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When you start out with the idea that you have a vision of what the product will be like. After working on the idea for a while, the product begins to take shape and you have something people can respond by indicating how the product will sell. You are entering a phase where you can spend a lot of money, and may get partner investment. So you need to take a deep breath and re-evaluate where you stand. Inventors tend to continue with a lot of enthusiasm at this point. But it can be a big mistake and now is the last stopping point before major investment.

This article will have a list of five points, the next five articles will cover five points in greater depth.

How effective are your claims? Many, many times inventor claims are scaled back the IPO and they end up not being significant. The way to judge the claim is how many qualifiers or steps. When the first requirement (the most important requirement) has four or five points, competitors need only just be different only team to break patents.
The product has a good value compared to competitive products? People solve the problem product addresses in any other way. If the product costs the same as other solutions, but not much better, then you are providing value. If it costs less, that’s even better. But the product may cost more. For example, when Apple products are introduced, they are certainly more expensive than other products, and customers feel they are worth the extra cost. You can often whether customers find that the product offers value by showing the product, even if it is just a brochure, against other products and then simply ask people to rate products based on what they feel is the highest value.
Can you make the product for 20 to 25% of the expected retail price? Retailers typical performance products up 50% so that means wholesale price is 50% of the retail price. My experience is that it is difficult to make money if you can not sell the product at wholesale prices twice the production devices. In other words, production rates should be 25% of the retail price of phone. If you sell directly, the same 25% rule as you will have a much higher sales and marketing costs to bring the product to market. Many inventors ignore this rule, but it is not a good idea as they do spend a lot of time, money and energy without making any money.
Can you afford to produce a product with “world-class” fit and finish? This is one area where the invention the world has changed dramatically in recent years. In recent inventors could do with more handmade or rustic look. Not anymore. You will find that people simply will not buy a product that looks like it was made in the blacksmith shop. But getting a professional look can call for big spending tooling or other expensive equipment and it might be more money you can afford. I found that often SCORE (www.score.org) Service Corps retired executives often production experts on staff to help you if you do not understand how to find the right manufacturer. Their services are free, and while they do not want to work for you, they are very helpful instructors.
Do you have an effective marketing and packaging technology? New inventors almost always ignore packaging and marketing where they have spent a ton of money to get ready to produce without considering how to package and market the product, including what type of distribution to use. Selling products is very difficult, and it is an area where inventors run into stiff resistance. When you approach a prototype company to make the product, of course, they will help you out, you’re paying them. The same principle applies to manufacturers and anyone else you pay. But in marketing and distribution, you are asking people to invest their own funds and resources of the product, and they will not do it unless they believe that the product will sell. I think you need to iron out the sale and distribution plan before you spend money on your product, and have a clear idea of ??how you will sell your product and who you will be approached to sell. Without effective marketing, all the other money you spend will be wasted.

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