Skip to content

Hatch's business model follows a fair payment structure.
A low initial investment is followed by incremental future payments once key milestones are achieved.

Clients only pay when tangible results are reached.
This keeps investors happy and builds confidence as a project moves forward.

An Illustrated Example of an Incremental
Payment Structure

Using the example of a $1 mil USD contract for 20K units of an Android Custom Phone we are going to illustrate what a fair and incremental payment structure looks like.
We've made it simple, very visual and clear for you to understand at a glance how this structure works.

$50

Quoted price per unit

The price per device includes the sum of its costs and depends on the quantity ordered.

20K

Ordered quantity

The quantity is determined by the customer based on his sales forecast

$ 1 mil

Amount of the contract

The contract value will be the unit cost multiplied by the quantity ordered.

(Development costs are amortized into the unit cost)

The contract is paid as and when development progresses. There are payments of several deposits at different stages of the project. Each milestone corresponds to the achievement of one of the steps of the Custom Android Phone development and production in compliance with the agreed deadlines.

Deposit 1

10%

Deposit 2

10%

Deposit 3

10%

Deposit 4

40%

Deposit 5

30%

Deposit 1

$ 100K

Contract Amount x Deposit Level = $1 mil x 10% = $100 K

$ 100 K - Total paid by the client​

$ 900 K - Remaining amount to be paid​

Following the acceptance of the contract deposit #1 triggers the prototype development.

Contract Amount x Deposit Level = $1 mil x 10% = $100 K

$ 200 K - Total paid by the client

$ 800 K - Remaining amount to be paid

Following the production of the first prototype, deposit #2 triggers its delivery for feedback and modification requests from the client.

Deposit 2

$ 100K

Deposit 3

$ 100K

Contract Amount x Deposit Level = $1 mil x 10% = $100 K

$ 300 K - Total paid by the client​

$ 700 K - Remaining amount to be paid​

After validation of the prototype a third deposit triggers the production of the mold.

Contract Amount x Deposit Level = $1 mil x 40% = $400 K

$ 700 K - Total paid by the client

$ 300 K - Remaining amount to be paid

After validating the mold and testing it in hand made working sample it's time for trial mass production. The fourth deposit triggers the trial and final mass production.

Deposit 4

$ 400K

Deposit 5

$ 300K

Contract Amount x Deposit Level = $1 mil x 30% = $300 K

$ 300 K - Total paid by the client​

$ 700 K - Remaining amount to be paid​

When mass production is complete the payment of the balance triggers the delivery of the Custom Android Phones.

At this point the contract has been honoured incrementally by the customer with the payment of $1 mil in five deposits.
The manufacturer has produced and sent the Custom Phones to their destination.

Join us today!
Sign up for the latest updates.

Latest insights from the frontline of Android manufacturing.