I have contacted Davidson with my new idea which saves lots of time and energy. My new idea was pretty simple but really helpful for everyone to use in every day bases. Davidson (Davison - turning ideas, inventions, and patents into products.) did the necessary research about the idea and created a portfolio for it. The next step was finding a company who will be willing to create the sample material. I have got a congratulation letter from a very well known (Car Part) manufacture and they agreed to manufacture the sample material. But the money they are asking is beyond my budget. So far for this new invention, I have spent almost $2,000.00. But it looks like I have to spend $5,000.00 more to take it to the final point. I wanted to know if this is normal. Why is it so expensive? If I give up now, I will loss the $2,000 that I already paid and the idea that I have already submitted. To be honest, I don’t have that much money to complete the project either. I feel like I am trapped with the situation. It becomes a loss loss situation on my side. Davidson advised me to find a sponsor to get help. I have no idea how to get sponsor on this. Especially when the information is confidential. I am an Engineer and I have lots of small and big ideas. But if ideas cost this much money with no guarantees how much you will be making afterwards, it is almost impossible for a regular person like me to manufacture new idea. Does anybody have any idea about a cheaper way of selling or manufacturing new idea? Also is Davidson trust worthy company? Please help?

Fr_Chuck

If you go though patenting, design, and into manufactor for 5000, using a business firm, that is sorta cheap. Now the issue is, after the do the sample product what are you going to do with it.

But depending on the machinary needed, you can make products in your garage, I know a company that makes farm plows in a shed, and so on. if you require special foam or plastic injection machines, or special medal bending or brakes if you own them great, if not it all costs 10's of thousands for many machines.

anet

Thanks Fr_Chuck,
According to Davidson, once the sample product is produced, we will target and present the sample to different companies like Wall-mart, Target etc for sale. The sample product is going to be a part for car and the company which agreed to manufacture the product is a car part manufacture company. They have done the study and agreed to manufacture it.
I was surprised when you say 5000 is cheap. Actually the price was 10000, they dropped it down to 5000 and the commission they will be making once the product is selling increased to 20%. It was 10% originally and 10,000 for expenses. Do you have any info how to get sponsor? I can't afford even paying $5000, I wouldn't mind sharing the profit after the manufacture and sale is completed, I really can't afford it at all.

Fr_Chuck

well I may have issues with the 20 percent, but then 20 percent of something is still better than 10 percent of nothing.

But investors, you would have to sell a share or percent,
Or a loan of course.

My cousin is a patent attorney, one of the high class ones I understand, works in all of this electronic tech stuff. I have read the titles of some of his works and don't have the slightest Idea.

Just be sure it has gotten a patent and it is in your name. And have a independent attorney review any contract before you sign it.

wingrun

Here's my summary of what you should do:

if you really believe in your product and believe it can make you money then by all means take the necessary steps to come up with the first prototype. Assuming what you went through so far I say you strongly believe this product could be successful. I won't go into the business aspect as of product price, marginal cost and that stuff but I'll say if you forecast good sales then you should pay the manufacturer 10,000 and have them get 10% of the proceeds of sales.

as for where to come up with the money there are lots of sources. Are you in good financial condition? If so worst case scenario you can charge it on a credit card that charges you no interest for 1 year and then a fixed rate. Now I suggest this plan only if you can start expecting cash flow within the range of the credit card 1 year no interest period. Another method is finding investors. Once you get your product patented you can go meet people like you who understand the value of what you made. Another method is prosper. visit their website at prosper.com to learn more.

anet

Thanks for the advice, I am looking for a sponser. Thank you though.