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Inventions Column
Startup Smarts Column
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A major distrubutor is approaching me for a licensing arrangement. They would like to "reinvent" my product under one of their brands, and at their own expense; redo the packaging, redo outer design and do all federal testing. They would "de-feature" it by removing a key feature to create a lower price point item for mass retail. I would have final say on look and appearance of the product, and would be given credit for the invention. They dont feel they can support my product under my brand, but merge it with theirs. They will pay rolyalties on all sales.
This product has been in development for 3 years. I have been working to build my brand, and it will officially be here in 4 weeks for resale. Moms love my product. My approach to sales, will be very grass roots, direct to consumer through my website and in retail accounts I establish.
My concern is, that I have invested so much of myself, my money, that essentially if I allow a licensing arrangement I would be competing with myself. Would I be shooting myself in the foot? I would a licensing deal allow me to generate some cash flow while I continue to build my own brand?
Hi April, I think we all wish we had your problem! I have a similar problem wi Camp Stamp. http://www.CampStamp.com But Camp Stamp has been on the market & bringing in profit which supports me for 20 years. On the other hand, as an inventor, I would sure like to be freed up to invent. I turned down a book deal from a major publisher mainly because I didn't like the terms of the contract which had me indemnify (little work wi big mean meainings) the publisher in their jurisdiction on the east coast. I'm on the west coast & am NOT Oprah LOL. So maybe you want to carefully read the terms of the contract before deciding. If you like the terms & the money is good, I guess you want to ask yourself if your an inventor or a business person. For me, letting go of Camp Stamp, would be like quitting my day job. But if you aren't turning a profit on this product yet, I'd be incliined to go for it. bcs, you'd be freed up to invent other products & maybe they will buy those too. Just be careful that they don't have an option on your future products in the contract. Baron's had my future writing in their contract. Yes, I guess the big question is how do you want to spend your time? Do you want to be a business person, doing marketing, distribution & all the things it takes to bring a product to market & run a business? Or do you want to just invent & let others do the business part? I think when you answer that question, you will know the answer that is right for you. Pls let us know when you decide. Congratulations & good luck! Inventing JOY
Hi April,
Congratulations. It sounds like you are well on your way. Just curious though. I am just starting towards the licensing part of my product. How did you get your product out there to get a licensing agreement?
April,
Congratulations on your success. I have seen this happen many times; in fact I wrote a column about the experience of licensing a product after you make the decision to go to market. I dont think there is a "right" answer, just your own instincts. If you license you will be giving up control and there is no guarantee that your product will take off. However, that is also true if you sell it yourself, although you will be much more aware of the effort put forth to market it. The one thing I often remind inventors to do when they are facing this question, which isn't always obvious, is to look not just at your "gross" revenue potential in both scenarios but to look at your "Net" revenue potential in both scenarios. Taking your product to market yourself is great as you can clearly see the difference between your production costs and wholesale price ("Gross"). What isn't as easy to see until you have been operating for awhile are your expenses (sales costs, insurance, rent, IT, legal, book keeping, warehousing, shipping, advertising, PR, design, etc.). Once these expenses are deducted from the "Gross" - and they will grow once your business really launches- you will have a better ability to compare apples to apples with a licensing opportunity. Often a 3% licensing deal with a much bigger pie and (sleeping at night) is better than a 6% or 10% "Net" when you are working 14 hours a day, dealing with customer service, legal issues, product liability, large run production financing, competitors, slotting fees & vendor returns, etc. On the other hand, some inventors love building and running the business, and the control... and at a certain level, the business can be very lucrative and even sold. So it would not be a good trade-off. Ultimately, it all depends on what you want.
Best wishes,
Tamara
I am trying to find investors or to licence my new product. It is a portable shampooing and basin sink, with hot and cold running water, for bed ridden patients. It is to improve the personal hygiene care and quality of life for our loved ones, that are in hospitals, care centers and at home. I've done my marketing and targeted my customers, but I can not find a manufacturer to produce this new product, can you give me any advise or help? thank you; sincerely, Ailene P Wageman
Hi Ailene, Not knowing what it would take to manufacture your product, I can't comment on the manufacturing aspect, but there are sales people who sell items to nursing homes. If you have built a suffiecient commision into your price, you may want to contact them to do your sales. Inventing Joy
I am a mom who has a wonderful invention idea, need guidance on who to speak with I chose to speak with Davison about my idea and realize I had made a huge mistake. I do stay at home with children and don't have income coming in right now. I am limited on mobility because of my back and want to know who I can get with to launch a pursue this idea. Legitimate with no up front fees. I want to pursue this as it is a serious idea for babies and older children this has many benefits that would grow worldwide. I am up for options please let me know.
I am working on a patent for a baby accessory and are very excited about my idea but are totally overwhelmed with the prototype making phase. There are lots of cut and sew manufacturers out there but I am not sure who to trust.....
Can anyone suggest a textile prototype making manufacturer that is trustworthy???
Hi Maribel, What are the problems that are stopping you from sewing your own prototype? Or using the services of a local seamstress? Could you explain more about the problem? Inventing Joy
Inventing Joy,
We did sew our own prototype, but we are looking for a manufacturer that will do a professional prototype with suggestions for textiles and manufacturing specifications. We have encountered several suggestions of companies such as Protosew, Colorado Cut and Sew and Harris but are not sure which one to use and was wondering if anyone had experience with any of them or if you have other suggestions..
Thanks,
Maribel
Hi Maribel,
Choices Apparrel , based in Southern California works with small companies and has the capability to expand both domestically or overseas as needed. You might give them a call. http://www.choicesapparell.com.
Best wishes,
Tamara
Maribel,
Oops! Sorry for the typo. The website is: http://www.choicesapparel.com.
Warmest,
Tamara
Okay, I have hit a MAJOR WALL on my invention. The wall is a financial one. We have talked to several mold injection/tooling manufacturers about a prototype and the initial cost is SO prohibitive that we would need to produce 100,000 ++++++ of our product just to break even on the initial prototype cost. That seems so unrealistic to me. I have a company in SF that is interested in 'seeing my presentation' and perhaps investing/buying out, but the numbers don't look so good. How am I supposed to make this look appealing when I can't even see it??!!! The idea is great, of course, but the numbers would mean we'd HAVE TO HAVE a well established distribution stream AND secure vendors, all of which we don't. Is it time to give up???
p.s. my website is for something else entirely. our product is a BPA free reusable lid to go on top of yo baby yogurt, applesauce and the like.
Hello, have a few ideas, but moving w one right now... see MANY businesses that want my money to produce, sell ,market ,etc. my product ... how do I know which one to go w? I dont know what to sign, what is permissible. etc.. I put my idea out to Invention Nation, but now dont know if I can submit it, or when to another company... just wanna move on feel like Im already getting ripped off or bogged down... any ideas on how to go forward?
Oh yeah, my current idea. ( building prototype as we speak), would be perfect for a local company that would LOVE it but can't get past the person who replied to my inquiry that "we dont take inventions or alterations for our product..." or something to that effect.. basically blew me off.. I have many of their products and these are great additions to their products.. thanks, laurie
Hi Laurie, I think I'd read Tamara's books & list all the steps it would take to bring your product to market. Then I'd educate myself on each step. Then decide which steps you actually need help with. Then seek out the most appropriate people at the best price to give U the help you need on those steps. Good luck. Inventing Joy
Hi Everyone
I am also looking to find any manufacturing companies that you know of in the UNITED STATES that work with fabric/sewing etc. I want to keep this in the US to help OUR country! Does anyone have any contacts at all???
PLEASE HELP! I keep striking out. I have found one in California but want to weigh all of my options. Thanks!
Sam
Hi Everyone,
I was wondering if anyone knew the answer to my question about Non-Disclosure Agreements. If you have a Provisional Patent Application filed and you go out to market and manufacture your product, do you need to have people sign an NDA or do you not need to since you have a Patent Pending protection?
Thanks
Sam
Hi Samantha, Unfortunately, there are no patent police. The only protection you have is what you are willing & can afford to do to protect or defend yourself & your product.. So you may want to ask yourself:Can you afford attorney's & the time to file a civil suit & to go to court? What is the jurisdiction of the person who may violated your patent?
Re NDA, I think any contract is only as good as the people who sign it. So you may want to check out the trustworthiness of the other party. Additionally, & very important, once they have your idea, what do you have to offer them? Why do they need you? To me, ideas are a dime a dozen. The implementation is the hard part. So when you ask your self those questions, altho U may not like the answers, you may find the answers you give yourself, answer the questions.
Inventing Joy
I have two ideas that I have come up with. I would like for the products to be sold via website, but have no clue how to begin making a website. Any suggestions?
Hi Elisa, That's my specialty. see http://www.CampStamp.com I am in hospital right now so won't be available to work for awhile, but if you are interested, pls email your ph#,earliest & latest I can call & I'll call U when I'm up to it. ^ U can decide if I am the person to help you. caringpro@gmail.com Inventing Joy
Hi Mom's,
I have been very concerned with the health care situation that the state of the economy has put many of our families in. I personally have recently been in need of dental and medical attention. Which, led me to seek out an affordable and accessible health care program for my family and myself. This, subsequently left me open to new alternatives that I had never considered previously. To my relief and surprise I did find a couple of really legitimate and intelligent programs. Thank You, mom inventors for giving me the opportunity to share with you and possibly help someone who may find themselves in the same situation
Sincerely,
Vicki
Hi! What textile prototyping company do you recommend?
I contacted one but they are requiring me to sign a waiver of responsibility. Is this standard procedure?
Thxs,
Maribel
Hi everyone
I am despirately looking for someone to contact for plastic injection molding, that won't cost thousandsss of dollars. I live in Baltimore Maryland. I am trying to design an organizational box L16 x H10 x D3
Hi Ivy, Would you consider a stock :(already made) box? It would be much cheaper bcs you wouldn't have an upfront fee to make the molds. :You wouldn't have a huge minimum order, You wouldn't have a huge inventory to store. If you are interessted in a stock box, pls email me wi a description of what you want. A window of dimensions: like 16 to 18" long etc. The effect you want to make. Is it hanging retail or shelf storage etc. Quantity you want to order. I maybe able to help you. Inventing Joy caringpro@gmail.com
Hi Inventing Moms - I am so thankful for this great community of women to lift my spirits and remind me that the lows are only temporary set backs. I want to invite you all to be part of my Facebook Group (MyPromise Kids) that promotes creative communication in families by posting a ‘Question of the Day’ to stimulate conversation at the dinner table, in the car, etc. It is a lot of fun to post the funny things that kids say, and I hope that it brightens your day as much as it does mine! Just another little reminder of why we do what we do!
Yesterday’s question was: “What are you good at doing? What things are hard for you to do?”
Today’s question is: “If you were a train, what kind of cargo would you carry?”
http://www.facebook.com/group.php?gid=316256798758#!/group.php?gid=316256798758
Stay positive and enjoy those wonderful family moments!
-Kate
More creative conversation starters at: http://www.mypromisekids.com/blog.htm
Hi- I have a patent pending invention with a university based study showing marketability, but need a connection with a plastics manufacturer- probably injection molded. Anyone have any suggestions? I know my invention will better the lives of mothers and working adults everywhere but need help getting in the door.
Hi Julie
my name is Lee Carroll and I work for a company called Innovative Mold Solutions. We help develop solutions that bridge the gap between your ideas and scalable manufacturing solutions and have an emphasis on injection molding. We've helped engineer and manufacture everything from golf tees to cancer testing kits. If you'd like to discuss a manufacturing solution with one of our engineers you can contact me through my email address to see if we can help.
Best regards,
Lee Carroll
Innovative Mold Solutions, Inc.
Leominster, MA
lcarroll@innovativemold.com
I want to start a spin-off ecommerce website to offer one of my most popular product line to all families. Because it will only have less than 10 products, I'm looking for cost-effective ecommerce hosting package (I have a Yahoo Store for my main website). tailored to small sites yet offering state of the art SEO and service tools. Can anyone recommend one? There are literally dozens ot these services so I appreciate advice from a mompreneur who's using one that works for your business!
Thank you!
Randi
Founder, http://www.SayitwithSymbols.com
i have a simple solution for no child left behind give them an instruction manual that they understand school children are told PAY ATTENTION" but no one teaches them HOW" I have developed a simple program that can be learned and thought by anyone I am looking to bring it to market by connecting with people who want a brighter future for every one you see we all have hidden talents it is our minds-eye it's just that no one ever taught us how to use it at smartvision we are proud to be the first to discover this hidden talent a resource that will help every child see a brighter future when they learn the smartvision method for more information please visit http://www.smartvisionfocus.com yours sincerely tony mc mahon .
Hi Mom Entrepreneurs!
I have an awesome product that I am working on bringing to the market place...I have been looking for the right business partner to launch the product. I am looking for a mom that has experience with clothing manufacturing, business experience, and willing to be an investor in the initial start up costs of manufacturing. This product is going to be amazing and we are looking to sell world wide! Preferably someone in the Southern California area, but would consider anywhere in the country! I'm looking forward to connecting with some great moms that want to be a part of a very successful business opportunity!
Warm Regards,
Kim Stockton
Hello ladies,
I hope everyone is having a great day and woke up feeling ambitious and ready to do what needs to be done! Unfortunately, fatigue and discouragement looms over my head but is temporary until my product invention is taken to the next level. This is where all of you incredible ladies come in. Just being on this uplifting website keeps my spirit up and hopeful for good things to come. So here is where I need guidance. I have invented and own a patent for the 1st children’s nap sack that accommodates both mats and cots that are provided at daycares & preschools. It is an all in one connected pillow + fitted sheet + blanket that rolls up into a back-pack! I am looking for a way that they can be individually labeled with the child’s name. It needs to be machine washable. Perhaps an easy iron transfer label where the child’s name is written in with a fabric marker. Does anyone have any related ideas?
Thank you,
Christina Ruiz,
http://www.snoozcoon.com
Hi Christina, It sounds like it would be a perfect marriage with Camp Stamp. See http://www.CampStamp.com I am about to put up my new products for the season on my site. If your product is ready, I could sell it on my Camp Shop site and you can offer Camp Stamp with your nap sack (great name!) . If you are interested, Pls email me wi more info re ur product, pictures etc. , What level your product is at & ur ph# earliest & latest I can call without disturbing anyone & time zone.
Also, Camp Shop (same site) is set up as a fund raiser for schools, camps, churches or any organization that needs fund raising. So if anyone is part of an organization who may want fund raising, pls email me caringpro@gmail.com
Inventing Joy
Hi Joy and thanks for your quick response. I would love to speak with you so feel free to call me anytime after 2:30 eastern time.
Thank you,
Christina from Miami,FL
Hi again Joy,
I just realized that I did not leave you a phone number to call me at. You can reach me at (305) 299-6869.
Thanks again,
Christina Ruiz
http://www.snoozcoon.com
HI Christina, The number U posted seems to be the wrong #. Pls email te correct # Caringpro@yahoo.com Pls be patient. Here's what happening to me. I'm trying to get my inventions ready before S. day after which, no weight bearing for 6 weeks
When is losing 25 lbs, not a wonderful thing? I have lost 25 lbs yeah! But maybe not. Has anyone ever lost weight in their legs & feet? Well I did & none of the professionals would believe me. [A little background: I broke my foot 1 ½ years ago. They did emergency surgery & put screws in ] The result is that the brace on my leg & foot are loose. I told the orthotist who told me it wasn’t so. I told the podiatrist who thought I was crazy. End result, the screw in my foot is now sticking out. I guess I overdid a little on my flood diversion/waterharvesting invention project. The screw is now poking out. If I move my foot the wrong way I get a horrible searing pain. It is stabbing me from the inside. I am scheduled for surgery Feb 25 unless it pokes through the skin before then If that happens it becomes an emergency with more problems than I want to think about. So I’m mostly immobile, lying with my foot up, working away on my computer. This is not fun. I really want it to be over. I’m scared to death of the surgery. My body doesn’t like it & I have all kinds of side effects. At least I don’t have a litter of puppies to come home to this time. I have to be thankful for small mercies. [ My favorite invention: the Giant Schnoodle Dog. Appearance on Oprah, featured in LIFE magazine & more media. (all free advertising) A wonderful study in creating a product then creating in international demand. Also a study in not properly patenting & trademarking. Who knew I would create an international demand?]
Inventing Joy
Hi Joy,
I hope you are feeling better today. I made a mistake posting my phone number. It is: 305.915.4602. Good luck with your foot and hang in there!
Best,
Christina
305.915.4602
http://www.snoozcoon.com
Hi Christina
I just read your post today. Check out this website http://www.kiddotags.com/
Good Luck
Sandra