Forums: Discussions for entrepreneurs and small business.

Hello Start up Nation,

I am a solo entrepreneur attempting to bring a product to market with 25K of savings. My product is the size of a bar of soap, made of plastic and aluminum, contains no electronics, consists of 15 parts (3 moving) and should sell for $25.

I am designing the product using CAD software and protoyping it using rapid prototyping techniques, after which I will apply for a patent. I will look to overseas manufacturers to keep cost down but it`s unlikely that the entire product will be made in one place.

I would greatly appreciate input from anyone with experience, stories, and book or website recommendations that articulate the best practices and pitfalls of bringing a product like this to market without the assistance of a product development company.

All input is welcomed, no input is irrelevant or insignificant.

Thanks everyone, SuN rules!

This feels like a game of 20 questions.

Have you any clue what manufacturing will cost?
Cost of materials, tooling, setup?
Minimum batch size?

How many layers of distribution between you and the retail purchaser?
What is markup for each?



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Hi Steve,

I was actually hoping to obtain that information from the Nation based upon your experiences with similar projects   Prices would be estimates and relative but such discusssion can still be immensley useful. 

For example it is commonly said that the final cost needs to be 3 to 4 times the manufacturing cost in order to turn  a profit, how true is this?  As for layers of distribution I figure at most 3 factories will be involved with the last one doing the packaging as the last step then ship the units to my house from which I will sell the product online to clients and retailers.

Hi
...asked for any input... well here`s a jumble of input

What Steve meant by layers of distribution is .. how many hands does this pass through before it gets to the end user. What you described is only 1 or 2 layers. You might want to plan for more.

Startup cost: Sorry you won`t find a general answer here. 15 parts just isn`t enough to go on.

Pricing: There is a very good thread about pricing scroll down to entreprenerd.   I would start with your imaginary retail price. What you think people will pay, and work backwards to your manufacture cost. Write that number down on paper and nail it to the wall. If after all your work, your quotes come in over that number stop what your doing and re-think your plan.


Big picture: right now you seem very focused on the manufacturing, and there`s nothing wrong with that, just realize that its only about 30% of your work load. Marketing this product will take even more effort.  Plan for it in money terms or time.

Prototyping: is changing about as fast as the internet. Strength, texture, finish .... Take the time to learn about what`s out there and shop around for a great price.

More Info: since you`re new here i would spend some time going over some of the articles written by the Sloans (outside the forum)

Good luck  Jeff

15 parts??? what is that? I sure dont remember learning this in my economy class...

 

Could someone explain this to me please?

The product he is designing has 15 parts. I`m not sure what the confusion is about. Do you have a more specific question?

 

I wasnt clear after the fact, but I backtrack and I got it now. I thought it was 15 steps or something but not parts. I was overthinking the post.. and somehow I was thinking there were 15 procedures.

But I understand now it 15 parts as in 15 connecting pieces to make it a whole unit.

 

thanks!

Hi Arcane. I am also a solo start up and when you are bringing something new to the market make sure that you protect it by getting a PROVISIOAL patent which will give you a year to get a patent atorney and continue developeing the idea for about $45.00. There is a guy with the username of patentandtrademark on this site and he should be able to help you.Best of luck. Wes

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WESTNOVA

Hi Degrees, thanks for your input.

I will litterally nail/thumbtack that price to my wall :)

What are some examples of the hidden layers of distribution that future entrepreneurs may miss?  Do these layers also add hidden costs?

Does anyone have a ballpark price range for how much it costs to advertise a product in a magazine such as "Stuff magazine", "Men`s Health" etc...

Hi Westnova, I have read about provisionals, the problem with them is that if you change your product during the development stage, the provisional that was submitted for the prior revision may be useless.  I could be wrong on this and at $45 it`s still worth it, but look into it so that you protect yourself by submitting another provisional for the revision as well.

Is is feasible to manufacturing at home a product made of shaped plastic and aluminum?

Arcane:

As far adversiting in a niche magazine.. It is going depend on the size of the ads.

I am not comfortable with giving you a ballpark range but if you could call the Magazine` Ads Account Manager,  they could give you the necessary information so you could make a more informed decision.

Also every month in those kind of magazine they do extenstive product reviews. They would review the product and list the website. This only cost you the price of your products but the only problem is the editiors have the last said when it come to a product review that is the equalivent of  creating a buzz for your products.