be broken by using more advanced tooling and techniques, this will drive up the cost of your parts. An experienced engineer will know the specific design rules for your process, and may be able to design within them to keep part costs low.
3. ARE THEY INVOLVED IN YOUR INDUSTRY?
Again, look at the company's body of work and compare it to your products industry. Does the company have experience in your space?
Industry specific experience has several advantages. It improves communication between you and the firm, as they will understand and use your unique jargon, and it can reduce time to market, as information that would require research may already be available through the firm. The biggest impact, however, is in the improved quality of design feedback.
If the firm is truly present in your market, they will have attended trade shows, used your competitors products, and talked with, or be, your end consumer. This means they can bring a lot more to the table when it comes time to generate product ideas and improvements, because they truly understand the experience you are trying to deliver.
4. CAN YOU TRUST THEM?
Stolen IP is a concern in many industries, and the thought of working with a firm only to have them turn around and steal the idea you were building your future on can be terrifying. However, without fully trusting the firm and sharing your ideas and knowledge, they will not be able to deliver you the best product possible.
There are ways to protect yourself, and you can and should have the firm sign a NDA, but enforcing any breach of contract can be expensive and time consuming. The ultimate defense against this is to hire a trustworthy firm. Look for firms that have a good reputation in your industry and have been around for a few years. Also, look to see if they are trying to build a real relationship with you and other clients. If they are investing in long term partnerships, then they have a good incentive to keep the relationships healthy.
5. DO THEY HAVE CAPACITY?
Make sure the firm has enough engineers to tackle your project. If you are building a bridge, a single engineering may be able to do the work, but it would take years to get everything done. However for a consumer product, one or two engineers may be able to knock it out relatively quickly.
For specific projects, ask the firm when they will be able to begin working on your product, and for an estimated completion date. These times may shift as normal development issues arise, but these dates will give you an idea of how long you will have to wait in the company's queue and how quickly they will be able to complete your project once they start.
6. DO THEY DELIVER QUALITY?
There are a lot of ways to measure the quality of a design. Does the product match what you had envisioned? Are the drawings dimensioned and toleranced properly? Are the CAD models accurate and flexible? All of these, however, are project specific and will be difficult to evaluate before you work with the firm. You can always ask their references, but we feel that if the firm has answered the rest of the questions well, the best way to evaluate their work is by doing a test project.
7. DO THEY COMMUNICATE WELL?
The ability to communicate effectively within a team is critical to its success. When members of the team are not in your office every day, you cannot rely on the serendipity of bumping in to each other in the hallway to discuss project status and stay on track. In order to be successful you must find a partner that can close the communication gap.
Ask the company how and how often they will communicate during a project. The company should be using modern tools to work effectively from offsite. Video conference calls with screen sharing can be a great asset, as they allow for real-time visual feedback and communication. Though it may have an unprofessional stigma, text messaging is also a great resource. We have found it has a faster response time, and incorporates video or photos easier, than email.
A great firm will be proactive in their communication. This means they will be constantly checking in with you to get feedback and update you on the project without you having to ask. If your project deadlines are constantly slipping without a good explanation, and the project lead is not at least acknowledging your calls or email with 24 hours, you may want to look for a more attentive firm.
8. WILL THEY BE A LONG TERM ASSET?
If you are looking to grow your business over the next few years, a quality product development partner can be a great resource, but not if they close their business three months after you find them. There are real advantages to finding the right company and then working together over time. Projects will be completed for less time and money, with fewer missteps, and produce better products, as you build on prior shared experience. When you are selecting a firm to test drive, look for one that will be around long enough to reap those benefits.
To gauge the future longevity of a firm, first look for a formal business organization (LLC, Inc., etc.). A real business organization is much more likely to be interested in helping their client after five years, then a freelance engineer that was moonlighting to pay for a new car. If they are organized, look to see how long they have been around, very young firms may be a steel early on but may not be around long if they don’t reach a sustainable size. Another thing to look for is continued investment and planning for the future. Ask the firm what new technologies they have purchased recently, or what their plans for future growth are. If the answers are unclear, they may not be looking at the long term.
9. ARE THEY WELL PRICED?
Last, but certainly not least, price should always be a factor when making any buying decision. Best practices for investing in any other asset for your business apply to buying a product development firm as well. Learn what a reasonable price is for your market, not just a firms hourly rate, but on a project basis as well.
Notice that the question is not "Do they cost less?". If there is one thing to take away in regards to price, it is to not fall into the trap of comparing hourly rates or projects costs, without evaluating the other eight topics we discussed above. An overseas draftsman will always win on price, but will you be able to communicate well with them and trust them not to disappear with your IP? A small firm may charge more, but be super specialized to serve your industry and provide great service. Your company will value the topics discussed here differently than another. Figure out what you value most, then find a firm that over delivers in those areas for the best price.
You now know the questions to ask when evaluating a product development company, and the answers you should hear if they are a good one. Keep in mind, a lot of these topics are intangible. This is why we feel that these questions should serve as a course filter when picking a firm. The next step should always be to put those that have good answers through a trial run.
Learn more about how to get the most out of your trial in our post "Why and How to Test Drive a Product Design Firm".