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My progress: creating a product

A detailed account of a Fastlane process...

Morethan1

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Hello, I'll try to make it short and sweet:

I had an idea driving home one day from work. Did some research on it. It didn't exist. It was an enhancement on an existing product. I research patents and nothing came up. This was in January.

Drew up some plans of the product. CAD drawings are being done by my bro. I'm working on the prototype now. Did some market research to see if I have a good audience for the product. Did a few inquiries with people that use the current version of the product and they had the same problems (the problems I have the solution for).

Now I'm at the point where I am waiting on a few components to come in the mail, to see if my prototype will work as I envisioned it.

Will update as progress is made. Thanks for reading!
 
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fsutemplar

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Create a marketing flyer that has a general look of the end product. Focus on the benefits of it in the flyer - distribute it to your target market and ask them if they're willing to buy it at price x. Even better, ask them if they'd be willing to pre-order (and pre-pay) for it.
 

theorsays

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Cool sounds exciting! How do you plan on marketing your new project? Was it difficult to get a prototype created?
 

Morethan1

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Create a marketing flyer that has a general look of the end product. Focus on the benefits of it in the flyer - distribute it to your target market and ask them if they're willing to buy it at price x. Even better, ask them if they'd be willing to pre-order (and pre-pay) for it.

Not a bad idea. Will get on this.
 
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Morethan1

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Cool sounds exciting! How do you plan on marketing your new project? Was it difficult to get a prototype created?

I haven't gone that far in my plan. Still working out issues with finishing the prototype. It's not that it's difficult, it's just all the unexpected little things that come to light once you complete one portion of the concept. Getting there slowly.
 

PSDSH

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I just went thru the process you're going thru. I suggest slowing down just a bit and make sure you keep tweaking that prototype until you're really satisfied with it. I must have changed mine a dozen times at least. And even now as I'm ready to go into production I have more ideas...it's tough shutting off the ole brain once it gets a goin'. :D
 

Eskil

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I really enjoyed the prototyping process, but like you said - it can be tempting to do more and more improvements as the ideas start flowing. :)
 
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Felix II

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I just went thru the process you're going thru. I suggest slowing down just a bit and make sure you keep tweaking that prototype until you're really satisfied with it. I must have changed mine a dozen times at least. And even now as I'm ready to go into production I have more ideas...it's tough shutting off the ole brain once it gets a goin'. :D

I would recommend against this. This is what we refer to as "feature creep". Nine times out of ten it is better to get you product out there as is, and then let the MARKET tell you what changes to make.
 

Morethan1

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Ya, what I'm working on right now is a critical feature that absolutely needs to work or my product does not hold a significant change to its competitors.

Right now I'm getting in touch with some companies that do custom ceramic work to get a design for a hot plate. Well see what happens :).
 

yahdmon

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I agree...

I would recommend against this. This is what we refer to as "feature creep". Nine times out of ten it is better to get you product out there as is, and then let the MARKET tell you what changes to make.

If you need encouragement as far as this goes just think of Microsoft. Think of all the crap they put out in the old days and even recently. Then they put out another revision and tweaked it to make it a little better instead of just putting out a working product the first time. Either way, always be moving forward. Also, be sure you delegate. Make a list of things which someone else can help you with and find them and let them help you go FAST, which is what you want to do... GO FAST that is.
 
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PSDSH

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I would recommend against this. This is what we refer to as "feature creep". Nine times out of ten it is better to get you product out there as is, and then let the MARKET tell you what changes to make.

Have you manufactured a plastic product and successfully brought it to market, putting it onto the retail store shelves? I'd love to pick your brain if so. Or are you talking about computer software products?
 

Felix II

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Have you manufactured a plastic product and successfully brought it to market, putting it onto the retail store shelves? I'd love to pick your brain if so. Or are you talking about computer software products?

I have about a dozen products on the market. I should say, these are not my products, but products I was hired to design for other companies.

But yes, I do have a bit of experience on going from an idea to a physical product. The products I have designed are all electronic devices that have mechanical and software (firmware) requirements. I routinely work with metal and plastic parts in all phases of the design cycle.

I'd love to give you any help I can.
 

PSDSH

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I have about a dozen products on the market. I should say, these are not my products, but products I was hired to design for other companies.

But yes, I do have a bit of experience on going from an idea to a physical product. The products I have designed are all electronic devices that have mechanical and software (firmware) requirements. I routinely work with metal and plastic parts in all phases of the design cycle.

I'd love to give you any help I can.

Well, I'm struggling to find real world information on the various costs in the supply chain: Let's say a product retails for $10, usually the wholesale price, the price the retailer pays for the item, is half that...$5. I see in the hardware business that there are 1 or 2 levels of wholesalers/distributors who I would basically be selling the product to then they distribute it at wholesale to the retailers. What kind of cut do they get? I've read 25% off the wholesale cost but that was in a book. I'd love to hear some real world numbers about the distribution chain if you or anyone else has experience with that.
 
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Morethan1

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Today getting the design of the crucial part done and will hopefully be able to test it tonight.
 

Eskil

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Well, I'm struggling to find real world information on the various costs in the supply chain: Let's say a product retails for $10, usually the wholesale price, the price the retailer pays for the item, is half that...$5. I see in the hardware business that there are 1 or 2 levels of wholesalers/distributors who I would basically be selling the product to then they distribute it at wholesale to the retailers. What kind of cut do they get? I've read 25% off the wholesale cost but that was in a book. I'd love to hear some real world numbers about the distribution chain if you or anyone else has experience with that.

I’m sure someone here like zen******* or Vigilante could give a better answer than this, but from what I know it goes something like this:

Your wholesale price should basically cover your costs to break even, times the margin you need. Often, this factor is double (100%) your cost – so say a product that costs you $10 to make, you can wholesale it to retailers for $20. They in turn, might put it on store shelves for a 50% markup. So in this case: $20 * 1.5 = $30 (which of course translates to $29.99).

But that isn’t to say that you can simply ask and expect the wholesale margin you want to retailers. Well it might be if you have a very unique product with little or no competition – but as long as you are competing with similar products, you need to do some research on what the wholesale price range is in that category for either big box stores or mom and pop shops, or both.
 

Amail

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Well, I'm struggling to find real world information on the various costs in the supply chain: Let's say a product retails for $10, usually the wholesale price, the price the retailer pays for the item, is half that...$5. I see in the hardware business that there are 1 or 2 levels of wholesalers/distributors who I would basically be selling the product to then they distribute it at wholesale to the retailers. What kind of cut do they get? I've read 25% off the wholesale cost but that was in a book. I'd love to hear some real world numbers about the distribution chain if you or anyone else has experience with that.
I went thru this as well. The answer is, it depends. Different industries support different markups. In the industry I'm in, the distributor typically wants 35% - 50% margin, and the retailer expects at least 50% margin. Usually this means you need to sell direct to the retailer or direct to the end user at first because you're not moving enough volume to lower your costs. Once it ramps up and you're buying in larger quantities, your per piece cost goes down and you can support a distributor level as well.
 
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Morethan1

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After some testing, it has been made clear that I will need to get my part custom made. Contacted some suppliers. Lets see if they are able to make what I need.
 

Morethan1

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Hey guys, here's a recap of whats happening:

- Still talking with suppliers for getting a crucial piece for my product.
- Working with brother to design the consumable capsule, once complete will have to source supplier which can make it.
- Working on landing page at the same time. Writing copy myself.

Dilemma: Do I release the landing page before my prototype is complete (can include rendering of product from CAD software in a video)?
Doubts: If landing page is made public, I fear of a competitor seeing my idea and doing it himself.

Any ideas?
 

Eskil

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Did you apply for a provisional patent yet? If that's been take care of, you should have less to worry about for releasing a landing page about the product (where you then can also state "patent pending").

If not, but still really want to have a landing page - and you only want a little bit more control over who sees it, you can hide it from being indexed in search engines but setting it as hidden. This way, only people who know the page URL can see it. (And in case someone finds your domain or it perhaps gives away what the product is - make the landing page www.yoursite.com/my-cool-product.php instead of just www.yoursite.com)

You hide the page from search pages by using this snippet in the header of your html:

<meta name="ROBOTS" CONTENT="NOINDEX">
 
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Morethan1

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No I didn't file for the provisional patent yet. I think I'll complete the prototype first then gather a few people in a focus group and get their thoughts on the product. If they like it, I'll go forward with the patent and the landing page. Makes sense to me...don't know if it does to seasoned guys who have released many products though.
 

Morethan1

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Hey guys so here's an update:

Tested the samples (small heaters) from china. They did not work as discussed. I brought this to the attention of the supplier and all I got was send us more money and well send you something else that might work for you.

I had been in contact with other suppliers at the same time and have managed to find one who says can comply with my requirements or my money back. Lets see what happens...
 

anddreww

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A critical evaluation of the current market scenario should be conducted before the launch of any product.Prototype role is very crucial to set grounds for getting a reasonable market share.
 
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Morethan1

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So we received some more parts from china this week.

We tested them and they failed to do what we wanted them to do. We are going to run some more tests before going back to the supplier.

This is frustrating but I take it as a learning experience.
 

Eskil

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We tested them and they failed to do what we wanted them to do. We are going to run some more tests before going back to the supplier.

This is frustrating but I take it as a learning experience.

That sucks. Was it a quality issue from how they were made, or did they simply not create things to your specs?
 

Vick

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We tested them and they failed to do what we wanted them to do. We are going to run some more tests before going back to the supplier.

can you make these parts yourselves for testing purposes, before going to china?
 
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Morethan1

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We tried and failed. I'll say what they are as it does not give away what I'm making.

The part is a heating element capable of reaching 350-450°C having a small diameter 1-3" and capable of being battery operated. We have tried silicone heaters which failed. We tried kapton heaters which failed. We tried making it ourselves using nichrome wire, that failed. So we are still searching...
 

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Not sure what you are building, but would chemical be an option for you? I've seen some of self heating packages for coffee and noodles in the market place. They all use chemicals. All though 350f is really hot. Tempra Technology
 

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Jgsketch is right on the money. You don't have to settle for being a me-too product if you don't want to. See how you can innovate within your space in a way that resonates with your customers. Bring them into the product innovation process if you need to. Good luck, kiddo.
 
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Morethan1

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Thanks for the push guys, will check it out today!

I love this forum, what a team!
 

Morethan1

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Sorry for the long absence, been working on the prototype. I am a 100% sure that I am able to build this product. Had a meeting with a patent lawyer, he said with all the data and drawings I have, I could do a full patent application. I have heard from many people in my network that they would love my product.

Now, Id like to get real world feedback if I should proceed with the product or not. I have looked into making a landing page and having the 3D rendering of the product on the page. Doing this will mean I will need to have a patent pending on the product. Also, this means that I have already chosen the name and logo, which I have not.

I have checked out specilized forums on the market I indend to sell to. They seem to be more purists (ie like the people who wont buy a nespresso, but prefer to make everything themselves, that doesnt mean there isnt a market for the nespresso...), Im in the same type of boat here, where Im introducing a new spin on a old product that makes life a little easier.

Id like to get the customers opinions for the logo and name of the product.

Any suggestions for any of the above topics (best way to gauge market demand in a more quantifiable way, get customers involved)?
 
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