Once inventors have a product ready to sell, they have to decide how to market the product. They may choose to sell the product themselves, generating the most profit by selling, but the main disadvantage is that sales could reach a slow start or never start at all. Another option is to land a marketing partner another company that already sells in the target market that has the potential for fast sales growth, but the main disadvantage is that you will have to give 20 to 25% of its trading partner costs Marketing to cover sales and marketing. At first glance, 20-25% seems high, but in fact most consumer products companies spend about 20% to cover the costs of sales and marketing. Sales made by a trading partner may not be possible if you have low margins but it is often best for fast sales growth for inventors with high margin products where the wholesale price the product is At least twice the cost of manufacturing the product. This article looks at how to find a strong trading partner to sell your product.
There are several principles to follow when a partner is selected. The partner must be selling cheaply and must also be able to generate significant revenue per year with its concept. The partner must also have a solid reputation and has experienced strong sales growth. But the essential point is to work with companies where the inventor can find someone within the company who is willing to push the direction to bring your product. Ideally, this person is a regional marketing manager or a person with enough influence to advance the project. The marketing partner can be chosen from a wide range of businesses: a manufacturing company that manufactures other products you sell, a retailer that sells the same target market, a company representative that plays a significant role in A particular market, a large end user of an industrial product, or even a large retailer looking to sign a private label agreement for its stores.
Potential trading partners
Normally, when people think of a marketing partner, they think in big companies with great marketing and sales staff. These companies can be good partners, but also partners that can take a long time to sell. You need a marketing partner is a commitment to take the product for a period of time, which means that a marketing partner is a broad term for inventors. For example, a retailer is a partner if you agree to purchase a fixed number of units for three years in exchange for an additional ten percent discount and an exclusive sales agreement.
Companies with brand offers
Products and services are stigmatized when they are sold under a name that the company promotes. The Geek Squad sells branded computer repair services and sell Crank Brothers brand bicycle repair products for bike shops. Companies with branded products usually sold through established distribution channels compete with many other companies and have a fairly stable business flow. These companies will be interested in marketing inventor products when these agreements will improve their competitive position.