© 2007 Dream Merchant

Dream Merchant • 2309 Torrance Blvd. #104, Torrance, CA 90501 (310) 328-1925 email: Jkm316@aol.com

THE QUESTIONS YOU NEED TO ASK

As You Continue Developing Your Product Idea, Stop and Answer These Important Questions.

By Ken Tarlow

PART TWO

When you move closer to making a prototype of your idea, it's time to ask yourself some tough questions about your product. In the last issue, we explored a few of those questions. Now let's take a look at a few more.

1. HOW MUCH WILL IT COST FOR THE TOOLING TO MANUFACTURE MY PRODUCT?

Tooling is needed to produce a product in large quantities. Plastic parts need injection molding tools made out of steel. The rule of thumb is about $300 per square inch of surface area of your product. Plastics can also be extruded into tubes--inexpensive tooling. Plastics can also be vacuum formed into shells and blow molded--like milk bottles. The cost is about $15 per square inch for vacuum forming and $75 per square inch for blow molding.

Metal parts are either die cast (same tooling cost as plastic, stamped (about $200 per square inch) or die cut--inexpensive custom electronic chips cost from $5,000 to $50,000 to tool up.

2. HOW DO YOU FIND THE SOURCE OF THE COMPONENTS USED IN YOUR PRODUCT?

One of the best sources is the Thomas Register. It's a series of books where components are listed alphabetically. Any component you can imagine is in there. Go to your local library and use the Thomas Register.

Another great source is the industry journal for your product category. Call the editor of your particular journal and ask for the annual directories. You can also take a competitor's product apart and look for company names on stock components.

3. HOW DO YOU FIND A PATENT ATTORNEY AND WHEN SHOULD I USE ONE?

Look in the Business Yellow Pages under "Attorneys Patent." It's best to wait until you have built a prototype of your product before patenting it. Then you'll be able to patent every detail of your design.

4. HOW DO I FIND SOMEONE TO HELP ME LICENSE MY PRODUCT?

Sometimes sales reps are good for licensing products. They already have a relationship with manufacturers so they can get in the door more easily.

Beware of companies that ask for up front fees to license your product. Better to give a percent of royalty after the product is licensed.

5. HOW DO I CHOOSE WHETHER TO LICENSE OR MANUFACTURE MY PRODUCT?

Basically licensing is the safe way to go and leaves you free to develop more products. Manufacturing mean raising start-up capital, but you get to run the show and you make more profit per sale.

The above article was excerpted from Ken Tarlow's MIND TO MONEY, a cassette tape/workbook package that can help you develop a new product from the idea stage to the marketplace. MIND TO MONEY may be ordered from the Dream Merchant at $59.95 plus $4.95 CA sales tax and$5 shipping and handling ($69.90 total). Send orders to the Dream Merchant, 2309 Torrance Blvd., Suite 104, Torrance, CA 90501.

 

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