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"A Surprising New Discovery For Those Who've Always Suspected They Had The "Right Stuff To Succeed In Their Own Businesses... But Who Haven't Yet Quite Got Going”

A gentleman by the name of Louis contacted me for advice about how to successfully market a new product that is to be used in his professional home cleaning restoration business. This product easily and successfully removes odors from smoke damage incurred from fires in the home.

Louis stated that he had purchased the rights to market this odor removal product in the United States for his type of business – only.

When I inquired about what he paid for these “exclusive” rights, Louis reluctantly admitted that he had paid a whopping $50,000! I also discovered that Louis’ exclusive agreement entitled him to purchase the product from the manufacturer for about 50% less than retail price.

It pained me to tell Louis that he was being gouged. With this pricing set-up, Louis’ margins were such that he couldn’t ever realize great success. You will hear me explain what the margins of a chemical product actually should be and how he could accomplish more lucrative margins.

As if this wasn’t bad enough, the manufacturer packages the product for Louis. Although Louis’ brand name is on the product, the name of the manufacturer is also on the product. With this, Louis does not have the total control over the product that he really needs. Anyone could see the manufacturer’s name and then go around Louis to purchase the same product for a lower price – and there goes his unenviable margin to boot.

The main ingredient of the product has not been patented which means that the same odor removal product could be formulated elsewhere at Louis’ request. Listen as I suggested that Louis work to get his money back and contact another formulator so that Louis has total control.

We then discuss the actual marketing of the product, whether he uses his current source or develops his own product. You will hear me stress the importance of a Unique Selling Proposition: Why should someone buy Louis’ product rather than that of a competitor?

I give him some ideas for possible USP items and point out many options that he would have if he had exclusive control over his own product.

I know that I didn’t tell Louis what he wanted to hear. However, I feel that I told Louis what he needed to hear in order to succeed with this or any other product.

This recording is a good lesson for anyone who is thinking of starting a business with a product. You need a well thought out USP and, most important, you need TOTAL CONTROL of your own product! Learn and enjoy! Back to top

Hi, this is Michael Senoff with HardtoFindSeminars.com. Here is a recording about a very important topic about owning and controlling your own product. In this example, Louis called me asking for some marketing advice for a product he had invested $50,000 in for the marketing rights for a particular industry of a product that I found is not as exclusive as the company represented. In this recording, you’ll hear me give Louis advice on how to get his money back for the investment he made, and also some advice on how he can get the product manufactured for himself. If he follows my direction on this, he’ll have huge margins on the product that he has and total control opening up worldwide opportunities for the marketing of this product. I hope you find this recording beneficial. Enjoy!

Louis: Hello, this is Louis.

Michael: Hey, Louis. This is Mike Senoff here returning your call.

Louis: Hey Mike.

Michael: How are you?

Louis: Good. How’s it going?

Michael: Doing really good, and yourself?

Louis: Well, I’m just like an old steer, just keep on trying.

Michael: That’s what you’ve got to do. Don’t quit. Don’t quit. What can I help you with?

Louis: I have a product that I just picked the marketing rights to.

Michael: Okay, what is that?

Louis: It’s an odor neutralizer. The market that I want to go through is the cleaning and restoration industry, professional.

Michael: So, it’s an odor neutralizer. Is it an aerosol?

Louis: It’s a liquid, yes.

Michael: And, what kinds of rights did you buy?

Louis: I bought the national marketing rights to the cleaning and restoration industry.

Michael: You’re protected. No one else can sell this product under any name to that industry?

Louis: Correct.

Michael: Can I ask what kind of investment it was?

Louis: You can ask. $50,000.

Michael: Fifty grand. How did you find out about this product?

Louis: I’m in the cleaning and restoration industry right now, and I came across who the mass distributor was. I did a win loss for this people, and they showed me the product. I used it on some fire losses and some water losses, and the product works fabulous.

Michael: It performed really good?

Louis: Very good.

Michael: So, you’ve been around this industry and you’ve seen stuff like this come and go?

Louis: I’ve never seen anything that worked as good as this. I’ve seen a lot of products.

Michael: Now, you worked on it with a fire loss.

Louis: Yes.

Michael: Tell me the specific example. There was a fire in the home?

Louis: Yeah, there was a fire in the kitchen, and there was smoke damage throughout the house. We went in with this product, wiped down all the surfaces with it, and it neutralized all the odors. There was no reodorizing, no heavy fragrances. It actually just smelled like a spring day.

Michael: Really? Is it an organic type product? How does it work so well? Do you know?

Louis: It’s a proprietary formula that they have developed. Basically, it’s a trade secret of how they do it, but stabilized chlorine dioxide is the active ingredient, and the way they’ve been able to stabilize it, it doesn’t chlorinate. Other products out there that are unstablized chlorine dioxide, what they will actually break down and chlorinate products, and that’s not safe.

Michael: So, it’s a stabilized chlorine dioxide. Is it a patented product, or not?

Louis: Not patented, just a trade secret.

Michael: Okay.

Louis: Their ability to do it is how they do it.

Michael: Let me ask you a question. You’re in Utah, right?

Louis: Yes, I am.

Michael: By any chance, the company that has the development on this formula, are they out of Utah as well?

Louis: They’re out of Texas.

Michael: Because there is a multi-level marketing company called Neways, and they have a mouthwash which I used for years and years. I had a buddy who was a distributor of it, and it is a stabilized chlorine dioxide mouthwash, and this stuff really is incredible.

So, when you say stabilized chlorine dioxide, I understand. Mouthwash was just one of the consumer uses, but there’s all kinds of uses for this type product. It may be something you want to get a bottle of any check it out.

Did you just recently buy into this?

Louis: Yeah, I did.

Michael: Are you locked into it? Meaning, what if I said, without paying $50,000, you could get the same product that has the same result. Could you get your money back or are you stuck?

Louis: I’m pretty much stuck.

Michael: What do you get for fifty grand?

Louis: I get the ability to market this product to the United States.

Michael: Do you have to buy it from them?

Louis: I do.

Michael: And, what kind of prices are there? Do you buy it by the 55 gallon drum, the bottle?

Louis: It’s already packaged for me. They package it and everything whatever sizes I want – anywhere from four ounces to a 55 gallon drum.

Michael: What would someone in the restoration business – how much are they going to order? Like a five gallon thing? Or buy the gallon? Or by the quart spray bottle or what?

Louis: They buy it by the gallon, four gallons.

Michael: For instance, when you used it, how much did you pay for a gallon of it?

Louis: I paid $45 for a gallon.

Michael: Forty-five bucks?

Louis: Nine to one dilution.

Michael: Oh, there’s nine to one dilution. So, it’s going to last you a long time.

Louis: It goes a long way. You just add it to whatever cleaner you have, and it neutralizes the odors as you clean.

Michael: Okay. How much do you get to buy it for as a distributor? What’s your cost on it a gallon? You paid $45 retail. What’s your cost now?

Louis: I get them fifty percent off.

Michael: That’s it.

Louis: Yeah.

Michael: Okay, go ahead. Now that I’ve got an idea of your profit margins and what you’re able to do and everything. Is it already branded by name?

Louis: It’s branded, and it’s going to be a professional formula. We’re actually making it into even a higher concentration right now so we can use the price point down. We’re going to be selling the gallon for $99.95 which would actually be five of those $45 gallons we talked about.

Michael: Okay, who’s brand name is it? Your brand name?

Louis: Yes.

Michael: Is that the company’s name or your name?

Louis: That’s the name of the company.

Michael: The company you bought it from?

Louis: Yes.

Michael: Okay, but when you market it, is their company name on the bottle or your name?

Louis: My name.

Michael: So, there’s no way for the person who buys this stuff to get back with the company?

Louis: Yeah, there is.

Michael: How?

Louis: If they look it up.

Michael: You definitely don’t want to do that. If you pay fifty grand for the rights, you don’t want their name on it anywhere.

Louis: Okay.

Michael: You want your private label on that product. You want your phone number on that product. If it’s manufactured in their plant, and you have to have it where it says it’s manufactured, you could have it, “Manufactured and private labeled by” or “Manufactured for your company name”.

If you’re going to be making all your efforts in marketing this product, you don’t want anyway for them to go around you back to the main manufacturer.

Louis: Okay.

Michael: That’s number one. Number two, just from what you told me, and we’ll talk more about it, there’s no patent on this stuff. Chemical formulas, stabilized chlorine dioxide – I guarantee you, any formulator can make you this formula. I can guarantee you stabilized chlorine dioxide is already used in odor control within the sanitation industry. Did you do any research on stabilized chlorine dioxide?

Louis: I did.

Michael: And, what did you find?

Louis: I found out there’s a lot of companies out there that have the chlorine or the chlorite parts, like the breakdown of the chlorine dioxide, but they don’t actually have the stabilized version. That’s why the client stabilizes is the chloride to the chlorate.

Michael: Can you take this stuff and put it in your mouth?

Louis: Yeah, you can.

Michael: And, have you done it?

Louis: I have.

Michael: Did it have a little mint flavor or no?

Louis: No.

Michael: It tastes almost like water, right?

Louis: Yeah.

Michael: You know what? This mouthwash, I guarantee you is the same thing. It’s stabilized chlorine dioxide. This company Neways is a Utah company right where you are. The owner’s name is Barry Mower, and they’re probably doing about five million a year, maybe not even that much, and he’s a chemist. And, you could probably go to him, and get some quantities, and ask him to private label it for you. I guarantee you that there’s a formulator right in your town that could make that product for you.

Now, you’ve invest fifty grand. If you knew that you could find the same product and keep your fifty grand and do all your own marketing where you have all the control, wouldn’t you want that money back?

Louis: Oh, yeah.

Michael: That’s what I’m saying. That’s a lot of money. Is there anyway you can get that back, do you think, if you pushed it?

Louis: If I pushed it, I probably could.

Michael: Are there people you’re involved with that would make you hesitant to do that, relationships that you set up?

Louis: Yeah, I have people involved with me as well as the mass distributor.

Michael: Here’s the thing. You’re talking about chemical formulas. Look, you spent fifty grand. You want to introduce this to your industry, right?

Louis: Right.

Michael: You’re going to be putting all this effort into marketing something that you’ve got no control over the product, plus this stuff cost pennies to make. In my opinion, you’re getting gouged. You’re buying at a fifty percent off. You shouldn’t be marketing any product like this unless you can make five or ten times. Some chemical formulas, you make ten to twenty times cost. This stuff doesn’t cost anything to make, and you can find it somewhere else.

Now, if you don’t want to try and get your money back, you can start doing your marketing and stuff. You can start selling it and offering it, and once you built up and you know you’ve got something viable, you can go find your own formula because why would you want to pay $20 for a gallon when you can pay two dollars for a gallon?

Why work and put all your efforts into making this company rich when you should be making yourself rich, when you have the ability to go formulate the product just like they did. It’s available. I’m telling you.

Louis: I believe Neways has a stabilized chlorine dioxide, and they’re about $45 a gallon.

Michael: That’s retail.

Louis: Oh, I know.

Michael: Did you check theirs?

Louis: I haven’t actually.

Michael: I would test it. If you give me your address, I’ve got a couple of bottles of it sitting right here. Just put a sprayer on it, and test it side by side. See if you can tell which one performs better.

Now, if yours performs better, then you may have to stay with it, but I’m betting you can find something comparable that performs just as well. So, if you can do that, wouldn’t you want to try and get control over it yourself or at least get your costs down?

Louis: Definitely.

Michael: Before you start putting all this effort and time – that’s the only thing you have is your time, and it’s a very valuable commodity – I’d love to see you find the product, private label it from someone else, get another formulator, negotiate. I guarantee you’ll find a couple other people. I’ve got some other contacts who may be able to formulate it for you, and then get your money back and put that $50,000 into your marketing.

I think if you did more research, you could’ve found this stuff, and a formulator would’ve formulated and would be willing to make it up for you. Instead of $50,000 on marketing rights – it’s not an exclusive product. That’s the thing.

If this thing was patented and no one else could make it, and you couldn’t get it anywhere else, I’d say $50,000 may be worth it, but, they can’t offer you any protection from someone else. I could go in starting tomorrow and start competing against you in the same industry, and there’s not a thing you or that company could do about it because they really have no real protection. They claim they have an exclusive product, but I don’t believe they do.

Did they tell you they had some kind of exclusivity on this product?

Louis: Well, they’re the manufacturer of this form of stabilized chlorine dioxide.

Michael: This form, okay.

Louis: I know there’s other stabilized chlorine dioxides out there, or they claim o be stabilized chlorine dioxide, but I’ve looked at the MSDS sheets on these things and they’re not that really stable because they chlorinate. Once they start to break down, they turn into a chlorinated whatever.

Michael: I know this Neways product doesn’t. He’s a chemist. I think it would be worth to either hire someone for a couple grand to do the research for you. Since, you’ve already spent fifty, but if you can get that fifty back, I’d get it back and do your own research because this is all about marketing. It’s not sourcing the product. You can source the product anywhere. I’m telling you.

But, we can talk more about the marketing of it. That’s just that part of it. That would be my advice to you.

Louis: Okay.

Michael: Even though you’re going to hurt some feelings with some people, but you know what? This is business. I don’t know what they’ve told you or maybe you got real excited, but I think if you’d really looked around, you could’ve saved yourself some money because you could develop this product yourself or get it from someone else. That’s all I’m saying.

Louis: Okay.

Michael: Aside from that, let’s say you got your product. You’re excited about it, and now you want to introduce it to your cleaning industry.

Louis: Yes.

Michael: What questions do you have about that?

Louis: I’m looking at going after franchises using it out to that type of group, and then going after the main industry itself. It works on lots of different things. It works on pet odors. It works on smoke odors. It works on lots of different odors. And, the odor control industry is a pretty big market.

The professionals I’ve noticed, at this point, it doesn’t really matter what the cost is as long as it actually does something to a point I should say. There’s a point where people are like, “Ah, no. We’ll just keep using the same old stuff.” But, they want a product they can provide a service with, and that’s where this product comes in.

From a restoration standpoint, I can go into a house, and clean it and get it back to odor free, pre-loss condition, without any problems. You don’t have the ozone after you use product because it just neutralizes all the odor.

Michael: How much research have you done on the marketplace within your industry, seeing what else is out there, other odor control and odor removal?

Louis: There’s a lot of products out there, but as far as in the professional arena, there’s only one product out there that claims to be a stabilized chlorine dioxide, and if you look at the MSDS, you’ve got to where a chlorinated aspirator cartridge. So, it’s not that stable.

It can fog in the air, and it won’t degrade into a chlorinated material, and that’s selling for about $27 a gallon. So, it’s half the price, but it’s not safe. They don’t even hardly push that product anymore, and that product is actually made.

Michael: Have you looked in the pet industry, the pet odor elimination?

Louis: Yes.

Michael: And, did you find anything in there?

Louis: I did. Most of the stuff that they’re using right now in pet odor removal is either an enzyme or it uses acids to break down the urine salts, or they use encapsulation and masking agent.

Michael: Well, what you have to do before you do any marketing is you really have to develop the uniqueness of the product from your competitors. See, with your pricing, if you want to go to a distributor, another odor elimination product, because you have control over your industry but you don’t have control with your pricing. They’re giving it to you at fifty percent off, but when you want to go to a distributor who has thousands of outlets that he can get it into, he’s got to market out and then by the time it gets to the end users, it’s just maybe prohibitive. There’s not enough margins in it.

There may be, but your margins sure would be better if you controlled and were able to produce or get the product for pennies rather than so much, you see?

Louis: Yes.

Michael: Your best leverage is getting it into someone who’s already distributing an odor elimination product that you can go in there and prove the results of yours is better, and you can give them a better price. You can sell on price, and you can sell on performance. So, if you can demonstrate to them that yours is better, your price is better, your packaging maybe better, then you can get something in to a large distribution channel and make some good money very quickly.

But, you really need the leverage of having control over the product because let’s say a company has distribution to thousands of stores, and there’s a lot of dollars involved. You don’t think the company’s going to ask themselves, “Well, maybe I can just get this product private labeled myself?” What’s going to keep them from going out trying to do the same thing?

But, anyway, what you need to do is you need to develop the USP. What is unique about that product? Why should someone in the cleaning restoration industry use your product? What’s the reason why they should buy yours rather than anyone else? And, you’re giving me some feedback that this is really stabilized, and what that means is it doesn’t turn into a chlorinated product, meaning you don’t want to be restoring a home and having your employees breathing in an unstabilized chlorine that could be poisonous to your body.

That’s why you only want to use a truly stabilized chlorine dioxide when eliminating odor. Another reason is, “Ours eliminates odor without have to reodorize saving money on additional chemicals.” “Ours virtually eliminates all odors without any masking agent.” Or “Getting the job done faster for less money.” You’ve got to bring out these unique features of why your product is better, and then you need to get that message to your prospect.

Getting a product into a distribution channel is really simple. You’ve got the supply. You’ve got the demand which is going to be the existing customers buying odor eliminating products, and then you’re introducing the details of the product. “Here’s what I have. Here’s what it does. Here’s why you should buy it.” Boom, and then you need to get that message out to as many potential people who have a demand for this product as possible.

As you do that, people are going to come to it and be interested in what you have. It’s really as simple as that, but again, and I don’t want to talk about it too much more is that you want control over your own product, you really do. And you want control over the margins, too.

Louis: And, I also need to control the name.

Michael: Absolutely, yeah. You paid fifty grand. What did you get for fifty grand?

Louis: I have the marketing rights to the United States.

Michael: You have the marketing rights to the United States, just for your industry.

Louis: Just for my industry a vertical market.

Michael: Does it say that they can not introduce a product under any condition, any names?

Louis: Actually, I’m having my attorney review it as we speak.

Michael: You used it, and you contacted them, right?

Louis: Yes.

Michael: And, they are the manufacturer?

Louis: Yeah.

Michael: How are they selling theirs right now? What other industries?

Louis: The hotel industry, the nursing home industry – they actually sell it overseas, too.

Michael: And, they sell it overseas, okay. Do you see how they’re in the driver’s position? They’re the manufacturer. Look what you can do when you’re the controller of your own product, when you’re the manufacturer. You can sell licensing rights for fifty grand. You can sell international rights. You can sell hotel rights. You can do whatever you want. They can do whatever they want because their the main source. You see?

That’s what you want to strive for in any product you start marketing. You’re in an industry that you’re familiar with, but what I’m telling you is I would get your money back, and I would just start over and rethink. Get your money back. Get your attorney to write a letter. Get your money back. Get your money back. Get your money back. Get your money back. And, then get control of your own product.

It doesn’t even have to be this product. It can be another chemical product that you could sell, but the main thing you want is complete ownership and control of your own product. Then, all your efforts that you put in are going to be protected, and then you can do some of the things that they’re doing. You could sell licenses. You could sell worldwide rights. You could farm it all out, and then you’ve got yourself a real business. Right now, I don’t think you have a real business.

I’m just telling you this because you’re at the starting stages. That would be my advice to you.

Now, you don’t have to follow my advice, and if you just wanted to keep marketing it, now you just need to start hustling. Pull out the product benefits, and get that in a message whether it’s an advertisement, or an email, or a letter, and get that information to potential prospects.

If you wanted to hire me or hire one of my consultants, we could work out something. They could help you do that if you’re interested. It’s either you have time or money. You have the money to pay someone to do it for you, or you do it yourself.

But, then again, that’s also real important is having a Unique Selling Proposition. There’s reasons why that potential buyer, whether it’s a distributor or an end user in the home restoration business, will buy your product. That message is going to be the foundation of your whole business.

So, that’s something you shouldn’t skimp on is developing that USP. There’s a process in doing that. It’s a four step process, and it takes a lot of research, but that’s something I could do for you, or you could have someone else do that for you.

Louis: What would that run me?

Michael: For a USP for a product like this would run you about $2,500, and it would probably take me about thirty days to do it, or you could do it yourself because I have a lot of information on my site that talks about USP. You can do it on your own, too.

Louis: Well, that’s why I called you because I had read some of your stuff, some of your stuff on the Internet, and I thought, “Well, now that I’ve really got something here, I’ve got to call Mike.”

Michael: I may have not told you what you want to hear, but if you have something in the pit of your stomach saying, “You know what? He may be right. Maybe I should get my money back.” Then, do it. Just do it. It’s only going to hurt for a little bit. Get the money back. Get your investment back. It’s a lot of money, and then just take a step back.

If you get your money back, I’ll help you find this and source it. Okay? And, then you can be in the driver’s seat.

Now, if you really want to make a go at this, and we can find it for you, and get it sourced for you, and you want to work something out, maybe I’ll help you with some marketing and we could do a joint venture or something, and then certainly, the additional profits and the margins of the product will easily pay for that.

Louis: Okay.

Michael: Someone is manufacturing it already, a very stabilized form. It’s just a negotiation. They can make it for you, and they can ship it. Then, you’re in business, and then you make all the money and you don’t have anyone over your head controlling you. You’re in the driver’s seat. There will be a lot more money for you in the future for sure, and you’ll have that control. That’s really, really, really important.

Now, I didn’t always think this way, but I do now. I’m constantly learning and growing and this is really, really important.

Give it some thought, and I’m not going anywhere. I’m here. So, call me back, email me, let me know what you decide to do.

Louis: I’ll do it.

Michael: Okay, great. Thanks so much. Bye.

Louis: Bye.