Fixture Prototyping-Managing the Cost

In the previous article we discussed getting input and buy-in from all concerned parties to streamline prototype development. Agreement, however, can only get you so far in the process. Let's look at what technology can do.

Traditional Prototype Development

Gone are the days when drafting and rendering a new fixture design resulted in the building of as many prototypes as it took to get it right. Not only time-consuming and slow, the process was inflexible, expensive, and required a huge commitment of time, materials, and manpower from a fixture manufacturer that had not yet been awarded the job. So how do you get quicker turnaround, quicker decisions and greater customization?

Moving Online

While 3-D CAD technology has been around for a few years, today's software is becoming increasingly valuable to store planners and fixture manufacturers. They've found that it saves both time and money by, in effect, building the fixture in 3-D on the screen before creating a physical model. This not only helps shorten lead times, it also gets everyone on the same page, even those without the ability to visualize how a drawing will transfer to real life, before materials are ordered. Once the designs are created in a 3-D program like VIS or Corel, they can be quickly and easily shared, revised, and approved by e-mail. "A 3-D graphic of a fixture can even be electronically pasted into a photo of the actual department, complete with merchandise, for review and approval by the retailer prior to a physical sample being built," says Michael Lopez, Director of Fixture Development for Kmart. This is particularly helpful for retailers with standardized fixture specifications.

Building Just One

No matter how many fixtures you eventually plan to roll out, the first one is always the most difficult and the most expensive. So anytime a good alternative to the expensive process of tooling can be found for small jobs, the overall cost of the project will be lower- and the same 3-D CAD technology can help here, too. Bob Riley, President/COO of Hamilton Fixture, says that 3-D software enables his company to save the expense of tooling. Hamilton can now easily outsource prototypes to a job shop that uses laser technology ideal for smaller quantities. Ed White, Chairman of E and E Display, agrees, but takes advantage of computerized equipment in his own shop. Designing in 3-D enables E and E Display to use computerized CNC and point-to-point equipment to cut out the parts. New programs enable his company to use this equipment for the smaller quantities required to build the typical prototype.

Who Pays?

Now that the prototype is finished, who pays for it, the store planner or the manufacturer? There are several methods typically employed, of varying degrees of fairness:

1. Pay as you go. Hamilton's Riley says that 30% of his customers prefer this method.
2. Build the cost into the rollout. This method works well as long as the retailer acknowledges that the prototype developer has additional expenses to offset. There needs to be an agreement that the contract will be awarded to the prototype developer, who in turns agrees that the quote will be competitive.
3. Don't pay at all. Occasionally planners demand a prototype, ask the manufacturer to absorb the cost, and then bid the job multiple ways. While in the short run this practice may help a store planner's bottom line, the long-range result is that fewer reputable manufacturers will assume the risk of doing business with a company that treats its vendors this way.

How much should your prototype cost? While technology can minimize the cost of prototype development, designing and building a single prototype still runs anywhere from one-and-a-half to three times or more what it costs to produce a volume fixture. Both parties need to be clear on the finances - and how they'll be handled - before design begins. If the arrangements are fair, both parties can look forward to a long, profitable relationship, and efficient development enhanced by technological advances, mutual respect, and shared experience.