Tip 18 – “Get your ducks in a row”
Blog By Edward Ayres
It’s neat! Everybody can use it. It’s cheap to make and you can sell it everywhere! While all that might be true it’s not the answers licensing companies are looking for when they ask; why you invented your product, who can use it, how much does it cost to make, and how many outlets are there. Market research provides the foundation for your marketing effort, as well as facts and figures that justify your invention as a good investment.
Market research can be defined as the gathering, analyzing and interpreting of information about a market, a product, or a service, as well as information regarding potential consumers, the overall industry, and the competition. In a nut shell, it means know your product, your potential customers and why your invention is readily sellable.
While market research is critical, it’s easy for independent inventors to get bogged down in data. We strongly recommend concentrating your research on justifying the marketability/profitability of your invention.
Areas to focus on, and these hold true for the vast majority of all new inventions, are cost-and-price estimates for your product, pertinent industry data to include the number of retail outlets and opportunities, as well as your invention’s target market. Ensure to include appealing, factual data highlighting the potential need of your invention; what it offers the consumer, why it’s better than the competition, and why it’s a great investment. Review and then categorize this valuable data in an easy-to-read report with a compelling introduction to your invention.
Why is market research so important? It’s significantly more enticing to potential licensing companies to hear from the inventor that they invented their product because, “It serves an elemental market need. In the U.S.A. alone over 46% of all households own at least one dog, for an active target market of 57 million consumers. And 82% of all canine owners have expressed a desire for a safe and reliable way to provide their pet with clean water when away from home. It only takes $5.75 to make and it can wholesale for 5-to-1 to over 88,000 retailers. That’s why I invented the Canine Camel Pack and why you should license it.” Now doesn’t that sound more convincing than I invented it because it’s neat and a lot of people can use it?
“To be prepared is half the victory.” – Miguel de Cervantes
Before introducing your invention to potential licensing companies make sure to do your research. It can be the difference between achieving invention success and only dreaming about it.
We hope you enjoyed Tip #18. Please consider sharing this information as it may benefit an inventor you know. If you have questions don’t hesitate to contact us. We’re here to help!