My progress: creating a product

[Morethan1]

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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[Felix II]

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'.

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]

Hey fellas,

Quick update:

- Full working prototype 70% done.
- Got 3D render of the product done to look at the "look & feel" of the thing.
- Researching contract manufacturing, do not think I can make these things in basement as it requires significant assembly and testing...

Still a ways from patenting as I want to extend the coverage to the max.

 

[Morethan1]

Patent pending status!
Working on landing page now, while finishing up the prototype.

 

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[Eskil]

You're on a roll man...

 

[Morethan1]

Its been quite a while since my last post. Since then we have moved from alpha prototype to beta prototype. We have gotten angel funding.

We are moving quickly through the process of testing the shit out of the beta prototype to make it as rock solid as possible before we start a small batch production.

 

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[Morethan1]

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 .

 

[Eskil]

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.

 

[Morethan1]

You could always have something to lock it in the off position (assuming it creates heat), and I know for sure Li-Ion batteries can be shipped, I mean Apple products have them integrated, why couldn't you?

For sure! I have the same view.

I just haven't done enough research to fully understand the scope of the process. More homework is needed!

 

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[Morethan1]

So I received my 3D printer last week. Was able to make plenty of prints of parts for testing. Having this printer significantly decreased my lead time to getting prototype parts.

Have made a list of all the patent claims that are similar to my product. Arranging to meet with a patent lawyer early next week to go forth with a provisional patent.

 

[Morethan1]

Spent last week writing up a provisional patent. Time to submit and go to the next step.

 

[Morethan1]

You're on a roll man...

Trying to keep up with you ma man

 

[pickeringmt]

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'.

Yeah, I'd be careful there.

I know a guy that could be as Fastlane as somebody could get, but he is constantly sabotaging himself and his business. One of the ways he does this is to constantly tweak his product.

Huge mistake IMO

Consolidate all of your ideas, and revamp like once a year or something - maybe even release as a different product if there is enough changes.

Don't let good ideas stall a great execution. If the product is good, start selling it and people will be excited when something new is available.

 

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[KSR]

I don't think I even mentioned what it was yet haha. It's called PowerHookah. A new type of hookah that's powered electrically. It also doesn't require you to prepare anything, since it uses capsuled tobacco.

For the past couple of months, we've been busy finishing up the prototype and securing some patents. Now I have a bit more free time to give back to the forum since it helped me so much along the way.

Looking good my dude! Great thing is that (if you wanted) you could expand and eventually make your own flavours, not just the actual machine. I think the product is easily advertised on Instagram - use influencers to get your product out there!

 

[Morethan1]

Been offline for a while. We are pivoting the product to go into the marijuana industry. There is only 1 competitor in the sector. Will keep you guys updated as this moves forward

 

[Morethan1]

We attended our first trade show this month. The feedback we got was awesome. There was a lot of interest from distributors and consumers.

Just have to keep going!

 

[Morethan1]

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.

 

[yahdmon]

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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[Amail]

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]

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.

 

[jgsketch]

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

 

[TheBlackLion]

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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[tafy]

Sounds cool, would love to see the product when you are ready to show it

 

[Morethan1]

Hey guys its been a while since my last post.

A few things happened:

- working full time on this, no more job!
- found a mentor, see her regularly, great motivator
- got a bunch of quotes for production of parts
- design work taking longer than expected but looking great
- found trade shows to go to for networking

 

[Eskil]

Nice to see an update on this again. Are you looking at contract manufacturers domestically or abroad?

 

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[IAmTheJeff]

You could always have something to lock it in the off position (assuming it creates heat), and I know for sure Li-Ion batteries can be shipped, I mean Apple products have them integrated, why couldn't you?

 

[Morethan1]

Next step:

Analyze steps to working in the US (for a Canadian citizen).
Target market is in the US.
Companies that are making some the parts for us are in the US.

Doesn't make sense to me to get all the stuff shipped to Canada to get assembled/tested and then shipped back to the US...

 

[Morethan1]

Met with a patent lawyer.
Showed all the prior art we had found.
The next steps are:
1. Freedom to operate -> lawyer has to conduct a patent search ($3-5K), or use the patents I have found (less $)
2. Patentability -> Give an opinion on how the search above will affect patentability
3. Provisional patent -> Format my documents in legalese and submit to USPTO

I should get a quote next with all the options. Have another meeting with another patent lawyer. Let's see how much variation there is in their quotes...

 

[Morethan1]

Yeah, I'd be careful there.

I know a guy that could be as Fastlane as somebody could get, but he is constantly sabotaging himself and his business. One of the ways he does this is to constantly tweak his product.

Huge mistake IMO

Consolidate all of your ideas, and revamp like once a year or something - maybe even release as a different product if there is enough changes.

Don't let good ideas stall a great execution. If the product is good, start selling it and people will be excited when something new is available.

Good way of looking at it. I just want my product to work to my standards. No bells or whistles yet.

 

[Morethan1]

Testing is almost completed. Got amazing results with 3D printed PC. However we have found a new filament that can go to a higher glass transition temp of 140ºC which might be useful to some of you.

We are preparing some pitches for our next round of investing. Things are moving