need advice on selling my design

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- 26th February 2007, 08:19
nimonia

need advice on selling my design

hi guys, i would like to know if i am to sell my design.. (a car accessory) wat should the terms be and how much should i sell the design for if it would be massproduce about 1000 unit monthly. for your information it is my first deal... any suggestion or comments would be much appreciated.. thnx

additional info:

selling price per unit in the market: +- 50 USD
- 26th February 2007, 10:44
T.Jackson

Do the maths

Do the math’s. (1,000 x 50USD) = 50K gross p/month. Total volume? Do they plan on say 12 months of production? (12 x 50K) = 600K.

Plus...

1. Estimate how much profit they would make from the total volume.
2. What are the risks involved? Sure winner or big gamble?
3. Are they doing you a favor by offering to purchasing the design?
(is it really that good)

Out of interest, the guy who programmed PAC MAN for the Atari 2600 received something like $20K for it. Atari made something like $5M profit.
Atari took the risk, but Atari should have also paid royalties after discovering the success of the game. In my opinion, he really desreved about $250K.
(He was not an Atari employee, it was out sourced)

Best Regards,
Trent Jackson
- 27th February 2007, 06:23
Archangel

Royalties

I attended a class presented by Mike Rounds, one of the developers of Teddy Ruxpin. He sold a disk with contracts and such to help you try to sell your idea, he stated in the class the average royalty was 3%, I do not remember if that was gross or net, I think it was gross.
JS
- 27th February 2007, 06:26
Archangel

Quote:

Originally Posted by nimonia

it is my first deal... any suggestion or comments would be much appreciated.. thnx

additional info:

selling price per unit in the market: +- 50 USD

You got an Angel ready to buy? He looking for more automotive devices?
I got a couple.
JS
- 27th February 2007, 08:07
T.Jackson

3% is enough motivation to take a good idea to the grave with you.

Quote:

Originally Posted by Joe S.

I attended a class presented by Mike Rounds, one of the developers of Teddy Ruxpin. He sold a disk with contracts and such to help you try to sell your idea, he stated in the class the average royalty was 3%, I do not remember if that was gross or net, I think it was gross.
JS

3% makes a lot of sense huh. I mean like; without the idea they would have 97% of nothing. These business people are ruthless. Passionate about seeing the rich get richer and the poor get poorer. On the other hand, the people behind all of the magic, the designers who come up with the ideas are genuinely just passionate about their work.

Few years ago I often wondered what exactly would motivate someone to create a virus. I now know the motivation behind it. My advice: if you have a seriously good idea, keep it to yourself until you can personally fund it.

Don't ever trust anyone

Trent Jackson
- 27th February 2007, 08:34
sayzer

Patent your product first.
Use your patent as your weapon, sign a contract with a manufacturer and have your share on the paper.

OR wait for years and years to collect the fund you need and when you are just about to be there to manufacture AND market your product, go and buy it in WallMart for 10 bucks.

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- 27th February 2007, 09:00
T.Jackson

Quote:

Originally Posted by sayzer

Patent your product first.
Use your patent as your weapon, sign a contract with a manufacturer and have your share on the paper.

OR wait for years and years to collect the fund you need and when you are just about to be there to manufacture AND market your product, go and buy it in WallMart for 10 bucks.

-------------

I see flaws with patents. For starters they mean nothing to Korea. They will manufacture anything. Regardless. If the idea isn’t entirely distinct, someone gaining word of it could possibly embark on modifying it to avoid infringement. With some applied creativity, and the fact that they may actually be on the other side of the World, they may just succeed! (The whole things a hard call in all respects)

Best Regards,

Trent Jackson
- 27th February 2007, 09:27
sayzer

Jackson,

Take a deep look at this post when you have time.

http://www.picbasic.co.uk/forum/showthread.php?t=3965

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- 27th February 2007, 09:50
T.Jackson

Interesting thread

Quote:

Originally Posted by sayzer

Jackson,

Take a deep look at this post when you have time.

http://www.picbasic.co.uk/forum/showthread.php?t=3965

------------------

Interesting thread, I agree with it mostly.

Best Regards,

Trent Jackson
- 1st March 2007, 23:17
nimonia

hmmm..

thnx guys for the replies and comments.. patenting takes a few years here in my place so dont think its worth while and it costs a bunch too.. haha...

anyways guys.. i've had this idea and it was put in the deal.. u see i am selling them the design schematic and layouts and idea with a one time sum xx,xxx and instead of royalty i would supply them the programmed PIC heahaeeha so basicly the chip itself would be the royalty... every unit they come up wif they need one programmed PIC to go with it.. just somethign i wanna share with u guys who are kinda like in my situation too..
- 1st March 2007, 23:53
mister_e

:p Yeah... something like Parallax already do with their BasicStamp... but with intelligence inside :D
- 2nd March 2007, 06:46
T.Jackson

Quote:

Originally Posted by nimonia

thnx guys for the replies and comments.. patenting takes a few years here in my place so dont think its worth while and it costs a bunch too.. haha...

anyways guys.. i've had this idea and it was put in the deal.. u see i am selling them the design schematic and layouts and idea with a one time sum xx,xxx and instead of royalty i would supply them the programmed PIC heahaeeha so basicly the chip itself would be the royalty... every unit they come up wif they need one programmed PIC to go with it.. just somethign i wanna share with u guys who are kinda like in my situation too..

I think someone is having himself on.
- 2nd March 2007, 08:57
Luciano

Hi,

(Copy Protection in Modern Microcontrollers).

See this link:
http://www.cl.cam.ac.uk/~sps32/mcu_lock.html

The latest paper on this subject:
http://www.cl.cam.ac.uk/techreports/UCAM-CL-TR-630.html

Semi-invasive attacks – A new approach to hardware security analysis
Sergei P. Skorobogatov
April 2005, 144 pages
http://www.cl.cam.ac.uk/techreports/UCAM-CL-TR-630.pdf

Best regards,

Luciano
- 2nd March 2007, 23:27
T.Jackson

Copy Protection in Modern Microcontrollers

Hi Luciano

I think the copy protection offered in PIC's is pretty strong. I recall seeing a project Published in the Silicon Chip magazine sometime ago where the author not only set the copy protect fuse, but also made it so that the actual program itself would be erased if any activity was detected on the programming pin.

So in other words, if this pin weren’t grounded, the internal program itself would erase the entire flash memory. This method is commonly known as suicide protection. Very extreme and used extensively throughout the 90's on some arcade game boards costing $2,000 upwards.

Best regards,
Trent Jackson