When inventors contact my company about Research I really like to explain the idea by using a simple example. Think about it this way, if your manufacturer is about to choose to develop, manufacture, and market a new product which may potentially cost $50,000 to $150,000 to make plus inventory costs, they might undoubtedly take their time to make sure that these are creating a good business decision in continuing to move forward together with the product (i.e.: they have done their homework in the product). Therefore, you may summarize “homework” as the procedure of gathering everything necessary to generate a good business decision before you make the big financial expenditure. It may generally be assumed how the additional time, effort and cash (i.e.: “risk”) that a company must spend to develop an invention, the more they may assess the potential license. Keep in mind that even if something appears to be basic and low priced, the entire process of developing and manufacturing is rarely simple and easy inexpensive. Companies will evaluate such criteria as customer opinions, list price points, unit cost to manufacture, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing by yourself – If you are intending on special info, then yes you will need to perform homework. Essentially, you are the company of your product and as a result you need to carry out the research on your own invention exactly like other manufacturers would. The problem i have found is the fact that many inventors who opt to manufacture their very own inventions do little, if any marketing research, which is actually a big mistake.
Option 2 – Licensing for Royalties – if you are planning on licensing for royalties, i believe you may minimize your homework efforts, because ahead of any organization licensing your invention, they are going to perform their very own research. When you are by using a company such as Invention Home, the price to advertise your invention to companies may be minimal – therefore it could possibly cost more to truly perform the due diligence than it could just to InvenitHelp the invention to companies (which, is ultimately your greatest type of research anyway). Remember, you have to have taken time to perform your basic market research and a patent search earlier in the process to be reassured that your merchandise is worth pursuing to begin with (i.e.: the merchandise is not already in the marketplace and there is a demand).
Permit me to summarize. If you are planning on investing a large amount of money your invention, then it is best to analyze the means first to ensure it’s worth pursuing; however, if you can actively promote your invention to companies with minimal cost, you can be assured an interested company will do their particular research (not depend on yours). Note: it is always beneficial to have marketing research information available as you may discuss Bonuses with prospective companies; however, it is really not easy to have this info so you must balance the time and effort and cost of gathering the information using the real demand for having it.
Also i offers you some research tips.As discussed, the concept of marketing homework would be to gain as much information as is possible to generate a well-informed decision on investing in any invention. In the perfect world, we would have got all the relevant facts about sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, this data may not be an easy task to come across.
In case you are not capable of pay a professional firm to do look here, it is actually easy to perform research by yourself; however, you must understand that research should be interpreted and useful for decision-making and alone, it has no value. It is actually what you do with the details that matters. Note: I would personally recommend that you DO NOT PURCHASE “researching the market” from an Invention Promotion company. Often sold as being a “first step” (they’ll usually approach you again with the expensive “marketing” package), the details are largely useless as it is not specific research on your invention. Rather, it is actually off-the-shelf “canned” industry statistics, that can not necessarily assist you in making an educated decision.