There are many terms to be familiar with in the inventing industry.
I will list a few of the most popular terms and then provide a link to the Product Development Glossary where you can find hundreds more terms and definitions….if you hear a term you don’t understand just post a question or PM a librarian and we’ll get it added to the list.
Inventing: The process of proving a theory or hypothesis not previously proven resulting in a unique and novel design, process, or product.
Product Development: The processes involved in designing and refining the invention into a market viable retail product.
Distribution: The process of product fulfillment and sales required to place the product into the stream of commerce.
Direct Response: Method of selling a product to consumers via television direct purchase.
Landed: The product cost from an off-shore manufacturer including Freight, Tariffs, and Taxes delivered to the wholesaler.
Fulfillment: The distribution process of moving products from the factory to the retailer, managing sales, and collection and distribution of funds.
“Open” a mold: The term used by factories for machining molds or tools.
“Seeding the Market”: Placing small amounts of new product in strategic retail locations
“Sell-In”: The wholesale price a retailer is given from the manufacturer.
Spoilage: The number of parts broken in a shipment from the factory or fulfillment center to a retailer.
Drop Shipping: The process of sending product directly to a retailer’s stores.
Manufacturing Broker: Party that finds a factory to manufacture your parts and takes a direct fee, or % of each part made.
License Broker: Party that finds you a manufacturer willing to license your invention for a royalty % of each part sold.
Royalty %: The amount a licensee must pay to an inventor for each unit sold.
“Off Shore”: Manufacturing done outside the United States
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PRODUCT DEVELOPMENT GLOSSARY SITEhttp://www.npd-solutions.com/glossary.html
