The Online Inventor is a free newsletter for inventors
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THE
ONLINE INVENTOR � June 2005 Issue
(c)
2004 Market Launchers, Inc.
http://www.marketlaunchers.com/customer-testimonials.html
Editor:
Paul Niemann
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You
are receiving this free newsletter because you signed up for it either at my
MarketLaunchers.com web site, or by sending me an e-mail. If you want to
unsubscribe, just hit the "reply" button and type in the word
"unsubscribe."
PUBLISHER�S
NOTES:
The Online Inventor started out as a free monthly newsletter and, while
it remains free, I am changing the frequency to every-other-month because I
have a lot of things going on right now. In addition to running
MarketLaunchers.com and writing a syndicated weekly newspaper column (called
Invention Mysteries), I�m also teaching marketing and entrepreneurship at a
local university.
In
other news, the first-ever New Product Hunt at MarketLaunchers.com is now
officially over. More than 35 inventors participated and I sincerely hope that
each of you who participated received calls from interested companies.
I
hope you enjoy the 3 articles below.
Best
Regards,
Paul
Niemann
http://www.MarketLaunchers.com
800-337-5758
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Personal
Quotes, contributed by
*
�Don't let your idea be invented tomorrow. . .� Spring of 1975
*
�Inventors visualize the future; then make it happen.� Summer of
1995
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Article
# 1: �Psssst!
What manufacturers are REALLY looking for!� by
Mike Coulton of Benjamin Obdyke, Inc., reprinted from the JAN/FEB/MARCH
2005 issue of Inventors� Digest with permission.
Historically
speaking, few manufacturers have been open-minded about acquiring products
that were invented outside of their company. But that�s changing as more and
more companies are starting to look for help from independent inventors to
expand their product lines.
Our
company was founded by an inventor. In 1868, Benjamin Obdyke invented the
original corrugated down spout for roof drainage systems, and now we�re
turning to outside inventors for help in expanding our product line of home
improvement products, particularly exterior roofing and siding products.
Looking
beyond their own creative abilities should be a win-win situation for both
inventors and manufacturers. We�ve been working with outside inventors
formally for more than a year and informally for over 15 years. We�ve found
that there are several benefits to doing this. First, we�re now able to
choose from among hundreds of new product ideas per year; in the past we were
limited to what our own engineers could generate.
Second,
product ideas that come from independent inventors are often significantly
different from what we would create in-house. This allows us to benefit from
their �outside the box thinking.�
Third,
our R & D cost per product concept is much lower when we work with outside
inventors because the inventor has already incurred the majority of the
development cost and patent cost. The downside is that we don�t have much
control over what an outside inventor invents. As a result, we�ll often look
at 80 to 100 products to find four or five that may fit well with our business
and are worth further consideration.
We
still rely mostly on our own people for new products; in fact, I don�t think
we�ll ever rely exclusively on outside inventors. We allot roughly 20
percent of our research and development effort to working with outside
inventors.
While
selling or licensing an invention to an existing company is the goal of most
independent inventors, it rarely works out that way because most companies do
not look outside their company for new products, and inventors often lack
either the right product or the know-how to get a deal done.
There�s
not much you can do to change the way a company does business, other than to
pitch products to them anyway. If they indicate a total lack of interest, it
doesn�t hurt to let them know that another company in their industry (one of
their competitors) is interested in your product.
But
there are several things you can do to improve your chances of licensing a
product when you find a company that is open minded to considering your
invention.
First,
be prepared before contacting a manufacturer. Do your homework; research the
company well so that you understand its business, its products and its
customers. This will enhance your professional image, and the people you deal
with at the company will take you more seriously.
Second,
the further along you are in the development stage, the better your chances of
getting a second look. Most companies don�t buy undeveloped ideas even if
they are open to acquiring new products. We consider the following when we
review new product submissions.
*
The product must fit in with our product line, and it must allow us to
offer our customers something that no one else does. If you have a product
that might enable us to enter a new market, that�s a big plus. Above all
else, it must solve a perceived market need.
*
The product must have a manufacturing cost-to-retail price ratio of no
more than 25 percent. That means if the product costs $1 to manufacture, we
have to be able to sell it for no less than $4. This will fund marketing and
distribution efforts necessary to make the product successful. People have to
be made aware the product exists and it has to be available to them where they
buy their materials. That costs a tremendous amount of money.
*
The product must have a strong market potential for us. It�s better
if you�re already manufacturing and selling it, because any new product
without a track record involves a substantial amount of risk, and nothing
helps reduce risk like a proven sales history.
*
You should have a working prototype that shows how your product works
and, more importantly, that it does work.
*
We prefer products to be patented or at least patent pending, but
we�ll help you obtain a patent if we think it is a marketable idea. If you
have a product that isn�t at least patent pending, then we�ll have you
fill out a confidentiality form on our web site for your own protection.
Keep
the above items in mind when you call, e-mail or write to a manufacturer. If
possible, get the name and title of the appropriate person at the company
you�re approaching. Some companies won�t publicize the name of the person
in charge of New Product Development because they don�t want to get
inundated with phone calls. Most companies won�t mind if you call to follow
up, but don�t call too often or you�ll find no one will take your calls.
We acknowledge every submission in writing back to the inventor and will keep
them informed as it moves through the evaluation process, again in writing.
Many
inventors think that their product is the best in the world, and that�s
okay, because it shows that you have passion and confidence in it. Keep in
mind that it�s the end user -- the customer -- whose decision is the one
that really counts.
SIDEBAR
1:
In late 1868, Benjamin P. Obdyke made a career change that would
ultimately lead to the modern Benjamin Obdyke Corporation. Benjamin Obdyke
entered a partnership as a sheet metal worker and as the sole manufacturer of
the new Corrugated Water Conductors. While pioneering these first-generation
corrugated down spouts, the company was incorporated, and Benjamin P. Obdyke
Inc., was born. The pioneering creative vision of their founder remains the
hallmark of their company today.
SIDEBAR
2:
About ten years ago, Joe Opdyke (notice the �p� instead of �b�
in Opdyke) of
Co-owner
with his brother of a construction business that their dad started 50 years
ago, Garages by Opdyke, Joe is an astute businessman who has cultivated a very
positive relationship with the folks at Benjamin Obdyke. �When they were
working on the trim kit, I�d stop by to visit,� he says. �Several years
ago, I knew they were trying to improve their big seller, the Roll Vent, which
is a ridge vent for roofs. At the time, it could only be installed nail by
nail, and they were trying to find a way to be able to install it using a nail
gun.� Joe tackled the problem, came up with a simple solution, worked with
some Benjamin Obdyke employees on it, and earned another patent and a
licensing agreement. The product�s name is Rapid Ridge.
�They�re
always working on new products,� he says. �We�ve developed a great
relationship and, often, their engineers bring me prototypes to test out on
the job site. Just recently I tried out two product ideas; one was unworkable
but the other one is a winner!� As an expert new product analyst, Joe always
signs a nondisclosure agreement before testing a prototype.
�I�ve
learned that there has to be enough improvement in a product that it�s worth
it to a company to make the change,� he says. �It could cost millions just
to retool, then there are the additional sales costs to promote a new
product.� As to working with Benjamin Obdyke: �I�d recommend them to any
inventor who has an idea in their area. They�ve been great to work with!�
#
# #
Mike
Coulton is vice president of business development at Benjamin Obdyke, a
137-year-old manufacturer of residential building products, headquartered in
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Article
# 2: �The
benefit of attending your industry�s trade show,�
by Paul Niemann of MarketLaunchers.com
I
recently went to
A
trade show is probably the only place where you can meet 50 or 60 prospective
clients at once. A trade show also gives a good idea of who your competition
is � and what they�re up to.
You
don�t even have to get a trade show booth (which can be rather expensive).
If you have a booth, you�ll find that you�re at the booth most of the
time, when you could be out walking the trade show floor and learning more
about your industry, your prospects, your competitors and, most importantly,
other companies who you might be able to team up with.
If
you sell to businesses (marketing people refer to this as B-to-B, or
business-to-business), then you would benefit by going to a trade show. The
best thing about trade shows is that nearly every industry has one. Where do
you find out about trade shows in any industry?
There
are 2 ways: The quickest way is to go to http://www.tsnn.com
and look it up there. Or you can look for your trade association in the
reference section of your public library. There you will find a book titled,
�The Encyclopedia of Associations.� Most industries have an annual trade
show; costs can range from free to several hundred dollars to attend.
My
suggestion is to find out more about these 3 things in your industry:
1.
Your industry�s trade association.
2.
Your industry�s trade show or convention.
3.
Your industry�s trade publication.
Doing
so will help you become an expert in your industry.
#
# #
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Article
# 3: �Who
invents better products -- individual inventors or corporations?�
by Paul Niemann of InventionMysteries.com
PUBLISHER�S
NOTE:
The following story is excerpted from my book, �Invention
Mysteries: The little-known
stories behind well-known inventions.�
Before
we move on to a brand new year of invention news, I�d like to pause for one
of the more important news items of 2004: The break-up of Barbie and Ken after
a 43-year courtship.
Barbie
and Ken who?
I�m
referring to the Barbie Doll and her commitment-phobic boyfriend, Ken, who
called it quits last February. Their publicist said, �They�ll always
remain the best of friends.� Yeah, I�m sure that�s going to make their
die-hard fans feel better.
How
is this relevant to our story, or is your humble scribe just going off on a
tangent again?
The
dolls have something in common with many of the popular inventions that people
use everyday, because they were created by an individual inventor (Mattel
co-founder Ruth Handler). Where do
inventions come from? Are the best products invented by individual inventors,
or by big companies?
For
many brand new products, the chances are good that they were created by
individual inventors. But products that are either high-tech or are variations
of existing products (think Diet Coke) were probably created in corporate
labs.
Individual
inventors often face nearly insurmountable odds in the invention process,
because they don�t have existing brand names to capitalize on and they
usually don�t have retail stores set up to carry their new inventions. Oh,
and there�s that pesky little detail about paying for the cost of inventing
and marketing.
From
board games
such as Monopoly and Trivial Pursuit
(invented by two Canadians), to toys like Furby (Richard Levy) and Rubik�s
Cube (Erno Rubik of
Individual
inventors create new products in every imaginable industry, such as hardware
inventions like the Black & Decker Workmate to sporting goods inventions
like the modern baseball glove (Cardinals pitcher Bill Doak in 1920) and the
snowboard (Jake Burton). In the case of Black & Decker, it was Englishman
Ron Hackman, an individual inventor, who invented the Workmate and licensed it
to the company.
Think
that TV and radio were invented by RCA or Zenith? Think again, as it was
17-year-old
The
next time you drive somewhere in the rain, you can thank
If
you prefer flying, credit goes to Wilbur and Orville for getting you there. If
your plane doesn�t make it all the way to your destination, you�ll be
forever grateful to Captain Tom Baldwin and his brother, inventors of the
parachute.
And
we haven�t even mentioned some of the all-time great individual inventors,
such as Leonardo da Vinci, Ben Franklin, Thomas Jefferson, George Washington
Carver or Thomas Edison (who went on to create his own corporate lab).
Back
to the original question of this story: Who invents better products �
individual inventors or corporations?
That
would be impossible to answer in one column, as we would have to compare the
results of thousands of individual
inventors vs. thousands
of corporations. As Invention
Mysteries begins its third year of syndication, we will continue to focus
on the stories of individual inventors.
It contains 47 great stories and 35 illustrations. The INVENTION MYSTERIES book makes the PERFECT Father�s Day gift. Written by syndicated columnist and MarketLaunchers.com president Paul Niemann, INVENTION MYSTERIES will entertain you and inspire you. You can read several sample stories or purchase a copy at http://www.InventionMysteries.com
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THE
END
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