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What
the Market Will Bear
Where
are we on the make-it-yourself curve, and when will this bear bubble
burst? How big can Build-A-Bear get, and will Jerry McLean and Stanley
Block tear each other apart in their race for the remaining market
share of teddy entrepreneurs?
Block
and McLean can make some guesses about the biz, but don’t expect
any squabbling on their part. Because not only are they rivals in
this fledgling industry, they’re new friends.
Operations
and equipment vary somewhat, but both men aspire to a high standard
of business. Part of what keeps them tight-they talk almost every
day--is that they’ve both come to the rescue of stuffing-machine
owners who were left high and dry after their original providers
disappeared, or couldn’t follow through with supplies.
And
then there’s the little issue of closure…the closures
on the bear’s backs, that is. Two against the world proved
a good formula, after a major bear-building outfit went to court
claiming patent infringement on the original bear stitching technique.
The suit seriously threatened the livelihood of independent stuffers,
and a dozen or so actually went out of business.
McLean
went to Asia looking for a solution, and finding none he developed
a zipping device that permanently locks upon completion…and
promptly shared it with Stanley Block.
Block,
who says he’s made some improvements on the zipper himself,
(and shared back with McLean), explains that despite being competitors,
“We just like each other, we help each other.” Both spent
about $100,000 in lawyer’s fees on this and another issue brought
by the aforementioned company.
As
for what the market will bear (there had to be one ursinous pun),
McLean says, “The saturation in the market at the current supply
and demand will be about 2 to 3 years.” He adds, “Our
ratio (of new business) averages 75% new customers, and about 25%
that are adding the concept to an existing store.”
At
this year’s Toy Fair, McLean says he picked up 20 or so accounts
that added the stuffing concept to their plush-specific stores,
in particular. Zoos and amusement areas are also a high growth area,
and the Phoenix Zoo has even found success with hand stuffing parties
held in an old-timey barn.
Is There Gold in Them Thar Bears?
Stuffing
machines and start-up supplies average about $10,000, and it should
be noted that not everyone has struck gold with the idea. “There
are people who are not doing well,” says Block, “but they
just aren’t following instructions.” He stresses that
adherence to proven principles is the key, and for this he offers
“complete support” and manuals some customers say are
excellent.
Meanwhile,
McLean has just returned from Myrtle Beach, where he observed the
operations of a new client store. The storeowner is capitalizing
on an innovation that allows new bear owners to wear their newborn
in a backpack type of papoose. Children can enjoy the carnival rides
and handheld treats they encounter on the boardwalk, without encum-bear-ance.
(Okay, two puns)
Seems
like the idea is a winner; the storeowner just ordered 25,000 more.
Not bad for his second week.
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Stuff-Your-Own Retailer tells his story: Click
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