I have been approached by management and product development companies that want to help me develop and market my brand so my company can grow. Of course they have a percentage that will be paid to them once products start to sell. How do
you feel about this and should I work with a product development company?
Plus Size Women's Designer
I know some people who have great success with product development
companies. However, before you commit make sure to consider the following:
1. EARNINGS NEGOTIATIONS: It is very important to be careful with
your contract. You need to factor in all your costs and then make sure you
are not giving them too much of your profit or you will end up working for
free. Keep in mind that you need to leave room in your profit margin to hire sales
reps and more staff as you grow. If you give too much of your profit
margin to your product development firm you will be left with not enough profit
to invest in maximum growth.
2. MEASUREABLE RESULTS/COMMITED ACTIONS: Be sure they give
you specifics of exactly what they will do and how they will do it with
deadlines and measurable results in order for them to earn money. Your
contract needs a "you don't do your job you don't get paid clause."
3. DESIGN CONTROL: Be prepared that the product development
company may ask you to make changes in your line. The direction they want
to take and design changes they would suggest need to be discussed before you
sign a contract. This will help you decide if you are comfortable making
the types of changes they have planned for you.
Location of the company should not matter. Just make sure you create a
solid contract and don't be afraid to ask for changes to the one they first send
you. Contracts are made to be negotiated.
You have a niche product in plus size clothes. There is a need for cute
plus sized clothes so having a company that can help you bring it to market
could be a big help!
Yours in Success,