The entrepreneur: Allen Kenner, 43, of Ashland,
Oregon
Product description: The Grip-N-Drive is an upgrade from
the typical ratcheting screwdriver. Kenner patented the
product's rubber grip mechanism: It spins freely in either
direction, but then deforms to grip down on the screwdriver's
handle when squeezed. A package of five Grip-N-Drive screwdrivers
(two Phillips and three slotted screwdrivers) sells for $19.99 at
Sears stores nationwide under the Craftsman label.
Startup: Approximately $15,000 for a patent and a working
prototype
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Sales: Pratt-Read, the Bridgeport, Connecticut, company
that licenses the product, expects Grip-N-Drive sales to reach
between $1 million and $5 million this year. Kenner gets a
percentage as royalties.
The challenge: Getting your innovation on the shelves of
a major retailer that prefers not to buy from one-line,
underfinanced inventors
You've invented a unique product you're sure will sell
millions. Think that was hard? Get ready to face the greater
challenge of getting the product on the shelves of a big-name
national retailer. While you could go it alone, you'll
encounter a lot of resistance. Instead, your best bet is to make a
connection with a company that already sells to your target
customer. That's what Allen Kenner did with his innovative
screwdriver, and once he got a current supplier on his side, the
doors began to open.
Steps to Success
1. Push yourself to develop the ultimate design.
"The handle grips on my early prototypes could spin, but not
smoothly," says Kenner, who started developing the product in
1998. "Some people who tried them had a ho-hum reaction to the
product. I realized that the Grip-N-Drive needed a grip people
could get excited about--one that could spin faster and [more]
easily in either direction with a single twist. Once I produced the
easy-twist screwdriver, everybody who tried it wanted
one."
A big "wow" factor helps, but simplicity also counts
because it appeals to people. "I believe in the SMAC
tenet--'simple machines are cool,'" says Kenner.
"People fall in love with inventions that are simple to use,
simple to understand and that work really well. The Grip-N-Drive
exemplifies SMAC, consisting of only two nylon snap-rings and a
special rubber grip mounted on the screwdriver. Due to the extreme
simplicity of the Grip-N-Drive, I had concerns that my idea would
be stolen if I manufactured overseas. Fortunately, the simplicity
of the design, in combination with the automated product process
used to manufacture screwdrivers, allowed me to have the
Grip-N-Drive produced in the U.S."
2. Make sure consumers like the product. "I got
feedback on the design and conducted market research by showing my
product to friends at parties and other places in town, always
getting signed nondisclosure agreements," Kenner says. "I
asked successful businessmen for advice and, through networking,
found local people who had worked in the hand-tool industry. They
provided valuable information and reinforced my belief in the
viability of the Grip-N-Drive. Once I felt comfortable with the
manufacturing-to-retail price ratio, I began looking at options for
produc ing and marketing my screwdriver."
3. Develop a strategy. Kenner wanted to license his
product to a company that could sell it to Sears. "I decided I
would have the greatest chance of suc cess approaching a small to
midsize company. I also wanted to keep travel expenses down and
work with a company I could trust. A local manufacturer,
Professional Tool Manufacturing LLC in Ashland, Oregon, which sells
its Drill Doctor, a drill-sharpening machine, through Sears, met my
criteria."
4. Make networking a priority. Having trouble getting
your foot in the door of a potential licensor? If possible, have
someone who already knows people there recommend your product.
"Rather than going directly to the company, [in 2002] I asked
a friend with a connection [to Professional Tool] to arrange an
introductory meeting by explaining to one of the owners that he
knew someone with an exciting invention."
5. Don't sign a deal too soon. Kenner signed a
nondisclosure agreement with Professional Tool, but no other
agreement. When Sears requested that some changes be made to the
product's design that would raise upfront tooling costs and
production costs, Professional Tool graciously backed out of the
deal and let Pratt-Read, a leading private-label supplier, take
over. By October 2004, the Grip-N-Drive was being sold in some
Sears stores, and a nationwide rollout soon followed.
Lessons Learned
1. Protect your idea. The only way to know if your
product has the "wow" factor is to show your idea to
those with whom you network. Just make sure everyone signs a
confidential nondisclosure agreement. For sample agreements, go to
the United
Inventors Association website and click the "Novice
Inventors" box.
2. Be patient. Inventors get excited and often rush to
meet with a company. You're better off, however, networking and
attending trade shows and association meetings, even if it takes
three to four months. The goal is to find someone with a connection
to executives at the target company who can tell them about your
product.
3. Be careful with your agreements. You may talk to three
or four companies about licensing a deal, and some of them may help
you get to the final deal. However, you don't want to be forced
to share royalties with a company that doesn't end up making
and selling your product. Prevent this by having an agreement
stating that you are discussing with the manufacturer the
possibility of it manufacturing and selling your product in return
for a licensing agreement. That way, you are not obligated to pay
part of your royalties to a company other than your eventual
licensor.
The Juicy Details
Are you stymied in your efforts to come up with your own
can't-miss product idea? Then check out Juice: The Creative Fuel That Drives World-Class
Inventors by Evan I. Schwartz (Harvard Business School
Press, $24.95). The book shares the stories of how top
inventors--from Thomas Edison to Dean Kamen of Segway
fame--developed their inventions. These innovators observe the
world around them differently than most people. The book shows how
they think in a way that sparks creativity and how they
transcend the boundaries that most people have trouble breaking
through when trying to be creative. What makes the book most
valuable is the wide range of tactics, lessons and strategies that
anyone can use to get their creative juices flowing.
Don Debelak is author of Entrepreneur magazine's
Start-Up Guide #1813, Bringing Your Product to Market
(www.smallbizbooks.com), and host
of inventor-help website www.dondebelak.com.