Cost of prototyping
The cost of prototyping ranges from a few hundred dollars to several thousands, and this depends on various factors, such as the level of complexity in design, the material used, the kind of prototype in question, and the method or manner of prototyping. Here is an outline of some of the main factors determining the cost of prototyping.

Complexity of the design The complexity of your product design is one factor in costing your prototyping. A simple design with less part content, or whose shape can be easily replicated may be more readily prototyped and cheaper, but designs with a lot of mechanical or electrical complexity can run much more expensive. Again, the greater the level of detail in your design, the more time and effort required to create a model that can be used, increasing the cost. For instance, a straightforward consumer item like a plastic container will probably only require fundamental 3D printing, which will probably be affordable.
On the other hand, advanced prototyping methods that are likely to be expensive will probably be used for a high-tech consumer product that has embedded electronics, sensors, or special materials. Materials
The final cost is largely determined by the kind of material used for the prototype. Prototypes can be made from any type of material, including plastics, metals, and composites, and the pricing and processing are also different for various materials. Aerospace-grade alloys or specially constructed polymers really drive the cost up drastically from standard plastics or 3D printing material.

CNC machining: High in precision, very well suited to the metal prototypes, though equipment and material costs will be steep in this type of prototype.
Handcrafting: Handcrafting with inexpensive material is used for simple models.
Injection moulding: It can be applied for rugged prototypes. But it is expensive due to the development of moulds.
Prototyping technique
There are several ways a prototype can be prepared, each with related costs. Among some common techniques used include:
3D printing (additive manufacturing): 3D printing is the most widely used technology in rapid prototyping. The payoff in using 3D printing is that it rapidly converts digital models into physical products through a wide array of materials, sometimes very quickly with short production time and flexible design but soon becomes expensive in material and machine time.
Casting: Casting is used for a wide range of products. It is much more manual intensive than injection molding. Cost in casting depends upon the material and the complexity of the material.
CNC machining: Cutting, drilling, or milling of plastic, metal, or composites into a desired shape. This is a precise process to detail and has a cost to it, meaning it’s rather pricey. Thus, it’s more applicable for functional prototypes.
Injection moulding: Injection moulding is a very fast and cost-effective method of producing significant quantities of proto-typed items, especially for articles that require strength. However, the cost incurred when making design and building tooling is very great at the very beginning.
RELATED: 10 tips on how to find the best prototype engineering firm services
Outsourcing vs. in-house prototyping services
Finally, the greatest decision concerning prototyping has to do with whether the task should be outsourced to a professional service or done in-house. Each has its pros and cons.
In-house prototyping: Companies with appropriate and readily available equipment, such as 3D printers or CNC machines, etc. usually resort to in-house prototyping due to cost-cutting reasons. It is suitable for simpler prototypes or circumstances wherein the rate of iteration is high.

Despite the fact that it necessitates significant investments in machinery, expertise, and upkeep, it proved to be quite cost-effective for large businesses or frequently required prototypes. Professional service contracting: Many product design houses are professional services firms specializing in prototyping. They can provide full service: from design consultancy, material selectivity, and production of the prototype.
Its resources, expertise, and tools are all among those that can result in high-quality prototypes. It is very costly, around $1,000 to $20,000, depending on the level of complexity.
Testing and iteration on the prototype Most products require much iteration to the final. Each iteration provides a chance to test the design, even up to the response from the users, as well as to make necessary adjustments or for some results in the performance. This is costly because every version will be demanding new materials, labor, and other resources.
Testing is another prototyping activity. Testing may include performance in physical settings, usability by the users, or compatibility tests with other systems. The more intense testing will be the more expensive prototyping phase is going to be.
Timeline
The cost may also depend on how soon you need the prototype done. When there is a limited amount of time, sometimes this means speeding up the process. This would cost more because it would require more man-hours, faster production methods, and expedited shipping. One of the most crucial stages while designing a new product is the prototyping stage. This is where the magic happens. Prototypes take an abstract idea to a reality stage, hence making it tangible and testable.
They can be used for a great number of iterations, user-testing, and functionality testing before final decisions on large-scale production. However, such a critical stage can be costly; having an idea of some of the factors that add to prototyping expenses is very important in effective budgeting.
This blog discusses the cost of prototyping for product design services and some recommendations firms should make to budget for this process.