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How much does industrial design cost in Australia
An honest breakdown
The cost of Industrial design services in Australia can vary greatly depending on the brief. Concept and product development costs can range from $5,000 to $60,000 or more for the design work itself, depending on the nature and complexity of the product and what are the deliverables. Concept sketches only? Full design from concept through to production-ready engineering drawings with DFM analysis? Is prototyping included? The questions seem simple, but the answers need unpacking.
We get asked about cost in almost every initial conversation at Concept Evolution. Often, the person asking has done some research, found wildly different figures online, and isn't sure what they're comparing. This article breaks it down by stage, explains what pushes the number up or down, and gives you a realistic picture of total investment from idea to first manufactured product.
What industrial design fees actually cover
Before talking any numbers, let’s try and clarify what you're actually buying.
Industrial design fees typically cover the creative and technical work: understanding the brief, generating concept directions, developing a chosen concept into 3D CAD, prototype testing, refining the design for manufacture, and producing final engineering drawings and production files. That's the core scope.
What it often doesn't cover: the cost to supply the prototypes, injection mould tooling, manufacturing itself, packaging design, or branding. Some studios will include some of these items. Most quote them separately. When you're comparing proposals, check what's actually included before comparing the totals. Two studios can quote very different numbers for the "same" project because they're allowing for different things.
Concept development only
If you need design direction but aren't ready to commit to full development, concept-only work typically runs $5,000 to $15,000. You’d get a combination of sketches, early 3D CAD explorations, scale 2D drawings. They are certainly not production-ready, or something you can take to a manufacturer, but they will help to give a clearer sense of what the product could become to yourself and other stakeholders which could be useful to get early-stage market feedback and/or generate interest with investors.
How much does industrial design cost in Australia
Full design from concept through to production-ready files
This is a full end-to-end product development scope. Brief, concept development, 3D CAD, prototype support, DFM, final production-ready engineering drawings.
For a product of moderate complexity, this could fall between $15,000 and $60,000. The lower end covers a relatively simple product with few components and a clear, straightforward brief. The upper end, and well beyond it, is where you land with products that have multiple parts, electronic integration, complex mechanisms, and/or compliance requirements.
At Concept Evolution we've worked on products across that whole range. The design hours required for a simple consumer accessory and a fully automated smart vending machine are very different.
Prototyping
Prototype supply costs are often itemised separately from design fees, and the range is wide.
A basic 3D-printed form study model to check proportions and feel could cost a couple of hundred dollars. A high-fidelity functional prototype with working mechanisms and production-representative materials could easily cost $5,000 to $30,000 or more, depending on what materials, processes, components, and labour is required to manufacture, assemble, and test it.
Most products go through two or more prototype rounds before the design is satisfactorily verified and refined for the next stage of production, so it’s best to budget for more than one.
Tooling
Tooling for custom manufactured parts such as injection moulding, thermoforming, extrusion and die casting is another cost that is usually itemised separately from design fees.
Injection mould tooling is commonly required for mass-produced products with plastic parts, as they produce highly detailed and accurate parts that can be made very economically in high volumes (MOQ usually in 1000s at least) but the initial tooling costs can be very high and often where people new to manufacturing can get a nasty surprise.
A simple single-cavity tool for a straightforward plastic part starts around $5,000 to $15,000 AUD depending on size and part detail. More complex parts with sliding cores and/or tight tolerances can run $30,000 to $100,000 or more. And this is usually an upfront cost before mass production begins.
What drives the price up
Complexity is a key factor in the design time required and costs associated. Moving parts, multi-component assemblies, tight-tolerances, specific requirements all add to design time and often additional prototype iterations. Products with electronics integration can also expand the scope significantly — PCB layout, button interfaces, battery systems, thermal management, it all adds time and rounds of testing.
Regulatory requirements add cost too. For example, medical products, food-contact items, and electrical goods all have compliance standards that affect design decisions during development and also require additional testing for certification which can add significant time and cost to product development.
One thing that surprises some clients is the importance of a clearly defined brief with proper design review at the beginning to get a clear direction for future product development. Having to change a fundamental requirement midway through — the materials, the manufacturing method, a core feature — often means re-doing work and doubling-up on design costs. A clear, aligned brief at the start is arguably one of the most cost-effective things you can do.
Hourly or project-based fees?
Most studios in Australia work on one of two models.
Hourly rates for experienced designers typically run $100 to $200 per hour, sometimes more for specialist work. This gives flexibility when scope is genuinely unclear, but can make budgeting difficult for the client. You don't know exactly what you'll spend until it's done.
Fixed project pricing gives you a defined scope and a number you can plan around. At Concept Evolution we work project-based for most engagements. We typically break the total project up into stages, and give a fixed price for the first stage with clearly defined deliverables, then estimated price for subsequent stages which we confirm before commencing, so you have confidence in the cost for each stage before we start.
Regardless of which company you work with, make sure they give clearly defined deliverables along with their fees, so you know exactly what you are getting for your money.
The R&D Tax Incentive: worth knowing about
If you're developing a new product in Australia, part of your project may qualify for the R&D Tax Incentive administered by the Australian Government.
The incentive provides a tax offset for eligible R&D expenditure, including design and development activities that involve genuine technical uncertainty. For companies with under $20M annual turnover, the offset is currently 43.5 cents in the dollar on eligible spend. That could be a significant saving when you're spending $30,000 to $60,000 on development work.
It requires proper record-keeping and formal registration, so talk to your accountant about whether your project qualifies before assuming either way. We flag this to clients regularly because most don't know it exists.
What total investment actually looks like
Here's the figure most people haven't fully budgeted for.
Getting a physical product from idea to first production run, covering design, prototyping, tooling, and initial manufacturing stock, commonly requires $80,000 to $200,000 or more. That's not a number meant to put people off. It's what the full process costs when every line item is added up.
Some projects land below that — simpler products, existing tooling options, small volumes. Others go well above it, especially anything with complex manufacturing materials, processes, tooling or electronics. While the total project cost is usually not certain at the start of the product development process, having an understanding of the estimated costs is important as running out of budget midway through development is one of the most common ways product development projects fail. Not because the product was bad. Because the total development process wasn't understood from the start.
Frequently asked questions
Can I get a cost estimate before committing to anything?
Yes. We offer a free initial consultation at Concept Evolution, and most reputable studios do the same. Bring whatever you have — a sketch, a product description, something you want to improve on — and you'll get an estimated figure for your specific project.
Why do quotes vary so much between studios?
Often due to different inclusions and exclusions in their proposal. One studio might include design development up to full set of engineering drawings and DFM; another might allow for concept design only and those items are not included. Always ask what's included and excluded in each quote you receive before comparing numbers.
Another reason for significant price difference may be the use of offshore design staff by some Australian companies, but this often compromises on quality and potential IP exposure. At Concept Evolution we pride ourselves on being 100% Australian owned and operated, meaning you’re always dealing directly with the designers working on your project.
Is it possible to phase the project to manage costs?
Absolutely, yes. At Concept Evolution we typically break the total project up into key stages with clearly defined deliverables for each. We normally give a fixed price for the first stage, then estimated price for subsequent stages which we confirm at completion of the current stage once the scope is confirmed. This allows our clients to manage cash flow over the course of the project development, and have confidence in the cost for each stage before we start.
Do I own the CAD files at the end?
Any reputable studio transfers full IP and file ownership to you on completion of payment. Confirm this in writing before you sign anything.