Bringing a product to market is one of hardest and most rewarding things I have ever done but like most folks who have never done (or tried to do) something before I had some misconceptions about what to expect.  Now that I have little bit more experience and know so many fellow Mompreneurs® and inventors, I want to share with you a general rule of thumb if you are thinking about taking the plunge.  Now I’m not sharing this with you as any sort of discouragement, but I just feel that if people are more prepared, they won’t be disappointed or be too hard on themselves later when things don’t go the way they THOUGHT they should.  (Because what you thought, is probably wrong!).  Okay… here goes…. This is short and sweet:  The first year on the market, expect to HEMORRHAGE money.  The second year, you are doing well if you break even.  The third year, you should be making a profit.  There are always exceptions, but if you go into it with your eyes wide open, you won’t be nearly as disappointed when your QuickBooks reveals the ugly truth every December 31^st. 

I did turn a modest profit in year two but that was entirely because of Shark Tank.  I was extremely fortunate.  Now again, I’m still standing by what I have always said about media…I CAN NOT rely on that (or any other media hit to come) to carry me through year 3.  This time next year do you think anyone will remember me from that show?  NO.  Sales sales sales is where the money comes from.  What’s a little discouraging to me is that what I really SHOULD be doing right now is hitting the tradeshow circuit hard, but I just can’t.  With my husband’s job as a pilot, he’s only home 15 days a month, and so child care is a HUGE issue.   Last year Pa helped out TREMENDOUSLY because he was retired and he would pick the kids up from school etc… but now what he’s gone, it just puts too much stain on my family.  So now, I need to work on a plan B. 

I’ve got a new sales rep that I have high hopes for and I just signed on with a distributor for the state of Hawaii.  I’m really excited about that!  I’m hoping for great success out there.  They grill all year round and if they do well enough, maybe it will warrant a family / business trip out there to visit J  hee hee.  I grew up on Oahu (Pa was stationed at Pearl Harbor) so I have a very special place in my heart for the island.  Since moving away in 3^rd grade I have been back 3 times, but that was BC.  (Before Children). 

Here’s a short little lesson on Distributor basics: Distributors are companies that buy and store inventory and sell to retailers.  They are “middle men” so to speak.  They buy your product is bulk (for less than wholesale) and are responsible for a certain geographic area. FYI, distributors will usually require a gross margin between 20-40%. When working with a distributor, there are many things to take into consideration.  Most will want exclusivity for their territory.  In my case, it was just Hawaii, so exclusivity was not a problem for me.  I don’t have tons of Hawaiian stores beating down my door right now, so that was fine.  I do feel it is important to put in writing the annual or quarterly sales or purchasing “quota”.  It needs to be reasonable and attainable and something you both come up with together.  If the quota is not met after the specified time period, then the “exclusivity” becomes null and void.  Also the terms should be able to be reevaluated and adjusted as both parties see fit every year or two to insure it is still a win-win for both parties.  That’s the only way a relationship works.  Well, I think that’s all I have for now.  Chat with you soon

Leslie Haywood, Founder and President of Charmed Life Products, Inventor of Grill Charms™  www.grillcharms.com