Selling New Bag Products

An introduction to commercialising new bags.

You have reached the last step in the development journey. Now you can sell your new bag products and start making a profit.

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.

Licensing your new bag product

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 advantages and disadvantages.

Licence to a company

Licensing your new bag product with a company means that you will contractually allow them to make use of your intellectual property (your product) in exchange of them being the ones responsible of production, distribution and sales of the product. Meanwhile you will charge the company a fee or royalty for use of your IP.

Of course this deal has the advantage of releasing your of any costs and responsibilities of production. But it also takes away your agency on how the process 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.

Another thing you need to consider is that you need to own the exclusive IP rights of the product you want to license before you can negotiate with a company. 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 available for you.   

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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.

Approaching retailers to sell bag products

If you choose to license your product with a company, then they will be the ones responsible for this step. But if you set up your own company you will need to sell new bag products to several retailers.

The most important thing you need to figure out, before contacting retailers, is how much your new bag product costs.

To make this calculation you need to consider how much the production factory charges, the design and production of packaging and delivery costs. Of course you also want to mark it up, so you can make a profit of selling new bag products. And after that you need to remember that the number you arrive to will be doubled and added the VAT.

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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If you’re looking to develop a new product or re-design an existing range but lack the in-house capacity or expertise to make it a reality, get in touch with us today to discuss your requirements. 

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Uncertain where to start with Intellectual property? All the secrets, tips and tricks to Patents, Registered Designs, Trademarks and Copyright. Download your pdf guide now.

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