Many product teams miss their biggest cost-saving opportunity in the design phase. Learn how to reduce manufacturing costs early through smarter product design, better material choices and scalable assembly strategies.
Cutting product costs at the production stage is too late. Most opportunities to reduce manufacturing cost happen earlier, during the design phase. Key decisions about materials, components and assembly define the final cost structure. Yet many businesses delay action until quotes from suppliers arrive and margins are already under pressure.
This guide outlines how product teams can reduce cost through smarter design decisions. Based on insights from Francesca Stephens, Head of Design at 42T, it delivers a strategic framework for cost-effective product development, without compromising quality or brand value.
A good design plan sets the course and avoids costly revisions, production delays and margin erosion.
Francesca puts it clearly: “The choice of manufacturing method at the beginning influences the cost hugely.”
If that decision comes too late, teams get stuck with avoidable costs they can’t unwind.
She’s right. Cost responsibility begins in design. The decisions made at that stage shape everything that follows. If your designers aren’t treating cost as a core part of the role, they’re missing the brief.
Here’s how smart companies reduce product cost; properly, strategically and without destroying brand value in the process.
1. Lock in cost early with smart product design
The majority of product cost is baked in before the first prototype hits the workbench. But most teams consider product design and cost control as separate exercises.
Francesca pointed to a banknote counter redesign as a clear example of cost-effective product design that scaled efficiently in manufacturing. The original used bent sheet metal, relied on dozens of screws and was slow to assemble. Fine for a prototype, but inefficient at scale. The redesign introduced injection-moulded housings, a cleaner form, fewer parts and faster assembly. This resulted in lower unit cost and stronger quality control.
2. Design for manufacture and assembly to cut cost
Complexity doesn’t signal intelligence. The best products are built on disciplined simplicity, where every element earns its place and unnecessary parts are cut without compromise.
Design with production in mind. Or pay for it later.
Design for Manufacture (DFM) and Design for Assembly (DFA) are non-negotiable. They’re the foundation of a product that protects margin and scales cleanly.
Francesca offers some alternative methods:
- Snap fits instead of screws.
- Single-piece mouldings instead of complex assemblies.
- Shared components across SKUs.
Francesca suggests these design swaps: “It’s better to have the same fastener everywhere than have multiple different types. That will reduce labour time as well as component cost.”
As well as being practical, standardisation improves scalability, reduces cost and simplifies sourcing, assembly and support.
Every extra part is another chance for cost, error, delay or failure. If you want to reduce your product cost, start by simplifying.
3. Choose materials that support function and brand
Material cost goes way beyond the price per kilo. It shapes perception, supports function and signals brand intent.
Sure, you can switch from aluminium to plastic and shave a few pounds (or dollars). But will your customer accept it? Does it feel right? Does it reinforce your positioning?
Apple chooses aluminium for a reason. It looks premium, feels durable, ages well and reinforces the brand.
Finishing choices carry cost, too. As Francesca notes: “It’s more expensive to have a shinier finish on a product than it is a matte finish.”
Small aesthetic upgrades can compound costs across a product run.
The difference isn’t cost. It’s judgment. Smart choices serve the product and the brand. Poor ones just create problems later on.
4. Reduce manufacturing waste with better design
Many teams assume waste appears on the factory floor. Francesca sees the real source in overbuilt designs from day one.
Each extra part, oversized spec, or nonessential feature adds cost later. Scrutinise your Bill of Materials (BOM) and CAD files for opportunities to reduce manufacturing cost through design simplification and standardisation.
And question every component:
- Do we need it?
- Is it over-engineered?
- Can it be shared across other products?
Francesca poses the right questions: “Can you redesign some of the parts to be easier to manufacture a different way? Can you combine, or get rid of, some components?”
Efficient design starts by interrogating the need for every element.
Francesca’s advice: reuse where possible, question where necessary and never over-spec without cause.
5. Design for lifecycle to drive profitability
The right-to-repair starts with access. Lower service costs can mean designing in a swappable battery. Fewer warranty claims can be the result of choosing finishes that last in the real world.
Greenwashing doesn’t enter the equation. Fewer returns, fewer complaints and longer customer relationships come from better design. It’s straightforward commercial logic.
And it’s only going to get more important as regulations like the EU’s PPWR and EcoDesign rules start biting harder. Building for lifecycle now avoids rushed, expensive fixes later.
6. Bring cost planning into early product development
Francesca’s message is simple: cost runs through every design decision. It’s embedded in the process from the beginning. It’s a mindset. You design with it from day one.
That means full cross-functional alignment – design, procurement, operations and marketing – are all aligned from day one. It means briefing the design team with margin targets. It means auditing your range and finding where reuse is possible before the first sketch.
Francesca highlights that: “The first thing to know is the predicted volume, this will inform the manufacturing method.”
Without clear direction, teams often design at the wrong scale and lock in complexity that could have been avoided.
The smart teams design with repeatability in mind. Their briefs prioritise scale over standalone styling.
7. Avoid assembly pitfalls with prototyping discipline
One mistake Francesca sees again and again is ignoring assembly.
Designers deliver CAD files that look great on screen but fall apart in reality. One fix Francesca suggests is simple: make cardboard prototypes. Mock it up full-size. Try building it. This way you can start to see how each component fits together, as well as getting early feedback on whether the design has failed.
It’s straightforward, low-tech, and it catches problems early.
8. Quick wins to reduce manufacturing cost
When it comes to looking for fast improvements, Francesca starts with a checklist:
- Tear down a competitor’s product. Chances are, they’ve solved problems you’re still paying too much to build.
- Audit the BOM.
- Challenge every spec, finish and fastener.
- Look for components you can share across SKUs.
Francesca says: “The first thing I would do is that strip-down activity. So, take it apart, look at materials and the manufacturing methods.”
It’s fast, hands-on and brutally effective. The kind of move that separates proactive teams from reactive ones.
9. Keep cost reduction invisible to customers
Then there’s the litmus test; can you cut cost without the customer noticing?
If they can’t tell, you’ve done your job. If they notice something feels cheaper, breaks sooner or looks worse, you’ve cost the brand more than you saved.
The best design changes are invisible. The product still delights. It just costs less to make, assemble and ship.
Product design Is the first lever of cost control and profit
Most companies treat cost as a finance problem. The smart ones recognise it as a design opportunity.
Francesca’s advice is clear: cost is strategic. Cut it early. Cut it intelligently. Cut it invisibly. And do it all without compromising what the customer actually values.
You don’t compete by building cheaper. You compete by building smarter. And it starts with design.