*****************************************************************
*****************************************************************

THE ONLINE INVENTOR – May 2009 issue

Editor: Paul Niemann

*****************************************************************
*****************************************************************

Dear Inventor –

Here’s the next issue of “THE ONLINE INVENTOR.” If you wish to distribute this issue, or any past issue to your local inventor group or fellow Product Developers, please forward the entire issue, including he message in the middle from PRIMO Design Imports.

Now, on with this week’s issue …

Best Regards,

Paul Niemann

http://www.MarketLaunchers.com

800-337-5758

217-224-8194

******************************************************************

CLEVER QUOTE: “The worst bankrupt in the world is the person who has lost his enthusiasm”… H. W. Arnold

******************************************************************

“The Product Life Cycle, or PLC, explained”
by Paul Niemann of MarketLaunchers.com

Manufacturers refer to something called the Product Life Cycle. It shows how a new product goes through various stages from the time it is introduced onto the market until the time it is taken off the market.

Why is this important to you as a Product Developer (formerly referred to in this newsletter as an inventor) ?

If you pitch your new products to manufacturers, then you have probably faced a lot of rejection. The reality, though, is that companies need new products as much as you need them.

In the September, 2008, issue of this newsletter (http://www.marketlaunchers.com/september2008.html), I explained how expensive it is for companies to create and commercialize new products on their own. The Product Life Cycle provides yet another example of why it is in a company’s best interest to sometimes license in products that were developed OUTSIDE of their own companies, by Product Developers like you.

Products go through the Product Life Cycle, and so do entire industries. The 4 stages of the Product Life Cycle are:

1.         Intro
2.         Growth
3.         Maturity
4.         Decline

Here’s an example of the way a product goes through the Product Life Cycle, using cell phones as an example:

(continued after the break)

**********************************

ADVERTISEMENT:

PRIMO Design Imports, Ltd:

ARE YOU THINKING OF HAVING YOUR INVENTION MANUFACTURED OVERSEAS?

If you want to have your invention manufactured overseas, but don’t know where to turn, WE CAN HELP.

· Direct Importer & Invention Manufacturer

· One-on-One Superior Customer Service

· Free Cost Evaluation on Producing & Delivering Your Invention

· Qualified Account Representative to Handle Your Account

Contact Us Today

tony@primodesignimporters.com

1444 W. 135th St. , Gardena , California 90249

Tel: 310-324-7900 ext. 103

**********************************

In the Intro stage, there was only one cell phone company. I don’t remember which one, but let’s say it was Motorola. So at one time Motorola had the entire cell phone market all to itself, but the only people who could afford to own a cell phone were businesspeople and employees of large companies and government agencies who were footing the bill. Since Motorola was the only company making cell phones, they had 100% market share – but it was a very small market.

This was followed by the Growth stage, when several other companies entered the market. (Remember, America is the land of copycats as much as it is the land of opportunity.) As more companies enter the market, Motorola has to lower their price in order to compete. Plus, as other companies enter the market, more and more consumers – and businesses – buy cell phones. This increase in sales drives the per unit manufacturing cost down, causing the market to grow even more.

In the Maturity stage, each company further lowers their prices and spends more on advertising in order to compete. Profits start to decline. Meanwhile, companies need to start developing new products because their cell phones will eventually be replaced by some newer, greater technology in the next stage – the decline stage. THERE ARE NO COMPANIES THAT I CAN THINK OF THAT HAVE HAD LONG-TERM SUCCESS BY REMAINING A ONE-PRODUCT COMPANY, meaning that all manufacturing companies need new products on a regular basis, and that is where you come in as an independent Product Developer.

Cell phones are currently in the Maturity stage.

Then in the Decline stage, cell phones will someday get replaced. Don’t believe me? You could have made the same argument for regular landline phones 10 years ago. Today, more and more people are ditching their landline phones for cell phones.

It is impossible to accurately predict how long a Product Life Cycle will last; for example, milk has been in the maturity stage for nearly a century. The same goes for the automobile.

Once cell phones (or any American product, for that matter) reach the maturity or decline stage, companies start moving into other markets. This usually means going overseas.

Manufacturers that plan for the future should have products in each stage of the Product Life Cycle, meaning that there is opportunity for you.

# # #

Paul Niemann runs MarketLaunchers.com, building web pages for inventors. Having your own web page allows you to show your invention to companies (potential licensees) when you’re unable to present it to them in person. It serves as your “online brochure.” Plus, it can be seen by companies who search the internet for new products.

******************************************************************