Wednesday, August 27, 2008

"It was the best of times, it was the worst of times"

I'll admit, using the only Dickens quote I actually know is pretty lame, but it describes my mood. This is the most invigorating time for the toy business, but also the most difficult. Perhaps I should have chosen the next part of that quote, "it was the age of foolishness".

We are making final choices for our toy selection for the Christmas flyer and the task is not an easy one. The real problem, and this is where the foolishness comes in, is that when you choose product, you actually have to make sure that Big Box is not going to sell the item below cost in desperation because they are not selling 10,000 units a day in late October. Forget the quality or originality of the product - if it collects dust in our warehouse for two years, what's the point.

As a specialty toy company - or educational toy dealer - or whatever you want to call us (assuming you want to call us something), we don't sell a lot of mainstream product, but we understand that there are certain brands the customer wants. For instance, we usually carry some select Hasbro items every year to accommodate. Last year we had a ton of Transformers - c'mon, who doesn't like Transformers.

In any event, a quick example: I want to carry the Dangerous Book for Boys Game this year. You may remember the semi-controversial book from a couple years ago that is now being made into a Disney movie (I guess it won't be controversial anymore - although somehow Miley Cyrus was for a week.... I wonder if Kurt Russel is going to be in the movie, remember the Disney classic The Computer Wore Tennis Shows). Anyway, the game retails for $19.99 but for some reason Amazon is already selling it for $12.21. That is below our cost. It's not even Christmas yet, nobody is even really selling the item yet, and the lowest price otherwise on the internet is $19.99. It is beyond me....

Back to my selections, maybe I'll have to just stick with what I know: Iron Man Rocket Blaster. Oops, price is already being dropped on that....

Thursday, August 21, 2008

I Really Need to Stop Reading Books About Social Networking

Well, I just recently finished reading Pete Blackshaw's book, Satisfied Customers Tell Three Friends, Angry Customers Tell 3,000. I would highly recommend it - I bought a copy for my Director of Business Development & Internet Strategy Justin Cresswell and gave my copy to my friend and top sales rep Brent Zampier as well. It's a quick read and gives a very informative look at what Blackshaw calls "consumer-­generated media". I have been gleaning information relative to social networking from Justin and other staff and sources over the past months and years, but until I read Blackshaw's book, I really couldn't put my mind around the concept or even the practicality or relevance of it.

Now, I am reading PR 2.0: New Media, New Tools, New Audiences by Deirdre Breakenridge and I think I am finally starting to tap in. I have only just delved into this one, so no comment yet - but it seems to be a logical next read for me.

Back to Blackshaw's book, one of the concepts he does well to elucidate (for me anyway) is the importance of transparency in marketing (as well as customer service, general business practices, etc.).

Let me illustrate my understanding of transparency. I have always envisioned this board room scene taking place in a Big Box supply company....

"Well, our delivery service is slow and our fill rates are way below average. How much will it cost to fix it?"

"It will cost us $100 million to fix the problem in operations."

"Wait, if we just spend $20 million in advertising to convince the consumer that our service is actually fast and our fill rates are above average, wouldn't that solve the problem more cost effectively?"

"Great idea, let's do it."

But wait! With the newly empowered consumer, this is beginning to become problematic. Eventually, it may become nearly impossible. You can advertise how great your service is as much as you'd like - but that won't stop the "flamethrower" (another Blackshaw-ism, denoting the angry, vindicative and powerful blogger) from trashing your company with a vengeance. And in a case like this, exposing the truth - and the dishonesty in the company's pitch - the lack of transparency.

Tuesday, August 19, 2008

Karito Kids in time for Christmas

We received our initial shipment of Karito Kids dolls and I am impressed. I plan on featuring them in our Christmas Catalog Flyer that we are putting together right now.

It is nearly impossible to find any dolls made in the USA, so we do try to make extra effort to find dolls that, even though they are made in China, are of a high quality but also are special and unique. These dolls certainly fit that mold. I am hoping that they will be a nice alternative for people looking in a similar category of the American Girl doll line (also manufactured in China).

Now, I will admit that both my girls have American Girl dolls. And, for someone who owns their own toy store, this is a tough thing to divulge. To be honest, I have actually taken my girls to the store in Manhattan as well. But, the American Girl line is sold exclusively by the manufacturer in their own stores, no love for the specialty toy retailer like myself. Again, as one who owns a toy store, it is always hard to admit that you have given your children product that you do not sell yourself. I always blame extended family or Santa Claus.....

Back to Karito.... What makes this line so unique is, that when you purchase the doll, you receive an activation code that allows you to designate a portion of the purchase price to one of four categories within the charitable foundation KidsGive. Furthermore, kids can continue playing games and learning online to earn points that allow the ability to help designate more charitable giving.

Quite an inventive product - lots of outfits available as well, along with a new line of Travel Charmers soft dolls coming this fall.

Friday, August 15, 2008

American Manufacturers Can Sill Excel

Recently, we had a customer with a day care center that purchased a dozen Kindermats from our store earlier this year. The customer contacted us and let us know that they were very unhappy with the mats, they had fallen apart and they were duct taping them just to get through the school year.

I spoke to the customer personally and expressed my surprise, because normally we do not hear anything negative about this product. (Unfortunately for me, I had the customer send along pictures to me directly so I could contact the manufacturer. I proceeded to lose track of the customer's email in the shuffle. In any event, the customer reached out again to me for a resolution. Sometimes I try to take care of things myself to make sure they are done correctly and then I occasionally drop the ball. Maybe I should rely more on my very capable customer service staff to handle issues. In any event, I apologized to the customer for the delay and assured them that the manufacturer would take care of the problem and, if not, we would take care of the problem.)

Back to the story at hand, I spoke to the manufacturer initially and, I will confess, I was not enamored with the response. They explained to me that this mat was basically a disposable mat and was intended to only last for one year or so. At the time, I did not realize that the mats in question were purchased only 8 months ago - nor had I made the connection that this description of the product was very accurate. We only charge $7.99 for these mats and they are a good quality, but certainly not intended for longevity. Nor should longevity be expected we such a low price point.

In any event, I placed another call to the manufacturer and they explained that the item did have a 1 year warranty and they would be happy to replace all of them for the customer. So, here you have a manufacturer, manufacturing in America, believing in the importance of customer service and standing behind their product 100%. They took the time to explain to me the intent of the product - a disposable rest mat at an extremely affordable price. They also made it extremely easy for us to honor the warranty with the customer. We didn't have to make the customer jump through any hoops, and we could deal with the manufacturer for them so the customer didn't have to be burdened with a second point of contact.

So, if you are looking for rest mats from an affordable manufacturer, that manufactures product at home in the USA (granted I don't believe all of their products are made here - this particular mat is), has integrity and believes in the value of customer service - give Peerless Plastics a hard look.

Wednesday, August 13, 2008

Amazing Grace

I was reading from The Imitation of Christ by Thomas a Kempis this morning (from Book 3, 54th chapter "The Different Motions of Nature and Grace") and my thoughts began to turn to the concept of grace in general.

Before I proceed, I suppose a little background might be helpful. I believe that Jesus Christ is the son of God. All humankind have sinned and separated from God, and through grace in the person of God - Jesus Christ - we can be reconciled.

I also believe that what we believe as people completely defines us. So this belief shapes everything I am and everything I do (or it should anyways, sometimes I fall quite short of this, but that's another matter entirely).

To get to the point at hand - bear with me here - my least favorite saying of all time is "It's not business, it's personal." Of course it's personal! Are you kidding me? Business is about relationships - relationships by definition are personal. We should act in business as we act at home. We should act at work as we act in life. Far too often these days I hear people justifying decisions as "just business". Our livelihoods depend on "business"; our families depend on "business" -- my kids' futures are dependent on my "business".

Back to grace.... The best definition I have ever heard of grace is "God's unmerited favor." So, if grace is such a powerful concept, one that I build my understanding of God around, what about my business? Should we treat our customers with grace? Does that even make sense?

Of course it does! Customers shouldn't have to earn our respect. They shouldn't have to jump through hoops to purchase from us. Unmerited favor is a good concept to build our customer service philosophy around. What a great way to capture new customers and keep the ones we have. Isn't that what a good salesperson does when they approach a prospect? They treat them with unmerited favor in order to begin to build a relationship and create an emotional connection that will hopefully, eventually, compel them to buy. Isn't that how we handle a customer service issue, even when it is not the result of anything we did wrong? The customer orders the wrong item, we correct it. The customer changes their mind - that's O.K., we help them find something different.

Sure, there are points when the customer is unwilling to be helped no matter what, and there are other times when, as companies, we have to refuse to do business with certain clients. But these are the exceptions, never the rule.

For me, its simple. God has treated me with grace, so what choice do I have? That is how I should treat my family, my friends and my enemies. So, if business truly is personal, I think a little unmerited favor would go along way with our customers.

Tuesday, August 12, 2008

Kiss Your Brain

Well, it appears it is that time of year again. You may not be aware of this, but there is music out there that kids are addicted to that is NOT performed by Miley Cyrus or the Jonas Brothers. In fact, the cult like following may not be near as mainstream or wide in appeal (its tough to draw the numbers that a Disney backing will), but I would argue that it may be even stronger.

I am talking about Dr. Jean. Yup, that's right. She has never appeared on American Idol, but the kids love her. Even more, the teachers love her. When we started Gile Toys in 2006, we quickly identified this music product that stood out quite significantly in our sales, especially this time of year as back to school approaches. I couldn't believe the volume we were selling online, so I did the one thing any other man would do. I brought a CD home and asked my wife what the deal was. It turned out that the local teachers were crazy about her CDs and excited to find a local place to buy them.

So, I've listened to some Dr. Jean classics, like Kiss Your Brain! (available, oddly enough, on the 2003 release, Kiss Your Brain!) and Tooty Ta (what I would call the good doctor's Stairway to Heaven, available on the 1998 release Dr. Jean & Friends). I have to tell you, I still don't get it. But, I will say this - I've been in the room and car when my girls listened and they get it.

To be fair, I guess there is something strangely catchy about all Dr. Jean's songs. And, there is a really genuine sound to the music. Dr. Jean is not a real strong or exceptionally gifted vocalist (I am sure she would admit this openly), but she seems to love kids. And, I think the kids really pick up on that. As she says on her website: “Thanks for helping me put a song in the hearts of children!” I get the sense that she really means it.

Monday, August 11, 2008

Glen Hansard and Marketa Irglova - Swell Season at the Pines in Northampton MA

Well, the rain was not enough to keep people away from Look Park in Northampton Massachusetts last night. And, for good reason. The Pines Theatre was host to a tremendous show that brought Glen Hansard and Marketa Irglova (The Swell Season) along with Josh Ritter to a exceptionally inviting outdoor venue to perform some great tunes.

If you don't know who The Swell Season is by now, go out to your locally owned, independent rental store (or go to netflix.com if you must) and rent Once. This is one of the best movies from last year and the soundtrack is outstanding. It is certainly the most relevant musical I have probably ever seen - although, not so much for the kiddos, it is a bit F-bomb riddled.

In any event, Hansard is captivating on stage. His personality and general mojo seem to be plucked right from the script of his movie. Seeing him on stage performing with Irglova makes the memory of the movie seem more like a documentary. In any event, I am not a music critic by any means, but if these guys are coming to your town, you must go.

Also, cheers to The Pines at Look Park. Being from upstate NY, my frame of reference for an outdoor venue is SPAC. The Pines is much more intimate (of course, much smaller) and they do not have a segregated "Beer Garden" where you have to be locked inside in order to consume your contraband beverage. For such a small place, I also thought it impressive to have Smithwick's, Harp and Sam on tap. Additionally, there is an historic diner down the road called Miss Florence that's worth a peak.