My time is valuable. I prefer not to screen my telephone calls even with Caller ID. I find it annoying when others do it to me so I try not to. I pick up the phone and it is a sales call. A unique sales call from a reputable business is one thing but receiving the same call several times a week, making the same pitch, even after they have been turned down is a complete waste of time. I have tried the "do not call" list but that rarely works. I have tried, upon receiving the call, to immediately ask for their credit card information. When they ask why, I simply reply that I charge for my time and I will be happy to discuss anything on their mind once they provide me with payment, however my question usually gets an immediate hang up. And the automated ones are the worst of all. Unlike eMail, where you choose when to review it, I have interrupted what I am doing to answer the call. I realize it is a form of advertising and statistically if you call enough people, someone may respond, but this form is over the top.

So my idea for you is this. Engineer a phone filter that can track incoming calls. Like a spam filter, once flagged, that number would automatically be intercepted and terminated before it can ring. Even go further and link phone numbers registered to the same business, ip address or individual and flag them as well.

Someone with the skills to do this would have my complete support and attention.

Shipping and Handling

If you start selling your idea directly, should you charge shipping and handling? What exactly is "handling" anyway? Is it the cost of someone pulling your idea off the shelf, placing it into a box and preparing it to ship? Shipping and handling has become a staple in many internet, DR and mail order businesses but should you pass along the additional expense to the customer?

It is important that as the originator of the idea, you establish the manufacturers suggested retail price and not undercut that. It is certainly tempting to sell your idea for less and still make more than the wholesale cost. That is very short-sided thinking. Established retailers have an existing clientele larger than yours. It would be in your best interest to help them sell your idea rather than compete with them. Plus bulk orders cost less to ship than individual ones.

So, if you are going to sell directly, use your MSRP. If you do provide free shipping, your customer will feel like they got something and the cost for shipping and handling is less than wholesale cost to the retailer. Plus you'll remain a partner with your retailers rather than becoming competition.

Get them to try it

Don't be afraid to show off your idea. Sounds easy enough but many people don't. Maybe they are worried about the potential criticism. You need the criticism so you can fine tune your presentation. More importantly, getting samples in the hands of customers in your potential demographic, gets them talking. The more people talk, the more the buzz gets started. The bigger the buzz, the better the story. The better the story, the better the sales. The better the sales, the more successful your idea will be.

On the other hand, you are worried someone will steal it. Well guess what... if someone is going to steal your idea, they are going to steal your idea. If you are first to market and get it going with a huge buzz... you are the big winner. Then it will be time to move on to your next idea.

It's not a sale if you don't get paid

As your idea grows, you may be forced to deal with companies that require terms. It is logical to think that just because they are a big company who you believe is reputable, they will pay you when they say they will. Let's look at it from the other side. What are you to them? If you supply them one product, unless it is what keeps them in business, you mean very little. There are thousands of suppliers that will provide them ideas. It is critical that you stay focused on your receivables. Just because you shipped a pallet of merchandise, doesn't mean the sale is complete. Make sure you get paid.

I'm obligated sometimes

I guess I am obligated to listen to ideas from certain business associates. The problem is that most of these people are only talkers and not doers. They always open with if they could do it they would but they need help. Their idea may be good or bad but they are telling me in hopes that I will reply, "That's a great idea. How about I develop it, manufacture it, package it, warehouse it, sell it, fill the orders, invoice it, manage the receivables, accept the returns, underwrite the liability and we split 50/50." You may be laughing but what's in it for me? 100% of the work, 50% of the return. If I am going to take on the risk entirely, shouldn't I be entitled to most of the return. The usual response... It is my idea and I am letting you in on it.

If all you have is an idea, my obligation ends at advice. The good news is you get to keep 100%

Get the most out of your suppliers

Just as important as getting paid from your customers, paying your suppliers on a timely basis is important. Large companies will cut you off because the percentage of business you provide them is very small in relationship to their entire business. Small companies will shy away because they don't want to take the chance they will have to wait for their money. Dealing with smaller companies and paying quickly will generally get you much better service. When a company is concerned about being paid, their interest in your business declines. Don't take that chance.

A bad idea

To carry this major manufacturers product line, retailers are assigned specific territories. It is suggested that they not service the brand if the customer is outside their territory. It is a popular brand. This past weekend we visited a neighbor who had purchased this brand for their home. They had visited the retailer in the area and then discovered another dealer who was going out of business and needed to liquidate their last few pieces of inventory. After spending a significant amount of time with the local dealer, he felt obligated to let them know of this offer. The dealer's first comment was that if they purchased the item somewhere else, they will not service it. Upon expressing his concern to the liquidating dealer, he was immediately satisfied to find there were several other factory authorized dealers that would be happy to service his new purchase.

He took advantage of this offer and has contracted service from another dealer. The local dealer is an idiot. He believes that a threat of denying service will change his customer's purchasing decision. Instead, the customer purchased elsewhere and will be doing the routinely necessary and highly profitable servicing with someone else. Deals like this one, from a liquidating dealer, happen rarely and should be taken as an opportunity to pick up long term service business.

Big mistake.