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Story Board
Below is a synopsis of several
rather unique concepts and a snap shot look at their life as products for the
time we were involved with them. These new products were either sold
direct to retail, to end users, or were marketed through a licensing
arrangement.
We present these here with a
uniform set of key measurements, allowing you to draw your own conclusions as
to the profits, lessons, and relationships which they generated. They
were ultimately all rewarding, it's hard to put a dollar amount on lessons
learned or friends made.
This eclectic sampling of
projects is by no means intended to be a resume for The 500 Group.
They're just a few stories we thought were worth sharing.
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Richardson Electronics
 Richardson
Electronics, LTD is a global provider of "engineered solutions" serving for
RF and wireless communications industry. The company delivers engineered
solutions for its customers needs through product development,
manufacturing, design and logistics. The company calls on Fortune 500
companies to partner in manufacturing, distribution and sales of its
technology.
When
Richardson Electronics was looking for assistance in introducing and
distributing one of its new line of wireless cellular enhancers under the Call
Capture brand, "The 500 Group was instrumental in creating new channels and
opportunities for our unique technology! Their experience in multi-channel
sales and marketing enabled us to expand our reach distribution beyond our
original business plan without conflict!"
Robert Heise
VP of PD / Engineered Solutions
The Knockout Group
 The Knockout Group is a
strategically integrated, innovative, manufacturing company that distributes
branded (George Foreman) and non-branded lines of cleaning products that are
effective, environmentally friendly, and safe for human use.
The Knockout Group has developed a diverse an dynamic line of cleaning
systems under the Knockout pro premium brand to establish leading positions
in commercial channels, in addition to household and automotive, that will
increase category volume.
"The 500 Group and Consumer 500 have
been a valuable addition to our sales and marketing efforts as we expand and
grow our product line and distribution base. The expertise that their staff
has in numerous channels, product introduction and channel development has
enabled us to become more aggressive in our growth!"
Ron Gerstung
VP of Sales
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Soak N' Smoke™
Capital investment: $ 31,000
Time from concept to
introduction: 8 Months
Actual time spent in part time hours while working at something else:
240 hours
Legal
protection: Copyright & Trademarked
Strategy: To develop a branded
consumer friendly process for smoking foods
First
year results:
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Revenue generated at cost: $ 23,400
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Commissions earned: $ 10,500
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Royalties: $ 15,750
Campaign summary: Company was sold turnkey to a
Chicago based marketing company for $ 100,000 and 15% royalties for 3 years
amounting to $ 175,000
ROI:242.94%
Greatest Lesson Learned:
A new concept is more viable than just a new
idea or product. When you back it up with proper support and marketing
collateral there is no limitation placed on you by the market or your
competitors.
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Capital investment: $ 1,400
Time
from concept to introduction: 4 Months
 Legal protection:
Copyright and Trademark
Strategy:
To develop a branded line of sponge animals for children to play with, age
4-12 in bath tubs through a joint venture with leading sponge supplier.
Campaign summary:
Company launched the program with orders in excess of 400,000 units. None
were delivered because of a cost problem from the supplier at time of
distribution.
ROI:0%
Greatest Lesson Learned:
Controlling a project like this requires several suppliers to ensure product
availability.
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Ultra™
Capital investment: $ 1,275
Time
from concept to introduction: 4 Months
Actual time spent in part time hours while working at something else:
160 hours
Legal
protection: Copyright & Trademark
Strategy: Ultra laundry detergent that
was 6 loads at $0.99 price point
First
year results:
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Revenue generated at cost: $ 606,000
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Profit contributed
in dollars: $ 151,000
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Commissions earned: $ 24,265
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Licensing fees received: $ 14,565
Campaign summary: Extremely small start up investment
and easy sales implementation that only included 3 launch customers.
ROI:14,888%
Greatest Lesson Learned: How easy and
how much money you could make when you create a new product category. And
just as important, how short the product life
cycle actually is. The product was overtaken by a newer product with twice
the loads at the same price.
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Backeze.com
Capital investment: $
72,300
Time
from concept to introduction: 15 Months
Legal
protection: Patented & Agency
Agreement
Strategy: To brand a line of tool
belts that
are a first of a kind to provide back support
and full range of motion.
Campaign summary: In the beginning stages of marketing
this new product line and program. Major launch customers in retail have
been met with and all indications are very positive.
ROI:
N/A
Greatest Lesson Learned: How time
consuming and expensive it is to launch a new concept and product and how
long it could take to break even, if ever? Developing a business around a
single product line is not always the most cost efficient way.
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Yum Drops
TM Do your drink a flavor
New Product Concept now development and ready for consumer testing
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