On a trip to Hong Kong, our president found a stapler at a stationery trade show that, instead of dispensing regular staples, dispensed a metal hook that when stapled to a package became a "J-hook," which allowed the item stapled to be hung immediately on a display. The J-Hook Dispenser was a unique and beautifully made product.

We contacted the manufacturing firm in Japan and negotiated exclusive marketing rights in the United States. We purchased 1,000 units to be used as samples to open the market, and we began developing appropriate sales tools. Within several weeks, however, we received a letter from the Japanese company stating (for unknown reasons) that it would not continue to manufacture this unique new product.

Lesson learned: It's a very risky business developing new products!