Product launch costs

✅ Why this step gives you full visibility before you go live

Launching a product isn’t just about building it—it’s about getting it out there.

Product launch costs cover everything beyond the bill of materials: tooling, packaging, certification, marketing, logistics, and team time. This step helps you avoid hidden surprises, plan realistic budgets, and make smart decisions about pricing, timelines, and funding.

📘 What you’ll map

  • One-time and recurring costs related to production, packaging, and tooling
  • Marketing, launch, and fulfilment expenses
  • Certification, legal, and compliance fees (e.g. CE, UKCA, IP)
  • Personnel, agency, or freelancer fees tied to go-to-market
  • Budget buffers for testing, iteration, or delays

🛠️ Tools and methods

  • Launch Cost Model

    Table of cost categories across tooling, production, packaging, testing, etc.

  • CapEx vs. OpEx Separation

    Highlight what’s a one-off vs. what recurs as you scale.

  • Cash Flow Alignment Sheet

    Map costs over time to track payment points vs. income or investment.

  • Pre-Launch Readiness Checklist

    Ensure all paid items are covered—manuals, inserts, shipping materials, etc.

  • Break-Even Calculator

    Estimate how many units you must sell to recover launch costs.

⚠️ Common pitfalls

  • Forgetting non-product costs. Your launch budget must include marketing, freight, compliance, and support.
  • Underestimating buffers. Things go wrong—build in margin for second batches, reprints, or unexpected customs fees.
  • No cash timing plan. Knowing what it costs isn’t enough—you need to know when it hits.
  • Not revisiting after changes. Every change in scope or channel affects launch cost—update frequently.

💡 From the finance desk

“Our tooling quote was clear. What we missed? £8k in CE testing, £4k for influencer kits, and £6k for a last-minute air freight run. Tracking launch costs in one place would’ve made all the difference.”

– Product Ops Manager, Outdoor Equipment Startup

💡 Review your product launch costs before placing production orders—not after you’ve committed cash.

🔗 Helpful links & resources

✍️ Quick self-check

  • Have we captured every cost category tied to launch—not just unit cost?
  • Are timing, payment terms, and cash flow mapped?
  • Do we know our break-even point based on actual total launch spend?
  • Is our team aligned on funding, spend risk, and launch buffers?

🎨 Visual concept (optional)

Illustration: A pie chart breaks down launch costs: 40% tooling, 25% marketing, 15% freight, 10% compliance, 10% buffer. A checklist below shows “Tooling PO – paid”, “Test lab invoice – pending”, “Promo shoot – booked”. A sticky note reads: “Need 1,200 units sold to break even”.

Visual shows how product launch costs go far beyond manufacturing—and why visibility matters before going live.
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