Nick Romer is the author of "Make Millions Selling on QVC: Insider Secrets to Launching Your Product on Television and Transforming Your Business (and Life) Forever," (John Wiley & Sons, February 2008).
As the title implies, Nick wants you to experience the type of success he's had selling products on homeshopping shows. We were able to catch up with him recently for a quick Q & A about QVC.
Because our column is about money, our interview with Nick related primarily to financial questions. However, we found his book to be a complete, easy-to-read manual containing everything you'd want to know about how to succeed on the TV shopping channels with your product.
ID: WHAT DOES A SHOPPING NETWORK LOOK FOR IN A PRODUCT?
NR: If you can answer yes to most of these, you might be a candidate for the home shopping shows:
. Is your product demonstrable, unique and does it solve a common problem?
. Does your product have mass appeal and make life easier?
. Is your product an improvement over an existing solution to a common problem?
. Does it sell for more than $15 retail and fit into the categories already presented on the popular home-shopping shows?
ID: HOW MUCH INVESTMENT IS REQUIRED TO PLACE A PRODUCT ON HOME-SHOPPING CHANNELS?
NR: You don't have to pay to be on the two top home-shopping shows.
ID: IS THE INVENTOR RESPONSIBLE FOR GETTING THE PRODUCTS MANUFACTURED AND DELIVERED TO A SHOPPING CHANNEL SUCH AS QVC AND, IF SO, WHAT IS AN AVERAGE AMOUNT OF UPFRONT CAPITAL AN INVENTOR MIGHT NEED TO PLAN FOR?
NR: QVC requires product in its warehouse in advance of your airing, so your investment translates to the cost of your product. The cost of your product depends on the quantity ordered, and this varies greatly.
Generally, for a first-time daytime slot, QVC will prep for a minimum of $50,000-$75,000 in retail dollars. Meaning, if your product sells at retail for $25 per unit, you will need to supply QVC with at least 2,000 units. But again, this varies greatly.
Your product may have a track record, or perceived with great potential, and the opening purchase order may be much higher.
ID: DO THE NETWORKS ASSIST INVENTORS IN HANDLING THE REQUIRED FINANCIAL COMMITMENT AND, IF SO, HOW?
NR: QVC does not assist vendors financially. It operates like a store, purchasing product from manufacturers at a discount for sale to its customers at a markup.
ID: HOW MUCH DOES AN AGENT CHARGE TO REPRESENT YOUR PRODUCT TO THE NETWORK?
NR: What an agent charges varies. What you should expect to pay, however, should fall in the range of 5 percent to 10 percent based on wholesale price.
ID: WHAT HAPPENS IF YOUR PRODUCT IS ACCEPTED FOR SALE BY A NETWORK AND THEN DOES NOT SELL AS WELL AS EXPECTED?
NR: It still might be good enough for a second shot. If it isn't, then you will likely have to take it back unless you've negotiated a full-sale agreement. I recommend you consider the possibility of not achieving your goal on television as you develop your product. Create or package your product in a way that you can resell it in other venues should you need to. The possibilities for this are endless, ranging from tradeshows and stores to direct-to-consumer via the Internet, overstock companies and eBay.
Nick tells us that his answers generally related to QVC. There are differences between the two largest shopping networks (QVC and the Home Shopping Network) in some areas that can affect the amount of upfront money needed. HSN, for instance, allows drop shipping, while QVC only allows it for certain perishable products. QVC also requires that your product be shipped to one of its warehouses one month in advance of the product's air date.
