by: Geoff Ficke

Modern travelers take the open road for granted. We can hop into exquisitely engineered modern vehicles, pop onto smooth, straight freeways, well lit, with excellent signage and many roadside conveniences. We can cover as much ground as we might like in any direction, in relative comfort and safety.

Much that we love about modern road travel was actually available 2500 years ago to the ancient Romans. They created the template for a system of interconnected roads and conveniences that we have simply adapted during the 20th century as the automobile became the mass method of conveyance.
The road system that they built to connect their far-flung empire is still in use in many places.

As the Roman Empire flourished, conquered and consolidated new lands and needed to efficiently administer these territories the necessity for a durable network of roads became obvious to the ruling class. Prior to Roman ascendancy roads around the world were simple unpaved paths cut into the landscape by pack animals, carts and people moving goods to trade, barter and local markets.

The Romans prospered by trading in the lands they conquered, but they also needed to move great armies, control supply lines and have the ability to quickly transport edicts, orders and news to the far corners of the empire in a timely manner. To build this essential intra-state network of highways the Romans utilized the manpower always available in their army legions.

The quality and durability of Roman roads still amazes. Depending on topography Roman roads were famously straight for as far as the eye could see. This engineering feat was accomplished without any of the modern surveying equipment used by road builders today. The Romans invented a simple device called the gromma and this became the principal tool utilized for accurately surveying roads and thoroughfares.

The gromma ingeniously uses two strings with a weight tide to the end of each. The strings are attached to the ends of a length of wood. The surveyor would simply line up the strings until they appeared as one, and would have assistants plant stakes approximately every 100 yards apart . The surveyor, using the gromma as a guide, would have the assistants slightly adjust stake placement until the strings of the gromma and the line of stakes appeared as one. The result was a roadbed that was true, precise and easily utilized by the construction crews.

The Romans laid rock above the roadbed so the surface was higher than the land next to the road. This enabled water to drain off to the side and meant that roads did not wash out in inclement weather. Gravel was placed on both sides of the roadway to act as a sort of gutter to carry away runoff.

This system, when viewed on a modern map, appears much as the present day system of interstate highways is constructed. Spain, Gaul (modern France), Italy, Germany, the British Isles, Greece and Northern Africa all were tied closely together by this amazing transport network. Modern roadways parallel this grid in most countries where the Romans built their highways.

The Romans built over 2000 bridges. Many are in use, carrying traffic to this day. The arches they crafted were amazingly strong, with strategically placed keystones supporting the massive weight and pressure of these utilitarian edifices. In addition, these bridges are some of the most beautiful structures ever built. The Roman word for bridge was “pontificat”. Today we apply the descriptive name “Pontiff” to the Pope of the Roman Catholic Church, as the Pope acts as the bridge between heaven and earth.

Hundreds of tunnels had to be built through the rugged topography of central Europe in order to move traffic to the most expeditious routes. The Romans had no power tools to gouge through rock. They had no dynamite. The technology to construct these tunnels was primitive, but most effective. Engineers would build massive bonfires right against the rock face of the surveyed tunnel. Then they would boil vinegar and have this splashed against the burnt rock face. While the effect of the heat and vinegar was greatest sappers would begin to chip at the weakened surface with chisels and hammers. Some of the tunnels took 20 years to complete.

As the road system grew, the need for roadside services became acute. Travel was typically undertaken in approximately 20-mile daily chunks. As a result every 20 miles or so, along the breadth of the massive Roman network of roads, there were roadside inns, workshops to repair transit vehicles, and stables to care for livestock. Maps were prevalent and indicated not only place names, but distances, accommodations, levels of luxury, services, and military garrisons.

As distance was crucial in planning itineraries the Romans perfected the odometer 2000 years ago. They utilized a 42-inch diameter wheel and a series of gears that engaged each time the wheel made a full turn. The interlocking gear system was calibrated so each gear turned as it was activated until a Roman mile (approximately 5000 modern feet) was covered. Then a gravel pellet would fall into a container as holes in the gears came into alignment. This amazingly accurate measuring system enabled the Romans to mark their maps, and place stones alongside the roadsides marked with precise distances covered and to the next town or service stop.

Today, travel has become a hugely popular experience enjoyed by millions of people around the world. Whether a brief weekend road trip, a cruise or an international vacation, people love to go. So did the Romans. The Romans were the richest people in the history of the world to that time. The system of roads they built were heavily utilized for recreational travel, the first time in history that people had the wherewithal to move freely about for strictly leisure purposes.

Travel guidebooks were omnipresent in ancient Rome. The travel guidebook for the many attractions of Greece, for example, was 20 full papyrus pages long. Inns and eating establishments were rated for economy, luxury, cleanliness and safety. The modern Michelin and Fodor guidebooks are simply successors of the Roman travel guides.

At most major crossroads on Roman roads there was a sign offering directions, distances and recommended stops for repairs, refreshments or relaxation. Many also included a news board with recent proclamations, travel warnings and local notices. These were the world’s first billboards.

As travel grew in popularity so did the menu of services available to the traveler. Chariots, sedan chairs, carts, wagons and covered wagons with swivel seats and dice tables (for the rich) were available for rent. Accommodations varied widely in cost and quality. Hostels, servants quarters, private sleeping rooms, luxury quarters with fire, bathing and mattresses were on offer depending on one’s pocketbook. Food was offered in similar variety.

The world’s first fast food was also available from some purveyors. The cart simply pulled to a door or opening, the menu card was reviewed and the order placed and delivered to the vehicle to be consumed as the journey continued.

The Roman Empire began to consume itself around the 5th century. The pursuit of luxury, greed and laziness made the Empire corpulent, vainglorious and decadent. The same roads that had been so crucial in their military, recreational and commercial enterprises came to haunt the Romans. Their many enemies utilized this road network to attack their former masters. The Visigoths, the Franks and the Mongols used the Roman roads to carve back lands formerly taken from them and to attack Rome mercilessly. By the end of the 6th Century Roman hegemony was long a thing of the past.

The demise of the Roman Empire meant that the maintenance and continued construction of the roads came to a halt. This had the unintended consequence of leaving huge swaths of the system in areas where there was no effective government. Trade came to a halt. The roads were deserted. In many areas, especially North Africa, Britain, Spain and France the Roman highways disappeared beneath weeds and fauna.

The result was the commencement of the Dark Ages. People stopped travelling for almost any reason. Until the Crusades there was almost no interaction between peoples and cultures. The insularity of tribes and fiefdoms lead to a reawakening of ignorance, disease, superstition and hate.

For six centuries the Romans ruled the known world. Their ability to create, invent and improvise has served mankind ever since. The vast Roman network of interlocking roads, tunnels, bridges, mapmaking, services, commercial enterprises and exploration is the guide we utilize to this day in communication, logistics and locomotion. We have much to thank these brilliant Romans for as we utilize so many of their inventions to this very day.

by: Geoff Ficke

One of the great benefits we enjoy about the consulting work we do is having the opportunity to review the inventiveness of hundreds of entrepreneurs each year. It truly is amazing how many of these creative talents push the envelope of novelty. There is no such reality as the oft stated: “I have seen it all”. None of us have seen it all, as the volume of freshly executed innovative products and concepts being nurtured, is never ending.

And yet, so few of the projects we review ever make it past our initial critique and pre-product development criteria. They will never become widely distributed products, successfully sold in the contemporary marketplace. There are many reasons for this. One reason seems to occur more than most.

Many entrepreneurs become so enamored of their vision and perceive the markets will have positive acceptance for their item that they suspend rationality. We have a term for this malady: “falling in love with the product”. Love is a wonderful emotion. However, it can blur rational thought. The process of gaining purchase into hyper-competitive markets and successfully commercializing new products requires a steady, realistic, but passionate vision. Total commitment to detail and identifying an unfilled market niche, one with scalability, is essential to successfully selling to retailers and consumers.

Very early in my career as an entrepreneur, I made the mistake of “falling in love with my product”. I had created a unique cosmetic accessory product. I was able to bootstrap distribution into almost all of the major department stores in the United States. Then I expanded and sold the product internationally through country specific distribution agreements. Seeing your novel product creation on store shelves in the world’s finest emporiums, such as Marshall Field’s, Bloomingdale’s, Macy’s, Nordstrom, Preciados, Harrod’s and Selfridges was more gratifying than can be described.

However, I did not spend enough time building my Company. I was a single product business. Initially sales were lucrative, re-orders were positive. I was attempting to handle sales, marketing, product development, operations and logistics. I was too close to my product to recognize my shortcomings and the limit of my resources.

Nevertheless, I had penetrated a difficult, sophisticated market. I was a real entrepreneur. I had achieved a modicum of success and had gained the knowledge necessary to launch more companies and products in the future. I learned from my mistakes.

Most of the new product submissions we receive come from first time inventors. Every entrepreneur is a novice at least once. They believe they have identified a need, created an answer to that need and are prepared to sell their item for millions of dollars to big box retailers or investors. It almost never works out that way. Here are a few anecdotal examples that prove this point.

Items like the “arm mitten” are too narrowly positioned to ever achieve mass- market scale. The “arm mitten” is a patented product that is a simple sleeve the driver of a car places over their left arm, to protect the arm from sunburn. Air conditioning, high speed driving with windows closed for wind noise mitigation and safety glass treated with UV inhibitors all posed massive hurdles to the potential for “arm mitten” success.

Consider the “beach boot” for negotiating sandy terrain. This boot, equipped with tank-like tracks attached to the sole and a miniaturized motor roll the wearer over the sandy beach surface. Why walk over sand when you can roll? Why walk barefoot when you can ensconce your feet in hot, sweaty boots at the seashore? Not much upside here!

The “insomniac helmet” was a sleep aid, sort of. There is a small battery powered motor humming in the helmet and the unit massages your head with rubber fingers until you fall asleep. The straps utilized to attach the “insomniac helmet” to the users head look like preparation for capital punishment. Now I like a neck massage as well as the next guy, but this Rube Goldberg contraption would make falling to sleep a nightmare.

The “cup o golf” was the proposed answer to every duffer’s hope for improving the golf swing. A steady head is crucial to a fine golf swing.
The “cup o golf” was a little cup, attached to the bill of the cap. The cup contained a little ball tethered to a string. When the head dropped or moved the ball rolls out of the cup, and dangles annoyingly in front of the golfer eyes, thus conveying that the swing was imperfect. Some players, using the “cup o golf”, could take nine hours to play a round, and they wouldn’t be good company in the clubhouse bar after the experience.

Another example of an inventor’s blind love in their product was the “dad saddle”. This item took the papoose pouch that parents use to carry infants on their backs to new heights, or lows. The “dad saddle” was invented to enable dad’s to carry 10 or 12 year olds on their back without perpetrating excessive lumbar damage. The “dad saddle” is a leather waist strap that the bigger pre-teen can stand on and hold onto padre’s neck. Cool! Bonding forever!

Each of these items is patented. Each of these inventors, and thousands more, spent considerable time, energy and some capital on their ideas. They had really “fallen in love with their invention”. Unfortunately, the inventor’s view of their product is irrelevant in the long run. The marketplace is the final and only arbiter that counts in measuring whether offerings are truly novel, commercial products. Sales equal confirmation of entrepreneurial assumptions about products.

Successful entrepreneurs must treat their inventions as if they are always works in progress, because they are. They will know what the product’s strengths are. These are usually obvious. Aggressively seeking out the flaws in the concept and addressing and improving these weak spots are essential to achieving success. If you are “in love with your product” you will find it much more difficult to edit, redesign or change direction as needed. If this is so, you will fail.

If you have a product or idea you would like to discuss the possibilities of commercializing, contact Geoff Ficke at Duquesa Marketing at 859-567-1609.

by: Geoff Ficke

Almost every living individual is being effected adversely in some way by the international economic meltdown we are experiencing today. The genesis of this severe financial downturn is attributed to the United States government encouraging the expansion of homeownership to people who would have historically been deemed unworthy of obtaining credit. The banking systems participation and eagerness to leverage credit risks by extending loans to people with poor credit histories is the principal cause of the current sub-prime mortgage crisis.

Historically, the bursting of the credit bubble follows a long and dubious line of similar scandals. Greed, hubris and suspension of common sense and disbelief are always present before the hen comes home to roost after the gravy time has ended. The panic of 1908 in the United States, the worldwide Great Depression and the implosion of the technology stock bubble in the late 1990’s are memorable examples of euphoric periods followed by great loss and assignation of blame as to the causes of these financial busts.

These peaks and troughs in economic fortune are not unique to modern times. One of the earliest documented financial crazes was the Dutch Tulip Mania in the 17th century. The Dutch, being a tiny, mercantile nation, surrounded by larger, stronger empires were the earliest creators of trade policies and sophisticated financial products. One of their most creative vehicles was the introduction of the futures market.

Tulips were introduced into the Dutch economy and agronomy early in the 17th century. They quickly became prized for their beauty and the floral engineering that created many unique, exotic varieties of tulips. An exchange mechanism developed for speculation in the valuations of the various strains of bulbs. By 1637 a full-scale mania had erupted in evaluating future tulip bulb harvests.

Records from that period are sketchy, but it is known that a single Viceroy Tulip bulb was valued under contract for between 3000 and 4200 Dutch florins in 1637. Contrast this with the annual wage of a skilled Dutch craftsman of 150 florins per year. Isn’t this a definitive example of excessive senseless mania?

The Dutch referred to such trading contracts as “wind trade”. This was because no one ever actually took possession of the tulip bulbs. They simply owned a piece of paper, a contract that documented their claim on the tulip bulbs. Does this example of financial engineering ring any bells today in our current distressed situation?

The popularity of the tulip trade, and the amazing returns, mostly paper gains that were realized by the early speculators created a stampede of inexperienced, gullible speculators. Noblemen, farmers, sausage makers, chimney sweeps and day laborers began to speculate hoping to turn a few florins into exponentially huge investment returns. Of course, the last investors in, were the most harshly abused by the implosion of the tulip bulb speculative bubble. This is true in all bubble cycles.

The British economist Charles Mackey wrote a tome in the 18th century cataloguing the history of the Dutch Tulip Mania. His “Extraordinary Popular Delusions and the Madness of Crowds” remains in print to this day. Business schools and economists refer to Mackey’s study of the herd mentality of people during manias. Nevertheless, though Extraordinary Popular Delusions is still studied, its lessons have hardly been taken to heart.

The greed and hubris that are always present in manias too often define the human condition. People tend to see someone profit from an enterprise and try to emulate their perceived success. This engenders ever more people attempting to participate in the affair and the result is a panic, a mania, a bubble, then disaster.

The no money down payment, zero document loans, offered in the last decade created a completely different type of borrower and lender. The borrowers have no skin in the game. They get to possess a home in which they have no equity. As long as their condition is stable they can maintain possession. However, if their fiscal condition recedes, or the value of the property declines, they are in deep trouble. Foreclosure is a reasonable action for them to undertake to simply walk away from a gamble that did not work out for them.

The lenders have suspended proper underwriting standards in order to induce entry into these risky home sales transactions. They have little skin in the game, because they have conceived exotic packaged investment vehicles where mortgages are bundled and sold to investment speculators all over the world. The owner of the mortgage is actually unknown to the mortgagee, or even the originator of the loan. The loan originator collects their fees and offloads the loan obligation from their balance sheet. The risky transaction is now someone else’s responsibility.

As a result we have endured a period of fake prosperity built on credit swaps, personal irresponsibility, corporate irresponsibility and governmental corruption. The mania of our time is cheap credit. This bubble has burst, and every homeowner faces shrinkage in the valuation of their property because of the greed of speculators and the attempt of government to secure homeownership for people who should be renters. Community banks and credit unions that have maintained high lending standards are being hurt because of the recklessness of the giant money center banking institutions.
Retirees and prudent investors have seen their savings and investments slaughtered because of the inane greed and corruption of others.

The 1990’s technology stock bust decimated a generation of people who came to believe that investing in the internet was the new “Holy Grail” for prosperity. Startup companies with no sales, no balance sheets and inexperienced management were given huge market valuations. Investors were advised that the tech boom was just in the first or second inning of this nine inning game. Brokerage firms provided guidance on equities that they actually made markets for. This bit of double dealing lead to constant buy calls on tech firms stock that insiders knew had no prospects for success.

The Dutch Tulip Mania, the Mississippi Company, the South Seas Company, the South African Milk Culture craze and the many modern crazes, Ponzi schemes and asset bubbles that we continue to experience are testament to man’s inability to control emotions. Greed, power and wealth are aphrodisiacs for many. We are imperfect beings, susceptible to herd mentality, even when we have knowledge of history’s lessons and could apply these to spare ourselves the pain of participating in activity that will assuredly lead to great pain and loss. Discipline, responsibility and thrift are essential to long term success.

by: Geoff Ficke

Successful entrepreneurs are people that always see opportunity in any situation. By nature they are positive and constantly seek innovations that address wants and needs that they identify in their contemporary environment. Currently we are in a dark economic period, and this will prove to be a fertile time for the introduction of novel innovations that will reward their creators with significant profit.

The world’s most famous, widely played and sold board game is Monopoly. Lizzie Phillips created the first version of the game that was to evolve into modern Monopoly. Her game was meant to promote the single tax theories of Henry George, and the play rules were heavily influenced by his populist philosophy. Ms. Phillips filed several patents on versions of her game around 1904. She enjoyed modest commercial success.

The game and its play rules were tweaked through the years. Subsequently, the various forms of Ms. Phillips rudimentary game that were introduced never enjoyed great sales but the game never quite disappeared. Then came the Great Depression.

The many causes of the Great Depression have been well chronicled and today most people are aware of at least the broadest reasons for the implosion of the world’s economy. Greed was the cause most often stated at the time to assign blame. Society was highly segmented by wealth, education, geography and class. Charles Darrow recognized opportunity in the misery of so many and crafted his classic version of Monopoly to address the perceived social sins of the times.

The play rules and component elements of Monopoly, little changed to this day, reflected the deep divisions in society. Darrow’s game, launched in 1935, displayed the whole range of opportunities for failure and success that could occur in a capitalist society. You could go to jail, be taxed, be fined, go bankrupt or land on owned property and have to pay rents to the hated landlord if the dice were unlucky for a player.

Likewise, you could “pass go” and collect $200, win dividends, buy property, build houses and hotels, own railroads (the classic metaphor for greedy capitalists) and collect rents if the roll of the dice favored you. Also, you could bankrupt your opponents and this occurred with frightening regularity in real life during the 1930’s.

Clearly Monopoly was a game that resonated during the darkest days of the Depression and still works as a leisure activity to this very day. Darrow attained great wealth from the sales of his version of monopoly. Monopoly was licensed by the British Secret Service through John Waddington Ltd. during World War II. The International Red Cross forwarded Monopoly sets to British war prisoners incarcerated in Nazi camps. These games included hidden packets of real money, maps, communication devices and tools for use in escape attempts.

Parker Brothers secured the rights to Monopoly and succeeded in internationalizing the game by assigning country-specific play features. For instance, in the American game, the most prized real estate deeds to own are Park Place and Boardwalk. In the British version the most prized blocks of real estate to own are the very tweedy Park Lane and Mayfair.

The game’s origins, history and ownership are surrounded by significant controversy. Parker Brothers attributes all of the creative, copyrights, play rules and component design of Monopoly to Charles Darrow. This lead to decades of legal wrangling over the true ownership as Lizzie Phillips and others claimed creative ownership of the game. These legal issues were not settled until the 1980’s.

There are a number of lessons for modern inventors to be taken from the profitable, but stormy history of the simple board game of Monopoly.

If the game has play rules that anyone can easily understand, play is fluid, play pieces are simple and attractive; then there is potential for commercial success.

You must protect your game with copyrights, trademarks and patents where applicable. Not properly protecting these valuable assets lead to much disagreement and expensive, extended legal wrangling in the case of Monopoly.

My consumer product development and marketing consulting company sees more toy and game submissions than almost any other product category. The barriers to entry in this class of trade are reasonable if the inventor is willing and able to bootstrap their offering. We recommend a play focus group to confirm that target players affirm the attractiveness and commercial appeal of the game or toy.

Recently, for a class project, a third grade teacher let us borrow her class of 23 students to play a new sports board game for half a day. We filmed the session. We also had the kids answer a series of simple questions of their play experience. Based on their reactions, we were able to adjust one basic play rule to further simplify and expand the appeal of the game. The change resulted in the final result of the game becoming much more closely contested, therefore exciting.

The perfect time to launch a new product is always now. Time is never the friend of the entrepreneur. If you wait for the perfect time, the best market conditions to appear, someone can beat you to market with a product that cannibalizes the best parts of your idea. This happens all too often. Waiting for a better climate is an excuse for inaction and a sure path to mediocrity. Charles Darrow’s launch of Monopoly in 1935 at the height of the Great Depression is a wonderful example to study.

by: Geoff Ficke

One wintry night in 1933, Percy Shaw found himself driving his automobile on a remote country road in England. The night was moonless; the fog hung densely and there was a persistent mixture of rain and snow belting against his windshield. The road was little more than a lane, with no signage, no shoulders, winding and curvy. Any error in judgement would be very costly indeed.

As Mr. Shaw slogged along he suddenly came upon a rise in the road and was startled when a small Morriss Minor automobile appeared right at the crest of the grade. The approaching car was headed directly at his vehicle. He was on a slight curve, it was pitch dark, the road was slick and unmarked. In the split second he had to make a decision a small housecat scampered across the road. The headlights of Mr. Shaw’s car illuminated the eyes of the cat, and the reflection from those iridescent orbs provided Percy Shaw with just enough perspective to gage his distance and edge safely around the Morris Minor.

As Percy Shaw gathered himself after his close call, he began to think about what had occurred. Why were roads of the time so dangerous? What had just happened that he could take advantage of in a way to help all motorists? He became motivated to improve road safety for every driver everywhere. But how?

The reflection from the cat’s eyes was the key to the solution Mr. Shaw sought. He began tinkering in his garage workshop. After a number of attempts, he perfected the first “cat’s eye road reflectors”. Today, the ubiquitous illuminated reflectors implanted in roadbeds and placed strategically along roadside rights of way are part of the driving experience that we take for granted. They provide safety and guidance at night, and in horrid weather conditions. In the 1930’s they were considered an amazing safety advance.

The British Government immediately endorsed and implemented the installation of the reflectors on roads across the British Isles and then across the Empire. Millions of Percy Shaw’s “cat’s eye road reflectors” enhance driving safety around the world to this day. Mr. Shaw was Knighted by Queen Elizabeth and profited mightily from his invention. He was always most proud of the safety benefits his simple invention had provided mankind.

Modern entrepreneurs and inventors can take a simple lesson from this seemingly elementary invention. Percy Shaw was not thinking about inventing the “cat’s eye road reflector” that stormy night in 1933. An event occurred that made him consider possibilities. He sensed a need. He addressed that need. He profited from his answering the need he had identified, and all motorists realized the benefits of his inventiveness.

Creative entrepreneurs are always seeking to offer products and services that provide improved features and performance benefits not available in current items. The simplest of ideas and concepts are often the most commercial. The example of Percy Shaw’s invention of the “cat’s eye road reflector” is a wonderful template for aspiring inventors.

Opportunity can appear at the most unexpected moments. Be aware, be flexible and be opportunistic if you want to enjoy the fruits that come to successful innovators. The market always is open to new novel products.

If you have an invention or an idea that you are interested in commercializing, contact Geoff Ficke at Duquesa Marketing to discuss the opportunity.

by: Geoff Ficke

As readers of my articles well know, I run a marketing and product development-consulting firm. We review hundreds of novel consumer products, new service concepts and prototypes each year. The level of creativity contained in some of these offerings is truly stunning and always amazes.

Entrepreneurs have always found the United States to be the mother lode of places to birth ideas and bring them to successful fruition in the worlds most aggressive, cluttered marketplace. As Frank Sinatra crooned in his classic song New York, “if I can make it there, I can make it anywhere, New York, New York”! If you have an idea and you can not make it happen in this country, you might not have such a good idea. But, this is the country in which to try.

I recently saw a great product, offering excellent features and benefits, a clearly defined unique selling proposition and wonderful margins, crash and burn because of a totally flawed launch strategy. This product was in the Health and Beauty Aids (HBA) category. HBA can be a wonderful space to launch differentiated products. The barriers to entry in HBA are relatively low. The market hungers for the freshest, most advanced product and price resistance is limited.

This product was not one that my firm developed, perfected and then launched. We looked at the product and declined the opportunity. Based on what I have written above, why would we turn down such an option to work on a cosmetic beauty program that offered real commercial potential? The answer to this question identifies the single biggest reason that good concepts fail in the marketplace: people!

The entrepreneur is as important as the product they have created. An unrealistic, deceptive, bombastic or flighty character is almost always death to an otherwise product offering. Investors become wary of such a person. Suppliers are put off. Buyers want to look into someone’s eyes and feel they are dealing with an honorable resource.
In this case, the entrepreneur was an immigrant, spoke excellent English, American educated, very bright, very driven. The product regimen was in the very hot skin care/anti-aging category. The performance (we signed Non-Disclosure Agreements) of the products was special, demonstrable and an advance over the competition. The potential channels of distribution were varied and international. Our excitement, initially, was very high.

However, as we did our due diligence we became concerned. Ingredient specifications, clinical testing, testimonials and proof of performance results that were supposed to exist were never produced. The entrepreneur held severely inflated estimates of the initial equity value of his product, which had as yet, sold not a single unit. For these, and a number of other reasons, we declined the opportunity to contract to consult on the project.

We pass on the vast majority of projects we review. Usually the product is not commercial. When the project does pass muster, then we have the issue of the entrepreneur, their wants, needs, perceived valuations, project harvest goals, etc. Are they realistic? In this case we chose not to proceed, but kept loosely in touch with the owner out of professional curiosity.

Over the next year we started to lose touch with this skin care project. The product did not appear on store shelves, there was no infomercial that we could find and there was nothing we saw on the internet. Then surprisingly, we attended a huge international cosmetic industry trade show and saw the products, and the developer, presenting the anti-aging regimen to distributors from all over the world.

After cursory greetings with the owner, we perused the public presentation that he had assembled. In product development business there is one almighty truism that can never be bent: “you only get one chance to make a great first impression”. This most important of all absolutes had been severely abused by this entrepreneur.

Visuals, branding, sales collateral, display, tester units and demonstration elements were uninspired, uncoordinated and appeared to be of poor quality. The owner had fallen in love with his product. It was of excellent quality but he felt it was good enough to stand alone without supporting the brand with top quality esthetics. Disaster is imminent when shortcuts are taken.

The first day we visited the stand the entrepreneur was understandably excited about his prospects. We stopped back each day to touch base at his stand. It became more and more obvious as the exhibition progressed that disappointment had replaced excitement and the products were not receiving the reception he had expected. By shows end he was totally deflated. By going it alone, and his inexperience, he had doomed a truly innovative product to failure.

Having a good, or even a great product, is simply not enough. The marketplace is cutthroat. Success is difficult to achieve unless the entrepreneur anticipates and addresses each aspect of their product, its performance, packaging, marketing, branding and sales and distribution strategy. Failure to offer buyers and investors a comprehensive, professionally constructed package of features and benefits is the key to a very short shelf life, minimal or no sales and then death.

by: Geoff Ficke

We take the simplest devices for granted in our modern technologically advanced world. We turn a tap and water is delivered, hot, temperate and cold. We hit a wall switch and darkness is overcome by light. We open the refrigerator door and peer into a compartment that contains climate controlled stored foodstuffs. These conveniences are omnipresent in the developed world in the early 21st century.

And yet, we reflect little on the simplest, most important inventions that make all forms of product possible. Consider the humble screw. Yep, the little fastening vehicle that is ubiquitous in every tool-box, do it your self pre-pack, or kitchen catchall drawer. The ability to affix two opposing elements or surfaces together and insure that their attachment is permanent is essential to the structural integrity of virtually every non-consumable product we use today.

No one knows who invented the screw. We do know that wooden screws were in use during the time of Christ. They were widely used in the Middle East in pressing grapes for wine, olive oil production and woodworking. The applicable uses for screws really did not change much until the 18th century. Englishman James Ramsden invented the first “screw cut lathe” to mass- produce steel screws in 1770. This advance made screws more economical and their usage in industrialization processes began to increase exponentially.

In the 1930’s, Henry Philips, in response to the booming automobile industry’s need for closer tolerances, invented the Philips Head Screw. This square headed screw was a significant advance as it enabled machine tools to apply more torque to the screw head, thereby providing much tighter fit and finish between conjoined parts.

Billions of screws are now used every year in millions of applications. Screws of all sizes and metallic composition are essential to every product that we manufacture. As useful and universal as the common screw is in our lives, we never really reflect on it’s importance, it’s efficiency, it’s economy and what the world would be like without these ingenious little linkage devices.

There is a contemporary lesson here. The simple screw has made life easier and more comfortable for every consumer. Jobs are created to produce screws, distribute screws and utilize screws. Prosperity is enhanced by the usefulness of this simplest of inventions.

Many entrepreneurs and inventors seek to improve life and profit commercially by creating new innovative products. The lesson we can all learn from the plebian screw is that sometimes the most valuable, most useful concepts are the simplest. It is not necessary to re-invent the transistor or discover a new system of water desalinization to profit. Looking into your universe of work, family or play and finding a simple improvement that will benefit consumers is the easiest path to commercial success.

In my consumer product development and marketing consulting company , Duquesa Marketing, we review hundreds of product submissions each year. The best, most commercial are inevitably the simplest. They offer the most utility for the greatest number of consumers. These concepts typically do not require re-educating the consumer, which can be a difficult and expensive proposition.

So keep it simple and apply the simple “screw” test to determine simplicity, facility, cost effectiveness and applicability. This is a wonderful template that can be transferred from an ancient product to modern inventions to determine prospects for success.

by: Geoff Ficke

Prospective entrepreneurs are always encouraged to think outside of the box when striving to commercialize their idea for a new business. The ability to see things differently and identify a niche for a product is so essential. Unfortunately, there is no book, course or advice that enables a person to perfect this skill. Some of us stumble into an opportunity. Others are introduced inadvertently to an idea in their line work or at home. Many other successful entrepreneurs do develop an ability to see things a bit more weirdly than the rest of us.

There are many historical examples of great people that achieved great things by thinking differently. Alexander the Great was such a success. Alexander was a warrior at 14, general at 18 and king of tiny Macedonia at 20. He conquered most of the known world before his death at the age of 32.

An example of his unusual thought process was his approach to solving the famous 4th century problem of the Gordian Knot. Outside the Temple of Zeus, at Gordus, stood an oxcart with an unusually complicated knot attached to the hitch. The world famous Gordian Knot was made of densely packed comer bark and there appeared to be no beginning or end to the confusing mass. Oracles of the day proclaimed that Zeus had promised that whoever could unravel the knot would rule the world.

Adventurers from all over the world ventured to Gordus to try solving the puzzle of the Gordian Knot. None ever succeeded. Alexander planned for his encounter with the knot as if he were strategizing his famous military campaign against the Persian King Darius.

Alexander spent hours pondering the Gordian Knot. He realized that success in unraveling the knot would further trumpet his reputation as the world’s greatest warrior. Success would motivate his troops and sow fear in enemies.
Finally, after interminable study, Alexander stood. He reached for a great axe and with violent suddenness, swung mightily. Striking the immense knot dead center, it fell open like a pear. The gnarled bulk of the knot fell to the ground and the oxcart was freed for the first time in centuries.

Alexander saw a problem that had vexed men for centuries. He applied a creative, innovative, indeed the simplest approach to the task. The puzzle of the Gordian Knot did not come accompanied with a fixed set of rules that had to be followed in order to claim success. The puzzle of the Gordian Knot simply required the oxcart be freed of the massive tangle. Alexander understood that conventional approaches to the problem, followed for centuries by all others attempting to untie the knot, was not relevant or of any import.

Alexander the Great said that his greatest victory was his success in solving the problem of the Gordian Knot. This achievement confirmed for the whole world that this man was gifted, clever, an outside the box thinker (a term certainly not used during the Alexander’s time).

Successful entrepreneurs think differently. They are problem solvers. Novel features, utility and new benefits must be included in any product offered in today’s competitive market. Just as Alexander the Great addressed the puzzle by looking at the problem differently, entrepreneurs need to address their development hurdles by identifying and filling needs that others have not yet seen.

by: Geoff Ficke

Many of the inventors and entrepreneurs we deal with in our consumer product marketing business approach us with dreams of selling product to the masses. This can be lucrative and a proper launch strategy in cases where all of the stars in the galaxy line up properly. How often does that happen?

Mass marketing success is contingent on economies of scale, production advantages and large budgets for penetrating a clamorous commercial environment. Large, established companies, think Procter & Gamble, Unilever, Rubbermaid, have all of the tools needed to launch products into this maelstrom. Most small entities and individuals do not.

Our preferred strategy is often to create a branding strategy based on exclusivity. When a product is sold in a limited distribution basis, available in select stores, and usually at a higher price than similar products, consumers tend to attach a higher perceived value to these items.

There are numerous examples of exclusivity that can be used as a template when considering the proper strategy to utilize for a new consumer product launch. Retailers that sell high-end limited distribution products are very profitable and enjoy exceedingly high profiles. Bloomingdales, Tourneau, Neiman Marcus, Harvery Nichols, Harrod’s, and Ralph Lauren are just a few of the stores that appeal to the “carriage trade”. These stores seek goods of high quality, that can be priced at a premium, and that are not available from competitive outlets. This creates a loyal customer for the types of merchandise that can only be found in these doors.

Automobiles, jewelry, ready-to-wear, cosmetics, watches and home décor are only a few product categories where exclusivity is validated as a marketing and branding strategy.

Ferrarri, Mercedes-Benz, Porsche and Jaguar are world famous automobiles franchises. Ferrarri has created a worldwide thirst for these sleek, super fast, super priced sports cars with the “Prancing Horse” on the hood. There are only a handful of authorized Ferrarri dealers in the United States. Production is kept very small and all cars are typically sold two years before they are produced. This insures that value for used vehicles remains very high. Indeed, many old Ferrarri’s appreciate in value, something that can be said of very automobile brands.

Rolex, Baume Mercier, Audemars Piguet, Chopard and Patek Phillippe are a smattering of the very expensive watch brands that are considered to be prized for their exclusivity, beauty, artisan craftsmanship and perceived value. They are sold in very few retail stores. The very fact that they are hard to find, expensive to buy and limited production makes each of these watches highly desirable.

Cosmetics houses at the highest end of the market differentiate themselves by limiting distribution to a select few stores in any given trading area. Clarins, La Prarie, Guerlain, Crème de la Mer, and Estee Lauder are very choosy about where their products are placed. This insures that consumers recognize that by their very lack of availability these products are special, and therefore, justify higher retail price points.

We look at hundreds of new products each year. A select few offer that unique blend of novel consumer features and performance benefits that insure success. A strategy we often use to launch such products is built on exclusivity, at least initially. It is very easy to “knock yourself off” and replicate high-end success with less expensive mass-market versions of your product. If you do not secure this space, competitors certainly will.

Alfred Sloan, the business and organizational genius that created General Motors in the 1920’s, crafted the multi-price point strategy of offering something for everyone. Cadillac was exclusively for the rich. Buick and Oldsmobile were positioned for the middle class, older customers, seeking unobtrusive styling and soft rides. Pontiac was sportier and Chevrolet was the mass market, entry level brand. Sloan recognized that today’s Chevy driver, as they prospered and aged, would move up the GM food chain.

Charles Revson adapted this multi-level channel distribution strategy with Revlon cosmetics. Etherea was his very exclusive carriage trade brand. Ultima II was for fine department stores. For broader distribution in general department stores and boutiques Revson sold his Revlon brand. These Revlon corporate lines were each differentiated by price point, packaging, product claims and performance. He offered something for every range of consumer.

There are a number of advantages to an exclusivity strategy. Typically initial inventory build out is mitigated, freeing up capital for sales promotion. Limited distribution means that the entrepreneur can be more attentive to each individual door carrying their items. Fewer doors can mean that product features and benefits can be demonstrated to individual consumers. This creates word of mouth and referrals. It minimizes the need for expensive media advertising. In-store merchandising is more manageable when distribution is limited. The opportunity to grow organically, the turtle approach; often enables the new company to establish a much more stable foundation from which to expand.

A type of exclusivity strategy can be constructed for products in virtually any category. From liquor, to beer, to hardware, to foodstuff, to lingerie, to pet products, the list goes on endlessly, there are opportunities to successfully commercialize ideas and make them successful using limited distribution techniques. This tried and true methodology is under-utilized, but often the best way to penetrate a very tough marketplace.

by: Geoff Ficke

I have written in the past about the huge commercial opportunities afforded divergent products and inventions, as opposed to convergent features added to existing products. Divergent products are truly groundbreaking, destructive, disruptive breakthroughs. However, very few truly innovative divergent technologies are invented and make it successfully into the marketplace.

The original light bulb, the phonograph, the radio and the steam engine are examples of innovations that set the standards in their respective product categories and are still in use today. The inventors of these needed items enjoyed great riches and fame. We know the names of Edison, Fulton, Sarnoff, Marconi and many others because of the total market penetration that their inventions achieved.

Convergent products build on the already formed base of existing technologies. Adding a clock to a radio is a useful improvement. This type of embellishment can be extremely valuable. Typically, however, the convergent inventor is not rewarded, or as greatly revered as the initial inventor of the divergent platform product. Nevertheless, there are exponentially more opportunities for entrepreneurs and inventors to capitalize on their convergent creativity.

Consider the ubiquitous lead pencil. The original lead pencil was first created in England in 1564. Actually, the pencil was made possible by the discovery of graphite in Northern England. The pencil utilized graphite, not lead. Over many years, mined graphite was manipulated to varying thickness and hardness, allowing pencils to be sold offering degrees of performance.

This was the state of the pencil for almost three centuries. In 1858, Hyman Lipman of Philadelphia perfected and patented the eraser pencil. Lipman’s novel feature was to add a groove in the top of the wood barrel of the pencil and glue on a piece of soft rubber. Until his invention, erasers were blocks of unrefined gum rubber. The simple convenience of combining the eraser with the pencil made the new eraser pencil commercially interesting.

Hyman Lipman sold his patent and technology for $100,000. In 1858 this was a fortune. Lipman had taken a 300-year old commodity product and simply mated it with a pre-cut, glued gum eraser. The combination made him rich and is still used worldwide to this day. Inventors should keep Hyman Lipman and convergent product features in mind as they create their product improvements.

My product development firm reviews hundreds of new product and invention submissions every year. Like everyone, we are most keen to discover the next divergent product: paper clip, lead pencil or light bulb. After thousands of submissions we have seen only a few truly divergent offerings.

Product features that improve existing technologies, offer fresh benefits or fill unanswered needs are always needed. We counsel entrepreneurs to build their ideas around the following: a Unique Selling Proposition. Another way to say this is to build your product to fill an identifiable niche in the marketplace. In every huge product category there are small, under served niches. Attack these holes with creativity and convergent ideas will be hugely rewarded. Remember Hyman Lipman as you continue your endeavours.

If you have an idea or new product concept you would like to introduce to the marketplace contact Geoff Ficke at www.duquesamarketing.com to discuss potential opportunities to commercialize your invention.