dicknite Posted September 5, 2004 Report Share Posted September 5, 2004 I was just reading and responding to a message over in another thread on the topic of patenting products, and got a little - okay, a LOT off track and started rambling about what to do if you have a great product... So I cut it out of there and brought it over here to share - just my opinion and everyone knows about opinions - everybody has one, and most of them stink! Anyway, here goes - forgive me if I repeat a bit of what is in the other thread... Looking at what you folks make here on this board impresses the hell out of me. I can see where some of you would want to go into business and manufacture your baits for a profit. Most of you live to go out in the shop/workroom and design something that you put your heart and soul into - we all know that is EXTREMELY satisying. I have known several of you (using "you" meaning fishermen/hobbiests) who have actually gone from hobby to business and made a go of it. A few have actually quit their day jobs! One thing I have noticed - the ones that do make a go of it don't try to conquer the world the first week. They get a quantity of product made up, find out how many they can realistically manufacture in a set period of time, and then shape their sales fit that capability. They go out and find whatever means of distribution they are going to use, be it wholesalers or direct to retailers, and set up a program with those customers that will not exceed their manufacturing capabilities. After getting comfortable with that, then start to grow slowly. Two that I have seen go down miserably were - well, for lack of a better term, worked to death. They got into the manufacturing and decided that Cabella's and Bass Pro Shops (used for size example only) would be good customers... Six months later they were running around like heads with their chickens cut off and couldn't make their delivery dates... that's known as "losing customers" in this industry... All of a sudden they were sitting on a truckload of product and no one to buy it... Another manufacturer I knew was a guy I met at one of the national wholesalers' shows. He was telling me that it was the middle of his first year and he was in all 50 states, Canada, and Mexico with his product. The next year I saw him at the same show and he told me he was in 180 countries... 180 COUNTRIES! I didn't even know there WERE 180 countries to sell tackle in! Well, the next year, he wasn't at the show. He was bankrupt. He couldn't meet demand and the banks closed him up. Rapid growth will kill just as fast as anything... I'm not trying to discourage you from going into business - there are several people on this board that will testify that I am a big proponent of hobbiests making a go of it - I even offer discounts on our paint line to hobbiests/small manufacturers just so they can get their products to the point they could go commercial with them. I just don't feel that anyone is doing anyone else a favor by telling them that if they have a good idea and get a patent that they will be able to make a bunch of money... I've seen too many people go down in flames that way. Believe me, after you have 250 products in your line and you are on the phone 4 or 5 hours a day with wholesalers, retailers, vendors, and accountants, and you actually get to go out into the shop for an hour or two a day, it turns into a business - a JOB. I think if you have a product that you really believe would move - and I am talking in BIG numbers - your best bet would be to approach existing tackle manufacturers with a non-disclosure agreement (written by an attorney, not bought off of some website or at the local business supply store) and see if they would be interested in either licensing the rights to manufacture the product, or maybe an outright purchase. (Many large manufacturers are stuck in the "New Item!" syndrome - as a matter of fact, wholesalers that we go through would require new products each year if they thought they could get away with it...) If they seem interested, have an attorney write up the contract - there are MANY slimy business people out there that will rip you off and not lose a wink of sleep over it - I could tell you several stories... Having been in this business for quite a few years, I can tell you that you could make a LOT more money that way than making the product yourself and then going through the manufacturing, marketing, and business aspects. That is, unless you are set up to manufacture truckloads of product and have a wholesaler/retailer network in place, a business set up and running, and employees to handle the demand... If you have a great idea - and if you can't manufacture enough of it to fill demand completely - license it out or sell it - and then go back to doing what you love - making new, effective, high quality products! Like I said, seeing some of the lures you folks make just impresses the hell out of me! I cannot understand why you would want to give that up for running a company... Design, test, perfect, sell, repeat. That way you will be doing what you love instead of what you have to do to pay the bills... Just my 2 cents worth... d|:^) Dick Quote Link to comment Share on other sites More sharing options...
jigjointer Posted September 5, 2004 Report Share Posted September 5, 2004 Yes sir I've been told that if advice was worth anything people wouldn't give it they'd sell it.Anyways in my opinion what your saying sounds like really good advice, even though at the moment I'm looking to get a job with less money less hours so I can you know !!!!!!!!!!.This isn't my first time I should know better I'm old enough to know.So what I'm saying is you younger folks take heed the above sounds to me pretty good advice. Though it is free JJ Quote Link to comment Share on other sites More sharing options...
Lure--Prof Posted September 5, 2004 Report Share Posted September 5, 2004 dicknite's post should be the intro to Lurebuilding 101! Dean Quote Link to comment Share on other sites More sharing options...
Art Brush Posted September 6, 2004 Report Share Posted September 6, 2004 Solid. Straight up facts. Your patent post was full of good info as well Dick. Tight lines, Shawn Quote Link to comment Share on other sites More sharing options...
MarshManiaC Posted September 6, 2004 Report Share Posted September 6, 2004 Exellent post.... After beginning my business I found out that I was much more in tune with the sales portion of the business, not the manufacturing part. What I did was farm out the production to a member of this site (very, very high quality work, mucho compliments) and use my time selling the lures, the concepts and working with another established local lure company in marketing a combo product. With his connections I should be in the Walmarts, Academies and other big-box stores within the next year. I also decided to create my own selling/advertising vehicle that is currently undergoing mass-testing right now....it should be up and running 1 October. I'll even have space for others to sell their products but that is a PM issue. Quote Link to comment Share on other sites More sharing options...
Richoc Posted September 6, 2004 Report Share Posted September 6, 2004 Dick, Been through that ringer my self. And your addvise could not be better. We grew so fast, then there main bussiness took a dump. And the lures got shelfed. We got a huge shot at an order for a major retailer here in the midwest and started tooling up to get to the order out, and the bottom feel out. Right now the product is up for sale and it looks as though I will be cut out of it all. Would not let me run with it. But I designed it, developed it, and have the only blue prints. So I am hoping to gain some thing back for 2 years of my life, but right now being screwed by the "buddy" again. Most likly it will have to be a law suit. My addvise is to get your name on all papers for the product, before doing any thing. Mine is not on the patent, or company ownership as it was agreed to be in the start. Quote Link to comment Share on other sites More sharing options...
D.J. Posted September 6, 2004 Report Share Posted September 6, 2004 Great info Dick! I couldn't agree more. I've had quite a few people advise me to start slow, and just see where it goes from there. So far so good Being from Washington myself, I am very familiar with your product. You have a very strong following, and for good reason. Your spoons are second to none! I think everybody should read your post. Great stuff! D.J. West Coast Custom Tackle Quote Link to comment Share on other sites More sharing options...
Nathan Posted September 7, 2004 Report Share Posted September 7, 2004 Great stuff Dick,It's good to have you posting again!!..Nathan Quote Link to comment Share on other sites More sharing options...
