Latest / Pitch to Product / Here's How To Not Waste Thousands On A Product Idea That Doesn't Go Anywhere
Transcript
- Peter Bobby 7-22-26: We're creating to be able to produce the product and put the product on the market. We're not creating just to make you happy for your claims. And what happens if the product doesn't have margin? then there's no business. What happens if the product has is too complicated to build? Then then the margins are also off. you have? so look at the ODM term is something that is, you know, loosely used. I love the fact that AI and ChatGPT and all these companies are really defining things better, which makes it easier for you and me. Yes. Right. But let's actually explain the difference now between the invention help process. versus the ODM process. And I'll even I'll even add a couple of design. Exactly. You want to make it easy, but you can add you're looking at manufacturing. You can add the designers in there, the prototype companies, the rapid prototypers. All that is a good process. But let's define what an ODM does. An ODM is an original design manufacturer. And that's what we are. We manufacture original products. In fact I will go as far as to say we only manufacture unique value proposition products for the market. Exactly. All right. We're not competing with Amazon the thirty microwaves on Amazon. Right. Yeah. We're gonna make something that has a unique value proposition that someone goes, Wow, would probably spend a little bit money for, more money for and go, Okay, that's something that I have missing in my life. It looks better. I always give you the example of Yeti. Right. Like that's a great drink cucks, whatever been around forever. Right. Did would your dad ever have spent three hundred dollars on a cooler? No way. So exactly, right? So generationally somewhere along the way, a better cooler is two is what happened. And that is, I give them all the credit for that. But let's go into we're gonna make some focus a unique and ODM focuses on getting a new product money to market. In the in the other process that everyone's probably exploring or in the same you know kind of conversation is if a design is getting done, does that designer ever think about how it's manufactured? No, it's not his job. Okay. If that patent writer is Trying to write a patent. Is there any conversation about how it would actually be manufactured? He doesn't know the internals. Now, all that gets done and those services are done. When you don't have something you can manufacture, did you hire the right team for the services that you're expecting? Not one bit. The person that has to make it has to come in now and change everything. Yeah, exactly. But contractually, are you in the wrong d you know, you hired all those people to do something that you can't actually manufacture? Did they not do their job? I did a job. You could hire the designer. To design your kitchen, but you're still gonna have the person that makes the cabinets, the installers, the flooring. We would have to come in and say, wait, that can't fit here. Right. So I'll just give you a quick list of differences. In the ODM process, if we discover that the margins don't aren't there, what do we do, Bobby? Stop. Why? Because a consumer will pay more for a product that we couldn't figure out how to get into a there's no margin. Exactly. No profit. There's no business. So the business stops it. Let's say a designer makes something for a left-handed person. We didn't like the designer is left-handed, makes it for left-handed. Where in the process does the manufacturer or the marketing people say, wait a minute, this is only going to take 10% or 15% or 20% of the market? Exactly. So and at one point, someone has to talk to business of the product. Exactly. And the business of the product is we want to make for general population, not for the outlier. And that's the biggest difference. If a consumer sees the wrong product or doesn't see the reviews that are there, what does a consumer do? Swipe on to the next. Which means you don't have a sale. No sale. So it's not even just margins. Right. You you have to have margins. You have to have the right things. You have to have the right design. It all has to come together before you make a single one. Thousand percent. We're gonna talk about a quick example. And I know Steve said, like, let's not get into this lengthy, but I'm you know, I never follow your rules, Steve. The conversation is we had a conversation this week with someone who went down the process of hiring like an invention help company. $30,000 down. $30,000 down. And did they get the services they asked for? They got what they asked for. And they got exactly what they asked for. So exactly what they wanted to make, they did for them. I'll give you the category. It is in the getting stuck in the snow. Automated field. Okay. Yes. The inventor said, I want to attach something to every vehicle and put it into the system. And help me understand how does that is that a direct to consumer product? No. It's got to go through a manufacturer. Right. And an installer. Okay. So right. If thank you. So if you actually go through this, now you've got to go talk to a a car manufacturer. Do you think that car manufacturer is going to actually go through the trouble of installing a new item onto a vehicle that they haven't studied or researched for the last hundred years? Not one bit. Not one bit. It costs some money every time they make changes on a car. That's why the car models doesn't change to almost every eight, ten years. So let's clarify did you think it was a bad idea? Thought it was a great idea. It's a great idea, right? That's that's the validation. but manufacturing-wise, as a business for us, it's not a product for us because it it doesn't have a value and it doesn't have sales. Right. So let's work backwards. You have the manufacturer that you can't go to. Now you got to go to the direct-to-consumer market, or maybe an installer or mechanics, or wherever this would be, right? So what would stop a consumer from buying this on Amazon? Like they could buy it. But then what would be the next step if they had to install it on their car? They gotta find someone reliable to install it that knows how to install. And there's a lot of risks there, right? Like what happens if I avoid a manufacturing warranty? What if do I have to connect to electrical systems like that that a car? How many different makes and models are out there? I'm in the car business and it is a hu like it's it's thousands. Exactly. Right. So the variabilities are there are huge. But did anybody stop that person from did anybody have that conversation with those people in ten years of doing this, other than you and I? No. And I and I saw the look on their faces and I was so sad. It was so sad. So look at let's clarify. In ODM, we are designed and built to go and make products for consumers. And that is it. We want to manufacture things that consumers buy. Everybody else that's in the space, yes, I have designers because they're part of the process. I have engineers. I have everything that is needed either in-house or within my team of manufacturers, because the result here isn't anything other than to get the product to market. The most important thing about the product is it has to have a business mind. It has to be something that can sell. Something can be manufactured for margins, can sell. If not, there is no product.