- Product Evaluation
Chances are you love your product. It's your baby after all. And chances are your friends and family love you and your product! What you need is an objective evaluation from people that know products, how they are marketed and how they get to market. That is the first step in our process. We will tell it like it is. If we see problems with the product, we can help fix them. There is a big difference between a patented invention and a saleable consumer product. Without an honest evaluation of where your product is now, you will never get it to the place you want it to be. Our evaluation is FREE.
It all starts with a prototype. With more than 25 years of product design and engineering experience, America Invents principals have designed, developed and built successful products for companies like Ronco and The Sharper Image. Our designers are able to turn your idea into a prototype that looks like a finished product and that is the best way to demonstrate it.
We have never seen a product licensed or manufactured without a prototype. A prototype needs to demonstrate how the product looks, feels and works. Prove it works and bring it to life using a proof-of-concept prototype. There are basically three kinds of prototypes: Type I is most common and it is proof of concept, Type II is proof of design and Type III is a production prototype. When you have a final design and engineering (Type II and III) you can source the manufacturing, find distributors, show buyers and even pre-sell it into leading chains.
A prototype increases your chance of success. Add in the critically important finance and marketing information and this product presentation will answer all the questions a prospective licensee will have allowing them to make a decision quickly and bring you closer to that first royalty check.
- Patents and Patent Searches
America Invents does not write patents or conduct detailed patent searches. We can refer you to professional search firms and attorneys that can provide you with these services if you need them. You don't need a patent to manufacture and sell a product. You need a patent to defend its success in the marketplace.
Most people don't know what marketing is and confuse marketing with sales. Everyone understands sales because it is simply cash now. The mission of sales is to close the sale and bring in the cash. Marketing is much bigger and harder to understand. Marketing is the strategy, implementation of the plan, accomplishment of the tasks to conquer the objective (the customer) and complete the mission. The mission of marketing is to find, influence and develop new and repeat sales at a profit. The purpose of marketing is to create value. If the marketing is together, the money will appear, the value will increase and the plan will exceed expectation.
Think about the last product you purchased. I doubt if a salesperson had anything to do with your buying the product. You probably bought it because of marketing. America Invents knows how to market your product to the right companies. Without the right marketing, even the best products fail. And with the right marketing, some of the worst products succeed. Who needs a Chia Pet? No one, but it has made millions because it has brilliant marketing behind it. America Invents can provide brilliant marketing to your product.
Most people wrongly assume that because they have a patent they have no competition. The average consumer is hit with thousands of marketing messages a day, your biggest competition is often the status quo. How are you going to get a consumer to take notice of your product and buy it? America Invents knows how. After all, products we have been involved with have sold over $1.5 billion at retail.
- Licensing and Negotiations
Many inventors think they can leave licensing agreements and negotiations to their patent attorneys—wrong! You start negotiating with a company the first second you start talking to them. You have to be ready to talk numbers at any time. So before you start, you had better know your costs, your margins and what your product and patent are worth to a potential buyer or licensee.
While the industry average for royalties is around 3%, we have been able to average nearly 8% for our clients. The royalty rate is bases on many factors, but the most important factor is the margin in the product as it moves from manufacturer to wholesaler to retailer. By using information from a multitude of sources - including manufacturing and market research - we are able to determine a fair royalty while taking into account the investment of the licensing company to get the product to market.
You can't get hung up on the royalty rate alone. It is the revenue dollars that are important, not the royalty percentage. A 5% royalty from a large, international company is almost always better than a 10% royalty from a smaller company. You have to look also at the unit sales estimates in order to determine the total return on a license agreement.
Bottom line, with America Invents you are more likely to license your product and you will get the highest royalty rate. And you will have innumerable benefits in ownership, rights, performance and term. This is what you get with experience.
- Sales of Manufactured Products
In some cases, you may want to manufacture and distribute your product. If we feel that this is a wise and profitable venture to pursue, we will suggest this course of action as the return on investment may be higher. This route offers a higher return, but also brings a higher cost and a greater risk. There are ways to minimize the risk, such as pre-selling and managing sales. We have great success in this area. If you feel that this might be the course of action you want to take, call our team and ask us how you might benefit
In our experience, we have never seen a product licensed without a prototype.
A prototype needs to demonstrate how the product looks, feels and works.
There is a big difference between a patented invention and a saleable consumer product.
A complete product package increases your chance of success. This includes engineering drawings, packaging, and an estimate on manufacturing.
These items, combined with the prototype and a patent, will answer all the questions a prospective licensing company might ask. This will allow them to get to the
"Go or No Go" decision quickly….bringing you closer to that first royalty check.