#1 Wet Butt Wipes Disposable Flushable Biodegradable

Bum Butt Wipes with Container


This section addresses the background of the idea's conception and the problems it is designed to ease or eliminate.

CROWDFUNDING:

Bum Butt Corporation is "conducting a Regulation Crowdfunding offering" to raise funding for the production of Bum Butt Wipes with Container. If you wish or believe that you would like to invest in Bum Butt Wipes with Container, please contact our crowdfunding source Razitall @ Razitall.com for more information.


Background Discussion of Bum Butt Adult Disposable Flushable Wipes:


Bum Butt Wipes with Container
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Bum Butt Wipes with Container
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Bum Butt Wipes with Container
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Bum Butt Wipes with Container Box inside
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Bum Butt Wipes

Bum Butt Wipes with Container
Bum Butt Wipes with Container
Bum Butt Wipes with Container
Bum Butt Wipes with Container
Bum Butt Wipes


Bum Butt Product Review





Bum Butt Wipes with Container Video:
Bum Butt Wipes with Container


#1 Wet Butt Wipes disposable flushable biodegradable provide a more sanitary manner to cleanse one-self after urinating and or defecating.
The wipes will harness an appropriate amount of hypoallergenic and aloe to create a moist, soft tissue that will be comfortable for the user. Oftentimes, not all of one's
waste is cleaned from your rectal or vaginal area. This proposed product will ensure that all of the waste is removed.

The wipes will be confined within a moisture contained apparatus that will keep the wipes sanitary, as well as, protected from outside air that will be too arid to keep the
wipes' moisture confined. The dispenser could be operated by battery or manually. This will enhance its marketability for expanded market use.

Discount department stores such as K-Mart, Sears, Wal-Mart, Amazon and the internet can offer a wide variety of restroom equipment for consumers, which at discount cost could
prove to be a benefit. It is important not to close a market by offering the product to limited retailers-try to encompass a wide variety of market distributors. The invention
could also be sold through direct marketing such as, mail order catalogs and any trade publications targeting consumers whose profile matches the primary and secondary target
markets.

Because of the problems the Bum Butt Wipes with Container addresses and solves, consumers should find the invention attractive. One concept to keep in mind, however, is that
the purchase of the toilet tissue dispenser will depend upon the amount of discretionary income the consumer has left after allocating capital for necessities such as housing,
clothing, and food. The following chart identifies where does the money go? Which is disposable personal income:

Where did the money go?


Most experts believe the American economy is now in a period of recovery from the recession that began early in 1990. Business cycles are inevitable in our capitalist system,
and typically, post-war recessions have been characterized by duration from eighteen to thirty months. This has revealed, however, that periods of readjustment in the economy
have little effect on the introduction of innovative products into the marketplace.

FUNCTION REVIEW


Bum Butt Wipes with Container                      Bum Butt Wipes with Container           Bum Butt Wipes with Container

To facilitate one's proper comprehension of a new product, the idea must be described not only as it exists as an answer to a subsistent problem, but also how it functions
physically. Incorporated into this overview, the invention will be outlined and described in its physical appearance. Based upon the inventor's description and any outside
research that may be pertinent, we will describe the basic overall shape and design of the Bum Butt Wipes with Container.

Materials necessary to produce the invention will also be highlighted where appropriate. The Bum Butt Wipes with Container is a roll of hypoallergenic and aloe treated paper
tissue that is dispensed through a container that will be designed to harness all of the moisture in the wipes. The wipes have been treated to ensure that any human waste
material is successfully removed from the rectal or vaginal area. The container would be manufactured out of a durable plastic. The dispenser could be operated manually by
turning a crank-like handle on the top of the dispenser or battery operated by simply depressing a button that would also be installed on the top of wipe dispenser. It
should be noted; however, the basic form and function of this invention may be varied or modified, so the application and use of the Toilet Wipes with Container could be
broader than originally envisioned.

POTENTIAL MODIFICATIONS


In order to fully appreciate the attraction and need of an innovation, one should consider any possible modifications which would arise from employment of the idea.
We will suggest other applications of the Bum Butt Wipes with Container that would merit future consideration and study. The scope of such review will entail the use of
materials, other than those specified by Mark Hayes, the inventor, that the product may be manufactured from. Possibilities include expansion of the suggested color
scheme or plan, a broadened consumer outlet (other than the market specified by the inventor), or any other possible shape or design that may enhance the utility and
marketability of the invention. Henceforth, we shall attempt to identify any variations which would further define the scope of the idea.

One must remember, however, these suggested modifications may be limited within the latitude of the invention. Some innovations lend themselves easily to future
applications, such as different shapes, material variants, color schemes, etc... Although, other inventions are geared to a specific group of consumers, to only one type
of material dining the manufacturing process, or to one particular design. These ideas, therefore, would not be subject to suggested modifications that perhaps would be
construed as destructive to the foundation of the product or idea.

Problems that might arise during the development of the Bum Butt Wipes with Container should be amenable to resolution through normal product testing and refinement processes,
then we anticipate the product could be produced routinely. Whether it would be feasible to do so from the standpoint of economics is another question to be decided by
potential manufacturers of the product after additional studies.

The Bum Butt Wipes with Container should be relatively easy to produce. Manufacturers of plastic and sanitary paper products also produce products which utilize similar basic
elements within its given product line. To expedite design, as previously stated, it may be advantageous to produce the toilet tissue dispenser in a variety of sizes, with
the same amount of application, in order to test the product's marketability and provide time to alter the basic design if deemed necessary.

Overall, the basic concept behind the Bum Butt Wipes with Container appears sound and the product idea workable. The basic materials are readily obtainable and the concept of a
container that would dispense moisture treated sanitary tissue is attainable.

Given the previous description of how the Bum Butt Wipes with Container could be used, and taking into consideration the questions facing further development of the proposed
product, it is our tentative judgment that the idea is based on sound principles and that a production version of this item could be developed to perform generally as the
inventor states. Detailed diagrams and technical specifications remain to be drawn, beyond those provided by Mark Hayes. Nonetheless, we believe we have a vivid idea of the
inventor's intent and goals in submitting this design.


PRODUCTION CONSIDERATIONS


We now turn to an examination of the Bum Butt Wipes with Container through a study of production considerations. We will briefly discuss the importance of engineering
technology in the development of a new product such as the Bum Butt Wipes with Container, and the overall technical picture as defined by production technology and
requirements. When studying this range of production considerations, we cannot offer a complete and comprehensive picture of all possible production considerations.

Drawing upon the knowledge available, the design features included in the Bum Butt Wipes with Container seem well within the limits of technology. The materials submitted
by Mark Hayes describe the concept in enough detail to give a clear understanding of the intent of the design. They indicate no unusual design features that would
complicate the preparation of the product. There is little question the technology to produce a plastic dispenser with hypoallergenic and aloe treated paper tissue, not
only exists, but is well established.

A universal version would be the ideal prototype model for the toilet tissue dispenser. The price of the basic model would vary depending on the cost of different materials,
sizes of the toilet tissue dispenser, and/or coloring.

Variations m production technology would be minimal compared to what is currently utilized in the manufacturing of similar products. Materials, processes, and construction
would be similar, with adaptations made for the specific design of the Bum Butt Wipes with Container. Variations of the basic model could range in price depending on the cost
of the components.

The components of the Bum Butt Wipes with Container utilize standard production technology. No new research or development in this area is expected, nor is major retooling or
material expense anticipated. Once the design specifications and the material specifications are decided upon, the toilet tissue dispenser will be aided in development by
consulting with design specialists who would advise on both appearance and styling that would appeal to potential consumers.

The design of the Bum Butt Wipes with Container is innovative, yet relatively simple. Existing construction processes and techniques will suffice without resorting to new
technology. Based upon our review of the materials submitted by Mark Hayes, it is our present conclusion that this product can be manufactured from commercially available
materials utilizing current production technology.

PRODUCTION COSTS

Once an estimate of the cost to produce the Bum Butt Wipes with Container has been determined, consideration must be given to the type of mark-up structure for a particular
item to determine its final retail price. Pricing is a complicated process that takes into consideration the cost to manufacturers, to wholesalers or distributors, and
ultimately, to the retailer. There must be a margin of profit at the manufacturing, wholesaling, and retailing levels over and above the costs incurred at each stage.

Before manufacturers determine their pricing, they must include the fixed costs associated with their industry and with the particular item to be manufactured. These
costs include the cost of equipment or retooling, materials, labor, overhead, and production costs such as handling, shipping, sales expense, and product liability
insurance.

The cost and price estimates for the Bum Butt Wipes with Container have been developed by comparing this product to others we judge to be similar in composition and
complexity. In estimating retail costs, we have applied markups that are standard to the industry.

These estimates * are:
Production Cost $2.50 per unit (one tissue dispenser with one hundred wipes)
Wholesale Cost $6.00 per unit
Retail Price $12.00 per unit

(* These figures are strictly preliminary estimates and will vary according to specific materials and specifications as well as to economic status in relation to current
retail buying trends).

Production Costs includes the costs of materials and labor only. Wholesale Cost Price is freight on board (does not include carriage costs from the seller to the buyer)
and point of manufacture. It includes estimates of amortization of fixed costs, overhead, and possibleprofit to a manufacturer, but not the cost of distribution.

Retail Price assumes a standard percentage markup for distribution and wholesaling (that in fact varies considerably), and adds retailer's fixed overheads and any potential
profits.

The resultant estimate is for a "normal" retail outlet.

CHECK LIST


INVENTION CLASSIFICATION:
  • Potential Discovery
  • Unique Design
  • Unique Function
  • Unique Design and Function
  • Innovation
  • Improvement to an Existing Product
FUNDAMENTALS:
  • X - Written Description
  • X - Sketch
  • X - Specifications
  • Drafting to Scale
  • Complete Project Designed
MANUFACTURING LEVEL:
  • Assembly Only
  • Simple
  • X - Easy
  • Moderate
  • Moderate - Complex
  • Complex
PACKAGING:
  • Plastic Pack/Blister/Shrink Film
  • X - Rack/Merchandise
  • X - Cardboard Box
  • X - Shipping Container
  • Drop Ship/Freight Packaging
  • Specialized Shipping Required
  • Not Applicable
OVERALL OPINION/RECOMMENDATION:
  • Feasible m Current Format
  • Ready for Fabrication/Prototype Preparation
  • Minor Modifications Suggested
  • Inner Component Design Modifications Suggested
  • New Product Testing Suggested
  • X - May Require Federal Government Testing/Approval


******** Letter from a Patent Attorney giving his view on Bum Butt Wipes with Container a.k.a(Toilet Wipes with Container) back in 1994 ********

WILLIAM J. RUANO
Patent and Trademark Attorney
402 ST. CLAIR BUILDING
1725 Washington Road, Pittsburgh, PA 15241

Mark Hayes May 10, 1994
15718 Brayton Street
Paramount, CA 90723

RE. Patentability Opinion on - the Toilet Wipes/Container Dear Mark, As you requested, I have performed a patentability study of your invention, the Toilet Wipes/Container. The following patents were found as a result of the search:
{4,892,220}, (4,778,048), (4,904,524). If you plan to market your invention, you should file some type of patent application to protect your patent rights.

RECOMMENDATIONS:

1. Utility Patent
I recommend that you file an application for a utility patent on your invention.

2. Design Patent
I do not recommend that you file an application for a design patent on your invention.

ANALYSIS:

Based on prior art found in the patent search, the patents found show wet wipes, but do not show your battery operated electrical system including a push button in the
container and a manual handle on the container. The filing of a utility patent application is recommended.

This search contained issued U.S. patents, foreign patents, and other publications, such as magazine articles, which were available in the examiner's search rooms. The search
cannot cover pending patent applications which may later mature into issued patents. It is not possible to find all the pertinent references, because some may be missing from
their intended classification, misclassified, or inadequately cross referenced by the Patent Office. There is no guarantee that a favorable patentability opinion based on the
results of the search will result in significant patent coverage, or any patent at all. However, the search conducted will permit drafting a patent application emphasizing the
distinctions of the invention.

******* End of Letter ********


MARKET POTENTIAL


The market potential for the Bum Butt Wipes with Container should be fairly large within its given market segment(s). This product is designed as a treated toilet tissue that
will contain enough moisture to successfully remove all human waste from the rectal and vaginal area of the body. It will be dispensed from a plastic battery or manually
operated container that will be designed to harness the moisture within the wipes. With its benefits and/or advantages, this product should have strong appeal when it comes to
a consumer purchasing decision.

Manufacturers who would have the capability to produce an item in this product category should show interest in the Bum Butt Wipes with Container as they would have a well-
defined market in which to sell the product.

To determine the population available to market the Bum Butt Wipes with Container, it is best to begin with a review of the population. The table on the next page identifies the
total United States population (in thousands) by sex and age as of 1991.

An easier way to look at this information may be by looking at the following graph:

130000
129000
128000
127000
126000
125000
124000
123000
122000
121000
120000
Males Female

In 1991, the total population equaled 252,688. Of that number, 123,431 are male and 129,257 are female.

According to the United Census Bureau, the growth rate of the population in this country should continue to slow, reaching a near - ZPG (which means "zero population growth")
by the middle of the 21st century. In addition, the median age in the United States is rising proportionately with the decline in population growth. From a median age of 27.9
years of age in 1970, the median age in 1995 will rise to nearly thirty-six years of age.

According to the publication Selling to Seniors, the "mature" market controls almost fifty percent of the nation's buying power, which is over $900 billion. The general
public, in many cases, has the wrong idea about "old" people. The following is from an article entitled, "How Older Americans Spend Their Money," from the September 1987 issue
of American Demographics magazine. It gives a good description of the people who comprised the mature market:

"They are often pictured as poor, reclusive, and chronically ill, but they are more likely to have considerable assets, be young at heart, and enjoy good health. Older
Americans-already a significant market-are growing in numbers and influence."

"Understanding the mature market is difficult for two reasons. The first is the diversity: no group of fifty-two million people can share the same values. Second, the
data needed to closely examine the older market have been unavailable-until now. Recently, the Bureau of Labor Statistics produced data from the Consumer Expenditure
Survey on the spending habits of Americans aged fifty-five to sixty-four, sixty-five to seventy-four and seventy-five and older. Previously, these two groups were lumped
together in the expenditure statistics. The new statistics reveal that older Americans have diverse spending patterns... "

"People fifty-five and over represent over one-fifth of the total U.S. population and more than one-third of all householders. This large market consists of four segments:
the 'older' population (aged fifty-five to sixty-four), the 'elderly' (sixty-five to seventy-four),the 'aged' (seventy-five to eighty-four), and the 'very old' (eighty-five
and older). While the total U.S. population is projected to grow nineteen percent between 1987 and 2015, the mature market will grow fully sixty-two percent. "

"-The older population totaled twenty-two million in 1987 making it the largest segment of the mature market. This group will grow slowly to the year 2000, then grow
rapidly to thirty-nine million by 2015—a seventy-eight percent increase in less than three decades."

"-The 'elderly' are the second largest mature segment, at seventeen million consumers. While this group will hardly increase through 200, it will grow rapidly after
that for a total gain of forty-five percent between 1987 and 2015." "-The 'aged' totaled nearly ten million in 1987. This group is projected to grow slowly, reaching
twelve million by 2000, then slowly, numbering only twelve point five million by 2015."

"..'Very old 'Americans are the smallest butt most rapidly growing segment of mature consumers. In 1987, there were about three million 'very old'. This group should
grow to Jive million by 2000 and seven million by 2015." As the article shows, the "mature" market in the United States is quite large and it is growing in size. The
following excerpt from the same article shows the mature market segment has money and shows where it comes from:
"The average income of the mature household was only eighty-two percent of the average income of all U.S. households in 1984. But there are dramatic differences by
segment."

"The average income of households headed by 'older' Americans (fifty-five to sixty-four years old) is ten percent average higher than the average. This segment does not
earn as much in wages and salaries as the average household, but it earns sixty-six percent more from self-employment and over 125 percent more from estates, trusts,
dividends, and rentals. This group pays fourteen percent more taxes than the average household, and nets eleven percent more after- tax income."

"The average household income of the 'elderly' (the sixty-five-to-seventy-four age group) is only two-thirds of the national average. Wages and salaries for this group
are less than one-fourth of the average, and self-employment is less than sixty-five percent of the average. The major source of income for this group is Social Security
and other retirement benefits.

But this group receives eighty percent more income than the average from trusts, dividends, and rentals. The 'elderly' pay only forty percent as much tax as the average
household and net seventy percent of the average household's after-tax income." Any product, such as the Bum Butt Wipes with Container that can be used by or targets,
the mature market, increases its potential sales volume in the current marketplace...and in the fixture marketplace, as the "baby boomers" enter the mature market segment.

The aforementioned article states:
"The future older American will be better educated and more affluent. They will have fewer relatives, two or more incomes, and better health. They will live longer, retire
earlier, and be more concerned with the quality of life than today's mature consumer." ...which basically means, they will spend more money.

Most products fall into the category of either "seasonal" or "non-seasonal" items. The reason for this is some products tend to have increasing sales at certain times of
the year or during certain seasons of the year, and somewhat decreasing sales during other parts and/or seasons of the year. Two examples would be a snow shovel and a garden
hoe. The snow shovel has its strongest sales during the fall and winter months, as opposed to a garden hoe, where the sales are strongest during the spring and summer months.

The Bum Butt Wipes with Container would be classified as a "non-seasonal" product in some parts of the country. In other words, it should enjoy strong and steady sales
throughout the calendar year. The seasons of the year* would have little, if any, effect on the sales. As far as the potential market for the Bum Butt Wipes with Container,
it is quite large as stated earlier. The following graph depicts the value of shipments for toilet preparations.

SHIPMENT VALUE FOR TOILET PREPARATIONS (in millions of U.S. dollars)

The market for this product is not limited to the United States. There could be a substantial International Market in which this product could be marketed and sold.
Although this may not be true for most third-world countries, it is for most of the world.

This would include countries such as those in the European Community (England, France, German, Italy, etc., where the United States exported and sold over $63 billion
worth of goods in 1990), Japan (where we sold more than $48 billion worth of U.S. produced goods in 1990), Australia, Russia and in many South American countries. If
the Bum Butt Wipes with Container enjoys success in the United States, chances are it will also sell well in the foreign marketplace.

An important issue to realize is Russia, Eastern Europe and mainland China are currently economically "opening-up," and these countries want to do business with western
nations. These countries have substantial populations and they have strong desires for "western" products, especially products from the United States. American products
have been available in Russia; however, they were only available on the "black market." Now with the changing economies. United States products are being sought.

The following table has the populations of some countries in which the Bum Butt Wipes with Container could be sold:


OVERSEAS/FOREIGN MARKET WORLD POPULATION (in thousands)

Country
Australia
Belgium
Denmark
France
Indonesia
Brazil
Canada
Philippines
Germany
Japan
India
Sweden
Irish
Italy
Spain
United Kingdom
Switzerland
Tailand
South Korea
1991
17288
9922
5133
56596
193560
155356
26835
65759
79548
124017
869515
8564
3489
57772
39385
57515
6784
56814
43134
PROJ. 2000
19511
9989
5147
58548
223820
180536
29301
77734
81532
128144
1018092
8761
3509
58592
40456
58719
7018
63832
45962
PROJ. 2010
21689
9889
5095
59708
256818
207462
31464
90261
82189
160480
1172101
8728
3685
58011
40998
59178
6989
70740
48063

Once the Bum Butt Wipes with Container is produced, it is extremely important that it is readily available for purchase by the consumer/end-user. People tend to be
impulsive when it comes to purchasing an item or product. Some people are willing to purchase products through catalogs or the new cable marketing channels. They want
to make a purchase immediately.

It is also important that an item be available in rural areas of the country, as well as, in metropolitan and suburban markets. Approximately twenty-five percent of the
population fives in non-metropolitan areas. That translates to over fifty-six + million people. The rural segment of the market is growing at a rate of about .seven
percent annually.

Although some manufacturers are willing to sell directly to the consumer, most go through distributors and wholesalers. This makes the job for the manufacturer much easier
and tends to be more effective. This is called a two-step distribution system. The manufacturer first produces and packages the product, then ships it to a regional
wholesaler/distributor.

The distributor will break up the large shipment, repackage the product into smaller amounts, and ship it to the retail outlet within his market area. The retail outlet then
makes the product available for purchase by the consumer. When analyzing the potential categories of businesses to sell the Bum Butt Wipes with Container, one looks to two
areas in particular;
  • General merchandise stores
  • Miscellaneous retail stores


Within General merchandise stores, the Bum Butt Wipes with Container may be sold in:
  • Department stores
  • Variety stores
Miscellaneous general merchandise stores

With Miscellaneous retail stores, the Bum Butt Wipes with Container may be sold in:
  • Drug and proprietary stores
  • Catalog and mail-order businesses
  • Direct selling establishments


The following table identifies the number of each of the stores which were doing business in 1990. These figures are in thousands:
Type of Store Number 1990. These figures are in thousands:

Type of Store
Department
Variety
Misc. General
Drug &
proprietary
Catalog, mail
Direct selling
Number: 1990
10.1
10.0
15.0
0.0
7.2
8.8


Mail order through magazine advertisement is another main method of purchase for consumers looking for pet/animal care products, hi 1990, $531,000,000 was spent on
magazine advertising for mail order/direct response products. Advertising for the Bum Butt Wipes with Container can be done a variety of ways. For television
advertising, the amount of dollars spent promoting pet products are as follows:

Network Advertising: $104,000,000

Spot Advertising; $36,000,000

Network advertising is the usual route when promoting a specific business, such as Ralston-Purina®. When the goal is to target a specific market for a particular product,
the type of television advertising is called a "spot." An example of a spot advertisement maybe the latest in gym equipment or stair climbers. There should be an ample
number of outlets in both the wholesale and retail areas to handle this product, and a number of publications available for this item to be advertised for mail order. The
Bum Butt Wipes with Container should be readily available to consumers in any part of the country.

MARKETING INFORMATION

HOW AN IDEA IS MARKETED
Most companies do not want a sample or prototype of the idea sent to them initially. The first step we take in marketing an idea is to present a Product Proposal to prospective
manufacturers. A product proposal is a basic presentation to a manufacturer, giving them the general concept of the idea. They want to know what the idea will do, or what
benefits it may have. In almost all situations they do not want a prototype until they have assessed the Product Proposal.

If the Product Proposal generates interest with a manufacturer follow-up work is necessary in order to complete a successful agreement. A manufacturer, if interested,
may request several items to determine the potential success of a product:
  • more detailed drawings
  • suggestions on material
  • design modifications
  • marketing analysis
  • demographics report
  • sales forecast
  • engineering drawings
  • prototype (finished product)
  • demonstration
  • negotiating the agreement
  • monitoring royalty payments


PRODUCT MARKETING

Once the Bum Butt Wipes with Container is produced as a finished product, how will it end up in the hands of consumers? This can be complicated, but we will try to
give you a general overview. Once a manufacturer has constructed a product, he requires assistance in presenting the product to the marketplace. If the manufacturer
does not seek assistance through various channels, it is not likely the product would ever leave the confines of the plant. Advertising, distribution, and promotion
are of great importance if a finished product is going to enjoy commercial success.

PACKAGING: Packaging is a vital issue in the marketing process. The product's package design must help to sell the product. If the packaging is unattractive, it
will not catch the eye of the consumer. Nor will it appeal to the "seller." The solicitor is going to determine where he is going to display the product. The manufacturer
wants the product to get a high visibility spot (or a spot that gives the product exposure to a high amount of consumer traffic). A classic example of high visibility is
the "Check-Out Register" in Supermarkets. This is called the "Point-of-Purchase" display. Millions of dollars worth of goods are bought on impulse as the consumer waits in
line at the check-out register.

ADVERTISING: This, in essence, is mass communication to the public to make them aware of the product and can be done through several different avenues: newspapers,
magazines, direct mail, radio, television, etc... Advertising is the impersonal communication of the availability of goods and services to a mass audience (consumers)
by an identified paying sponsor, the manufacturer. Advertising and promotion should:

-Introduce Product
-Explain Benefits
-Overcome Objections
-Close the Sale


As you are well aware, advertising, promotion, and packaging must be done by professionals. Because the manufacturer is not, in most cases, the professional in these areas,
he will hire the services of experts in these fields to do the job for him.

DISTRIBUTION: Getting the Bum Butt Wipes with Container to the shelf of a retail outlet can happen in a number of different ways:
Manufacturer to Retail Outlet: This is when a chain of retail stores can buy in large enough volume that he can by-pass the "middle man," the distributor. Examples: K-Mart,
Sears, Wal-Mart, etc.. In some cases, the retail outlet can purchase in such large volumes, he has the manufacturer put the store name on the product. This is done for "Brand
Identity," (e.g... Sears' Craftsman).

Manufacturer to Distributor to Retail Outlet: Most retail outlets do not have the purchasing capability of Sears. Therefore, they must purchase through a distributor who can purchase in large volume. The distributor is then willing to sell to the smaller retail outlet the product in smaller volume.

Manufacturer to Consumer: This is not common, but it does occur in some cases. One well known example involves a Radar Detector used to alert the driver of a car to police radar. This well known manufacturer sells directly to consumers, and this is the only way the product is sold.

Manufacturer to cable TV: As cable TV becomes more popular, it is becoming a bigger distribution outlet. At this time, several Cable Networks are selling directly to the consumer in their homes twenty-four hours daily.

PRODUCT PRICING

The price of a product is also important in order for it to prove successful. No product will sell well if it is too expensive. If the cost to produce the product is
exorbitant, there will be a limited market of people who can afford it. For this reason we do a general production cost estimate, which is given in the feasibility section.
Actual costs may differ greatly from our estimate depending on the material used, number in a production run, etc...

Below is an example of how production attains its selling price:

Manufacturer cost...

Manufacturer's Markup, which is twenty-five percent of his
selling price..

Wholesaler's cost...

Wholesaler's Markup, which is fifteen percent of his selling price...

Retailer's Cost...

Retailer's Markup, which is thirty percent of selling price.

Retail Selling Price...
$15.00


$5.00

$20.00

$3.53

$23.53

$10.08

$33.61


This will give you some idea as to the channels of distribution and the related costs involved in reaching a selling price.

DOING IT YOURSELF?

Some people attempt to take on the task of patenting and marketing a product concept/invention themselves. They will immediately realize they have taken on a greater burden than they are able to handle. Some people try to manufacture and market the idea themselves. People who think along these lines assume they will save money and show a greater profit by attempting these procedures without the aid of a service. Thinking along this parallel is a GRAVE mistake.

WHY SEEK A MANUFACTURER? Manufacturing a product is a complex operation. It requires time and capital to take an invention from the conceptual stage to the shelf of a retail outlet. There is a great deal more involved in the production and delivery of a product than people realize:

COSTS: The product demands a large amount of capital to get into the marketplace. In many cases, it takes several hundreds of thousands, or even millions of dollars to produce and distribute a product. Manufacturers have the capital to properly handle this task.

Cases have been documented where individuals spent their own money only to fail. This is not because the invention was not a valid idea, but because the inventor had to charge a much higher price than a large volume manufacturer. Again, the finest idea is not going to sell if the cost is too high. Consumers will simply not purchase it.

MATERIALS: What variety of material would be best? What is the source? What happens if your main source goes on strike? How often would you need delivery to sustain the production line moving? This area, called MRP (Material Requirement Planning), needs constant monitoring.

LABOR: This is a major expense and could become a major headache. Wages, benefits, accident insurance, health insurance, etc., are all major considerations that add to the price of the product. Another major problem would be a strike by the labor force.

DELIVERY: If several major store chains such as Wal-Mart, discounted stores, K-Mart, etc., order 500,000 each, and they want delivery in sixty days, you'd better be in a position to SUPPLY the DEMAND. If not, you run the risk of having orders canceled. This would also create a poor reputation in the market.

OVERSEAS MARKET: Most items that are successful in the United States will also become successful in the international marketplace. A large manufacturer can easily supply that market, where the small individual cannot.

THE COSTS OF PATENTING AND INVENTION MARKETING The costs of manufacturing a product are extremely high. You can also expect the cost of patenting and marketing an idea to be quite high if you attempt to do these procedures on your own.

PATENTING COSTS: These costs will vary from idea to idea, and from one patent attorney to another. However, we have letters from attorneys stating typical costs: The Application: To prepare and file a patent application would cost from $2,000 to $3,000. This would include the attorney's fee for the application, the patent draftsman’s fee for the patent drawings, and the fee at the Patent Office.

Processing the Application: This is the follow-up work required after the application is pending. The attorney has to communicate with the Patent Examiners, file amendments as required, have examiner interviews, and so on. These costs vary greatly with the amount of work necessary, but generally run from $1,500 to $4,000+.

Total: (Approx.) $3,500 to $7,000+

MARKETING COSTS: These costs will also vary according to the idea. We receive ideas in various stages of development. The cost of marketing any invention can be quite substantial. No one can ever anticipate what the total cost of marketing will be at the inception of the project.

In order to generate a list of manufacturers for submission of the idea, you may have to do a large amount of tedious research and make several hundred telephone calls. When you submit an idea to a potential manufacturer, you want to be sure that they will at least review the idea. In order to qualify a manufacturer, they should be contacted to see if they are receptive to a new product suggestion.