I wish I could

Yesterday, the parcel finally arrived. A long anticipated delivery of an electronic piece of equipment, for a very specific purpose, that has the potential to take my enjoyment of ham radio to next level.

I literally ripped the box open. The quality of the build, accessories included, instruction manual – the lot – was oozing with quality and care.

Five minutes later, the unit was disassembled. Great soldering, superb waterproofing, solid pro grade connectors. I was blown away.

“This would sell like hot cakes!” Immediately, we wrote an email to the manufacturer: a small one man band operator on the other side of the world. The message was straight forward, to the point: We love it, would you be interested in granting us exclusive dealership for Australia and New Zealand? If so, please provide a wholesale price and we will place an order. Thank you for your hard work and keeping the dream alive!

I couldn’t wait to hear back. Indeed, a prompt reply awaited me this morning.

The response was a typical one, I’ve seen too many times before. He was happy to do business with us, but there is simply no room to offer the product at a wholesale price. Design, assembly, packing, shipping – it’s all done by one man – himself. Also, he is deep in the development of two more products which will be equally exciting, offering even better performance, and he loves direct customer interaction.

This is precisely why clever engineers rarely turn a great product into a great seller: Instead of focusing on product development, they want to be designers, manufacturers, retailers, marketers and servicers. And without exception, they are unwilling to let a ‘stranger’ enter into their micro world of micro business, petrified to death that someone else out there, a retailer, will make “easy money” of their hard work.

They don’t understand that while trying to do it all, the harder they work, the less profitable their venture will be.

If you are a talented inventor and developer, then focus on what you do best and what you can charge the most for. Successful manufacturers should stick to manufacturing. Taking a product to market takes a very special set of skills and plenty of money. Wholesaling is a power game: Never say no to someone who is keen to buy a pile of your gadgets, pay for them upfront and take all the risks. Marketing and advertising is a pure art: finding an enthusiastic and knowledgeable person who will talk about you and your product honestly and passionately is almost impossible. When such a person knocks on your door, then grab such an opportunity with both hands.

Painfully enough, the lure of “I can do it all, and keep all the profit for myself” can destroy even large, established businesses. If you are a wholesaler, don’t be greedy and sell retail. An exclusive contract with a retailer, means just that. An exclusive contract which must be honoured at all costs. Great business and great partnerships are not built overnight, they are great because they’ve lasted through good and bad times, through feasts and famine, thick and thin.

I hear you: Cut it short, just tell us what is the gadget that arrived in the mail?

I wish I could.