The Info On Infomercials

If you think marketing your product with an infomercial is a quick way to make millions, think again. Industry experts say only one product in 20 is a hit.

Although consumers bought $1.1 billion worth of infomercial products in 1995, infomercials remain an imprecise science, said Chris Ourand, spokesman for the National Infomercial Marketing Assn. (NIMA) in Washington, D.C.

Ourand said infomercials, which hit the airwaves in 1984 when Congress deregulated the television industry, fall into a few broad categories: health and beauty products, exercise equipment, motivational programs and household products.

One big success on the household front was the “Smart Mop,” designed and manufactured by Santa Monica-based Smart Inventions Inc. Co-founder and President Jon Nokes, a former biology teacher from England, began selling his super-absorbent rayon mop on the county fair and trade show circuit about five years ago.

Although retailers expressed strong interest in the mops, Nokes decided to market them directly to the public. When three established infomercial producers turned him down, he and a team of out-of-work actors and models hit the home show circuit, selling enough $29 mops to raise the $65,000 needed to shoot their first infomercial.

In 1993, they bought about $15,000 worth of air time on a few stations to test response. The mops took off and in nine months they sold millions.

Nokes, who started the company in a tiny apartment and stored the mops in rented garages, said the secret of making money is to make something easy enough for an 8-year-old to use. It has to be cheap to make but have a high perceived value. In his case, the mops cost under $5 to manufacture, but they sold for six times that much (including refills) on the air.

Another surprising secret, he said, is that a truly successful infomercial sets the stage for dynamic retail sales.

“We went into retail stores in July 1994 and during the first three months we sold one million mops a month,” he said. “In 1995, we sold almost 4 million units. This year we still sold a million or so, which is great for the third year.”

No longer using the 30-minute infomercial format, Smart Inventions now airs a two-minute version, which recently tied for first place in the short-form category at the National Infomercial Marketing Assn. convention.

Nokes, whose company also sells the “Smart Chopper” and the “Quick Sand” easy-cleaning cat litter box, said he believes infomercials are a great way for entrepreneurs to introduce new household products.

“It doesn’t matter how good the product is if the public doesn’t know about it,” he said. “When you have a new product, you need to educate the public.”

Nokes attributes much of his success to business associates and vendors who cut him some slack when times were tough. For instance, he said, when cash was tight, his media buyer and fulfillment house, hired to take calls and ship orders, waited a few extra days to be paid.

Moving mop production to Southern California also boosted profit. Smart Inventions initially made the mops in Holland, with special fabric made in Germany. But when sales skyrocketed, they couldn’t get the mops over here fast enough to meet demand.

Moving their factory to Compton, Calif. not only reduced their costs but also allowed the company to beat cheap, imported knock-offs to retail store shelves.

“One reason for our success is having a USA-made product,” Nokes said.

He said being persistent and stubborn also helps.

“Entrepreneurs who make it are people who don’t listen to people who tell them what they are doing is impossible,” he said.

NIMA’s Ourand said a flop sometimes makes a video comeback. He said a current hit, the Ab-Flex, was a dud the first time around. Sales took off when another company produced a new infomercial.

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The following fields overflowed: CREDIT = Jane Applegate Los Angeles Times