As you evaluate your product’s potential for licensing, the second question you should consider is, “Is my product going to be easy to manufacture?”
Again, I offer this disclaimer: a product that possesses manufacturing issues or difficulties may still be produced. This article is devoted to describing the ideal product for licensing. A product need not be ideal to be manufactured, but it’s definitely more desirable and more likely to meet success if it is.
Is your product fairly simple to manufacture? Does the technology required to make it already exist? Do the companies you are considering licensing to own machines with the technology? In an ideal situation, a licensee should be able to look at your product briefly and immediately know that they can manufacture it without difficulty. That’s a beautiful thing. If so, you may not even need to make a prototype. And furthermore, the licensee will not have to weigh the time and energy needed to resolve your product’s manufacturing issues against its benefits.
I’ve stressed the importance of understanding how your product will be manufactured. An ideal product for licensing will use technology already in existence. Find an existing product that has similar aspects to your idea and can be manufactured in the same way. For example, their product is made by a one-piece injection mold, and so is yours. If minimal changes need to be made, then your product possesses great potential. If a licensor is presented with two ideas, and one is much more easy to manufacture than the other, logic (and my experience) indicates that they are much more likely to select it.
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I've enjoyed reading your posts (started last month or so and felt compelled to go all the way to the start to see what I'd missed!~)
I remember you talking about the decision to mfg on your Hot Picks and wonder how these 3 decision points played into that decision; it seems to me that aside from distribution (granted a major item) and capital to fund the start-up, if your invention was real great on these things then there would be more motive to do this yourself vs. license (other "life issues" aside) just based on the profit percentages.
Quite frankly i just wanted to try manufacturing a product on my own. I'd licensed products for over 25 years and i wanted to try something new. The picks were cheap to make and one other guy was selling unique picks that confirmed there was a market for such a product. This showed me that there was most likely a market for my pick idea.
So. . .cheap product to make. Confirmed market. I figured my guitar picks were a good one to start with. Seemed like a low risk endeavor and I like low risk. So I moved forward.
Keep Inventing,
Stephen Key
http://www.inventRight.com
...
it makes sense on the why this idea and not something else from the easy to manufacture and preexisting market (granted you've leveraged it into new channels; e.g., 7-11). I even get the versioning ala licensing with other brands like Disney, but how about with the guitar ... is that "just" a licensing of your brand and not a manufacturing decision like with the picks (and doesn't come with the same $$ risks)?
Comment By: Chris Miller | 7/13/08 at 1:52 PM Is Your Product Easy to Manufacture?I'm not sure i fully understand your question. What is your question about the guitar? Can you be more specific?
Keep Inventing,
Stephen Key
http://www.inventRight.com
1-800-701-7993 ...