New Tool ProductThis page is here to provide you with the information you need to bring a tool product to market.
New tool products are very appealing to many companies as the margins on the products are very high and the industry is known for its acceptance of innovative products that save time and/or money for users. There are two main types of tool product categories – industrial tool products and consumer tool products. From there, there are a wide variety of segments that tool products fall into. For example, a concrete cutting tool would likely not be used by the consumer market.
This is important to recognize as knowing who your intended end consumer is can help you develop a strategy for bringing your product to market. There are many different companies that make up the tool market and identifying the chain from which your product will be manufactured to who will distribute the product is critical.
Many inventors of tool products are quick to jump in the "I want to sell to Wal-Mart" category far too quickly. While you may want to see your product in Wal-Mart it is highly unlikely they will license your product. It is not the end "retailer" you want to license your product but the companies that are already manufacturing and selling products to those retailers. To illustrate this, you would not be likely to get a new nail gun into Lowes or Home Depot but Craftsman and Black & Decker are highly likely to be able to put a new product onto the shelves.
With that being said, those companies may still be out of reach. People severely underestimate the significance that smaller manufacturers have in markets and overlook them as potential licensees. There are many companies that manufacture both private label and branded tool lines to distribute in retail catalogs as well as retail store like ACE Hardware.
There are SEVEN critical steps to licensing your new tool product:
- Find out if your idea is patentable
- Find out if there is a market for your product
- Have your product designed and prototyped
- File for patent protection
- Conduct market research to identify key contacts
- Develop Presentation Materials
- Begin pitching your product to the companies you identified in step 5.
Idea Buyer LLC provides services to inventors for very reasonable rates and works hands on with select products. http://www.ideabuyer.com/contact_us.php