14/08/2026
We see founders compare components by looking at the supplier quote:
Component A: $2.40 VS. Component B: $2.15
Easy decision, right?
But, let's say the $2.15 component takes 20 seconds longer to assemble.
At 10,000 units, that's more than 55 hours of additional assembly. Now add a higher rejection rate.
Maybe the cheaper component doesn't fit as consistently, so QC has to inspect more units or the assembly team has to rework them.
Then there's tooling. Perhaps the $2.15 part needs a more complicated mold or a secondary operation that the $2.40 component doesn't need.
And then there are the problems you don't see on the component quote at all.
A component that creates fit issues can slow down the assembly of other parts. A material change can affect the finish of the final product. A small dimensional variation can create more rejects somewhere else in the line.
At that point, the question isn't: “Which component is cheaper?”
It's: “Which option gives us the lowest total cost to make the product?”
That's a very different calculation because the supplier invoice only tells you what the component costs to buy.
When you're comparing components, don't just compare the unit price. Follow the cost through the entire production process.