I assume (and a good deal of this assumption is from personal experience) that a lot of products that are sold on infomercials are not nearly as good as they look on TV, and some of them really suck. The advantage of an infomercial here is clear - if you saw the product in a store, you probably wouldn’t buy it.
But I can’t believe that every product sold on an infomercial is a fraud. So lets say I come up with a legitimate product – is there any real advantage to selling it via an informercial, where it “can not be found in any store”? Wouldn’t more people have access to it if was found in stores nationwide?
The advantage to selling via infomercial is that you don’t have to market your product through stores. Stores are laden with layers of people (buyers, regional managers, etc.)who want to say “no” to your product; they want not only to set their own price; but the price they want to pay to you; they may demand extra money to “support” your product; big stores probably already have a relationship with your competitor they don’t want to jeopardize, etc. And, if your product really takes off, either the big boys will launch a copycat product, or the store itself will underprice you with a generic knock-off.
By contrast, producing an infomercial is a one-time expense, the cost to buy fringe time on broadcast or cable TV is relatively low, you can distribute the product from a central location warehouse and transportation costs), you can control your inventory better, and get a higher markup because you eliminate the middleman. You may not get megarich this way, but you can certainly recoup your development and marketing expenses before the product loses its appeal.
There is one store at least in a Calgary Mall that only sells infomercial products. I went there and got a couple things that I felt were too much of a hassle to order from the TV. The disadvantage here is that the store (due to the deal they struck with the suppliers) can’t offer the same guarentees and other benefits you get from ordering straight from the selling company. I thought this place was great because:
a) you can get your hands on the product and see what it’s really like; bigger/smaller than on-screen, well-made or chincy, etc…
b) almost all of them are right there with no phone numbers to write down, money orders to fill out, or 6-12 weeks to wait. The store had every item that I remembered from several years worth of seeing these ads.
It’s tough to get big chains like K-Mart, Wal-Mart, or ToysRUS to pick-up your invention or product. You almost have to get down on both knees and beg them. Strike out the word almost. If you had to get down on both knees and beg them it’d be easier.
It’d be easier to get a root canal, or get a service charge taken off your AT&T bill, or explain to your insurance company you’ve paid your deductible already so why are you still charged for it.
Since the post has been answered…
I’ve been seeing the 'No Money Down’real estate infomercial
for years.Seems tempting, anyone with first hand knowledge?
One really good infomercial item I’m really impressed with is the Fantom Fury vacuum cleaner. It’s a rockin’ machine. A few years ago I began to see it and its bigger brother version sold at Walmart or KMart or Sears, so apparently the design is a real success.
Has anyone ever tried (or know someone who’s tried) that special Wearever cookware (square, strainer built into the lid, etc.)? Because my cooking often involves straining and watching for boil-overs, that cookware is one of exactly two infomercial products I’ve ever been tempted to buy (the other being the Remembering the 80’s CD collection <blush>).