Today we are talking about a case study found in Inc's April 2005 Issue where an inventor has the opportunity (and crossroads decision) of a lifetime.
Lance Fried has created the world's first waterproof MP3 player - nirvana for surfers, skiiers, swimmers, kayakers and other damp dwellers. He used his own funds and volunteering from his friends to make it happen, and when several "big box" retailers, like Best Buy and Bass Sporting Goods, found out about it, they wanted it on their shelves.
Sounds like a dream come true for Fried, right? Well.....
Although Freid knew that working with a major retailer (or 2) could create sales over $1 million, it could help him attract investors, and make other vendors take him more seriously, he also knew that he didn't have the upfront investment monies to manufacture enough MP3 players to meet such a large immediate demand.
This also wasn't his original plan, which included focusing on small niche shops and making a big splash in a little pond. Also, surfers and those of Generation Y were proud of being anti-corporate. How could he connect with them if he "sold out"? Plus, negotiations with large retailers often leave you with minimal profit margins, and the retailers would mix you in as another MP3 player among it's many others.
So what did Fried do? He politely said, "No, thank you." He continued with their original plan, which was to make a big splash (almost literally) at a trade-show debut, putting MP3 players at the bottom of water-filled aquariums, and letting people listen to the music via earplugs dangling over the side of the tank.
Among the very many who came by, "40 small and midsize retail shops prebooked orders for the spring of 2005." Other large brands inquired about co-branding opportunities, something which Fried had not anticipated. In the end, Freestyle Audio's MP3 player would be the only item of its kind in specialty shops, as opposed to being one of a zillion MP3 players in a big box store.
BRAIN STORM!
Does your product or service have a very tight niche like this waterproof MP3 player? If so, where do these people hang out? Could you strike up a good rapport with them by allowing some of them to utilize their service so they can spread the news about you via word of mouth? The right information in the right person's mouth could make all the difference to your business.
- Your business or service could benefit from co-branding with a larger company. Who are the people that you are targeting? What other products do they use and what companies provide those products and services? Contact them to see if they would be interested in what you have to offer. One of the guest experts mentioned teaming up with a band that was popular with surfers, and preloading their music (or a song) on the MP3 player. (By the way, it never hurts to ask...the worst they can do is say 'no', and even then, at least they know who you are!)
One word of warning, however...one of the guest experts mentioned the possibility of ending up looking like the toy of a major manufacturer - kind of like an afterthought add-on, where no one would remember the name of the company that created the MP3 player.
- This made me think, possibly I should, as an audio book publisher, contact them and ask if I could make an audio book of surfer stories, or skiing stories - something available in MP3 format. Does anyone out there have any surfing stories to share and would work with me to record and publish? (Notice, it never hurts to ask the listeners! <smile>)
- A professional surfer put her two cents in by stating that, since surfers aren't looking for an MP3 player when they go to a specialty shop, that advertising would be paramount, and that point-of-sale displays could be very valuable.
Where are you advertising? Have you considered point-of-sale displays for your business? Where are some unconventional places you could put such displays. Think beyond magnetic signs on your car and billboards...in a previous Brain Storm! issue, we discussed how Mannheim Steamroller advertised their Halloween albums in the candy aisles of Walmart. How using classifieds, only place your ad in a different section that has complimentary products or services? If you have a moving company, how about advertising in the real estate section?
I was thinking of an idea to merge his water proof technology with USB hard drive technology, making it possible to plug in 128 mb sticks to 1GB usb flash drives. so a person could change out music as they see fit without losing music or selections they have combined.
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