By investigating the distribution channels, you'll learn whether your major competitors control smoke alarm distribution, therefore making it tough to get your product into the system. You'll also learn how much margin each link in the distribution chain makes as they pass each alarm from manufacturer to wholesaler, wholesaler to distributor, distributor to retailer, and retailer to consumer. Figure out the markup for each link and how much the alarm should retail for. From all of that, determine whether you can manufacture your invention for a price low enough to pay each link in the chain. Often there are so many expensive features built into inventions, they get priced right out of the market.
Many inventors think that presenting an invention to a manufacturer is the hard part.
If you've done your market research, your presentation will simply be the delivery of the facts to the prospective licensing manufacturer. Names of all your competitors in the field 2. Identification of all competitive smoke alarms 3. Identification of your product's features and how those features compare favorably against the competitions' 4. Estimate of manufacturing costs and the potential profits the licensee will make 5.