The fifth criterion for your consideration is, again, a concern for the manufacturer/licensee and thereby a concern for you also. Manufacturers have a formula for determining whether it will be cost efficient to manufacture a particular product. The manufacturing cost should be no more than 1/5 to 1/4 of the retail-selling price. If your product does not fit this formula your chances of finding a licensing partner are greatly reduced. What this means is if your product can be manufactured for $1 it should retail for at least $4-$5 or it is unlikely that you can license it.
Do not pull the suggested retail selling price for your product out of thin air. Don’t base it on what your mother says she would be willing to pay for your product. You and your mother would probably pay more than any other person on earth for your product because you think it is such a great idea and your mother loves you. Too many inventors have an inflated opinion of what their product will sell for at retail. You will be exposed as an inexperienced product developer if you cannot make a logical argument for the price you suggest.
