5 Tips for Inventors Selling to Retail Buyers

May 3rd, 2010 by Jeff Gawronski

When it comes to working with retail buyers there are a few things all inventors have to keep in mind.

1. Don’t skimp on your margin. Offer 50% or better to the retail store you are selling to. Stores know the margin they need to hit to succeed and most need at least 50% if not upwards of 60% to be profitable.  If you offer your product at a mark lower than 50% you run the risk of getting ignored no matter how great your product is.  Or if your product does get picked up it most likely won’t be featured as retailers need to push the products that provide a healthy margin.

2. Ship FOB, but if the Retailer wants you to ship pre-paid and add do not add a ‘handling fee’. This is not only tacky, but it is not considered acceptable.  You can only add an extra fee if you’re shipping individual units.  This is commonly referred to as a drop ship fee.  A typical range is $2-$5.00 per shipment.  Your cost should be based on your box cost, packing materials and labor. Drop ship fees are generally per order, not per unit, however if your item is ordered for inventory a drop ship fee is not acceptable.

3. Give Net 30 terms and don’t be afraid to ask for your money if the retailer is late. If you are worried about getting payment you can always seek references, but to gain the business you should provide net 30 terms.  You can always refuse to ship order #2 until order #1 is paid or if the retailer is notoriously late you can request credit card payment or drop them all together.  Conversely if you don’t originally grant Net 30 to open the account you most likely won’t even have the chance to adjust later.  Lastly, if a retailer is late paying assume the invoice was not received or was over-looked, most retailers pay promptly after a friendly reminder.

4. Only submit your product to retail stores that are a fit. Buyers are busy and to waste their time is not only a waste of your time, but could be perceived that you are poorly prepared or that you have not taken the time to research the store you’re pitching your invention to.

5. Freely give a sample if requested, but never pay for overnight shipping. Samples are commonly needed by buyers and the review process is important.  What’s not generally important is how fast the sample is received.  Shipping overnight is costly and typically doesn’t gain the product any extra advantage.

Generating Publicity: Will The Media Be Interested In My Product/Business?

April 22nd, 2010 by Todd Brabender

When it comes to launching a new business or product, some marketing consultants might say that EVERY product is appropriate for a publicity or media exposure campaign. That is true to a degree, but as a PR/publicity professional and former media person, I would qualify that statement by saying that although new products would benefit from a solid publicity campaign, not all businesses or products and their pitches will grab the attention of the media.

A number of strategically generated features or product mentions in magazines, newspapers and TV/radio/cable shows nationwide can lend strong credibility to a new product. That “media bullhorn” can also do wonders toward educating consumers about your product. But does your product — and its media pitch — have what it takes to attract the media into giving you coverage in their pages or on their airwaves? As I mentioned, many products or businesses can generate some type of publicity and media interest, but in my professional experience, the types of products and pitches that lend themselves to the best media exposure include:

  • home/garden products
  • kitchen/cooking/food products
  • consumer electronics
  • automotive accessories
  • home repair/DIY tools
  • personal health/medical/fitness products
  • recreational/outdoor products
  • experts (business, health, technology)

If you have a new or under-publicized product in one of these categories, the media could be a good friend to you. However, you first have be a friend to the media. Your product (and pitch) needs to have what the media calls a “news peg” — that gives them a logical and newsworthy reason to feature YOUR product as opposed to the 200 other media pitches that are on their desks right now. Additionally, you need to make it as easy as possible for them to do your story or they WILL move onto a competitor’s pitch and product that is easier to cover.

  • Can you provide a media sample?
  • Do you have quality photos of the product?
  • How can the product be purchased: in stores, catalogs, online, by phone?
  • Can you arrange a quick interview if needed?

Products/services that don’t really lend themselves to media interest or publicity are things like:

  • website developers
  • cell phone/printer cartridge sales
  • vitamin supplements
  • insurance
  • financial planning
  • realtors
  • MLM/downline schemes

I’m not implying that these types of businesses aren’t media worthy. I’m simply saying that from a media interest, editorial standpoint, there are thousands of competing product and businesses like these on the market and unless they are offering something truly unique, they lack that “news peg” that will attract the media’s attention. If you are launching, let’s say, a new garden tool that is very similar to many other garden tools on the market, don’t expect much interest from the media in putting together a feature. You can create that news peg by answering a few questions:

  • How does your product differ from competing products already on the market?
  • Why should the media and subsequent consumers be interested in your product?
  • Does it provide a solution to an existing problem for consumers?

Bottom line – a properly maintained publicity campaign can help forge wonderfully reciprocal, mutually beneficial relationships with the media. Reciprocal, in that the media constantly need interesting information to put together their product profiles and business features — and YOU need constant media exposure to get the word out. If your product or business can meet the media standards mentioned above, you could benefit greatly from some solid nationwide media exposure. Getting your product mentioned in print articles and on TV/radio shows nationwide will help spread the word to customers — and at a fraction of the cost of a nationwide advertising campaign.

Todd Brabender is the President of Spread The News Public Relations, Inc.

His business specializes in generating media exposure and publicity for innovative products, businesses, experts and inventions.

http://www.spreadthenewspr.com

todd@spreadthenewspr.com

(785) 842-8909

The power of POSITIVE thinking

April 8th, 2010 by Debbie Oser

Hi! My name is Debbie Oser, founder of Keeping it Positive.  Our company was started, and is still growing, on the mindset of thinking POSITIVE, and never giving up!

I started Keeping it Positive after an experience I had with my older son… The summer of 2007, I started saying Positive Affirmations to my two sons every night (then 3 and 5), hoping to give them the Confidence and Self-Assurance they need as they go through school, making friends, learning and doing activities, etc!

I wasn’t sure the affirmations were “sinking in”… until one day at the playground, when my older son stopped me from helping him  by saying, “No, Mom, I don’t need you… I can do anything I put my mind to!”

I was so excited to hear that the Affirmations we had been saying every night were truly making him more confident, that I wanted to spread this Positive message to ALL kids, and adults, everywhere… and Keeping it Positive was born!

I had decided that my first product was going to be a Pillowcase with Positive Affirmations, as it’s right there when you go to bed, and wake up, and contains ALL the Confidence-Building Affirmations right on the product in front of you, not only to see and touch, but to mentally say everyday.

In trying to start this business, and actually create a product… I had researched companies and called people for what seemed like forever! These lists of people that I would talk to were not always so encouraging and positive.  And though, mentally draining… I was determined to succeed, and continued this researching quest! To find the right material Pillowcases I was looking for was surprisingly very difficult. And many of the screen printers that I had spoken to about printing the affirmations onto the Pillowcases would tell me that it couldn’t be done in the size and colors that I needed!

I knew that I was NOT giving up, and if these people couldn’t do the job for me… then I would keep calling until I found someone who COULD! And sure enough, after months of time, energy and focus… I DID find the Pillowcases, and the right screen printer who said “yes”… and I finally had my product – my Pleasant Dreamz Positive Affirmation Pillowcases!

Another obstacle in this process was to try to keep “nay-sayers” at a distance… not everyone encourages you to pursue your “dream,” or try to start a business.  And no matter who is telling you not to do something, or you can’t do it, or just to give up… you MUST always tell yourself to ignore these negative thoughts/people, and you must be your own biggest supporter! This is exactly what I did with my own daily affirmations… and it worked, and still works to this day!

Our goal with these products is to have ALL children, and adults, know that if they BELIEVE in themselves, and KNOW that they CAN do it… they WILL Succeed at anything they put their mind to!

Everybody could benefit from a daily “dose” of confidence, and encouragement… and we truly do believe whatever we tell ourselves… so make sure it’s POSITIVE!

SEE it, SAY it, BELIEVE it…. and it WILL happen!

How niche are you?

April 1st, 2010 by Jeff Gawronski

The thought of being able to sell to everyone is great, however being niche is where you want to start. Having a niche retail store or niche invention allows you to hone in on potential customers, while having a product for the masses allows for only broad marketing strokes.  By going too broad your pockets better be deep or you’ll burn what could be an insurmountable amount of budget on marketing.  If your pockets are deep or you are well funded then having a product for the masses is clearly ideal, but for the majority of start-ups it is best to look niche and expand from there.

What’s your expertise?

By having a niche invention you can not only market yourself as the expert of your niche, but if you work hard enough you can become a true expert.  Think about… through all the product development, research and energy it takes to bring that idea to market you have in many ways already become an expert in your niche.  Now, take it a step further by doing more research and by doing more to implant yourself as the ‘go to person’ of your niche industry.   It would be hard to be an expert of all things housewares, but why not be the expert of your niche item.  For instance it may be cooking eggs or organizing plates, or washing dishes.  Hone in the exact area your invention or business falls and you can find success.

Success can not only mean with your invention, but it could also mean for a niche website or you may even become a niche manufacturer or inventor who licenses products.

Niche is the New BIG.

Ready, Set … LAUNCH!

March 17th, 2010 by Jeff Gawronski

It’s official Dorm Co, www.DormCo.com has launched.  Most of you know I launched Yak About It back in August 2009 (the same month I sold my first company).  Now after 5 months of intense planning I am pleased to say Dorm Co, (my second take on retailing college dorm essentials) has launched.

Being excited to launch may not surprise you.

What might surprise you is if I told you I don’t care about sales for the first 1-2 months.  Sure, getting sales is a good thing, but it’s not the focal point.  What is the focal point is ensuring the company and website foundation is strong enough to take on a large amount of orders.  Many entrepreneurs aim to race for the quick sale only to leave the entire company vulnerable to faltering long term.  My best advice is to build for long term success and to create a company that puts you in the best position to sell in the future or grow into a large functioning entity.

If any of my fellow entrepreneurs have feedback for me regarding Dorm Co please feel free to share the good or the improvement ideas at Jeff@DormCo.com.  In kind I would be happy to review your website and/or products and offer my opinions.

Thanks for helping me take the first couple of months to make a strong company foundation!

YAK ABOUT IT ONLY — Special PR Offer!

March 11th, 2010 by Jeff Gawronski

As a way to help “spread the news” for products featured on Yak About It, Spread The News PR has agreed to offer a discounted rate exclusively to Yak About It featured inventors & readers until April 30, 2010.  Instead of the traditional $2500/month Custom Campaign fee, Spread The News  PR will offer a $500 per month discount – (minimum 3 month national campaign). Go to www.spreadthenewspr.com and fill out the  online FREE PR Consultation form.

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For those of you who have followed Yak About It, you may have seen our abundant number of media hits.  Although we like to think that Yak About It got the ‘news’ just by being a great website, that featured even better unknown inventions, we know the truth is really due to Todd at Spread the News PR.  The media may find you on their own, but odds are they are so busy it takes a well connected source to get them to take notice.  Yak About It is proud to say that Spread the News PR has been obtaining Yak About It press hits since November of 2009.  Without exception, Spread the News PR has lived up to expectations.  Unfortunately it took a few ‘bad PR companies’ for Yak About It to go through in order to find Spread the News PR.  If your business or invention could use the media talking about you, then you have to not only consider, but you should also hire Spread the News PR.

-Jeff Gawronski

CEO

Yak About It

If you build it … will they come?

March 3rd, 2010 by Paul

While flipping through an outdoor magazine, I found an article about a new product. The article was about a guy who turned a “passion” into a new product.  A regular guy with a regular job (Repo Man) that invented and developed a new product for hunters. The quote that hit me like a freight train was: “By time it was all said and done I had around $90,000 in the (plastics) mold.” A chill went down my spine.  I could see this poor guys future.  To ad “salt to the wound”, the magazine got the guys web site wrong.

Checking out his web site, the product (as demonstrated by the inventor on video) seemed difficult and clumsy. It really wasn’t, but the inventor was so impressed with all the product features he thought were important, he forgot what was important to the consumer… “What can it do for me?” Then I saw the packaging… A simple cardboard box with green and yellow markings. The pricing point was $24.95.

My first inclination was to send him a copy of my book, Invent-onomics 101, and beg him to read it. But after seeing his web site (very nice and expensive), I realized he was already well down a path that had a high percentage of ending in heartache.

Where to start: 1) The market size for a product like this is about 5,000 to 10,000 units tops, assuming you get it into the large retailers. 2) The Chinese would have made the same tool for about $15,000 and reduced his per unit cost by up to 60%. 3) His pricing point ($24.95) is too high… his retail competition is less than $10.00 and could be done easily for free.  4) His packaging hides the product and is too easy to rip open on the retail shelves. People won’t buy a new product unless they can see it and the retailers won’t replace the “ripped packaging” product on the shelves until it sold off… Etc., Etc.

The bottom line: Most of us only have one shot at this… Before you start spending your life’s savings, read a book, ask somebody in the industry, work in the industry to see what’s required to actually sell the product… Look at the market and see if it can support your cost structure.

I hope I’m wrong and this guy’s a huge success… But this isn’t my “first rodeo.”  I’ve seen too many people think “if I build it, they will come.” History shows that 99.9% of the time, they don’t. Do your homework first to avoid blowing your shot at success.

Turning your media pitch into a media hit

February 17th, 2010 by Todd Brabender

Increase your coverage by increasing your pitches.

Anyone who has ever read a book on sales or taken a sales course has heard it – on average it takes anywhere from 3 to 10 contacts before a sale is reached. Although sales and publicity are very different animals, the same rule of thumb applies when pitching your release/story idea to the media. Because of the Internet and email, media outlets today are bombarded with hundreds if not thousands of media pitches each week. So, it’s more important than ever that to make sure your release gets noticed. This doesn’t mean pitching to more media outlets — it means your publicist or PR staff should take the time to pitch to your specific media market…multiple times.

Whether you pitched the release yourself or hired someone to do it for you — did the release make contact? Sure it arrived, but is that the release that editor needs that day, for that article or for that issue? Hopefully so, but many times that is not the case. So the release is either saved for future use (again hopefully) or more than likely it is set aside, trashed or deleted. The releases/pitches that get used are the ones that are, in fact, newsworthy, media-friendly and arrive at opportune times. As you might imagine a perfect combination of all three translates into your best chances of media coverage and publicity.

Using a release distribution service gets your release pitched ONCE. But the most successful campaigns are those that are strategically and effectively maintained and/or re-pitched with calculated frequency. Most media outlets don’t or can’t respond to your initial release or pitch.

Based on my professional experience as a PR/Publicity Specialist, I would estimate that media placements occur in the following manner:

33% occur after the 1st – 2nd month of pitching

50% occur after the 3rd – 4th month of pitching

17% occur after the 5th+ months of pitching

Sometimes (in fact most times) a strong placement happens when a release hits an editor at the right place at the right time. Sure you may have pitch that media contact three times over the last few weeks, but perhaps that reporter/editor/producer didn’t have the time or the editorial space to work your release into a placement. Your opportunity for placements increases with meticulous, media follow-ups and re-pitches. What many business owners/entrepreneurs don’t realize is the majority of media outlets fail to respond until after the third or fourth pitch. I continue to be amazed and amused at the editor/producer who, upon receiving a pitch for the fourth time says, “I’m so glad you reminded me of this release!” or “Great timing! This will fit perfectly in a feature were doing this week/month!” If the release had just been pitched once and not followed up, those placements would not have taken place.

So make sure your PR staff isn’t afraid to wind up and pitch your campaign multiple times. Just like in baseball, the more pitches there are – the better chances you get to make a hit.

ABOUT: Todd Brabender is the President of Spread The News Public Relations, Inc. His business specializes in generating media exposure and publicity for innovative products, services, experts and ventures.

http://www.spreadthenewspr.com

todd@spreadthenewspr.com

Less is Sometimes More – Website Content

February 10th, 2010 by John Krech

Having a website based business is great way to reach a large market but it is not what many imagine – it is hard work and it is never done. Starting a website based business takes iterations – you have to find best way to communicate the problem and your solution in an instant. You have to be willing to talk to customers to see what brought them to you and you have to be willing to experiment. You really have to have your ears and eyes open – surveys and follow-up emails are great and inexpensive ways to gain valuable insight. Salesforce.com is a perfect example – they are masters at doing this and it is reflected in their success.

In the case of our flagship software application, called Phitch, which makes it easy for small business to optimize their inventory, it has taken numerous iterations to create a website that describes the problem. After all, it is one thing to get a visitor to your site, but is another to have them click and buy from you.  The key is talking about the right problem. In the beginning, we assumed most visitors would want to learn more about how Phitch can put more money in their pockets – especially in this tough economy. While this was important, what visitors also really wanted was a solution that was an easy delightful experience – they just wanted a “just do it for me”. In other words, we also had to design our message to appeal to this issue.

While it is tempting to put more and more information on a website to address each problem you uncover, this is where real restraint comes in. It is easy to add more content – it is hard to do in a manner that will be read by a visitor. A website is just like your appearance – you have an instant to make a first impression. Getting the opinion of others, especially those with experience in journalism or communications is a great way to improve your website. If you can afford it – this is well worth the investment but be prepared to change your content frequently.  You have to continually hone your content to make it shorter and quicker to understand.  Too often, I see website pages that are four pages long and you have to scroll through a long list of information.  A website should be like an onion that a visitor peels – a very small onion with short and direct pages that guide your visitor to contact you. Have just enough information to get your visitor to call, email, try, or buy.

The final difficulty is to design a short compelling message to the visitor regarding your solution to their problem. You really have to identify with your visitor – who are they – envision a name, age, education, etc…. Find something that will resonate with this picture. In the case of Phitch, I envision a small business owner who works out of his/her home with no other employees and they are passionate about their craft or product.  They have education but they are not trained in inventory management. They import many of their goods and there are looking to add world class supply chain expertise without having to add staff. They are looking for simple and affordable solution that simply tells when to order and how much to order. To communicate this message we do in a way that our visitors can relate – we compare poor inventory management to coronary artery disease – that it is a silent killer.

About John Krech: Launched Phitch as a software tool to help small businesses best manage their inventory.

Working with Vendors: Why You’re Not a Priority?

February 3rd, 2010 by Paul

Most inventors need to interface and purchase products and services from vendors. Vendors are in business to make the maximum profit possible from every customer they service. The “lone inventor” tends to get pushed aside because you and your product are untested and your chances of success are low historically. Therefore, a vendor will always see the individual inventor as a “long shot” that gets treated as “fill-in work” when nothing else is being done for their “real customers.”

To counter this, what can you do to get the attention you need from your vendors? The bottom line: Make it personal.  Try to interface with the owner of the company directly and or a manager that gets paid based on the growth of the business (commission). See your vendors often and in person, if possible. Take the vendor(s) out to lunch frequently… Play golf with the guy… Anything to create a personal relationship.

This will pay-off in spades the day you need to (ex.) increase your volumes and/or need him to slow things down (which happens frequently).

I was successful in doing this with my plastics molder in the project I describe in my book: Invent-onomics 101: A Guide to Getting Your Invention to Market Without Losing Your Shirt. I became friends with company owner’s son, who was also the company’s sales manager at the time. We had lunch frequently during the tooling/production process and, when things started to go bad, I had his and his father’s “ear.”  We remain friends today, though we haven’t done business together in years.

Making yourself a priority to a running concern is difficult, but will help you reach your goals. Your invention is personal… Make the products success personal to your vendors as well.