A hardware based startup with an innovative technical solution is looking to enter into a mature, consolidated market. There is enough of technical advantage to consider direct sales, but this would have a longer road to break-even. Alternatively, there is the option to work with companies already established in the field. My main questions are: 1) What is the correct word/jargon to define a) selling a subassembly exclusively to an existing player, b) selling a manufactured product to be branded and sold to an established player (possibly exclusively for a time) [white label?], 2) How do I find cases/examples of these type of arrangements to get reference numbers so I can run financial projections? We have met a few of the bigger players, and definitely see a road with JV or some other partnership. Need to build out my understanding of how these type of deals work - otherwise I am flying blind. Thank you.
I'm a corporate development expert with 30 year's experience in partnerships, JV's, sales channels, product development and marketing.
1a) Jargon would be "integration partner", integrated component provider, or "ingredient brand". There are a bunch more depending on how you want to position things.
1b) Needs some clarification. If you mean you are selling a pre-manufactured, complete product that is being branded and re-sold by another company, that would be a white label manufacturer/provider.
Examples of these arrangements can be found two ways.
Subscribe to an industry research report that focuses on sales/revenue statistics (Gartner may be a source for this) or work with a consultant or someone like me who has put together these types of channel partnerships who can provide some projections based on some basic assumptions from you.
Happy to help you in this area, quick chat or a project. Feel free to connect.
JC
Answered 4 years ago
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