So my boss just told me he has a million dollar project, and he wants me to head marketing / research. I've never done anything even slightly like this before, but being optimistic I accepted the task.
Essentially I'll just tell you guys what I know at this point, and see if any of you can help me get this thing started.
My step-dad is my boss, he's a physician, he has a friend that is a Pharmacist that holds the patent for several different things. The one they wish to focus on is a sex lube he developed years ago.
It's a formula that is not used by any one else at this time, I am supposed to have a product sample soon, but I personally have not used it, so I'm going off of his word, before he was a pharmacist he was a chemist, and he has several patented creams that they use in burn wards in major hospitals.
So my step-dad asked him why he never developed the Lube into a business, he said he just never had time, but that if we wanted to, he would sell us the patent for the cost of 1% of our business profits until he dies.
To me that sounds reasonable as we don't have MASSIVE amounts of funding, we have some, but it's limited.
Right now we have already talked to Eli-lily, they make pharmaceuticals in CA, they can produce the actual lube for us, and even bottle it, we will be responsible for labeling however, we are pretty certain we can make each 4oz. bottle of lube for about 45 cents USD.
This is where I need help, as I'm a total newbie to this type of business world.
Do we need to have the Lube FDA approved? Step-dad and Pharmacist both said no, but I'm not so sure.
How would this type of product generally be distributed? Do we purchase a 10k lot from eli-lily, and then sell it to distributors? Is there some company I can get into contact with that distributes products to the entire sex industry? Should we send free samples to youtube celebs for endorsements?
It's been a few weeks, and I haven't had much luck I've called Adam and Eve and could not decipher what their marketing guys were even saying, and most internet articles are just basic outlines and haven't been very helpful.
We also have a cool product name, and a catch phrase to go with it. It's almost like a "gag" gift lube, but if the pharmacist is correct, this stuff is so slick you can't open a door if you touch it, so our main plan is to let people try it out as a gag gift, then realize it's the best lube ever, followed by word of mouth and success : )
So that's basically it, stepdad said he would like to keep startup costs to below 5k, I thought about going to kickstarter to raise money, but if we don't need to we'd rather just do it alone. My hope is that someone that has been involved in ventures like this one, can tell me where to start, or at least an idea on how to approach this project realistically.
Appreciate any input and if you have any questions just ask I'll do my best to answer them to the best of my knowledge.
You might try getting your product FDA approved and place a non-repercussion disclosure on the label. As far as your marketing strategy, you can probably do all of the above or any in any combination. You might try contacting more than one supplier and use a reduced rate profit strategy to get you more orders while making you a bit more profit than expected.