For the individual, a one-product line can be difficult to raise funding for and even more difficult to market. Many individual new product developers and investors have myopia. All they see is an image of people rushing to the stores to buy their product. But a "product line" is far more viable for creating that image. Winning products are those for which an endless stream of accessories, new uses, and complementary products can be developed over a period of time.

Unfortunately, many product developers fail to look at the "one-product line" from a "rep's," wholesaler's, retailer's, or mom and pop store owner's point of view. So let's take a look at those:

FROM A MANUFACTURER'S REPRESENTATIVE (REP'S) POINT OF VIEW

From this viewpoint, it takes just as long to show a major account's entire catalog as it does to show a one-item catalog sheet. The rep is quick to point out that showing a full-line catalog can net instant sales of many items, with little or no actual work, while the single product catalog sheet presentation will result in only a one-item sale at best, and usually requires the same or more work. The rep will also be quick to point out that a store buyer may have enough confidence in a large manufacturer, with a large and diverse product line, to buy an item SIGHT UNSEEN, while the same buyer may want to actually see, in person, a new product offered by an unknown company. So the rep would have to lug around samples of your product to all of his accounts. And if your product in heavy or bulky, Look Out! Most reps will quickly become less than jubilant about carrying it around. The amount of displeasure is magnified by and becomes geometrically proportional to, the weight and bulk of the product.

If the product is also inexpensive (read "less commissions) and is hard to explain or sell (read "requires more time and thought"), you'll have trouble finding a rep who will vigorously pursue selling it for a term longer than the time it takes to discover the difficulty of selling it (read "about two weeks"). A true understatement would be-- "A rep does not normally look favorably upon a one-product line."

Note: A notable exception to this is the product which comes along once in a while (like the Pet Rock) and which quickly gains so much free publicity that store owners begin asking the reps if they can get the product for them. A line of eager reps will immediately form at your door and continue until the moment that interest wanes in the product. At the first hint of waning interest, the reps do an "about-face" and beat a path to the door of the next person with a product that they perceive to be "hot."

FROM THE WHOLESALER'S POINT OF VIEW

Wholesalers still have to make and carry computer data on the manufacturer, whether the manufacturer supplies one product or hundreds of products. While this sounds simple, in some operations, it is the same amount of computer space and data entry work to set up an account for a company with one product as it is to set up an account for company with hundreds of products. The wholesale distributor must justify the cost of carrying this data in computers, catalogs, etc. Usually they have a minimum monthly sales figure with each account, regardless of size, must make or it isn't worth the wholesaler's time in carrying and tracking the inventory.

Accounts that have many products being sold by the wholesale distributor have no problem making monthly quotas. Individual new products have a much harder time making the quotas, especially during the "introduction period." At each monthly review meeting, as accounts are reviewed for performance, the single-product company always looks the worst because its sales figures are much smaller than the company with multiple products.

FROM THE STORE OWNER'S OR BUYER'S POINT OF VIEW

The larger the line of products, the better the service the store will expect to get from the reps or the wholesaler. Many corporations with large product lines have their distributors or reps routinely stop in and "face the shelves," arrange displays, dust the merchandise, etc. The store knows it could never get that kind of service from a company with a one-product line. The store owners also know that companies with many products in their line have larger budgets and provide heftier sales incentive programs that companies which have only a one-product line could not possibly provide.

The store owner knows when it comes time to return defectives, it will be much easier to deal with a company that has other products on the shelves because those companies have a greater incentive for providing faster merchandise replacements, "credit backs," or refunds.

Lastly, the store owner knows that a company with only a one-product line will not be able to provide the store with large "slotting allowances," "product introduction fees," "promotional allowances," "in-store demonstrations," "free publicity campaigns," or "advertising allowances." In many cases, large companies with multiple product lines will provide all of the above.

NEXT ISSUE: More on Product Line

The above article was taken from James F. Riordan's classic book, HOW TO EVALUATE THE POTENTIAL FOR SUCCESS OF A NEW PRODUCT OR TECHNOLOGY. Riordan's highly-acclaimed, 36-point system is a valuable tool for inventors, product evaluators or anyone interested in the invention process. Each section is followed by a comprehensive questionnaire that can be used to evaluate your product.

The highly-recommended book can be ordered through the Dream Merchant, 2309 Torrance Blvd., Suite 104, Torrance, CA 90501. The phone number is (310) 328-1925.

         

            

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