Three Golden Rules
David E. Fitzgibbons, CPC
An inventor had the following question for David E. Fitzgibbons, CPC:
Dear David: I am an inventor, do you have any advice for me? What should I watch out for? And what are toy companies looking for?
There are Three Golden Rules that every inventor must abide by. First and foremost is never, ever, pay any money to an inventor group who claims they need it to “evaluate”, “research” or “market” your item. I can’t stress this strongly enough. If your idea is worthwhile, the invention representation company will be more than willing to invest their time in your concept. However, you (the inventor) are financially responsible for any Patents/Trademarks necessary to protect your invention but that occurs between you and the US Patent and Trademark Office.
Secondly, don’t quit your day job. Being an inventor should be an adjunct to your current occupation and NOT your occupation. Most toy items have a very short shelf life and therefore they don’t generate years and years of royalties.
Lastly, don’t invest the rent money in an idea. Would you gamble your mortgage payment on one hand of black-jack in Las Vegas? Of course not…so why would you do it on that “square ball” concept of yours? You shouldn’t! It’s too big a gamble. Make sure, any money you invest is money you can afford to lose.
Along with the Three Golden Rules comes The Three Cardinal Sins of inventors. They are Myopia, Greed and Costus Interuptus. The myopic inventor can’t see past his creation. S/he is in love with their creation and doesn’t see its weak points and/or won’t correct them. The inventor needs to see the big picture; the current economic climate, what is the taste of the child today, is the toy fashionable, but most importantly – how does this toy help the manufacturer (not the inventor) and can it become a brand of its own. Toy companies do not want to acquire one-off items; they want lines/brands.
Gordon Gekko said “Greed is good”…but only to a point. The myopic inventor sees millions of dollars of product being sold in the marketplace and they understandably want to get paid. Unfortunately, it doesn’t work like that anymore. New product acquisitions are risky and costly. Companies don’t want to risk large sums of money upfront or on the back-end (royalties) as they need to protect their margins.
Costus Interuptus. Simply put the inventor doesn’t realize how to cost their concept. Our website www.TheGreatToySearch.com too often receives items heavy in plastic with complicated mechanisms and sophisticated electronics. The inventor needs to realize that the item has to meet a certain retail price point and the manufacturer has to pay your royalty and maintain their profit margin in the process. The manufacturer can’t achieve those goals if the item is too costly to manufacture.
Lastly you asked what are toy companies looking for? How about Electronics, electronics, and electronics. Fresh new technology or the introduction of new technology in an old item…that is the fertile ground. Bring me a remote-control helicopter that can fly without limit and the world is yours. But think outside the box – forget about batteries, power the item with air, water or solar technology…or a new technology in your unrelated field that the toy industry hasn’t yet experienced. Remember, real innovation will always find a home.
David E. Fitzgibbons, CPC
Executive Search Group
1300 Weathervane Lane, Suite
216
Akron, Ohio 44313
330.867.7725
searchgroup@mindspring.com
Executive Search Group
