Maximizing Profit: Don't Settle for One Deal - Explore Multiple Channels

Congratulations on completing your design and building your prototype.

You have come a long way and are almost ready to negotiate your first commercial deal.

However, it is important to note that you should not stop at just one deal. In many cases, inventors settle for their first distribution or licensing agreement, leaving a lot of money on the table that could be earned from other potential parties and markets.

A classic example of a layered commercial strategy is demonstrated through the small consumer product called WallWeb. This product is designed to fit into cavity chip rock walls and enable anyone with filler to repair a hole in 30 seconds or less. The inventor's objective was to get this product into as many retail outlets as possible, and they started by selecting the largest hardware retail chain in Australia.

After gaining good acceptance in Australia and the USA, the inventor explored a separate market segment based around a franchise agreement. They approached a home maintenance group that did house repairs for homeowners, landlords, and real estate agents.

This group charged an hourly rate and call-out fee and was able to offer WallWeb as an opportunity to fix holes in gyprock walls and partitions for homeowners, charging up to $165 per repair.

The inventor then guided this network to purchase the product from retail chains, enabling homeowners to have the supply and repair service in one convenient package. This approach worked so well that they looked for other channels they could layer the process onto, without affecting the income of current buyers and sellers.

They recruited a business person in New Zealand and offered a master franchise for New Zealand and the Pacific Islands to supply and install WallWeb under their own franchise. The franchisor offered the same basic proposition of fixing holes in interior walls for $165 same-day service, recruiting franchisees trained by the inventor who was based in Australia.

This allowed for retail, distribution, and franchising into different markets, ensuring that sales could accelerate rapidly. The entire operation was pre-planned before the products arrived from the manufacturer, and when the first batch of samples arrived, they were sent out to stores, maintenance networks, and the franchisor to enable them to fast-start their sales on this product.

It is crucial to explore potential market channels and not limit yourself to just one distribution or licensing agreement. The planning for this type of layering should be done in the ideation and commercial modeling workshop. This is step one of your six steps of commercialization for any industrial, commercial, or consumer product.

If you are still in the early stage of commercialization and want to explore the opportunity for layered commercial channels, consider joining the Inventors Academy program. In the program, we run the Ideation Commission, which focuses on achieving at least two commercial objectives within the six-month program, such as capital raising, distribution, licensing, and/or trade sales.

Don't leave potential opportunities on the table. If you want to learn more about the Inventors Academy program, book a call with us to explore opportunities that might be open to you and your project.

?Daniel.

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