SELLING YOUR PRODUCT
Many Inventors and Product Developers Need to Know that "Selling" is Vastly Different From "Marketing." Here's How.
By Ken Tarlow
Is "selling" different from "marketing?" Definitely. Selling is the actual execution of the marketing plan. Marketing is the strategy by which you plan to make your product visible to the public--where to sell, how to advertise, what representatives to use, etc. Selling involves the actual process of approaching buyers and negotiating a purchase agreement.
Most stores, catalog companies, or other sales outlets are concerned about the quality of the product, the price, and your ability to deliver on time and in sufficient quantity. Many of them will want to take sample orders to test the product and then place larger orders as sales pick up.
Some stores or catalogs may want an exclusive on your product for a certain period of time. If they're willing to place a sizable enough order and commit to an advertising program, it may very well be worth your while to enter an exclusive arrangement for a short time. Exclusivity also reduces the chance of price wars where competing stores or catalogs are forced to drive down the price of your product in order to retain sales.
Financing sales, keeping track of orders and staying on top of sales reps and buyers is the most expensive and time consuming part of the product development cycle. You also need a fairly "thick skin" to deal with all the buyers and reps. There is, however, a lot of money to be made in sales and because your product will be unique and new, you should be above the "dog eat dog" world, where there are twenty other products which look exactly like yours.
If your product is properly patented or requires a unique secret process to manufacture, you may have the luxury of introducing your product slowly and cautiously. If, however, your product is not adequately protected and then is received favorably in the marketplace, you may have to bring in a money partner who can use his credit line to cover the "float" period between the time the product is manufactured to the time you finally get paid by the retail store (90-120 days total).
When relating to potential buyers, there is one main point to remember. Buyers are looking for that "special hot item" that will make them be a hero in the eyes of their employer. New products are what draw people into the store.
You don't need to feel intimidated by buyers. After all, they need your product.
Ken Tarlow is president of Tarlow Design, a full-service product development company that helps independent inventors design, prototype, patent and license consumer product ideas. He has developed more than 300 consumer products worth over one billion dollars in retail sales. Tarlow's office is in San Rafael, CA. He may be reached at (415) 457-6428.
The above article was excerpted from 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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