Selling To Big Companies

When trying to sell your invention it can be so tempting to go straight to the major companies, the multi-chain stores that have millions of customers, after all if they take your product you know you’re going to be reaching a big audience and hopefully make good money.

But to get your product in front of a big company you’re going to have to either, have the right connections, be going to a company that is openly inviting inventions, have a previous working relationship with the company or be very lucky.

Even when they do see you there’s still a good chance they will turn you away.

I say resist the urge of trying to go for that killer sale straight away, build up your profile and then make big companies fight over your product.

Sell Your Invention To Smaller Companies First

I always think the best thing for any new product is to start of by trying to get their product sold to smaller companies.

There are many reasons for this and today I want to share with you the main three.

Easier

It’s what I consider to be the low hanging fruit, you have more chance of a  smaller company taking on your product then you do a bigger one, at least initially.

It will be easier to find the right person you need to see about getting your product in their shops and they are more likely to be interested in a new product that isn’t being sold elsewhere, because they are unable to invest in developing their own.

Bear in mind though, a smaller company taking your product is risking more then a bigger company would be. If a big company loses $20,000 it’s a loss, if a smaller company loses the same amount it could put them out of business.

What this means is when you go to them you’re going to have to sacrifice more. This could mean instead of making $20 a product you’re only going to make $10. At least initially. Prove to them you have a winner and you may be able to renegotiate.

Fix Any Problem

No matter how much you may test your product there are still going to be faults that need to be fixed or improvements that could be made. By selling in smaller quantities you’re going to find it easier to refine and perfect your product.

Not only that but you will be able to gain invaluable data about the people who are buying your product and how they’re interacting with it

You will be able to learn more about what works and what doesn’t with all aspects of your invention, from marketing, packaging, manufacturing etc.

Then when you do go looking for the bigger company to buy your product you will be an expert in your own product and able to impress your potential buyer with what works best and why.

More Leverage With The Bigger Companies By Having Sales Data

The biggest reason you should look at selling to smaller companies first is for the purpose of gaining sales data.

One of the biggest reasons a buyer wont buy your product is because the fear they have that your product wont sell.

By showing them actual sales data you can remove that fear and if the sales data is exceptional you can show them they HAVE to take you on. You are helping to minimize the risk they take by showing a proven product.

This then puts you in a stronger position when negotiating a price, they are going to want what they can see is a winning product, they also wont want your product getting into the hands of their competition.

Think About Selling Your Invention Yourself

Some examples of what I mean by selling your invention yourself,

• Sell locally
• Sell on eBay
• Sell on Amazon
• Sell to single store businesses
• Sell to chain stores that have 2-10 shops
• Start your own website and sell yourself
• Look at attending/setting up a booth at a trade fair that is aimed at your target market and selling to them

Please don’t think I’m saying you should never ever approach a big company, I’m not, because I believe in the right situation, with the right product, at the right time, you absolutely should, but I want you to go to them with the best chance of selling your product and also to be able to extract the most money you can from them.

By doing all of the above I feel you’re putting yourself in a much stronger position to not only get your foot in the door but to go on and actually sell your product to the bigger companies.

Finally

There’s one last thing I want you to take away. Stephen Key did a brilliant audio interview with John Osher (Click here to listen to it). John Osher is the inventor who created the spin toothbrush which he sold for $475 million dollars to Proctor and Gamble.

In the interview he reveals how before he even went to Proctor and Gamble he went about selling the product himself. So good was his invention that he was out selling the closest competitor, he then used this information in the negotiations he had with P&G.

John admits that he would have never got the $475 millions dollars had he not had the sales data to show Proctor and Gamble.

I’m not saying you’re going to make $475 million dollars, but you will be about to sell your invention for more money if you can prove people want your product.

LoveInventions.com

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