A toZ Resources Archive
Mompact A-Z Resources
The following resources are pulled from conversations among mom entrepreneurs in our business discussions and other resource sites. Please verify all information before making business decisions based on comments here. We are not taking business listings for this section. Please note: This entire section will be updated soon.
Bar Coding (UPC) – Universal Product Code
The Universal Product Code (UPC) is a barcode symbology (i.e., a specific type of barcode), that is widely used in North America, and in countries including the UK, Australia, and New Zealand for tracking trade items in stores. Its most common form, the UPC-A, consists of 12 numerical digits, which are uniquely assigned to each trade item.
GS1
Companies Recommended
Bar Codes Talk – used by Rebecca Glaser Rabson
“Use GS1 if you can afford it at all ($1200/100) for your family SKU (UPC codes). 2nd Option would be http://www.simplybarcodes.net – talk to Frank, he is very helpful! Less cost short term (~$100/sku) but long term could be a headache if you have to switch over, there are some retailers that will only use GS1 (Kroger and International).” – Boogiemom Mindee
“looks like it is about $750 – but they say it is very fast – about a week – here is the site http://www.gs1us.org/” – Lyndsay Szymanski
“It is very simple. GS1 is the gold standard and most big box will insist on it. You pay a yearly fee and get 100 codes. Watch out for the low cost ones.” – Linda Varga
“We use GS1 as well. Its easy to use and widely accepted. I recommend it.” – LeeAnn Piazzola
“We have always used GS1. Never had a problem with them.” – Hugga Bebe
“I had a cheaper barcode when I started and when Stein Mart switched over to EDI, they required I get a new one from GS1.” – Noel Goldman
“GS1.” – Linda Varga
Bookeeping
Companies Recommended
“Bookkeeping – The Finance Department, ask for Alice Sciara asciara@tfdonline.com ” – LeeAnn Piazzola
Bloggers
How to Market with Mom Bloggers – written by Shelley Straitiff
http://theiqmom.wordpress.com/2011/06/16/how-to-market-with-mom-bloggers/
“Here’s a general guide: 1) pitch it to solicit interest, 2) pick the right bloggers, 3) ship product and clearly communicate expectations/agree on them, 4) review is written, 5) promote the review on your site, fan pages, through pr, etc.” – Shelley Straitiff
Branding and Identity (logos, website, mission statements, etc)
http://99designs.com/
Business Cards
Companies Recommended
• All Design Work including packaging, bus cards, tradeshow booth, website etc.
Steven Houck
Twelve 20 Creative
30 North Raymond #513
Pasadena, CA 91103
818-406-0185
stevenh@twelve20creative.com – recommended by Linda Varga
“Printing of Business Cards, Postcards, Direct Mail House etc. www.GotPrint.com” – Linda V
Business Management
Companies Recommended
“Debbi Arnold www.tailoredmanagementsolutions.com – worth her weight in gold for business managment in this industry.” – Robyn Pellei
Business Plan
http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/writing-business-plan Writing a Business Plan – SBA.Gov
http://www.entrepreneur.com/businessplan/ How to Create a Business Plan – Entrepreneur.com
CE Mark
CE marking (originally CE mark) is a mandatory conformity mark for products placed on the market in the European Economic Area (EEA). With the CE marking on a product the manufacturer ensures that the product conforms with the essential requirements of the applicable EC directives. The letters “CE” stand for “Conformité Européenne” (“European Conformity”).
Companies Recommended
“http://ce-mark-us.com/?gclid=CKGd4sCOsaoCFeUaQgodpkJ18g” – Hugga Bebe
“This was done in Asia for me when we went through safety testing.” – Stacy Dallman
Catalog Companies
Companies Recommended
“I wanted to pass on the name of a catalog company that contacted me about carrying my products. I think they would be a good fit for BoogieMom Mindee and Traci Potter Petty as well as some others. The catalog is School Nurse supply (www.schoolnursesupplyinc.com) and they supply schools nationwide. They send out 125,000 catalogs twice a year. www.schoolnursesupplyinc.com/ www.schoolnursesupplyinc.com” – Antoinette de Janasz
Company Growth (payroll, advisors, documents, outsourcing vs doing it all yourself, networking and mastermind groups)
Company Set Up (what type of entity)
Sole proprietorship: A sole proprietorship is a for-profit business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has unlimited liability for the debts incurred by the business.
Partnership: A partnership is a for-profit business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. The three typical classifications of partnerships are general partnerships, limited partnerships, and limited liability partnerships.
Corporation: A corporation is a limited liability business that has a separate legal personality from its members. Corporations can be either government-owned or privately-owned, and privately-owned corporations can organize either for-profit or not-for-profit. A for-profit corporation is owned by shareholders who elect a board of directors to direct the corporation and hire its managerial staff. A for-profit corporation can be either privately held or publicly held.
Cooperative: Often referred to as a “co-op”, a cooperative is a limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.
Copywriter
Companies Recommended
“Sandra Simmons sandra_simmons@yadtel.net” – magical copy writer – Robyn Pellei
Credit Check for Retailers
Companies Recommended
“Thought this might be a good resource to share. We all have to give retailers terms in order to get their business but as a small business there’s no real way for us to check their credit. I just signed up with Credit Collective – it’s kind of an Angie’s List of retailers. This is the first credit reporting source I’ve found that actually gives me the information I need to extend credit to a retailer. It also gives me an alert when a retailer is suddenly paying slowly. You might want to check them out. https://www.creditcollective.com/FlashDemo/” – Antoinette de Janasz
Distributors
Canada
” I am debating dealing directly with Canadian retailers vs. Canadian distributors. I’m worried that distributor markups will make it unaffordable for retailers.” – Antoinette de Janasz
“This all depends on how well you handle your own accounts. We ended up with so many accounts we couldn’t keep up on our own, so we got a distributor instead. The Canadian dollar is stronger than ours now, so things will be cheaper for them. Also, distributors buy at a percentage below wholesale and mark (ours gets 30%) to make their money. They do mark it up somewhat to account for duties and taxes.” – Michelle Cazella
Drop Shipping
Move (goods) from the manufacturer directly to the retailer without going through the usual distribution channels
“Drop-shipping question: If you fulfill orders by drop-ship, do you require an extra little fee for it being drop-shipped by you or your warehouse? How much extra?” – Barbara Schantz
“If you are personally packaging the items, then you need to add for your time involved in packing and getting it to the designated shipper which, trust me, takes more time than you’d think. There’s also the cost of packing materials which quickly adds up and should be incorporated into your total cost.” – Abbe Lunger
“We charge 1.50 per shipment for fulfillment. Our concern is to get the product out there not be made whole because the 1.50 really only covers the packing supplies. At some point we wont do this because we wont need to. I guess it all depends on where you are at in the sales volume cycle. Some people make tons of money with these fees but your retailers will complain if they cannot be competitive in price.” – Linda Varga
EDI (Electronic Data Interchange)
Electronic data interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e. from one trading partner to another trading partner without human intervention.
Companies Recommended
“SPS Commerce.” – Linda V
“We did a lot of research before we committed to EDI. You dont have to have it before pitching a retailer, but you must tell them you have it. The setup process is lengthy.” – LeeAnn Piazzola
“I work with B2B Gateway and have had some good success with them – the big retailers will want to see that you are EDI capable before taking you on.” – Sari Crevin
“When Babies r us stopped at my booth last year they asked me if I was EDI compliant – I was honest and said not at this time. I think it made them not want to place an order right then and there and I want to be prepared this time. They also asked about liability insurance, which I have a 2 mil policy at this time, but I can easily bump that up to 5.” – Monica Jones
“There are A LOT of extra costs associated with going into major retail. I recommend you find out what you need to do before getting the customer and what you need to do once you have one. Somewhere in the middle is what you need to *SAY* you have done. In my experience, successful salespeople always says “yes” then figure out how to make it true. That said, if it’s a 3 month process, you should find out now.” – Shelley Straitiff
“You cannot set up EDI without having a client first. You can talk to people and get prices but they will say call us when you have your first client. I would be prepared to tell retailers we use **** for EDI. All of your retailers will take the same time to set up in your EDI so there is no time lost. It takes only a couple of weeks to get fully set up. Then you can spends weeks trying to figure the system out. Be sure to read the retailer manuals carefully as there are lots of potential pitfalls. For example TRU requires you send a carton sample for all products ordered and the sample has to have a big bright pink label etc. Failure to comply will cost you 250 an item.” – Linda Varga
“My brother had to set up an EDI system when he landed Home Depot. He’s using www.commercehub.com.” – Antoinette de Janasz
Fan site side banner
“I made my side banner in paint.net and uploaded it to my pictures. It has to be a certain pixel size. 180px X 540px. Here is an article that might help
http://www.tinacook.tv/socialmedia/social-media-strategies/make-your-facebook-profile-picture-full-size/ – Nellie Kerkado Fitzgibbon
FCA vs. FOB
FCA – Free Carrier (named place of delivery) The seller hands over the goods, cleared for export, into the disposal of the first carrier (named by the buyer) at the named place. The seller pays for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier.
FOB – Free on Board (named port of shipment) The seller must load themselves the goods on board the vessel nominated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel (this rule is new!). The seller must clear the goods for export. The term is applicable for maritime and inland waterway transport only but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). The buyer must instruct the seller the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder.
Companies recommended
“work it into your costs in advance and find out in advance what your FCA will be. Dont just say yes or no 
You actually might be able to manage the shipping through a third party and make more money that way but good to know in advance, We used GLobal Logistics at Boogie Wipes – Ask for Fritz!” – Boogiemom Mindee
Feasibility
What does it cost to make vs. what consumers are willing to pay?
http://smallbusiness.chron.com/strategic-pricing-11751.html
How big is the idea? – on every retail shelf or sold at craft fairs
Graphics
Companies recommended
“if you are on a tight budget and need original designs for logos, web, etc., I highly recommend crowd-sourced sites like http://99designs.com/ and www.crowdspring.com. Just write your design brief carefully – explain who your audience is, what you want your brand to represent, brands you like/don’t like, what to do/not do, colors to use, etc. You can get a good logo for $300 if you manage it.” – Shelley Straitiff
“I have the best designer and book publisher in the world. One to One Creative, One to One Publishing. Her name is Michelle Radomski. She is a dream to work with. She has small and large clients and …well I just can’t say enough great things about her and I have worked with a lot of designers. Tell her I sent you!” – Sharon Silver
“Graphic Artist -Richard Taverna..very reasonable, very fast, amazing to work with rtaverna@optonline.net.” – LeeAnn Piazzola
“Laurie Beaty beaty4nc@gmail.com – all kinds of design work, has a degree in fabric design and years of experience in juvenile product industry.” – Robyn Pellei
“Flori Pate – artist/designer, love her stuff, easy to work with.” – Robyn PelleiIllustrations
Companies Recommended
“Illustration Work: Gary Pierazzi gary@garypierazzi.com” – recommended by Linda Varga
Label requirements
http://business.ftc.gov/documents/bus21-threading-your-way-through-labeling-requirements-under-textile-and-wool-acts
http://www.americanlawlabel.com/law-label-learning-center/ – “This website is a great tool to answer questions about labeling. I have called them several times and they are happy to help in anyway.” – Hugga Bebe
Liability Insurance
Companies Recommended
“Liability Insurance – Borg&Borg ask for Alex Borg alexb@borgborg.com. Saved us money on our policy. I highly recommend them 631 673-7600.” – LeeAnn Piazzola
“Hartford for insurance.” – Robyn Pellei
“I just wanted to share this VERY important information that was previously shared by LeeAnn Piazzola. She was kind enough to share a WONDERFUL Liability Insurance Company – Borg&Borg ask for Alex Borg alexb@borgborg.com Ladies this is worth your time to connect with Alex. I have been paying liability insurance for a couple of years now and have been spending THOUSANDS for a 2 million dollar policy. I connected with Alex and he got me a 5 million dollar policy for a fraction of the cost. I’m not talking saving a little I’m talking saving thousand’s and that’s not 1 or 2 thousand but thousands. Lowering any cost you have whether it be insurance, warehouse fees or any type of in house cost means a better profit margin for your company. Having the right coverage is VERY important. When dealing with big box retailers they will want this insurance, some want only 2 million but the major stores will want the 5 million dollar policy before you move forward. I’m not talking boutiques or smaller retail but BIG BOX stores. It’s worth your time to look into getting a quote so you will be ready and you can work this cost into your final landing price with the buyers. It is VERY important to know and understand all cost before moving forward and giving any price to a buyer. It is also important to understand what FOB is and Direct Shipment because that can have an impact as well on your final landing price to the buyer. I have learned they are very very busy and most of them have so many vendors that they want things to be in order before connecting with them. I hope this info helps you ladies out. Mom owned companies are growing everyday. I want each and everyone of you to succeed and do well.” – Hugga Bebe
“I pay nearly 5K for the 5M umbrella TRU requires. The umbrella alone is nearly 4K. I’ll let you know how it compares. The other thing I was told is that some insurance companies do not write if you sell on the internet. Since we sell on Amazon.com they would not quote. Also some reject you if you manufacture in China.” – Linda Varga
“Linda, do you have a claims made policy or per occurance policy? That can make a difference on price as well. Some companies require you to have an occurance base policy.” – Hugga Bebe
“I’ve used Hartford for years.” – Antoinette de Janasz
“I just got my product liability insurance from Insurance West in LA. Let me know if you want his contact info. I think I got a great rate, but who knows. I had a really hard time finding a company who wanted to insure a baby product that went into a babies mouth.” – Kamala Corkin
“We love Michael Eastman, 866-936-9992 (c), reasonable pricing, quick and very patient.” – Annie Gomez Fernandez
“I use Auto-Owners for Strap Tamers and have used The Hartford for another project. Both are great.” – Noel Goldman
”Please try contacting Gabriel Silver, www.SilverG@thgroup.com. Office, 617.728.8663 and cell, 646.265.9779. We got our insurance through him. Reasonable prices and really great to work with. Good luck!” – Rebecca Rabson
“I don’t know that mine is the best rate, but the recommendation did come from another mom entrepreneur back in 2008. I use Butler & Messier out of Rhode Island. You can contact Lori Thomas at lthomas (at) butlerandmessier.com or 401-728-3200.” – Barbara Schantz
Manufacturing (made in USA vs overseas, finding a factory, prototypes, materials overview/how things are made)
Companies Recommended
“Alibaba.com is a great source for finding manufacturers.” – Lindsay Coleman
“I got burned on Alibaba. Better to go with a referral.” – Linda Varga
“I did okay with Alibaba, but it took a bunch of emailing to find someone I could really work with…there are factory locators, but they are pricey. if you can find someone with a similar product/materials and talk to their manufacturer, that’s the best way to go about it.” – Shelley Straitiff
“Ladies, my experience with Alibaba was not good. So just a word of caution. The fabric woman I dealt with seemed very nice and spoke good English. She sent me great samples and testing. She courted me for over a year. I then placed an order and the company I hired to inspect did not do what I thought they were going to do. They sent me a report indicating only 10% defect. When our fabric arrived at the sewing factory it came to light that the inspection company only inspected one side of the fabric as is customary. We had no idea that was customary. Because both sides of the fabric are important to us it ended up being a disaster. Turned out we could only use 30% of the fabric. In addition, the fabric was 180T not 190T which we had paid more for. I lost over 20K on that one. Despite her agreement to replace fabric it never happened. I had a deposit with the sewing company that I lost because they could not produce the product. Turned out she was just a broker so when we ordered she just purchased the cheapest fabric she could find. I believe the best way to go is to get a direct referral or until you learn the ropes to use a middleman. You need to have a constant presence in China to ensure quality. Even with a middleman our last factory had a dispute with the fabric company and ended up switching fabric midstream. When we found out we had to demand new testing. We are still using a middleman because we need someone to do inline inspections on a regular basis. We pay 10% above costs to the middleman and he gets paid last after goods have arrived in US. We are also going to hire a full time employee to stay in the factory.” – Linda Varga
“I have never used a supplier directly off of Alibaba either, I also use a third party (www.enventys.com) for sourcing. I do however refer to Alibaba frequently for gathering information about terminology and descriptors that are familiar to the Asia market. I often find something that is what I am wanting to use on Alibaba and will refer that to the sourcing company. They have used some of those companies, but typically find one that they prefer to work with. One thing that is critically important when working with an Asia manufacturer is to be as intricately detailed as you possibly can. Do not leave anything to be decided there. Do not think “they are the experts and so they will know how to do this”. Have exact drawings, patterns, prototypes or anything like that done domestically first, so that you and they know exactly what you are expecting. Material composition, colors, everything and anything that you can put an exact measure on – do it here first and write it out for them in detail. They are effecient and good at getting things done (once they know exactly what to do), not so great at creating and designing.” Robyn Pellei
“Hi Tamara, I’ve had a very good relationship with Wen Yan of http://www.chinaoneimports.com/ She’s the only agent I’ve used since starting http://www.EasyLunchboxes.com/ She’s based in California. Please tell her I recommended her if you contact her. I could never have navigated the whole China manufacturing thing myself. She’s made it easy and affordable.” – Kelly Lester
“if anyone needs an amazing injection molding company, their name is Allegro.” – Noel Goldman
“Julius Wang from Cinova LLC (http://www.cinovasourcing.com/index.html) has been great to work with. He is a sourcing expert and can really help you cut costs. Here is his email: julius.wang@cinova.net – tell him Monica Jones from BUNCHEES sent you!” – Monica Jones
“Manufacturers Rep – Mark Buchanan -mark.buchanan@mackananllc.com” – LeeAnn Piazzola
Marketing (social media, advertising terms, tradeshows, traditional PR vs social PR)
http://www.mominventors.com/2011/07/01/be-prepared-for-your-moment-in-the-tv-spotlight-ten-tips-to-make-the-most-of-your-appearance/)
Tradeshow
Postcards mailed to buyers before show
“If you are sending to a mail house they can take up to 10 days to print and mail merge. Then they use 2nd class postage so will take longer to get there. Then if you want to do 2 mailings….which is the best exposure. I like to get out 2 mailings before the show. May 30 days before and then 2 weeks before” – Linda Varga
“I am getting ready to design my postcards. I’ve never done a trade show before and was trying to figure out what I should put on my postcards (besides my booth #). How can I make them enticing? Just found out that USPS is offering a 3% discount for mailings that have a QR code on them (July & August). Good idea to add it anyway so that buyers can scan your info into their smart phones. The 3% discount makes it cheaper to send them 1st class rather than 3rd class. Lindsay Coy Coleman – there’s a free excel spreadsheet available on ABC Kids Expo website with buyers and media attendees. Go to http://theabcshow.com/confirmed_exhib_login.asp and log in. Scroll down the page to the bottom and you’ll see ‘Download Data’. In that section there are 2 buttons, one for Buyer Data and one for Media Data. Those are the excel spreadsheets with all the info and you can save them to your computer.” Antoinette de Janasz
“We’re sending postcards to registered buyers.” – Amy Baxter
“We are sending postcards. Last year we paid to be included in the card pack sent to retailers. This year we are doing it on our own. But we are also being selective about where we are sending them to.” – Michelle Cazella
Media Kit
“One thing I’d recommend is to go light for trade shows/ABC. You’d be disgusted at how much nice, expensive print work and folders are tossed out in hotel rooms. seriously consider a mailing BEFORE the show to your target buyers – that way they have the literature at a time when they aren’t bombarded with information from dozens of other companies. have some packets at the show, but ask for cards so you can mail it back to their office for them. One affordable thing to do is put your information beautiful solid colored large envelopes with a nice address label on the front. When you go to hand the contact the information, ask if they’d prefer you to mail it next week. If they see the bright envelope, they will know what to watch for.” – Shelley Straitiff
Packaging
Companies Recommended
K-1 Packaging Group – recommended by Linda Moravec Varga
Frank Tsai
17989 East Arenth Ave
City of Industry, CA 91748
626-964-9384 x 115
Frank.tsai@k1packaging.com
“I consult and manage all aspects of print production through my other business, PrintMedia. I would be happy to talk with you about your packaging and insert and provide ideas with associated production costs. Feel free to contact me. abbe@printartkids.com” – Abbe Mazer Lunger
“I use Sublime Packaging. As long as you have your design ready, they can do anything with excellent pricing (which is always negotiable…so dont go with their first quote!) Free shipping too! http://www.sublimepackaging.com/folderprinting.htm” – Lindsay Coleman
“Joseph Krowles www.krowles.com a packaging wonder” – Robyn Pellei
“I use Marcia Romanuck from the Design company South for packaging and web design, she is talented and very reasonable, here is her site: www.thedesigncompanysouth.com.” – Monica Jones
Patent
Companies Recommended
Patent Lawyer:
Andrea Evans
The Law Firm of Andrea Hence Evans, LLC
Registered Patent Attorney
Intellectual Property Attorney – Patent, Trademark, and Copyright Law
(301) 497-9997 MD office
(202) 461-3254 DC office
(888) 799-0847 fax
Andrea.Evans@evansiplaw.com
www.evansiplaw.com – recommended by Linda Varga
Patent Agent:
George White
http://www.gwhitepatents.com/ – recommended by Linda Varga
Payroll
Companies Recommended
“I did and it is a MAJOR pain. If you can keep employees as contractors, I’d recommend that. Otherwise, use a service that handles it for you. I was trying to be smart and save money by doing it myself. Instead, it is a major headache. Of everything in my business I would pay to outsource it would be payroll, then general booking. The problem is all the state and federal tax filings. There is plenty of affordable good software for calculating them, but filing the monthly and quarterly reports and payments is a lot more work than it sounds like. I was never fined, but I did get a couple late fees. At Tory Johnson’s Spark and Hustle, SurePayroll spoke. They handed out coupons for 3 free months with code S&H2011. I don’t know how they compare to others, but I think I was quoted about $300 for initial set up for 3 employees and then just a $50 or so a month for processing everything through AmCHeck. That one was through a local rep who was awesome. Even with the coupon for Surepayroll, I will likely go back to him for being so helpful.” – Shelley Straitiff
We currently have 7 employees. As long as you keep on top of your taxes, it’s really not that bad. Use Quickbooks and pay for the payroll service. You have to be careful about paying people as contractors (1099) that you follow the rules. If you get caught breaking those rules, the penalties are steep. I wish you much luck! We made the leap to employees in April of 2010 when we moved the biz out of our garage and into a warehouse and it’s been great.” – Michelle Cazella
“We have a payroll management company that handles the taxes, witholding, etc for my employees. Very very few downsides, it’s made the whole experience more fun.” – Amy Baxter
“I agree that you should hold out as long as you are able to have someone contract for you. Of course follow the 1099 rules. The first year that I had someone helping me, I paid her on a contract basis, but set what I thought she’d have to pay in taxes aside and gave it to her beforehand as a Christmas bonus. Then I hired her full time. She worked for me for 4 years and retired due to failing health (not my fault, I swear!). Oddly enough, I’ve had different levels of help over the years and am now down to just myself again. I’ve really simplified my systems and I love it. I contract out to a virtual assistant when things get too crazy. Much less stress than being responsible for someone else full time.” – Noel Goldman
“I used PAYCHEX for my last biz. Never had a problem. At one point we switched to a lower cost group and ug. You get what you pay for. Ran back to Paychex.” – Kelly Lester
“You can pay someone hourly as a contractor if you abide by all the rules. They have an agreement to provide certain work for certain pay. But, you don’t collect taxes. In California, the laws were simple and you could act like an employee but still be a contractor. Here in OR, it’s very different because companies use contractors as a way to get out of paying employment taxes. Mainly the contractor has to have maximum flexibility and can’t act like an employee – they have specific work for specific pay. They are responsible for paying their own taxes. I think the lesson is, it’s fine to have employees, but have a payroll service if you do.” – Shelley Straitiff
“We use ExcelPay at excel-pay.com you can mention Ashli, she’s the one who interfaces with them at MMJ labs (my company).” – Amy Baxter
“I’ve done both and I TOTALLY agree with the headaches of having employees on payroll, especially if some of them are from a different state as I live on the border of two states. Hold out as long as possible and totally agree with the contractor issue, that can cause a very, very big headache. When I have to do it again…I’m outsourcing it for sure! Still haven’t taken the outsource plunge for bookkeeping which I really need to find one for!” – Susan Kiley
Personal Goals (quick in and out through licensing or want to build a company, do you have the money and time to invest)
Licensing
Have a patent protection and a non-disclosure form before discussing your product with potential licensors IF your product is not yet on the market
http://startupprincess.com/how-to-license-a-product/ – Heather Allard, The Mogul Mom
Pricing (calculators to help with mark-up, profits, margins, sales agent fees, etc)
http://ohioline.osu.edu/cd-fact/1326.html (pricing formulas)
http://www.mominventors.com/2011/06/18/at-what-retail-price-does-your-product-have-to-sell-in-order-to-be-financially-viable-for-you/ – At What Retail Price Does Your Product Have to Sell in order to be Financially Viable for YOU? – shared by Monica Jones & Shelley Straitiff
wholesale volume discount
“Make sure there is a minimum with it. It really should be determined as much by what YOU need to service them (couponing, shipping, promotions, special packaging, marketing) as just what “feels” right. At Boogie Wipes, we had a unit price and the deals were made when they took in a store display or offered to cover 1/2 of a markdown.” – Boogie Mom Mindee
“I HIGHLY recommend this video for understanding pricing and margin calculations. I don’t know Tamara personally, but she has some great resources out there. http://www.screencast-o-matic.com/watch/cXhlqBbHe.” – Shelley Straitiff
Print Marketing Services
Companies Recommended
“I’d like to offer my print marketing services through my other business, PrintMedia, to any members in need of marketing materials including brochures, inserts, direct mail, point-of-purchase displays and box packaging. I can refer you to graphic designers or work with yours, consult on print specifications, obtain printing estimates and oversee production.” PrintMedia – recommended by Abbe Lunger
Product Development
Companies Recommended
“they do just about everything & anything for product development www.enventys.com” – Robyn Pellei
Product testing requirements (BPA and lead free, agencies involved, costs involved in third party testing)
Profit Margin Calculator
“This is all hypothetical~~ Lets say you have a product that cost you 5.00 after you have figured in all your cost. Factory (making of your product), freight to get it to your warehouse, insurance etc. This is your total cost after everything is said and done. This cost is everything you have invested in this product PER unit. This is a VERY critical stage here not to cut yourself/company short in anyway as your profit is what will build your company. You can not just break even here or your company will not grow.
You are wanting to make a .40 percent profit margin on this product that cost 5.00 after you have figured in all your cost. Now this 5.00 is once again the cost of the whole sha bang.
You start out will 100% minus the .40% profit margin you are wanting to make which equals .60%
You then take your 5.00 and divide it by .60% which gives you a total of 8.33. This is the cost you would sell it to the buyer for. (Please beware and understand FOB and Direct Shipment to the DC office you are doing business with. If you product is FOB from your Warehouse and you have quoted this to your buyer then they will be paying freight to ship YOUR goods to the location they desire. If your product is Direct Shipment YOU will be paying the freight which will make your profit margin go DOWN. If you are paying for the freight to the buyers DC you will need to rethink your profit margin. Which means you might have to make a lower profit or raise your selling cost to the buyer.) So you will be pocketing 3.33 per unit you sell.
Then in turn the buyer will put a profit on the 8.33. Most want anywhere from .55% to around .50% mark up on your goods for retail stores. This isn’t always the case with some stores but for the most part they will want a good return.
The buyer will start with 100% just like you did. So lets say the buyer wants a .55% profit margin for your item to be placed into stores.
Here’s the formula:
100% minus the .55% profit the buyer wants to get which is a total of .45%
The buyer will take his/her cost which is $8.33 (this is the cost you sold it to the buyer for) and divide that by .45%
For a total selling price of 18.51 so 18.50 is what they buyer will put it on his/her store shelves at. Now you have to look at your product and figure out if consumers will be willing to spend 18.50 on this item. If you think it’s to pricey and the buyer thinks the consumer will not buy this item at the 18.50 then you will once again have to rethink your profit margin and possible lower it to meet the demands of the buyer and the consumer. It’s crazy how this item went from being 5.00 to a now whopping 18.50 per unit item.
The store will be making $10.17 off every unit sold and you will make 3.33 per unit sold. With this being said buyers can have some fee’s as well that will come out of your profit margin. They can be EDI fees, printing fees for catalogs or other things, special discounts and promotions they want you to pay for, and the biggest one of all CHARGE BACKS. So becareful and really understand what the buyers expect of your company before finalizing the deal.
I know when I first started out I was very mistaken by how the profit margin worked. I thought you would take your cost which in this case was 5.00 and times it by .40% to get a profit. For a total of 2.00 profit on each unit sold. I was so stressed out thinking I was only making a couple bucks on each unit. On top of that if you quote a buyer this margin then you are selling yourself short of the true profit you should be making. I had rather make 3.33 off each unit verses 2.00. I also thought the buyer would take my final price which would be 7.00 in this example and times it by the profit they wanted to make which would be .55% for a selling price of 10.85. Boy was I wrong!!!” – Hugga Bebe
Public Relations
Companies Recommended
Orca Communications – “We used them for three 3-month campaigns. The last time was in 2008 and the cost was $3975. They worked hard and were able to get us some good PR. I stopped using them because I thought that we were getting less with each campaign (as you would expect). I was happy with their effort and communication throughout the campaigns. Since this was from 2008, my data is a bit dated.” – Joan Henehan “we also used them in 2008 and it was almost 4,000 – we got some decent press but nothing out of this world.” – Monica Jones “I am using them now, and have really been impressed with what they offer. Bi-weekly updates of the products they feature, and lots and lots of regional TV and medium-sized blogs. The rate is roughly $1000 per month for a four month commitment.” – Amy Baxter “We are working with them now as well. We’ve gotten some television coverage in Chicago which was great, some print, and many other pending pieces. It’s only been month one of a 4-month campaign ($1,000/month). So far, so good!” – LeeAnn Piazzola
QR Code (Quick Response Code)
A QR code (abbreviated from Quick Response code) is a type of matrix barcode (or two-dimensional code) designed to be read by smartphones. The code consists of black modules arranged in a square pattern on a white background. The information encoded may be text, a URL, or other data.
http://backngroovemom.com/2011/07/21/groovalcious-tech-gotta-get/ Explaination of QR Code Marketing – shared by Shelley Straitiff
Companies Recommended
“On the QR topic, I am dealing with a company that will customize the QR code – rather the frame around it – create several msites and host the msites for $495. They bill when everything is complete. This is there info if you are interested. Sandra Bellerive, Concierge, Tappinn, 203 S. Cutler St., Spring Lake, MI 49456, 877.360.8277 www.tappinn.com. They were very knowledgeable and have some really large accounts. We were the first small business they are doing so worked up a price for us.” – Linda Varga
“QR codes are free with Google at goo.gl – you get analytics and codes generated. We’re going to do some graphics around the one for MomPACT. Each QR code will go to a page on MomPACT for the product like www.mompact/ezshade or www.mompact.buzzy. Making them “pretty” is a matter of error correction. The codes are designed to work even when parts are missing. The artist toys with it to balance design with the ability to scan it. I HIGHLY recommend using QR codes in your marketing, especially if you need to communicate a lot of information to clients (like sun exposure risks) You can also consider an app – or sponsoring an app — if you think mobile tech is strong in your customer demographics.” – Shelley Straitiff
“I understand that the basic QR code is free. The research that I have done says that because the codes are so new most people do not know what they are. As such, compaies such as Tappinn are designing the frame around the code so that it explains its use and is branded to you. They create several QR codes to be used for different links to various m-sites depending on your message. They do the designing/branding of the QR code frame, several branded m-sites and host the m-sites for 1 year. There are no long term contracts. 499 seemed quite reasonable to me.” – Linda Varga
“It depends on your market and what kind of information you want to put out there. Regualr websites are viewable on smart phone. They often aren’t designed well for the, but they are viewable. A QR code is really just an image that stores a link. When the link is clicked, the browser is identified by the site and the correct version of the site is rendered. it happens now with your web browser on your PC. The code on recognizes if you are using IE, Firefox, or a mobile browser and delivers you the code the version of the site that works. If you’ve ever visited a site that stretches or has wierd boxes that don’t line up with text, that is due to there not being the right version for your browser. It depends if you need specific mobile versions for different content. I’d think out the big picture of what you are trying to accomplish. Go to goo.gl, make a link/code to your site, print it and scan it with a QR reader on your phone. That will show you what a simple one would do.” – Shelley Straitiff
Researching your idea
http://www.uspto.gov/
Perform a search to see if anyone else has patented your idea.
Perform a trademark search on the name you’re considering for your product or company.
Retail (how to present, what to present, how retail works, getting a good agent)
Stores
http://productforprofit.com/how-to-get-a-meeting-with-a-chain-store-buyer/ – shared by Shelley Straitiff
Online
AHAlife Brings Sense of Discovery to Online Shopping www.nytimes.com – shared by Lynette Mattke
Companies Recommended
“Anyone have experience/advice on www.Zulily.com? Does selling under retail for 72 hours actually get lots of new leads, or just undercut your current retailers?” – J Kelley Hayes
“I saw an article some time ago about the cons of doing this type of thing. The jest of the article was that these sorts of one day sales did not translate into any brand loyalty. People buy because its cheap. Also you have to worry about people picking up product for cheap and putting it on ebay. They said dollar for dollar it did not make sense. Not certain if any of you have heard a different story.” – Linda Varga
“Zulilly is a ligit one. We did it at Boogie Wipes and it was worth it, come up with a way to capture consumers info from it and advertise and promote it yourself. Make sure all expenses are covered. It definitley goes on the books as a marketing expense! Great to see interest though and find out more about what consumers think about your product. Best for a product that is a consumable so you can lure them into re-purchase at full price.” – BoogieMom Mindee
Zulily contact: Tiffani Byrd | Girls Apparel Buyer www.zulily.com 2200 First Avenue South 4th Floor Seattle WA 98134 phone:1.877.779.5614 x.496 email:tbyrd@zulily.com – Michelle Cazella
“I’ve been approached to list my product at CSN Stores (online). It’s a drop ship situation..but they handle the online biz for Walmart.com. Does anyone know anything about them? A friend of mine says that they’re great exposure for his product, but I’m confused about whether to deal with the drop ship issue. Thoughts please???” – LeeAnn Piazzola
“Little Looster – Booster for the Loo sells w/ CSN Stores and it IS great exposure. www.littlelooster.com They are the 3rd largest on-line retailer and as far as this mom-trepreneur is concerned – the more exposure, the better.” – Monica Merrill
“I agree, Zatswho is also sold by CSN.” – Trish Cooper
“I agree with these ladies. We have Hugga Bebe listed on the CSN Store site. They only ask for a very small discount. I’m talking pennies on the dollar. On top of that they will pay a dropship fee and not even think twice about it. I have had some GREAT exposure with CSN Stores. I say go for it. It can only increase the awareness of your product and hopefully generate more sales your way.” – Hugga Bebe
Exclusive Deal
“Has anyone been in a exclusive deal with a retailer? Would love to hear your experience.” – Priska Diaz
“We haven’t as it has always been small stores that have requested it. Their sales/orders were never significant enough to make it worth doing.” – Joan Henehan
“Think about creating an “exclusive” product line extension. We did a back to school Boogie Bag with singles and a Boogie Buddy in it for TJ Maxx and custom packages for Costco US and Costco Canada, If they are offering a big enough P/O, get creative with packaging with something else or differently just for them. Otherwise, limit the geography or amount of time and definitely do not do Pay-on-Scan (consignment) and request some marketing support for your exclusive arrangement.” – BoogieMom Mindee
Retail Ready
Companies Recommended
“I have an experienced consultant that helps me get ‘retail ready’ business wise and product wise. She has helped me formalize my QuickBooks (manufacturing), developed product spec sheets for production, product info sheets for mass retail, and lots of other business prep stuff that needs to be done for major retail. Her name is Debbi Arnold, email is debbi@tailoredmanagementsolutions.com, website is www.tailoredmanagementsolutions.com. She was the Operations Manager for Neat Solutions (makers of Table Toppers) before they sold, she knows her stuff! She’s about $50 per hour or you can set up a ‘program fee’ for her to do certain things. Honestly, she’s really good and it may be worth a try just for something simple so that you can see how she works. She puts together a great set of formal, technical product sheets to have for mass retail. And on the other end, she does a great set of product specs for production/manufacturing. Feel free to send me an email if you have some specific stuff you need done and I will honestly tell you if I think she could help.” – Robyn Pellei
Retail Presentation
http://www.thebusinessofbeingamom.com/pdf/example_retailer_presentation.pdf Example of BoogieWipes retail presentation – BoogieMom Mindee
“In terms of a retailer presentation, keep the pitch short and sweet. They’ll want to know the pricing, how the are boxed and displayed, what promotions you’ll be running, what success you’ve had selling in other stores and online, etc. You are proving you are a good product, have your manufacturing and distribution established, and will do thing to sell your product. Having a product on the shelf does not sell it.” – Shelley Straitiff
Shipping Companies (UPS vs. Fed Ex, etc.)
“I am a member of USAA insurance and they negotiated a discount for its members (Fed Ex). You should see if any of the companies you are associated with have agreement that offers its members a discount. For example the American Bar Association (ABA) has a deal also maybe you are affiliated with some group.” – Linda Moravec Varga
“I use USPS for most of my shipping. They are almost always less expensive, but occasionally I use one of the other two.” – Barbara Schantz
“Once you reach a certain threshold Fed Ex becomes much much much cheaper. Talk to an agent to find out what volume and destination, frequency needs to be for you. Thatm will help you decide.” – BoogieMom Mindee
“UPS. They give discounts for businesses. They more you ship the cheaper it is! And I had trouble with USPS and fedex. Ups is always reliable!” – Leslie Espowe
“I have a friend that works at enroute that says that they get lower rates if you are shipping a lot by using different vendors, i don’t ship enough at this point to use it but here is their website: http://www.enroutecorp.com/contact.aspx – Meagan Zeman is my friends name if you want to ask for her. “Finding ways to save money can be challenging. With Enroute’s web-based ShipIt! Solutions, businesses are saving up to 30% of their parcel shipping costs while improving shipment quality and carrier reliability.” – Lyndsay Szymanski
Social Media Design
Companies Recommended
Social Media Design and Monthly Maintenance:
John Walker | Co-founder & CSO
Talent Evolution, LLC | Talentevolution.com
P. 858-324-4259 | john@talentevolution.com – recommended by Linda Varga
Sourcing
Companies Recommended
“For sourcing, I use Cinova LLC, contact is Julius Wang, here is their site: www.cinovasourcing.com and his email is julius.wang@cinova.net.” – Monica Jones
Tips for Mom Inventors
http://www.marketmommy.com/blog/2011/7/28/10-tips-for-blossoming-mom-inventors.html – shared by BoogieMom Mindee
Tradeshows
http://blog.dappersnappers.com/index.php/trade-shows-10-tips-for-the-mamapreneur/ Trade Show Tips – Michelle Cazella
http://theiqmom.wordpress.com/2010/10/20/trade-show-tips-for-exhibitors-on-a-budget-aka-reflections-on-abc-kids-expo-in-vegas/ – Shelley Straitiff
“I have never participated in a trade show. Do you think I should try one? Where do you find out about them?” – Monica Wannemacher Wreede
“Monica – it depends on your business goals and products. Trade shows are big investment. They are necessary for some products, but in some cases, there are better marketing strategies like sending packages of product and information to buyers. Before doing shows, I’d be sure you have your margins set properly, your brand and packaging right, and have a good idea what your business plan is. I’m sure some people here would be able to share what their return on investment was like for the shows…” – Shelley Woods Straitiff
Dress
“I know this question was asked before but what will everyone be wearing. Are T-shirts with a logo a good idea?” – Sandra Frawley
“It all depends on what you are trying to say with your brand. While I’ve done tshirts before, last year I opted for business casual. This year we have been doing logoed polos and slacks. Do what’s best for your brand.” – Michelle Cazella
“I will wear nice whatevers. I don’t color coordinate, except perhaps to favor black to go with Buzzy.” – Amy Baxter
“I know of several booths doing logo tshirts this year. I’ll be wearing nice fitted logo t’s and nice pants. It did seem like most booths last year were dressed business casual. ” – Kamala Corkin
“Business casual is suggested in the manual. I have a logo white dress shirt that I wear with jeans or other nice non faded pants. Mine is a beach product so jeans is okay. Like others have said, it depends on your message.” – Linda Varga
“Yes, we like to wear T-shirts with our logo. People ask you about your product when they read your shirt as you are walking around the show.” – Lynn Tarricone Garone
Freebies
“I use a company called Admints Zagabor for all my gift giveaways. You would be amazed at what they have and great prices too. Tell them I sent you!” – Sharon Silver
Inventory On-Hand
“Does anyone take inventory to fill small orders so buyers dont have to pay for shipping?” – Lindsay Coleman
“it depends on the product. If it’s easy to take there, you can. But if you’re not able to sell it and you end up carting it home, then it’s not worth it.” – LeeAnn Piazzola
“We have always taken a small amount of inventory and sold it at the show.” – Joan Henehan
“I am planning only taking display products. I’m offering free shipping as an incentive so there’s no point for me bringing inventory.” – Antoinette de Janasz
“Make sure you provide all your customers receipts for their purchases. Preferably official receipts as security will be checking.” – Michelle Cazella
”I called David Rice to make sure that no one was misled by any advice I would give. What we are not allowed to do is called “Suit-casing” where if we do not have a booth we approach and sell to buyers. We are also not allowed to sell outside of our booths.” – Michelle Henderson Cazella
Specials
“What show specials are people offering for ABC. What terms do you give small boutiques? Net 30?” – Amy Baxter
“Despite show specials we have never received any show orders. The orders usually come later. I can see the reason for this is that buyers have lots to see at the show. Big box need to prepare a planogram of items they intend to carry. if someone has multiple designs, say a clothing line, it would be beneficial to order on the spot.” – Linda Varga
“I’m going to offer free shipping for show orders. What giveaways do you do – stickers, products or what? I don’t want to invest a small fortune in promotional stuff that will be just thrown away.” – Antoinette de Janasz
“We plan to bring 25 samples of our high price Buzzy and about 100 samples of our Bee-STractors (lower price, higher margin %), with either honey candy if I get my act together or our usual trade show giveaway kazoos (Made in USA, $.048) as a freebie.” – Amy Baxter
“Small boutiques usually give you a cc upfront – it’s the big stores that require terms like net 30. I’m probably doing a free countertop display case that fits a dozen of my products with each order placed at the show.” – Monica Jones
“We never do terms with small stores. When they pay, we’ll ship. Our show special is free shipping + 20% off for orders over $500, free shipping for orders $250 or more, USA stores only. We have a Canadian distributor and other deals for other countries.” – Michelle Cazella
“For show specials this year, we are offering 10% off total order and extending the offer for 2 weeks before and after the show.” – Robyn Pellei
“We are offering 10% off and will extend it for 2 weeks following the show.” – LeeAnn Piazzola
Tradeshow Booth Design & Banners
Companies Recommended
“All Design Work including packaging, bus cards, tradeshow booth, website etc. Steven Houck, Twelve 20 Creative, 30 North Raymond #513, Pasadena, CA 91103, 818-406-0185 stevenh@twelve20creative.com.” – Linda Varga
“We used Peco http://www.pecoproducts.com/. The setup has held up very well…we just washed the tablecloth for the first time and it came out as good as new. (Actually had my mother do it…the laundry magician)!” – LeeAnn Piazzola
“We like www.dotradeshow.com a lot for our pop up banners. Ours were $189 with carrying case.” – Amy Baxter
“Amy recommended dotradeshow to me before I went to NYC last summer. I got a pop up banner, love it! Reasonable has more than paid for itself, used it tons of times.” – Michelle Staley
“I used to get great stand up banners from AceExhibits – very cheap, high quality printing.” – Shelley Straitiff
Vendor Information
Toys-R-Us https://vendorconnect.toysrus.com/vendorextranet/index.cfm
Web Design
Companies Recommended
“I use Marcia Romanuck from the Design company South for packaging and web design, she is talented and very reasonable, here is her site: www.thedesigncompanysouth.com.” – Monica Jones
Webinar Sites (A seminar conducted over the internet)
Companies Recommended
“Shelley, I know I mentioned a great webinar site that we used with for a meeting and it is called webex (www.webex.com). Worked great with folks from all over the country.” – Jennifer Peters
Website Traffic Analyzers
Companies Recommended
“We use www.compete.com, you may want to register for the pro-version, i believe it’s free of charge.” – Jennifer Tipping
“Compete and Alexa tell you what the traffic of a site is like. Bloggers argue they are inaccurate. For your own site, you want to be running Google Analytics (free). From that, you can see where every visitor came from before your site.