An introduction to commercialising new bag product ideas.
You have reached the last step in the development journey. Now you can sell your new bag products and start making a profit. This is often the longest and most involved part of the journey and this guide aims to help de-mystify this and give you a strong start.
Before you can start making a profit selling new bag products there are some things you need to consider, such as the marketing strategy, packaging and distribution of your new product. How you want to approach these aspects will determine which route you take in selling new bag products.
To sell new bag products you can either work with a company that is already established or you can set up your own company and sell directly to clients and retailers. Both of these options have various advantages and disadvantages.
Licensing your new bag product to a company means that you will contractually allow them to make use of your intellectual property (copyright, registered designs and/or patent) in exchange for them taking responsibility for production, distribution and sales. In return, you will charge the company a fee or royalty for use of your IP.
Of course this deal has the advantage of releasing you of any costs and responsibilities of production and distribution. All you need to do is maintain your IP protection. But it also takes away your input on how the process of selling the product is handled. Also you need to take into account that the profits you see will be smaller than if you set up your own company potentially.
Another thing you need to consider is that you need to own the exclusive IP rights of the product you want to license. To acquire these exclusive rights you need to be granted a patent or trademark or product design registration. During the development process our team of product developers can advise you on all the intellectual property options.
If you prefer it, you can set up your own company to sell new bag products. This is an attractive option for many because the profits of selling new bag products go entirely to you. Nevertheless, you will also be responsible for every aspect of the production, the marketing strategy, communications with retailers, etc.
If you set up your own company you will need to sell new bag products to retailers or direct to consumers.
The most important thing you need to figure out is how much your new bag product costs.
To make this calculation you need to consider how much the factory charges per unit, the cost of packaging and shipping costs. Of course you also want to mark up these costs, so you can make a profit on selling new bag products. And after that you need to remember that the cost you sell to the retailer will be doubled (retailer margin) and then VAT needs to be added.
Your goal isn’t to make a lot of money from the first sale, but to attract the attention and interest of many other retailers.
You can begin selling new bag products to retailers as soon as you have a good quality production sample. This is an example of the final product created at the factory, not a prototype. Most retailers will want to see a production sample and even if they don’t, we recommend you create them anyway, because they help you test the quality of the final product and make important changes in the production design. If you want to learn more about manufacturing new bag products just click here.
As well as having a good product, you also need good presence and a very good pitch. This is how you present your bag product to the retailers and try to convince them to sell your product. If you don’t have much experience preparing sales pitches, there are many courses available you can take. Prepare carefully for your meeting, because you only have one chance to present your product to each retailer.
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