universal manufacturing corp

Universal Manufacturing Corp on Innovation, Royalties, and Licensing

in Opinion

Universal Manufacturing Corp is an Illinois-based business where customers can get metal, plastic, wood, and electronic products manufactured. Given the versatility of their commodities, this company is closely involved with many different industries. For instance, one can see the items manufactured by them everywhere from the auto market to the sporting sector.

Additionally, most of the transactions that the company engages in are driven by their retail partners. In translation, they sell a lot of their products in bulk. As far as the competitive advantage, Universal Manufacturing Corp has their own in-house design, specialized quality control, and innovative engineering. Not to mention the highly dedicated staff that offers an unparalleled potential hidden in the human capital.

How do you go about product marketing?

We use our website to generate organic and hot traffic. From there, we sometimes test different products to see what the customers are interested in. More often, however, we let our retail partners handle the low-level marketing. Meaning, we produce an item that they buy in large quantities. Thus, the burden of marketing now falls on them as we have no further incentive to seek customers. Of course, this approach does not apply to our partnerships based on royalties.

Do you have any influence over the retail-based marketing that your products go through?

To an extent. We have a few guidelines that we ask all of our retail partners to follow. These are generally broad categories of rules, and we apply to maintain a certain reputation. In reality, however, the way that our retail partners market something is solely up to them. We are fully aware of the fact that they must sell our products down the line to generate profit. Thus, it would be inconvenient to try and control how they find buyers.

What type of compensation do you prefer to see when selling products in bulk?

It depends. In the past, we have had cases where our products were sold for a contract price. When that happens, we hand over the control and receive a sum of money. Then again, we also make a lot of royalty contracts. Such an approach puts us in a position to only get paid when the end-consumer buys our goods.

For instance, we may sign a royalty deal with a national retailer. If that happens, our products will be delivered to their stores. Then, every time some of our goods are sold, we will be given a percentage of the sales price. The reason why it is considered a royalty is based on the repetitiveness and our minimal involvement.

Do you ever engage in licensing? If so, how do you leverage this business strategy?

Although it is not our specialty, we certainly do have some projects that revolve around licensing. The way that it is set up can be quite similar to the royalty contracts. First, we come up with a way that something is produced. If that process proves to be extremely efficient, our competitors and other brands may want to use it. Well, in this business, however, every invention is generally covered by some copyright or patent. So, whatever we came up with is most likely going to be protected by some law. Thus, using our method would be illegal if we do not get compensated for it.

Enter licensing. Companies that may want to take advantage of our methods can do so as long as they license our technology. In translation, they must pay us to allow them to use our approach. So, it is another passive-like stream of income that requires very little to no real involvement on our side after the fact.

Where do you think your brand will go from here?

It is hard to say. We are involved in a lot of different ventures, and our focus is quite broad. We produce tangible goods while also entertaining licensing and royalty programs. If anything, it is very likely that we will continue to perpetuate passive income which comes with fewer expenses. Also, we will continue to come up with unique methods of production. Doing so allows us to create many state-of-the-art items that are much easier to sell.

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