If you have a manufactured product, chances are you allocated a certain amount of capital to contract the manufacturer to make your product. For the most part, these corporations are very willing to work with you because they are getting paid up front. Depending on the complexity of your product, there may have been initial tooling or start up costs followed by a price per unit and then a freight charge to a destination of your choice.
Since you're paying the company, they will be very accommodating to your requests. Most corporations require a minimum payment up front for the tooling charge and payment for goods and products shipped. There is even a minimum quantity that must be placed with them on the initial order. This amount will vary, but in some cases people would order more to get a price break per unit. While paying less is better, the overall amount is more, and you may run the risk of having a lot of inventory even before you know if the product will sell.
If you have a manufactured product and have experienced something similar to this, then your next hope should be able to sell all of the product at retail. From our experience, people have focused a lot of their time on getting the product manufactured, but very little time testing to see if it will sell. The downside to a product that doesn't sell (for any reason) is a lot of money tied up in the inventory.
Here at Davison, we understand this and focus our attention on locating corporations that already have a presence at the retail level.
Here are a few of the benefits when having an established corporation sell your manufactured product:
- Your product would be packaged with a brand that consumers recognize.
- Your product would become part of a group of products that their sales reps are presenting to buyers.
- Large corporations have the capital, infrastructure, and resources to handle requests from retail stores.
- Large corporations, in some cases, own shelf space in retail stores and are required to fill it with products.
- Large corporations have the marketing dollars to effectively promote the product.
While we can't guarantee that we will be able to place your manufactured product with a corporation, you may have hit a dead end and are now looking for additional options.
If you're an independent inventor and would like to have your manufactured product prepared and presented to corporations for possible licensing, we recommend that you fill out our free information form and we will send you information on how to get started. You've done a lot of the work to date; your goal now may be to get some help from an experienced corporation.
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