ChatterBank1 min ago
negotiation
4 Answers
Ive recently designed a game and I have a patent pending on the idea, Id like eventually to manufacture it myself, but with the constraints of time and money I will undoubtedly need to seek an existing manufacturer to take on the idea.
I dont want to sell the idea, I want to work alongside a company and recieve a decent share of the profits,
does anybody have any similar experience or have any advice to avoid getting ripped off?
many thanks, im fairly new to AB, but it rules!! big up the AB COMUNITAAAYYY!!!!!!!!!
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When I worked for a large manufacturer of household products we used to get approach on many occasions by people in the same situation as you.
The only real way a company will take you seriously on a profit share basis is if you have advance solid orders for the product for them to cost against.
Think of it in the eyes of the company you want get to make it.
They will have to�.
a) Pay for the design of it (I know you have the design but it will need to be modified to suit production methods and cost)
b) Pay for the Tooling
c) Pay for all of the relevant approvals to be met before an item can be sold
d) Pay for the labour to make it
e) Pay for the materials to make it
f) Pay for the marketing people to market it
g) Pay for the sales team to sell it
h) Pay for it to be shipped
i) Etc�..
And you are paying for? The company has all of the financial risk and all you have is a good idea. Advance orders (and they must be solid) that they can calculate the payback against is the key.
To be cont....
...cont
Try and investigate the invention of the Anyway up cup. The mother who had this great idea was in your position, IIRC the only way she got someone to make it and take her seriously was by walking into the buyers� office of a large shopping chain with the cup full of liquid and throwing it on his desk. It didn�t burst or leak; he loved it and placed an advance order. So sell your product first. She was able to approach a manufacturer with the idea, an order which meant that the risk to the manufacturer was minimal.
It is also a good idea to be able to say to the manufacturer that it needs to be made for �XXX and will be sold for �XXX but bear in mind that if a manufacturer makes something for �1 by the time is hits the shops it will be sold for �8.
Long post but I hope it helps.
I feel that games ideas are a difficult area because it is very hard to judge the likely success. If its a software game idea it is likely to have a limited time window whilst the technology is fresh. Even if its not, there's dozens of new games launched each year and the success rate is low (lots get launched then canned). An organisation that I've admired over the last few years for some of their simple ideas is this one - I know nothing about it and I'm not connected in any way to it other than its located quite near me. You could try writing to their marketing director (get the name by phoning reception and asking who the marketing or design director is).
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