comparative econmics

Re: Product Choice and Working with Designers

Hi John,

I have a few questions about my product choice and
working with designers.

I have found a product that I would like to import.
After conducting some research I have found the
product online but not in any of the retail stores I
have visited. Neimens, Nordstroms, Macy's, and a few
boutiques do not carry the item but managers of these
stores have expressed interest in the idea
(unfortunately I have not yet been able to track down
buyers).

The product offered online by potential competitors
lacks a contemporary/fashionable design, which may be
why I haven't seen it in any of the high-end retail
stores. I have a lot of ideas about how to re-style
this item so that it might appeal to these stores and
their demographic. Even though the product exists, if
I change it's appearance (but not how it functions),
is this enough of a change to the existing product to
classify as "competing on design"? I just want to be
clear on this point.

I would like to start looking for a designer in the
next week or two to begin sketching and creating
samples. In your class you said that many designers
would waive the initial payment normally required when
working with larger companies and instead except
royalties as the only form of payment. As a start-up
company and a person who has never imported or sold
products to retailers why would a designer make that
kind of investment in me? How do I persuade a
designer that I'm worth the time? Also, what would
prevent designers from bypassing the newbie importer
and just do it themselves? Is it common to have
designers sign an NDA?

Since the item is relatively simple to make I thought
it would be easier to have the designer make some
samples to show buyers and eventually sales reps. I,
of course, would pay for the materials. If sales reps
agree to represent my line at that point I would
engage the manufacturer. Do you see any problems with
this approach?

And my last question, you said as importers we will
need to create a line. If the variation between each
version is too different - differerent materials used
in each design - wouldn't that drastically increase
the cost of production? I imagine I would then need
to meet a minimum cost of production for each design,
is this correct?

Thanks,

Renee

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