Interview with President of Rolite Manufacturing

Recently I met with Ron Roberts, President of Rolite Manufacturing. Rolite is a roll forming manufacturer that Ron Roberts, Presidentproduces metal products of all shapes and sizes for large and small companies.

I toured their manufacturing facility and was amazed at how a compact roll of sheet metal can be stretched, cut, pounded, bent, stamped, shaped and sized into a variety of configurations.

Take a look at the video I uploaded to Youtube of all the different ways they can manufacture metal products.

Ron told me that every product they make must be made to have the right  "Form, Fit and Function."

  • Form: the look of the product projects the presentation the inventor intends;
  • Fit: the product meets all the requirements necessary; and
  • Function: the product must work the way it was intended.

Here are few questions and answers from my interview with him:

Can you help inventors make prototypes to use as a sales prop?

Many times we’re able to work with the inventor and help figure out the manufacturing details. We can gear their idea to existing equipment and help them lower startup costs. We help inventors in the process of manufacturing, we call it "engineering time" it's kind of like a research and development of the product without actually stepping on the toes of the inventor.

Our goal is to have cheaper startup costs for the inventor. Truthfully, independent, individual inventors are a small percentage of our business. Typically they don't have the financial wherewithal and know how to take it to the next level and we try to help them bridge the gap.

What are some of the biggest problems that inventors have that you are able to resolve?

We think outside the box, we have tooling and the presses that are capable of shaping and bending any piece of sheet metal into almost any position. We try to do it as simple as possible and we often design ways to make products inexpensively as possible. We also work with other companies to make a product, for example we've recently made a metal product which needed an attachment combination of a piece of cloth material and small brass fittings which were produced by outside sources and attached by our company.

What can you do to make a salable product better than a company located overseas?

Others need to find a manufacturer overseas in places like China because of cheap labor. We can do it better than an overseas company because we can:

  • Produce a high quality product (Assembly and manufacturing is done locally).
  • Avoid Secondary and third operators.
  • Provide a short response time to customers problems and queries.
  • Take care of quality issues as soon as they happen. If you're using somebody in China and there's a problem they would say “maybe we'll implement it on the next run” with us we fix it now.
  • We deliver on time because there is not an ocean we have to ship across.
  • If there's a legal problem outside the USA what legal recourse do you really have?

What considerations do you take into account before making a product?metal forming machine

"What are the fixed costs? How much is it to make? Can it be sold for a profit at every level? If not we can’t make it."

There are a five tiers of cost on any product:

  1. Manufacturer
  2. Distribution representative
  3. Wholesaler
  4. Retailer
  5. Final Customer cost

What steps do you take to preserve the rights of your clients?

"With us it is mum's the word, we do our best to keep everything confidential. We have an in-house Nondisclosure Agreement (NDA) which is fair and protects both the inventor and our company. If the inventor has their own NDA we will sign it if it is fair and reasonable."

 

A roll forming manufacturer, Rolite Manufacturing offers inexpensive aluminum angles in any shape (simple to complex), as well as other metal channels & steel grades. They also offer aluminum channels, metal rings, light gauge metal trim, steel angles, and steel channels, in any length with close tolerances. Their roll formers can develop many complex cross sections.

How to Evaluate the Retail Opportunity of a Product

What Inventors Need to Know...

Most independent inventors want to license their invention to a retailer. Usually an inventor does not have the experience nor the money to market, manufacture and distribute a product on their own. So when I ask an inventor if I had a magic wand and instantly gave you a patent, what would you do with it? I get an answer like “I would take it to a large retail chain and work out an exclusive licensing agreement.Man Looking Through Binoculars

Whether they could even get their foot in the door is a long shot in itself, but let’s just say an inventor has a buyer’s ear or is working with a product developer. No matter how good the product is, it will not sell itself.

Are you looking to make a deal? What bargaining power do you have if all you have is the idea? What else can you bring to the table? The more information you have, the better negotiating leverage you have when bartering the licensing royalty rate.

In order for a product developer to properly analyze and evaluate the retail opportunity of a product the following critical points need to be addressed (not listed in any particular order as to importance):

  1.  Wholesale price range
  2.  Suggested retail pricing
  3.  Unit Cost
  4.  Current inventory (number of units on quantity)
  5.  Sales presentation material
  6.  A  good presentation of all of the products benefits and features
  7.  Target market
  8.  Estimate of market size
  9.  Close up image or text version of packaging
  10.  Bar code
  11.  How many fit in store case pack
  12.  Overall product dimensions
  13.  Product weight (single item)
  14.  Intellectual property protection: trademark (brand name) and patent protection
  15.  Current retail stores or on-line retailers carrying product
  16.  Do you have current manufacturing? domestic or international
  17.  Current competing products in the market: sizes and pricing
  18.  Estimated production time for new inventory
  19.  Are there any other variations or a contemplated next generation of the product?

Each side in the negotiation brings certain elements to the table. Every element you can add raises the odds that an agreement will be made. And each element raises the bargaining power to negotiate and profit from any deal.

The Inventor's Bible by Ronald L. Docie Sr.

The Inventor's Bible by Ronald L. Docie Sr.

LoTempio Law Blog Book Review

About the book

The Inventor's Biible by Ronald L. Docie Sr., includes a workbook to help an inventor take an idea from conception to the distribution of a product. The book touches on marketing, licensing, and selling an invention. The book reviews the invention process, including:The inventor's Bible

  • Patenting
  • Selecting a manufacturer
  • Finding the right market
  • Developing a marketing plan
  • Presenting a product to a company
  • Negotiating a royalty deal

My review of the book

This book provides a good explanation of the invention process. The real life stories teach inventors of the potential pitfalls commonly encountered by new inventors. It maps out an inventors voyage through invention, development of the product, to protection and marketing. I think The Inventors Bible is a good book for independent inventors. The book is well written, very readable and covers a lot of useful topics. The Inventor’s Bible is an excellent collection of practical information from an inventors prospective, based on the author’s business experience. Even though the book is not presented from a legal viewpoint it is helpful because it looks at inventing, patenting and product development from a business angle.

About the Author

Ronald L. Docie Sr’s career in selling inventions spans more than three decades. His inventions are featured in Wal-Mart, Kmart and thousands of other distribution channels. As an agent for inventors, Docie has negotiated license deals with many companies including General Motors, and he’s a consultant to Johnson & Johnson on idea submission. He is the president of Docie Development, LLC, an international company that provides services for inventors and corporations.

How to License Your Million Dollar Idea by Harvey Reese

How to LicHow to License you million dollar ideaense Your Million Dollar Idea, Second Edition, Harvey Reese

LoTempio Law Blog Book Review

About the book

This book provides potential inventors information to take a product from the idea stage to a shelf on the store. The author reveals his system for coming up with new ideas. He tells about his experiences taking a product through the licensing process. He proposes a method of how to approach and present those ideas to professionals in the industry that can manufacture, market and distribute a product. He gives an overview on the patenting process and a hypothetical presentation of the product and negotiation of a bare-bones licensing agreement. How to License Your Million Dollar Idea, Second Edition also features an expanded appendix of sample patent forms, licensing agreements, disclosure statements, publications, contact information, and more.

My review of the book

In my role as patent attorney, inventors come to my office with new ideas all the time. My job is to protect their idea but also represent them in the best possible way. Many inventors don't know how to present their patented product to a company for licensing agreement. I believe this book gives them a rudimentary understanding of the entire process. I have recommended this book to many clients to educate them of the pitfalls of selling a product that they have invented. I believe this book answers a lot of basic questions about the pitfalls of taking a product from the idea stage to on a shelf at the store. In addition, I enjoyed the common man approach in which the book was written. The book uses anecdotal story based examples to describe the invention process.

About the Author

Harvey Reese is a businessman and inventor. Based upon his success in licensing ideas he has written books that inventors can use to profit from their ideas. The two latest are The 12 Amazing Secrets of Millionaire Inventors, which shows the inventor all of his options when he’s struck with a great idea, and How to License Your Million Dollar Idea which is designed to help the inventor who has already decided on the licensing option. He is a frequent guest on local radio talk shows where he answers callers who have questions about their product ideas and what to do next. He is also an author of many articles for Inventor’s Digest.