The prototype works, meetings follow one another, and a buyer asks for pricing on several thousand units. At CES in Las Vegas, a young French company may feel it has crossed the Atlantic in four days. Yet the show buys visibility, not lasting access to the US market. Between product compliance, distribution and handling breakdowns, the decisive bill often arrives after the booth has been dismantled. As the 2027 campaign approaches, here are the cost items that can turn a promising business encounter into a cash drain — or a well-managed launch.
Las Vegas: An entry ticket, not an expansion budget
CES remains an international showcase for electronics, smart home products and mobility technologies. Eureka Park and group delegations have enabled many French startups to present their innovations there. But exhibiting to visitors from around the world does not, in itself, constitute a US strategy: a media contact, a distributor and an industrial customer do not open the same doors.
The visible budget covers booth space, setup, flights and hotels. Shipping demonstration units, customs formalities, insurance, technical services and preparation time must also be factored in. If equipment arrives late, rentals or express shipping may be necessary. These setbacks are frustrating, but their cost remains modest compared with that of a product that needs to be modified after going on sale.
For a first appearance, the right approach is therefore to separate three budgets: the trade show, market validation and commercial launch. Any available financial assistance reduces certain expenses without proving that the business model adds up. A full contact book is neither a firm order nor cash in the bank.
Compliance: Three requirements behind a single word
The first common mistake is to assume that CE marking automatically opens US doors. It does not replace local requirements. For a connected device, Federal Communications Commission, or FCC, rules may require testing and an appropriate authorization procedure. Using an already certified radio module can simplify the process, but does not remove the need to check integration conditions, labeling and obligations relating to the finished product.
Electrical safety is a separate matter. Depending on the product, its use and its sales channel, an assessment by a recognized laboratory may be required by regulation or demanded by a buyer. UL and ETL marks often come up in discussions. A legal obligation, a distributor requirement and an insurer’s request are three distinct matters, even if they end up in the same budget.
Sector-specific requirements add another layer: batteries and transport, toys, medical devices and food contact. State rules may also apply, particularly in California. The bill therefore extends beyond the laboratory: it includes legal analysis, documentation, instruction manuals, samples consumed in testing and, sometimes, a new circuit board or a different material.
The most dangerous cost is having to go back to the drawing board
There is no credible universal price for “US certification.” Everything depends on the category, the tests already completed and the modifications required. Quotes must be requested for a specific configuration, with retesting factored in. Subsequently changing a power supply, antenna or supplier may require part of the compliance file to be reassessed.
Timing matters as much as the bill. A commercial campaign launched before validation can leave inventory tied up, delay initial revenue and strain the relationship with a distributor. Best practice is to conduct a compliance review before announcing a US delivery date, then lock down the configuration to be sold sufficiently early.
Distribution: The sticker price is not your revenue
A buyer won over at CES may ask for exclusivity, local inventory, promotional discounts and return terms. None of this is unusual in itself. But these requests radically change the margin. Between a distributor, a reseller and a possible sales representative, several parties need to be paid. Direct sales eliminate some of these intermediaries, but advertising-driven customer acquisition, logistics and support still need funding.
The comparison must start with the price actually collected, not the retail price. In the United States, the latter is generally displayed before sales tax. Collection and filing obligations vary by state, the company’s economic presence and the channel used. A platform may handle some tax collection without eliminating all of the seller’s obligations.
The next step is to deduct the landed cost: manufacturing, freight, insurance, customs clearance, applicable duties, storage and order fulfillment. Duties depend in particular on the product’s tariff classification and origin; shifts in trade policy make any fixed assumption risky. When preparing for 2027, testing several scenarios is preferable to automatically carrying forward the cost of a previous import shipment.
- Contract: Who pays for promotions, returns and unsold inventory?
- Cash flow: When does the manufacturer pay its suppliers, and when will it be paid?
- Exclusivity: What are the minimum purchase commitments and exit conditions?
- Logistics: Who bears responsibility for imports and inventory?
A large order can therefore increase financing needs. Goods must be manufactured before payment is received, replacement stock set aside and any contractual deductions absorbed. Commercial success then becomes a test of working capital.
After-sales service: Delivering on the US promise after purchase
A consumer whose device breaks down is unlikely to welcome a transatlantic round trip. The real cost of after-sales service includes English-language support, suitable operating hours, a return address, diagnostics and a repair or replacement solution. For an inexpensive product, shipping and handling can make repairs economically unviable.
Before launch, decisions must be made about where parts will be stored, who will authorize replacements and what will happen to returned devices. A logistics provider may be able to receive a package without knowing how to diagnose a fault. A repair provider may lack components. These different services must be costed separately, with realistic turnaround commitments.
Advertised warranties, applicable consumer rights and retailer policies are not interchangeable. Product liability insurance and preparations for a potential recall must also be considered. For a connected device, service also includes updates and digital infrastructure. A one-off sale thus creates expenses that last for several years.
Go to learn, then invest on the evidence
A sensible first push starts with a narrow scope: one product, one customer segment and one priority channel. CES meetings are an opportunity to test pricing, use cases and purchasing terms. Before departure, the company should have an initial regulatory assessment, a margin model accounting for all costs and an after-sales service plan. A limited pilot can then measure returns, support costs and payment lead times.
What now? For companies preparing for CES 2027, the challenge may be less about multiplying announcements than demonstrating their ability to deliver and stay the course. This perspective makes no assumptions about demand or future trade rules. It demands discipline: fund compliance, put distribution agreements in place and organize after-sales service before accelerating. The best outcome from Las Vegas is not necessarily a large order, but one the company can fulfill without putting itself at risk.
