Instant Company with a Rebadged Product

This is about how companies can suddenly appear and have new “fantastic” products at bargain prices.

Creating a New Company

In the UK as long as you haven’t been banned as a director then it’s an easy, cheap and quick process. In some countries it’s even easier and people can churn out new companies as fast as they want.

Creating a New Product

Inventors and designers may spend years perfecting their product, but the simple approach is to find a product that already exists, rebadge it in some way – maybe just a different colour scheme. Then you give it a new name and that’s your new product. There are patent protection laws to prevent this but scammers operate quickly and aim to have disappeared before the law catches up with them.

Manufacturing Your Product

Lots of companies (mostly in China) will manufacture anything you want at very low prices. If it’s an item they already make and you just want a different colour or a version with your logo on – no problem.

Then comes the Marketing. Modern Marketing through email lists, social media etc. can be cheap and quick.

The method described above is very simplified of course and it’s not really this simple, but for people who do this regularly it is quick and easy.

Here’s an example.

An email arrived titled ‘Cleaning Scrubber Works for Arthritis”

Then a sales pitch for the Hurricane Spin Scrubber.

It’s a rechargeable device with a rotating head designed to make cleaning bathroom surfaces quicker and with less effort. It comes with an extending arm so the user doesn’t have to bend down – hence the claim that it helps arthritis sufferers.

Sounds good.

Strangely the email is from diabetichlp.bid whereas this product cannot be considered an aid for people with diabetes.

Following up on this shows that the product is real and does work. However, customers complain about faulty items, the difficulty of getting any money back and terrible customer service. The product itself is very cheaply made and generally not very good. The company selling this product only came into existence months ago and if the pattern is followed then is likely to disappear fairly soon, to be replaced by another similar company with a slightly modified version of the device. And the process starts again.

It is far simpler and quicker nowadays to create companies than it used to be, have a factory in the Far East make the product, make money then shut down and open up a new business doing something similar.

Buying this kind of product may be right for you, but be aware that if there are problems – you may wish you’d invested in a reputable make with good customer service.

If you’ve purchased this kind of instant product or dealt with such companies – do let me know by email.

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