The fourth and last stage of the product development process is selling the finally manufactured rucksack product. This stage consists of the product packaging, verification, and shipping. These products can be sent to retailers, distributors, or other customers.
The goal with approaching retailers is to target the retailers who you think will sell your product and not just the retailers you would like to. Then you need to convince them they need your product. We know that your product is unique, and you’re passionate about it – so as long as you can show this to retailers, you’ll be fine. When it comes to sports retailers, you have a lot of options. Start with a long list of potential retailers, and then narrow it down to a number of key local retailers first. It’s often best to start small to get experience, before expanding distribution to the big national retailers – unless you have a truly disruptive product that doesn’t require much convincing.
Another way to reach retailers is through trade shows, there are plenty of these throughout the year and will allow you to speak directly to large amounts of buyers and customers. When approaching retailers, it’s best to have a pre-production sample that they can see and feel – you also want it to be as close to the finished item as possible.
Knowing your numbers is also very important as this could make or break a potential retail deal. These are some of the numbers you will need to know:
When it comes to making a profit from your rucksack, there are 2 main options you can choose from: Licence your idea to a company Your first option is to licence your idea to another company and hand over the responsibility of manufacturing, distributing and marketing your product. In return, you’ll receive a royalty fee for every item that’s sold.
Through licensing, you get access to the distribution links, marketing budget and production know-how of an established company that will increase the chances of your product being a success. This option is less lucrative as you only take a small amount from each sale, but it is less risky and time-consuming. Before entering into a licensing deal, you want to make sure that you have exclusive rights to the intellectual property (product) you want to licence as you don’t want to completely lose ownership of your idea.
The second option is to set up your own company and sell directly to your customers.
This can be a more lucrative option if you have the knowledge and resources to manufacture, distribute and market the product yourself as you don’t have to share the profits with another company. However, this can be a more risky.
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.