The initial cost for unit 1 can be quite expensive (>500k) if its a non-consumer product. Outsourcing production is hard with lower volume products that requir

The initial cost for unit 1 can be quite expensive (>500k) if its a non-consumer product. Outsourcing production is hard with lower volume products that require modifications to meet customer needs (eg: they need M6 screws holes instead of 1/4-20 or want it in a particular metal). Contract manufacturers are generally interested in making 10k+ of the same item, not 100.