The first three steps in evaluating a new product are: Step 1, evaluating product features and the reasons people will buy; Step 2, determining how the product will be manufactured; and Step 3, whether or not the product has, or can receive, adequate intellectual property protection while not infringing on other patents.
Inventors and people in the know for new products tend to be in sync for these three steps in evaluating a product, although inventors tend to put patents as the most important step, while most new product experts put that lower on the list, but never the less the first three steps are very similar.
The next key evaluation step for people in the industry, and one that is often overlooked by inventors, is to answer the question “Can the product make money?” And hopefully lots of money. Inventors tend to feel if the product is right it will make money. New product experts know this is not the case. Pricing and perceived value versus manufacturing costs is the key issue for the experts.
The purpose of this article is to give inventors a better understanding of the money issues involved with a new product that determine whether or not the inventor will make money on each product sold. The goal is to assist inventors in evaluating the perceived value of the product to the end user, understanding how much they will receive from the sale of each product based on their chosen distribution channel, and then to understand if they will make money when they compare that amount to their manufacturing costs.
For example, consider a kit that makes a hard bound book for the scrapbook industry. A focus group comparison of the book to alternative products might determine that the perceived value is $30.00 retail. If the inventor is selling to scrap book retailers through a distribution network his or her take will be $12.00. A general rule when selling through distribution is that the manufacturers selling price must be twice the manufacturing costs to make money. So a new products person would feel that the product will make money if the manufacturing cost, including packaging, is $6.00 or less.
Making Money through the Distribution Network
I’m going to start with the area that inventors seem to understand least: the money the inventor will make through the distribution network. The most common distribution methods are:
Through distributors to retailers
Price paid by end-user: 100 percent
Price paid by retailer: 60 percent
Price paid by distributor: 42 percent
Typical Sales/Marketing Cost: 10-12 percent
Net to Company: 30-32 percent
Direct to retailers
Price paid by end-user: 100 percent
Price paid by retailer: 50 percent
Price paid by distributor: N/A
Typical Sales/Marketing Cost: 15-20 percent
Net to Company: 30-35 percent
Through distributors to Industrial users
Price paid by end-user: 100 percent
Price paid by retailer: N/A
Price paid by distributor: 60-65 percent
Typical Sales/Marketing Cost: 15-18 percent
Net to Company: 42-50 percent
Sell direct to consumers Industrial Revolution or …
Tag: basics
Knowing the Basics of Money For Manufacturing a New Product
The first three steps in evaluating a new product are: Step 1, evaluating product features and the reasons people will buy; Step 2, determining how the product will be manufactured; and Step 3, whether or not the product has, or can receive, adequate intellectual property protection while not infringing on other patents.
Inventors and people in the know for new products tend to be in sync for these three steps in evaluating a product, although inventors tend to put patents as the most important step, while most new product experts put that lower on the list, but never the less the first three steps are very similar.
The next key evaluation step for people in the industry, and one that is often overlooked by inventors, is to answer the question “Can the product make money?” And hopefully lots of money. Inventors tend to feel if the product is right it will make money. New product experts know this is not the case. Pricing and perceived value versus manufacturing costs is the key issue for the experts.
The purpose of this article is to give inventors a better understanding of the money issues involved with a new product that determine whether or not the inventor will make money on each product sold. The goal is to assist inventors in evaluating the perceived value of the product to the end user, understanding how much they will receive from the sale of each product based on their chosen distribution channel, and then to understand if they will make money when they compare that amount to their manufacturing costs.
For example, consider a kit that makes a hard bound book for the scrapbook industry. A focus group comparison of the book to alternative products might determine that the perceived value is $30.00 retail. If the inventor is selling to scrap book retailers through a distribution network his or her take will be $12.00. A general rule when selling through distribution is that the manufacturers selling price must be twice the manufacturing costs to make money. So a new products person would feel that the product will make money if the manufacturing cost, including packaging, is $6.00 or less.
Making Money through the Distribution Network
I’m going to start with the area that inventors seem to understand least: the money the inventor will make through the distribution network. The most common distribution methods are:
Through distributors to retailers
Price paid by end-user: 100 percent
Price paid by retailer: 60 percent
Price paid by distributor: 42 percent
Typical Sales/Marketing Cost: 10-12 percent
Net to Company: 30-32 percent
Direct to retailers
Price paid by end-user: 100 percent
Price paid by retailer: 50 percent
Price paid by distributor: N/A
Typical Sales/Marketing Cost: 15-20 percent
Net to Company: 30-35 percent
Through distributors to Industrial users
Price paid by end-user: 100 percent
Price paid by retailer: N/A
Price paid by distributor: 60-65 percent
Typical Sales/Marketing Cost: 15-18 percent
Net to Company: 42-50 percent
Sell direct to consumers Industrial Revolution or …
Moisture Analyzer Comprehension: Learning the Basics
Wonder what coffee and wall paint have in common? Not that they are both liquids with varied viscosity, but the Types Of Manufacturing Industries Pdf fact that they can be measured by an analyzer that specializes in moisture. Yes. Moisture can be measured.
In describing a measurement device, a moisture analyzer can be considered one of the many list of measurement devices that are maintained, developed and utilized in various industries. This ranges from small-scale business industries to corporations or manufacturing and engineering industries. Examples identified are food processing industries, pharmaceutical development laboratories, construction sites and chemical preparation industries. Simply put, a moisture analyzer is defined as a measurement device that is necessary for measuring moisture content following proper data gathering and thorough observation and reading of the process material. Its capability should produce commercially viable product output as it is made to measure various samples of substances. These substances vary according to what is needed in the process.
It may not be the most important discussion to start, but the involvement of moisture not even in science but in the simplest way of living is of a big significance in understanding why should there be a device or equipment to measure its content in the first place. Generally, coping and living with a little amount of moisture is in most cases, insignificant and at times a measure that may not be a worry of anyone. Moisture comes in many forms. It can be in the most expensive cooling Software Production Engineer Job Description showers or in the vast blanket of ocean mist. It may be found in the drops of water in the leaves of a tree or in the form of mistlike drizzles in the light rain. On a scientific note, moisture in a laboratory or in any contained facility or space is often unwanted. During most cases, too much involvement and application of moisture in the air and surrounding results to undesired by-product. This often results to uncalled-for occurrence in scientific procedures and experiments.
Different types of chemicals and mixtures at times do not compliment each other that is why thorough study and rationalization attuned to them should be given much attention to. These chemicals and mixtures if exposed to too much moisture can be detrimental and damaging not only to the process but also to those individuals in-charged and involved in the said process. On the other hand, there are also product materials in which are both organic and synthetic in nature, that can either realize strength or undergo quality deterioration depending on how much moisture they are exposed to. Thus, a moisture analyzer is designed to deliver efficient, accurate, reliable and exact moisture determination. It is used to measure and supervise moisture content whichever process available and suitable for the product material. The operating unit used should guarantee fast and precise results.…