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Inventor Update

Jill Gilbert Welytok is the managing attorney for Absolute Technology Law Group LLC, which is a team of Registered Patent, Trademark and Transactional attorneys.

Costs to Consider in Bringing an Invention to Market

invention, manufacturer, product, production, costs

Inventors' and Entrepreneurs' Forum
 
Next Meeting: January 28, 2010 at 5:30 p.m.
To be held at: Marquette University High School
(Room 127, Conference Center)
3306 W. Michigan St., Milwaukee, WI

(Click here for directions)

(Click here for information)

 

Costs to Consider in Bringing an Invention to Market

Perhaps the most universal obstacle inventors face in turning a raw idea into a product is coming up with the necessary funds at each stage of development in order to keep the process going. The following is a critical checklist of costs to consider in your budget.

  • Conceptual design fees: initial costs of designing you conceptual idea
     
  • Early prototype: expenses to create "proof of concept" models to test the idea
     
  • Patent fees: payments required to protect your idea
     
  • Trademark fees: Payments to protect your brand
     
  • Engineering: fees paid for having the product engineered
     
  • Sourcing: costs to locate a manufacturer (travel) and secure manufacturing (samples, for example)
     
  • Final prototype: costs of ordering or producing the final "looks-like/works-like" prototype
     
  • Tooling: set-up fees and other costs associated with creating the molds or dies to begin production
     
  • Initial inventory: cost of having product available for sale
     
  • Shipping of samples: cost of transporting initial product samples from manufacturer to you
     
  • Quality assurance: cost of having the product inspected before shipping
     
  • Product testing/quality assurance inspection: fees for outside laboratories or agencies to inspect and test your product
     
  • Freight: expenses of 1) transporting shipment of product to retailers and 2) delivering it to customers
     
  • Duty: taxes imposed on your shipment if it originates outside the United States
     
  • Customs: fees imposed on your shipment upon entering the United States
     
  • Warehousing: cost of storing your product inventory prior to distribution to your customers
     
  • Fulfillment (picking, packing, and shipping): cost of managing your inventory before it's recieved by your customer payment option
     
  • Credit card processing: the fee for accepting credit cards as a customer payment option
     
  • Customer service (customer support line): costs of managing the ongoing relationship with your customers
     
  • Product liability insurance: cost to indemnify yourself (or your company) in the event someone is harmed or their property is damaged as a result of or while using your product
     
  • Business license(s): costs for filing for and procuring license


     

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