PhilAJ started this topic @ 11:18 on 11/02/2008
HI there everyone - I just joined the site and am looking for a little guidance.
Over the last year or so my partner and I have designed and developed a consumer product for the sports industry. This is an elecctronic device for a specific purpose; it is unique; we have a published patent; and we have even cobbled together some prototypes that we have field tested. The total market in the UK is over 4.5 Million (if everyone bought one) - but likley to be a smaller % of that.
The queries:
1. We are now at a stage where we need to get prices for manufacturing volume product - but without any experience of this I am simply mailshotting lots of companies I find on the web. Is there a better way ?
2. We are trying to decide on the best route to market - DIrect, via Wholesale / Distributors, or maybe even just sell off the idea under licence. AGain - any advice ?
3. We as yet do not have an end user sale price - as we don't know what the final cost will be. What level of profit should we be looking at - AND what sort of margin would a wholesaler and retailer be wanting ?
4. Are there any bodies or sites that could give us statistics regarding the sales potential of a product in a given market ?
Any help or pointers to sites of advice would be gratefully received.
Phil
RE: Help needed with new Product
underpressure | 11/02/2008 05:04 PM
Hi there,
Sounds like your on to something there.
Normally you would decide what type of business model you would like to follow.
Do you want to be your own brand and do all the marketing and sales yourslef (usually higher risk higher reward and requires ots of funding) or do you want to partener up with another company and charge a liencing fee for every unit sold etc.
You could perhaps look for help if your really stuck from the likes of business incubation centres of government organisations. They can really help steer you in the right direction.
Hope it works out for you. Good luck.
------------------------
Virtual Switchboard Services for small businesses with Press1.co.uk.
Design and build you own unique call management system.
RE: Help needed with new Product
SnowflakeMedia | 13/02/2008 06:28 AM
Hi Phil
Sounds like an exciting time.
Stats on each sport in terms of participation will be published by the individual sporting bidy or you can find overall participation numbers at Sport England (for england only) www. sportengland.org.
For manufacturer advice I'd suggest you go and talk to your local business Link office as they can usually connect you with a good starting point. www.businesslink.gov.uk
Failing that, if you are anticipating that China will be your country of choice for manufacturing, call up the chinese embassy in London and ask them to recommend a contact or make an introduction, they are always looking to create business opportunities..... if it is the UK that ou hope to produce the product then look to see if there is a manufacturers association... Hypothetically "the semi-conductor association", etc
On margins, you need to decide how much you'd like to make but more realistically what is the price the majority of your target market will be prepared to pay? Margin requirements for retailers tends to sit around 45% but this can vary wildly depending on industry. Wholesales will obviously need to make money too so they'll need a higher margin.
Without giving a blatant plug, this is the type of project my company takes on quite frequently so if you really do struggle please feel free to email me and I'd be happy to see if we can assist getting you where you need to be as fast as possible.
Good luck
Lee
RE: Help needed with new Product
mattwilkie | 17/02/2008 07:09 PM
Manufacturing you really need to see other items the company are producing and also work out your item cost you are willing to accept to produce. If its going to be high volume I would consider heading out to Asia but things have to be closely monitored give someone enough room to produce rubbish they will do.
