THE DO’S AND DON’TS OF BRINGING A PRODUCT TO MARKET

DON’T EXPECT MORE THAN IS THERE- INVENTING A PRODUCT IS NOT A GET RICH QUICK SCHEME, IT REQUIRES A GREAT DEAL OF WORK AND DEVELOPING A BUSINESS PLAN AND A BUSINESS. YOU MAY NEED HELP IN THE AREA OF BUSINESS AND DO NOT BE SHY IN FINDING PROFESSIONAL HELP. DO THE MARKET RESEARCH REQUIRED-BEFORE YOU SINK MONEY AND LOTS OF IT INTO AN IDEA. DO YOUR HOMEWORK TO SEE IF THE PRODUCT IS NOT ALREADY BEING SOLD. ONE CAN RESEARCH THE INTERNET AS WELL AS GOING SHOPPING BOTH ON LINE AND TO BRICKS AND MORTAR RETAILERS. I WAS RECENTLY SENT A PRODUCT THAT WAS WORKED ON FOR A PERIOD OF TIME AND IF THE PERSON HAD ONLY GONE TO THE INTERNET OR HIS LOCAL PET STORE HE WOULD HAVE FOUND THE PRODUCT ALREADY MADE AND READY FOR HIM TO BUY. DON’T ASSUME EVERYONE WILL WANT YOUR PRODUCT-REGARDLESS OF WHAT PEOPLE YOU KNOW TELL YOU THE WORLD IS NOT WAITING FOR YOUR PRODUCT, EEVEN IF IT IS UNIQUE. ALSO UNDERSTAND THE POTENTIAL MARKETPLACE FOR YOUR PRODUCT. IF YOU DEVELOP A PRODUCT THAT WOULD BE USEFUL TO FIRST AND SECOND GRADE SCHOOL STUDENTS YOU HAVE A MARKET WITH A POTENTIAL OF 7.6 MILLION CUSTOMERS, IF YOU INVENT A PRODUCT FOR SURFERS OVER 55 YOUR MARKET IS OBVIOUSLY SMALLER AND MORE DIFFICULT TO FIND. DON’T SEND YOUR MONEY AND YOUR INVENTION TO AN INVENTION PROMOTION COMPANY-THE COMPANIES WHO ASK FOR MONEY UPFRONT AND THEN SEND YOU A NICELY BOUND REPORT TELLING YOU HOW WONDERFUL YOUR PRODUCT IS AND THE POTENTIAL MARKET PLACE FOR THIS WONDERFUL INVENTION IN MANY CASES DO NOTHING MORE THAN THAT. I HAVE SUBSCRIBED TO THESE SERVICES DURING MY YEARS IN INDUSTRY HOPING TO FIND THE NEXT GREAT THING FOR MY COMPANY AND IN ALL THE YEARS OF RECEIVING HUNDREDS OF SUBMISSIONS ONLY ONE DID NOT FIND ITS WAY INTO THE TRASH AFTER THE INITIAL READING, IT WENT INTO THE TRASH ON DAY TWO. DON’T SINK ALL YOUR FUNDS INTO A PRODUCT OR IDEA-AGAIN HERE DO RESEARCH WITH PROFESSIONALS AND PEOPLE WHO UNDERSTAND THE MARKET YOU ARE TRYING TO ENTER BE IT RETAIL OR B2B. HAVING YOUR FAMILT AND FRIENDS TELL YOU THAT YOU HAVE INVENTED “THE GREATEST THING SINCE SLICED BREAD” DOES NOT QUALIFY AS RESEARCH ON HOW WELL THE PRODUCT WILL DO. I RECENTLY SENT AN EMAIL TO A GROUP OF PROFESSIONALS WHO ARE ALSO CONSUMERS AND ASKED FOR THEIR OPINION ON A PRODUCT THAT A GROUP OF PEOPLE INCLUDING MYSELF HAD THE RIGHTS TO TAKE TO MARKET. I ASKED FOR HONEST REPLIES AND RECEIVED THEM. THE REPLIES WILL KEEP US FROM TAKING A WHAT LOOKS LIKE A NO BRAINER AND SPENDING TIME AND EFFORT ON IT. DON’T GO AFTER A PATENT TOO EARLY-DO NOT SINK A GREAT DEAL OF TIME AND MONEY INTO A PATENT BEFORE YOU DETERMINE THERE IS TRULY A MARKET FOR YOU PRODUCT. A PATENT AND PATENT ATTORNEY COULD BE VERY EXPENSIVE AND UNTIL YOU DETERMINE YOUR IDEA OR PRODUCT HAS “REAL” CUSTOMER POTENTIAL DO NOT WASTE YOUR MONEY. DON’T OVER VALUE YOUR PRODUCT-AS PART OF YOUR RESEARCH YOU MUST DETERMINE THE PRICING STRUCTURE THAT WILL ALLOW YOUR PRODUCT TO GENERATE THE MOST UNIT VOLUME. HAVING AN OVERPRICED PRODUCT IS A MISTAKE AMNY PEOPLE MAKE BECAUSE THEY FEEL SINVCE THEY INVENTED IT AND PEOPLELIKE THEY WILL PAY. THEY WON’T. I WORKED WITH AN INVENTOR OF TWO NEW AND SOMEWHAT DIFFERENT BOARD GAMES AND HE WAS AND IS DETERMINED TO HAVE THEM SELL FOR AOUT TWICE THE PRICE THAT EQUIVALENT GAMES ARE BEING SOLD FOR. HE HAS SPENT HIS LIFE SAVINGS TRYING TO MAKE THIS HAPPEN AND IT NEVER WILL. DO OVERLOOK THE PACKAGING-THIS PART OF THE PROCESS I WOULD DEFINITELY SUGGEST YOU GET GOOD PROFESSIONAL HELP. THE FACT YOU HAVE ONLY SECONDS AT RETAIL TO CONNECT WITH THE CONSUMER THE PACKAGING MUST CONVEY THE VALUE OF THE PRODUCT AND THE FACT IT IS WORTH THE ASKING PRICE. I WORKED ON PRODUCT LINE A NUMBER OF YEARS AGO THAT WAS GOING TO SELL FOR BETWEEN 75-100% MORE THAN THE COMPETITION. OUR PRODUCT WAS LICENSED, BUT THAT WAS THE ONLY DIFFERENCE OVER THE GENERIC VERSION ALREADY ESTABLISHED IN THE MARKEPLACE. I SUGGESTED THAT THE PRODUCT BE PACKAGED IN A MORE EXPENSIVE CLAMSHELL THAT DIFFERENTIATED IT FROM THE COMPETITION AND ALSO ADDED CRENDENCE TO THE HIGHER RETAIL PRICE WE WERE ASKING FOR. DON’T SINK MONEY INTO INVENTORY-THERE IS PLENTY OF TIME BETWEEN WHEN YOU MAKE A SALE AND WHEN THE PRODUCT NEEDS TO BE ON A RETAIL SHELF FOR YOU TO BUY INVENTORY REGSARDLESS OF WHERE YOU ARE HAVING THE PRODUCT MADE. I WORKED WITH A COMPANY THAT DID EXACTLY THAT SPENDING UPWARDS OF $250,000 ON INVENTORY BEFORE THEY WENT TO THE RETAILERS TO DETERMINE IF THE PRODUCT AS CONSTITUTED WOULD BE PURCHASED. WHAT THE COMPANY FOUND WAS THEY HAD MISCALCULATED THE MARKET BY TRYING TO SELL AT ONE LEVEL WHILE THE RETAIL BUYERS WERE COMPARING THE PRODUCT TO A DIFFERENT LEVEL. AGAIN THIS GOES BACK TO THE BASIC RESEARCH THAT NEEDS TO BE DONE. DON’T OVERESTIMATE YOUR ABILITY TO RUN A BUSINESS-UNLESS YOU HAVE BEEN INVOLVED IN RUNNING A BUSINESS AND HAVE EXPERIENCE YOU CAN FALL BACK ON STARTING A COMPANY IN A VACUUM WITHOUT PROFESSIONAL HELP CAN BE DISATROUS. THERE ARE MANY ENTREPRENEURS WHO HAVE A GREAT PRODUCT BUT LACK THE DAY-TO-DAY KNOWLEDGE OF RUNNING A BUSINESS. THIS BRINGS TO MIND A COMPANY IN WINNEPEG, CANADA THAT MY COMPANY WORKED WITH WHO DEVELOPED A PRODUCT THAT UNFORTUNATELY WAS OVERPRICED, HOWEVER, THIS WAS NOT DETERMINED UNTIL THE PRODUCT WAS ON THE RETAIL SHELVES AND THE CONSUMING PUBLIC WOULD NOT PAY THE PRICE. THEIR ISSUE WITH REGSRD TO BUSINESS ACUMEN COULD BE SEEN MONTHS LATER AFTER SALES HAD DRIED UP THEY STILL AHD A STAFF WORKING ON NEW PRODUCTS AND REFINING THE PROCESS TO PRODUCE THE EXISTING PRODUCT WITHOUT A VIABLE CUSTOMER, THEY EVENTUALLY WENT BACKRUPT AND COST THEMSELVES AND THEIR INVESTORS A GREAT DEAL OF MONEY. DON’T GO IT ALONE-MANY NEW IDEAS CAN BE SOLD AND COULD BE SUCCESSFUL AT THE RETAIL LEVEL AND EVEN B2B IF THE INVENTOR IS SMART ENOUGH TO FIND A PARTNER WHO ALREADY HAS DISTRIBUTION CHANNELS AND ACCESS TO THE MARKETPLACE. THIS IS ESPECIALLY TRUE IF THE PRODUCT IS A LOWER END RETAIL PRODUCT OR A PRODUCT THAT HAS ONE OR TWO DOMINANT PLAYERS. I WAS INTRODUCED TO A PRODUCT A NUMBER OF YEARS AGO BY THE INVENTOR WHO REALIZED AFTER TRYING HIMSELF THAT HE NEEDED A PARTNER TO MAKE HIS PRODUCT SUCCESSFUL. AFTER VISITING WITH A NUMBER OF POTENTIAL PARTNERS, MYSELF AND OTHERS IN MY COMPANY CONVINCED HIM WE WERE THE RIGHT PEOPLE TO DEAL WITH. UNFORTUNATELY NOT UNTIL HE HAD A FALLING OUT WITH HIS BUSINESS PARNTER AND I HELPED HIM SOURCE THE PRODUCT IN CHINA DID THE COST AND RETAIL PRICE ALLOW THE DISTRIBUTION AND RETAIL SALES START TO REACH THE LEVEL IT SHOULD. DO UNDERSTAND THE MARKEPLACE AND WHAT WILL SELL-HAVING AN IDEA FOR A PRODUCT OR A NEW VERSION OF AN EXISTING PRODUCT YOU MUST UNDERSTAND THE TASTES AND NEEDS OF THE MARKET. I WORKED ON A NEW PRODUCT LINE WHILE ON A TRIP TO CHINA A NUMBER OF YEARS AGO. THE PRODUCT EXISTED AND WAS BEING SOLD IN EUROPE WHERE RETAIL PRICES IN MANY CASES ARE HIGHER THAN AMERICANS WILL PAY. ALSO CONSUMER TASTES ARE DIFFERENT AND SO I CAME UP WITH A DESIGN THAT WOULD FIT THE AMERICAN LOOK AND PRICE POINT AND OUR DESIGN TEAM CAME UP WITH APPROPRIATE LOOKS THAT AMERICANS WOULD BUY. THE CONCEPT ADDED THREE MILLION DOLLARS TO THE SALES OF THE COMPANY WITHIN SIX MONTHS OF THE PRODUCT BEING DEVELOPED. DO GET PROFESSIONAL HELP-TRYING TO GO IT ALONE IS A MAJOR MISTAKE MADE BY INVENTORS. THEY ARE AFRAID SOMEONE WILL STEAL THEIR IDEA AND THEY WILL BE LEFT WITH NOTHING. THERE IS NOTHING YOU CAN DO TO STOP PEOPLE FROM STEALING YOUR IDEA BEFORE OR AFTER THE PRODUCT HITS THE MARKET. IF YOU HAVE A PATENT YOU MUST DEFEND IT OR ITS WORTHLESS AND THIS COULD BE COSTLY.

Bringing Manufacturing Back To The USA

There may be a great deal of product manufacturing being brought back from China and elsewhere but that "reshoring" activity will not bring a resurgance of manufacturing jobs. The products that are being and will be brought back are those where the labor content is minimal and can be further reduced through the use of robotics and technological and process advancements. Also those products where freight is a large component of the cost will be a potential for reshoring but hear again they will be brought back with the labor content reduced due to improved process and the use of advance robotics. Today as an example of process improvements it takes about 30% of the labor to produce a ton of steel as it did in the early 1970's. Those jobs will never come back regardless of the amount of growth in the steel industry. The same type of numbers exist in other industries. The advancement in the types of robotics available is remarkable as is the reduction in costs of the robotics. They are as inexpensive as $22000 and can be programmed is as little as ten minutes without any knowledge of programming. All this being said the regrowth of the "manufacturing working class" is not going to happen. We can however grow this group by teaching them skills to run the robotics as well as maintain them. Also those skills such as those needed to be a machinist, mechanic, and similar will in my opinion be wanting in the near future. Based upon what I recently saw Robots will in the near future replace workers in healthcare and other service areas where basic human tasks can be programmed. Therefore to grow or regrow the "middle class" the education system needs refocusing onto jobs and skills that cannot be outsourced. Companies also need to understand the true costs of products and services being outsourced versus the cost of performing or buying the products and services domestically. If the base costs of products are compared one against the other and the difference is not greater than 35% then there is NO advantage to outsourcing the product when the true total costs is undrrstood and measured. The same reasoning in my opinion should be the measurement for outsourced services. I have heard of a number of "horror" stories concerning outsourced services taking too long or not delivering the results required or promised.