Jamey Bennet came to IANE a few months ago and spoke about his products, the Light Wedge and Bigger and Brighter. He makes among other things great book lights. I mentioned to my girlfriend after the talk that I would love one of his products, the Spike Light. Somehow Santa overheard that conversation and I got one. It is just amazing. Today, I’d like to share the summary from his talk. Next I’ll go into detail about a few interesting aspects that were cut from the summary because of space restraints and follow-up with an analysis of my great new toy, the Spike Light.
Jamey Bennett, founder and CEO of Light Wedge LLC, was our speaker for November. The Light Wedge, a book-light that does not disturb the surrounding area, was a high school idea that was reborn during the Internet bubble burst. Once a preliminary prototype had been made meetings with the Barnes and Nobles and Levenger buyers provided a lot of momentum and positive feedback leading to both companies assisting in the development of Light Wedge. Jamey used the buyer meetings to “take their temperature” for market demand, price points, packaging and marketing. Jamey involved the buyers in the development process at decision points, giving a sense of ownership to the buyers so when the product was ready the buyers were more accepting.
Jamey is focused on building the business around product ideas, but not the products themselves. The Light Wedge was launched in 2002 and went to trade shows where Jamey realized that he needed more products. “Products come and go” and to be successful Jamey had to build a business around the flow of those products. Jamey has extended the Light Wedge for different sizes, attacked the traditional book light market and expanded into magnifiers. Because of the pent up dissatisfaction Light Wedge was priced at twice the competition, similar to the Dyson vacuum. Throughout the Light Wedge’s growth Jamey raised almost $5 million from outside investors and now has 250 SKUs.
Jamey’s story of the first time he went on QVC and sold $90,000 worth or Light Wedges in six minutes was very exciting. However, the hidden costs with packaging, inventory on hand and returning unsold products has taught Jamey to sell the minimum on television shopping networks.
Light Wedge’s products are protected in different ways including patents, licensed patents, and exclusive distribution agreements. However, these do not protect a product from being knocked off. Even Borders one of Jamey’s best customers is selling a knock off with poor quality, sticker packaging and no regard for safety standards. When the innovation is in the design, like for pop-up magnifier lights, Jamey has decided not to pursue patents. When a substantial brand rips you off, negotiating a deal when the infringer licenses the patent is more beneficial than a cease and desist order.
If a retailer customer sells a rip off, they are undercutting Light Wedge’s investment in design, supply chain and customer service and decreasing their chances of seeing Light Wedge’s next innovative product. Given the rate of knock-offs (four currently on the Light Wedge), Jamey is in the process of developing the next generation Light Wedge.
As an inventor friendly company, ideas submissions are encouraged. If a company member gets excited about the product then it will be taken out to be seen with the buyers. Two such ideas, the Spike Light and the Paperback Caddy, are on the market now.
The Spike Light inventor contacted Light Wedge over the phone and sent a drawing followed by a prototype. The Spike Light was a long time top selling book light at Barnes and Nobles. The inventor receives $10-$20 K per quarter for a 4% royalty on the wholesale price. Although the inventor is responsible for protecting the patent Light Wedge has stepped in and assisted with deterring knock-offs.
The Paperback Caddy was found by Light Wedge, renting booths at book fairs and selling 40-50 per weekend with no route to take the product to the next level. The product is for people who read while doing other activities. It was repackaged, priced at $12.99 where it is now selling at Indigo (the Barnes and Nobles of Canada).
Jamey’s stories on building a consumer product company, interacting with retailer buyers, expanding into different markets and working with inventors were insightful and inspiring.
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