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Here's a guide to step you through the various things to consider prior to producing your own product. Use this guide as a general "check-off" list. Don't let the industry slang and details frighten or deter you. As in any industry, there is always lingo to learn. You can be successful if you have an open mind, "fire in the belly" and the drive to succeed. And remember, should you need guidance or assistance, Rehtmeyer, Inc. is available to assist you with every aspect of self production.
Let's begin:
1. Have your product reviewed. Have someone who is highly qualified, specifically for your product category, determine that there really is a market and market potential for your product.
2. Determine the specifications (the BOM) to the actual components (type of components, size, number of colors printed on either side, weight of paper, plastic, coatings, collations required, etc.). This takes some time, but is important to know and understand. A manufacturer can not provide you an accurate quote unless you think about all of the components carefully. This will also avoid financial surprises later when you realize that you forgot to include a component, etc. A development company such as Rehtmeyer, Inc. can assist you in determining this required "BOM" (bill of materials or component detail listing; also called your "spec. sheet").
3. Determine packaging. Is it in a window box, telescopic box, tuck box, blister card, clamshell blister, hang tag, 5 panel box or something else entirely? The type and size of the package will also be important to the retailer. Odd sizes and shapes are traditionally taboo in retailing as packages must fit into a "plan-o-gram" or specific retailing shelf space allocation. Packaging will also greatly effect the cost to ship product. You will find that careful decision making can save tremendous resources later.
4. Get production costs based on these specs. Don't forget tooling, films, freight and other one-time charges. Know and understand what are your "one time" or upfront costs and what costs would reoccur for a second production run.
5. Determine how you are going to distribute this product. Are you selling to end users, retail store chains, "ma & pa" stores, catalogues, directly to companies or a combination of these? How are you going to reach these markets? Are to going to sell the product your self, or hiring others?.
6. Determine if you are going to use reps and how you will entice them. Sales representatives can open doors and offer a great deal of assistance, but they also require a commission. You will need to obtain sales reps by territory and manage their performance, or hire a sales management team to do this for you.
7. Learn about the industry you are entering. Use this information to your advantage. Get trade journals, etc.
What are some of the most noted inventor licensed products?
Most of the hottest, and best selling products have been initiated by inventors and entrepreneurs. Even "Barbie" was the idea of an inventor/entrepreneur. Other big name products include: "Hungry, Hungry Hippos", "Twister", "Toss Across", "Hippity Hop", "Chatty Cathy", "Hair Grow Dolly", "The Mickey Mouse Telephone", "Upsie Baby", "Magna Doodle", "Etch a Sketch", "Spin Art", "Nerf", "Pretty Pretty Princess", "Don't Wake Daddy", "Trivial Pursuit", "Micro Machines", "Furbie", "Tickle Me Elmo", "Bop-It", "Spin Pop", "Bubble Tape", "Tech Deck", "Tech Bike" and hundreds more!
8. Do the Math. Create a spreadsheet to determine your financial return. You may want to create two spreadsheet scenarios-low sales and one with projected sales. Base your projections on realistic expectations, and not "best case scenarios". You want an accurate assessment of the financial return for the product. You will also need to make various decisions when preparing a spreadsheet. For example, you will need to determine if you are going to amortize your one-time costs into per unit selling costs, or not.
9. Create a business plan-- especially if you are looking for "OPM" (other people's money). A business plan is your road map to success. You need one. If you need help creating your financial information and a industry accurate business plan, Rehtmeyer, Inc. can be hired to assist you.
10. Complete engineering of any components that required further engineering development.
11. Begin graphic design for packaging, sell sheets, etc.
12. Create and produce "sell sheets. You will need handouts that show your product, price-points, etc. These are great to mail, provide to sales reps, use for promotion, or leave behind in a meeting.
13. Create a production-like prototype. Buyers want to touch, see and test the product they are considering to buy.
14. Get PR (Promotion): Consider teaming with a promotion agent or doing this yourself (if your high energy, creative and have the time). Get media exposure-especially the free kind!
15. Determine how you are selling the product-- Domestic, LOC, FOB, other (learn the lingo too). Are you going to warehouse the product, drop ship, or store boxes in your basement?
16. Team with someone who will guide you through the steps and production-- especially if this is your first time.
17. Get funding as necessary, or have access to additional funds.
18. Get ready! Now you are ready to produce the product!
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