Bill Cherry
Learning Objectives:
1. Develop a good new idea
2. Research a good product idea
3. Create a prototype of the product concept
4. Find a manufacturer for the product
1. What is a good idea?
All of us have at one time or another had a great idea pop into our head. We think, “Man I should patent that idea.” Then we decided that someone probably already thought of it and has done it. Many of those ideas we get are good ideas and others are not. How do you tell the difference?
Does it solve a problem? Patients needing heart bypass surgery had a problem of blocked arteries. A scientist invented a solution and alternative to surgery, stints. There was a need to reduce heart surgeries so stints, (wire like devices that are put into coronary arteries to open the blood flow) were invented.
Does an idea fill an unfulfilled need? In the mid 1980’s the Japanese did some research in the U.S. and found that people wanted a luxury car different from the Cadillac. They found an unfulfilled customer need, so they build the Lexus.
Does the idea create a new need? New technology is being developed at a faster and greater amount now that at anytime in the history of the world. It’s not just technical and mechanical break troughs, but the world is exploding with new ideas in every area of life.
A former president of G.E Products said that, “not one major appliance we have today has been invented by a large corporation. They have all been invented by individuals. Not the electric iron, hair dryer, washer, dryer, microwave, vacuum cleaner, air conditioner, or carpet cleaner. None were invented by large companies.”
Three good examples of successful new ideas are:
The Cabbage Patch Dolls. I remember in the mid 1980’s when crowds of mothers stood in lines waiting for the toy stores to open their doors so they could rush in and grab the Cabbage Patch Dolls their daughter wanted.
The man who created the dolls was a graphic designer and noticed there were no soft dolls. They were either plastic or plastic with rubber over that. He decided to create a soft doll. He created the cute round face, eyes close together, chubby cheeks, little mouths and crazy hair. They really were cute. He came up with a different marketing idea. His dolls were not manufactured, they were born, and they came with birth certificates. They didn’t come from the factory they came from a doll hospital, and so on. They sold many millions of dollars of dolls and they continue to sell well today.
The Hoola Hoop. What could be simpler? A hoop. I remember when this new toy came into the market. It was huge. The famous toy marketer Wammo introduced the toy and they sold millions. As with all products sales slowly began to decline but then in the 1970’s there was a surge of new demand for the product. Again they sold millions, and they continue to sell well even today. I just bought one for my granddaughter last month. The simple ideas are the best.
The Ant farm. I’m talking about those wooden and glass enclosures full of dirt and red ants. Millions of people have loved watching ants dig their tunnels and hatch young ants. Today they still sell millions but now they are filled with clear or colored jell not dirt. Another simple idea.
Can you think of any bad ideas? Remember New Coke? Millions of dollars of research said Coke drinkers wanted a sweeter Coke so they made new Coke. It was one of the biggest flops in marketing history. Other famous flops are:
Polaroid movie cameras
Apple Lisa computers
Levi Type 1 Jeans
2. Time Magazine inventions of the year 2008 and 2007… look them up and see the different inventions each year that were the best.
3. What resources do you have?
Money to invest. The first thing a new student asks me is where do I get money to fund my new product? Creating a new product or inventing a new technology takes money, and usually a lot of it. You will need money to have a patent attorney file your patent, from $5000 to $8,000. You will need money to create prototypes, to manufacture the product, to do marketing, shipping, etc. and it takes a lot of time.
If you have money, invest it in your product development. Sell your boat, sell your RV, sell your dog, but get some money.
Are there people you know who have experience in the product category? They can help you.
4. Simple but successful product ideas:
Hostess Twinkies- in 1931 James Dewar a manager at Continental Bakery recognized a problem. Every spring they baked thousands of short cakes for strawberry short cakes. They used thousands of small pans to cook the short cakes. James came up with a way to bake a product that will be eaten all year long. He invented the Twinkie. Small sponge cake with cream filling in the center. He finally had a product they could bake and sell year round.
5. How to develop new ideas:
When you have a good idea, write it down in detail, and create a simple drawing of it.
Ask friends/family what would make it better. Ask people in the industry for their ideas also. Don’t be discouraged, things will come up, problems will happen and slow you down. Persist. Don’t give up.
6. Protect your idea:
93,000 patents were granted in 2007. Only a small percentage of those ever made it to market. There are five things you need to do when starting out.
1. Use non disclosure agreement. This is a simple form that states the person who signs it agrees not to disclose anything about your product without your permission. You can down load a copy of the form on the Internet.
2. Write a detailed description with drawing. As mentioned before, write a detailed description of the product or idea. Create a simple drawing. You will need these if you decide to patent your product.
3. Make a copy, mail to self. This is the “poor man’s” method to protect your idea. Mail the description and drawing to yourself. When it arrives don’t open it. File it away. If there is a question who had the idea first, you have a sealed envelop with a post mark date showing when you had the idea.
4. Do a patent search. Before you submit your product idea for a patent, you must do a patent search. That is where a company searches through all the patents to make sure there is not a patent on a product like yours. You can find a company that will do a patent search on line like legalzoom. It will cost a few hundred dollars. If you don’t want to do the patent search, the patent attorney will do it for you.
5. Provisional patent. It takes many months to get a patent approved. In order to protect your idea while the patent is being processed you can file a provisional patent which is a temporary patent good for 12 months. A provisional patent is easy to file and inexpensive. You can file one your self or have the attorney file it for you. When you file a provisional patent you can use the Patent Pending phrase.
6. Patent lawyer $5000-$8,000.
Government patent office: www.uspto.gov
7. Research your idea, learn the industry
Internet, experts, industry publications, articles
Examples: Pet trade publication- search Google.
Every industry has a trade publication.
8. Find a manufacturer:
www.thomasnet.com lists all manufacturers in North America.
Use Google to search for suppliers. For example search: Widget Suppliers, then widget distributors, then widget wholesale. Search through all the websites looking for websites that will drop ship.
The manufacturer will create the prototype for you
Will need cash and plenty of time. It goes slow.
9. Things to consider:
Where will the product be stored?
Who will ship it and from where?
How much will it cost to ship it, box, packing, postage?
How many products to a box?
Packaging, product packaging, color, size, shelf location.
Marketing, logo for your business, for the product, brochure, business cards, letterhead.
Mailing labels etc.
Assignments:
Attend elective classes:
Finding hot products and hot businesses
Seven easy steps to start a business
Go to Google products and search some products
Search history of a successful product to see how marketed
Research the Time Magazine Best Inventions of the Year 2008
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