If I have an idea for a product... and go to a company to ask them to mass produce it ... would their fee be a pecrcentage of the sales or simply cost of production?
2007-10-31 03:43:15 · 1 answers · asked by ~☆ Petit ♥ Chou ☆~ 7 in Business & Finance ➔ Other - Business & Finance
It would really depend on the terms of the contract and what goes into making the product. For example, if your product is very complicated and requires several small parts from several vendors, then the company you approach might treat it as an enginnering project spanning several months. Then they would be likely to factor in costs of production and invoice you according to the percentage of contract completed.
If you're bent on getting them to invoice u based on percentage of sales of that product, then it'll depend highly on your own negotiation skills.
2007-11-03 16:20:20 · answer #1 · answered by Jo 5 · 0⤊ 0⤋