When inventors contact my company about Research I love to explain the concept by using a simple example. Think about it using this method, if a manufacturer is about to choose to develop, manufacture, and market a brand new item that may potentially cost $50,000 to $150,000 to create plus inventory costs, they will undoubtedly get their time to ensure they can be setting up a good business decision in moving forward together with the product (i.e.: they have done their homework around the product). Therefore, you may sum up “research” as the process of gathering all the information necessary to make a good business decision prior to making the big financial expenditure. It might generally be assumed the more hours, effort and money (i.e.: “risk”) that a company must spend to produce an invention, the greater number of they will measure the potential license. Keep in mind that even though something is apparently easy and low priced, the entire process of developing and manufacturing is rarely simple and low priced. Companies will evaluate such criteria as customer comments, retail price points, unit cost to produce, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing by yourself – If you are intending on find here, then yes you will have to perform research. Essentially, you are the producer in the product and for that reason you ought to perform the due diligence in your invention exactly like other manufacturers would. The situation that I have discovered is the fact that many inventors who elect to manufacture their own personal inventions do little, if any marketing research, that is a big mistake.
Option 2 – Licensing for Royalties – if you are intending on licensing for royalties, then I believe you can minimize your homework efforts, because just before any company licensing your invention, they are going to perform their own personal research. If you are working with a company like Invention Home, the expense to advertise your invention to companies may be minimal – therefore it could cost you more to actually perform research than it could just to InvenitHelp the invention to companies (which, is ultimately your best method of homework anyway). Remember, you need to have taken enough time to complete your basic consumer research plus a patent search earlier during this process to be reassured that your merchandise is definitely worth pursuing in the first place (i.e.: the merchandise is not already available on the market and there exists a demand).
Permit me to summarize. If you are intending on investing a lot of money on your invention, then you should always analyze the opportunity first to be certain it’s worth pursuing; however, when you can actively promote your invention to companies with minimal cost, there is no doubt that an interested company will work their very own due diligence (not depend upon yours). Note: it is usually important to have marketing research information available when you discuss read here with prospective companies; however, it is far from easy to get these details so you need to balance the effort and expense of gathering the information with the real need of having it.
In addition, i offers you some homework tips.As discussed, the idea of marketing due diligence is usually to gather as much information as is possible to generate a well-informed decision on making an investment in any invention. In the perfect world, we will supply the appropriate information on sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, this data might not be simple to locate.
When you are not in a position to pay an expert firm to perform see here, it is actually easy to carry out the research on your own; however, you must understand that research needs to be interpreted and used for decision-making and naturally, it offers no value. It is actually whatever you do with the info that matters. Note: I would personally recommend you do NOT PURCHASE “market research” from an Invention Promotion company. Often sold being a “starting point” (they’ll usually approach you again with an expensive “marketing” package), the information is largely useless since it is not specific research on the invention. Rather, it really is off-the-shelf “canned” industry statistics, that will not necessarily assist you in making an informed decision.