I have got to a point where I need to get a company to CNC machine my products. My concern is how do I prevent the company using the drawing and mass producing the product themselves if I don't accept the price quoted?
I have got to a point where I need to get a company to CNC machine my products. My concern is how do I prevent the company using the drawing and mass producing the product themselves if I don't accept the price quoted?
Usually an NDA is all that is required.
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
Get an NDA but also for quotation purposes give them a drawing that has a few parts in different places on it, parts that will not affect the final price of the piece and that requires the exact same amount of work.
Then when you place your order you correct the position of the parts for 'no loss no fowl'
If they copy the plan for themselves they will have a lot of usless parts nobody wants or can use.
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DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.
I will never sign a NDA for anything unless I know the exact details of the content. I am extremely creative in my own right and I will never allow anybody to box my creativity in because they have an idea - whose to say I haven't had the same idea or even a better idea based on the sort of concept.
I think that any individual or company that signs a NDA without full knowledge of the contents is unbelievably stupid. How do they know that they are signing an NDA for original work, how do they know that the NDA doesn't contain common objects and common information.
You can try to get them to sign a ND but I bet they won't...for exactly the reasons I just stated.
What I have done is given different parts of the object to different companies to quote. I am hoping this will take off and I can invest in my own CNC router and a small laser to do the labelling in the not tooo distant future. I don't want t outlay the money until I am sure it will take off. This weekend I promoted the product and made stock, everything was sold by this morning and I am getting more enquiries.
The bonus is my workshop is setup and already making the product (small scale), I just want to be prepared if it takes off.
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
Ok, so somebody comes to you and says that he has a great idea for a new speedpoint and and that you co7ld make millions if you build it for him. You think great because you've been thinking along similar lines. So you sign the \NDAxand lo and behold, he has come to you with exaactly the same idea as you have had rolling around your head for a year...what now?
Of course there are millions of original ideas and of course I would never have thought of them, but the fact still remains that I will never sign a NDA simply on the off chance that the idea may have already occured to me or may occur to me in the future. Maybe I pass up on loads of cash, that's fine by me but I will never lock myself into an idea unless I know the content up front.
Ian, you will have trust people sooner or later and you know, people are able to copy absolutly anything no matter what you do. If a product sells well then somebody will copy it,itis a fact of life, NDA or no NDA. I cannot even begin to tell you how much reverse engineering goes on. I can create solid models of objects with a couple of photograps. I often buy opposition products simply to tske them apart and see what makes them tick. So lets say I spend R8K on an opposition product and figure out how it works, then I can develop my own and make some money. Nobody has a monopoly on designing and making stuff, ask Apple & Samsung.
There is no way on this earth that you will stop people from copying your product if it makes money, even if they have to buy 100 and rip them apart, it is simply the nature of the game. I don't know what kind of product you are in to but if you can do it on a laser and a cnc then so can anybody else. The trick is to find your niche and to lockyour client base into your product in some or 0ther way. The clients mist want to buy your product rather than any other similar product.
One thing I have learnt from building stuff, it is just a matter of time that someone copies it and becomes your opposition. As Adrian mentioned a product I have been building for around 7 years has been copied, not exactly but very similar, the problem is that because this person has been marketing his product better than I have (credit to him where it is due), he has taken over and his sales have not doubled but gone 10 times more than mine. I noticed that there is another player in the market place. The good news is that my product has been developed over years of trial and error so they still have a way to go to catch up...anyway back to my other product.
This new product will be as simple as taking it and making a template, once you have the template you can take a picture you can download and bingo if you have a CNC, you can mass produce them.
What I am enjoying about it, is not the fact that I have a product and believe there is a market for this product. The challenge is trying to figue out a way to
1/ Price it right,
2/ Marketing it, at the moment there is only one shop which sells the product off the shelf and that is my product, you could import from China at a fraction of the price but you need to buy volume min 4000 units.
3/ Finance the project it takes off,
to mention a few of the challenges
The easy part is coming up with the ideas and making them, it getting them out there to the people and marketing them is the tricky part. I don't do the sitting at markets selling thing and having to go lick butt to get some chop to decide if he is going to actually take your product or not. I tried it the other day and I really feel for sales reps. they have kak job. I almost told the person at the shop where to fit his business, lucky I took a deep breathe and left
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