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: knowing
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 …
Knowing Some Basic Steps in the PCP Manufacturing Process
The printed circuit board (PCB) is generally used to interconnect the electronic components of any electronic gadgets such as television, cell phones, computers or hard drives Porter’S Five Forces Starbucks by applying conductive pathways from copper sheets onto a non-conductive substrate. PCB is also referred to as etched wiring board (EWB) or printer wiring board (PWB).
PCB’s are inexpensive and easy to use. Although it requires a lot of layout and designs, still you can guarantee that the cost is much cheaper compared Getting An Electrical Apprenticeship to other types of boards offered in the market. In fact, the manufacturing of PCB’s is much cheaper and faster for large volume production.
Things to Consider in the PCB Manufacturing Process
The printed circuit board manufacturing (PCBM) involves sophisticated series of operation and complex processing steps to produce single or multilayered printed circuit board. The manufacturing process can be either through mechanical, chemical, electrical or optical in nature. However, always keep in mind that though PCB emits limited pollution, still the process could produce significant amount of chemicals that could not only affect the body but also environment. Materials to be used in the PCB manufacturing process should be checked and considered before going through the actual process. The overall output of the PCB could be affected when materials to be used are not checked eagerly especially in the boarding process.
Steps in the PCB Manufacturing Process
The very first step in building PCB is to set up the materials, process and requirements that meet with the client’s specifications about the board design.
The next step is the transferring of data. This process involves transferring of the data for a coating onto the etch film placed on the conductive copper layer.
Next is etching. This process exposes the copper and some parts unprotected by the etch resist film to an element that gets rid of the unprotected copper, which makes the protected copper traces and pads in place.
Another process is the drilling. This process drills off the holes for the protection of the board through some applications. During the process, another drilling would be used for the same purpose of protection.
The next step in the PCB manufacturing is platting. This process is the actual application of copper plating onto the traces, pads and drilled through the holes that were made during the drilling process.
Next to that is masking. This process is the application of protective masking materials over the bare traces so that the whole PCB is coated and protected.
The last phase is the finishing. This process is the coating of pad areas around the thin layer of the solder to organize the board for the reflow soldering process.
Best Way to Find PCB Manufacturing Companies
The fastest way to search for PCB manufacturers is through the Internet. You can see dozens of companies that offer manufacturing of PCB. You can also get more details and information about a certain PCB provider so you will have high chances …