This article is a sure-fire sign of the old saying "A family that works together, stays together".
The collectibles market is hotter than ever. New products are being introduced on a daily basis and competition is stiffer than ever!
I recently had the opportunity
to interview Michael Faessier of Silver Star International.
I asked Mr. Faessier some rather tuff questions and the following
are his responses.
1. What is your Family Involvement and Feelings About the Product Line -
Well, we are a pretty close family. Mom & Dad live in Ft. Myers, Florida. My brother, Alan, is in the Navy and was recently assigned as a Recruiter to the Tampa area. As a Navy guy, he certainly understands the products, and all the positive things we are trying to do with them, beyond just "make, sell and glean a profit". He has assisted in providing some of the important and accurate "Navy" information in our designs, from unit designations to navy ship hull numbers. Even the recruiters in his office have offered an occasional comment now and again.
My sister, and her family are veterans too, and just recently relocated to Florida too. My nephew (age 8) wrote me a cute letter last week with some product suggestions.
I have two sons, Kelby (age 10) and Karl (age 9) who live in Vermont. I sent them the new color flyers about a month ago. Karl called the next day, very proud that he had already sold 4 Bean Brigade members to his school classmates after flashing the flyer at "show and tell". I asked what they both thought about the product and they said they thought it was "real cool". I asked , "are you just saying that because Daddy makes 'em?" Karl said, "no Dad, I've seen other kids with Beanie Babies, but think these are better because they have military uniforms."
I'm kind of considering making Kelby & Karl the "Exclusive Sales Reps" for the State of Vermont. We moved there when I was about 11. My parents owned a small sporting goods store in a rural town. I grew up working in my folks store, earning initially $ .15 per hour. It was a tremendous education in dealing with people, and gave me a good work ethic. Guess it was also kind of my "undergraduate in business". So, as we were developing the Bean Brigade, I thought, maybe this is an opportunity to also "give an experience to my kids, like my parents had provided to me". We'll see if they run with it.
Janie - let me also say that my "extended family" includes my colleagues here at Silver Star. One of the military "traditions" which I am trying to bring to my civilian business environment is to "care for your people, like they are family". As a Company Commander in the Army, I was responsible for 200 men and women, …and charged with caring for their families too. From what I've noticed so far in my "civilian" life, business owners/Presidents don't place as much importance on this "relationship" with colleagues/employees. To that end, my "family" at Silver Star has heavily contributed to the product development in every stage. Many of my "colleagues" are themselves military veterans as well.
2. What Inspired Silver Star International to manufacture the Bean Brigade?
Well, about 16 months ago, while reading about the explosive nature of the collectible and plush bean toy market, I came up with the idea. As a "Marketing Company", we were already designing, sourcing, selling and distributing a number of products to the retail industry. Most of them were "in-house" creations, too. So, I guess, with the combination of being just a little "creative", and a lot "former military", it was kind of natural for us to go in that direction. We are always trying to look for creative and subtle ways to try and market "patriotism". Even from a very early stage we had a vision of The Bean Brigade, and how we might stay clear from "blood and guts" action and paramilitary toys, to a cleaner and more truly genuine portrayal of the military, as "peacemakers". The Bean Brigade, we think, is truly a good "synthesis" of military meets the Beanie World.
As you may already know, I come from a military background too. I was accepted at West Point (U.S. Military Academy) and entered at age 17, and graduated 4 years later. I served 10 years after that on active duty, with my last 3 years in Central and South America. After leaving active duty in 1992, I have remained in the Army Reserves, and am now a Major. Twice since 1992 I have returned to service for "long tours" of six months each, again with duties in Central and South America. So, the military, that institution, lifestyle and profession has shaped me more than anything else.
I came up with my first product idea…Military Playing Cards…while a Junior at West Point. This is a deck of cards with military ranks on the faces and a camouflage back design. I showed pencil sketches to my classmates, who said, "cute idea, but it will never sell". So I just sat on the idea for years. Finally, years later, while still on active duty, I began to pursue the idea, going from prototype to full-scale production. But, literally along the way I encountered plenty of obstacles, and hundreds of people (and retail buyers) who said, "it will never sell". We have now had those same playing cards selling on multi-year contracts within the military retail system (PXs), and the cards are even popular at off base locations. Last year we sold them to food chains, and even some to J.C. Penney stores.
So, going back to your original question - "our inspiration for the Bean Brigade"…we have some pretty good product development experience on our Silver Star "team". And, as veterans, we can do a very authentic story line to support every aspect of this product, and hopefully make it popular and fun for the civilian marketplace at large. We don't want the product to "come across" as too "Rank and File" military - where only a military veteran could appreciate it. But at the same time, our current vision is to use the product…and all of its potential within the marketplace…as a very subtle platform to send some great messages to kids…and maybe even to some adults. We want positive messages, that inspire all of us to "be our best". We hope for people to not only love the product, but love the message that is associated with the product. Even through this line is just a toy - perhaps in some small way we can "make a difference".
3. How difficult is it to produce a new line from conception to finish?
Well, it seems simple enough when you start out, but there are literally hundreds of little details to be worked out in order to have a successful product launch. Even though I say that we have been working on the project for about 16 months, The Bean Brigade had really been back burner until the first week in January. It was nothing more than a concept with some crude drawings. But in early January, we committed some real resources to bring the product to market.
As a result of having launched other products, you kind of learn, and have a checklist, of all of the details required in order to get product #2 to market. That part is the same. But every new product has it's nuances, and I want to make sure that we at Silver Star are "smart" or "semi-informed" about all of our undertakings. So, that required that we try and "get smart" in a hurry about plush; how to make it; how to market it; and the collector's market as a whole. We've learned a lot, and still learn a great deal every day from people like yourself…and our customers. It's important to at least "listen" to everyone.
Trying to roll out this line…twelve animals plus a Tank and Hummwv…in less than six months…from a dead stop…has been a challenge. I promised product in June to retailers, and think we will just make it. But it does look like I'll have to "eat" the airfreight in order to get it done.
4. What is the turn around time before a new product is introduced?
Well, that depends. If you are asking about our new Bean Brigade members, we'll have to see what takes place when product does actually get to retailers, and we have some time to evaluate the market's feedback for us. However, I can tell you that we are already have plans for new members to appear, just as soon as we think the timing is right.
5. Do you help determine which prototypes are selected for manufacturing? Yes, right now I do. What I really enjoy most about business is designing products, and marketing. So, I really have been "down in the weeds" with most aspects of The Bean Brigade project. That's kind of a function of still being a very small Company, and giving birth to the project. However, more and more my daily duties as CEO pull me away from all "the fun stuff"…the designing and developing stuff. So, Mike is trying to become better at delegating to the very talented team around him.
Just last month I was in Hong Kong and China for nine days to visit with a number of current and potential suppliers, and visit some of the factories we are using. It was my second trip to the Far East, and very informative. As a result of seeing product being manufactured, from initial designs to prototypes, it really helped me understand what we can do better, quicker, to get product to market. I also came back with some great product innovations, which you will see in some next generation products in the Bean Brigade line.
6. Share strategies on marketing. Will your product retire? How often can collectors expect new releases?
Wow, what a question. I could really ramble about this subject. But let me go out on a limb a little and tell you some strategies, with the caveat that "I am just the new kid on the block" with plush.
First, if we are going to be successful in the collectable market, then we have to "feed" collectibility. Translation - you can't tell collectors that the Bean Brigade will be rare, and then take the same product to Kmart. Every day I am asked, "How many of these things will we make on each production run?". Like many manufacturers, I won't directly answer the question, because "it depends". I have discussed this subject with many people within the industry, and here is our philosophy : Collectability occurs when scarcity exists. Scarcity exists when "Demand" is greater than "Supply". Couple that with creative marketing efforts, and collectibility will be the probable outcome. Ty releases 4 million of a new beanie baby and that many not be enough for the collectors market. Yet, plush company 'X' releases 42,000 units of a new plush bear, and they can't give them away to retailers. So, I have to balance, and be ever sensitive to the "scarcity equation". And not to sound like a "know-it-all", but we do have some experience at watching and analyzing those type of situations. As a "Public Company" I watch how "scarcity" or the "perception of scarcity via marketing" effects "value". It effects the price of our stock, which rises or falls based upon supply and demand. I don't want the price of my stock to jump up to $100 tomorrow, but I don't have total control over that. Nor do I want my stock to stay below $1 forever either. We want a steady rise and increase in "value". Hopefully, many of the lessons we have learned as a Public Company will stand us in good stead as we aim for "the proper amount of scarcity" for our Bean Brigade.
Let me also say that we want to leave the door open to market or sell our products in "non-collector" markets. We have already had some inquiries by mass markets and fast food chains. Sales into these markets could be dramatic, positive and important for our Company. I have a special relationship with…and obligation to…our 400 current shareholders of record today. As such, I have a real responsibility to grow the Company and delivery on "shareholder value". I can not overlook opportunities for our products in these markets, or else I would be failing as a CEO.
Jaine, likewise, I already feel that I have a special relationship and responsibility to you collectors too! I feel responsible to deliver on promises I have made regarding the marketing directions that we planned to take with The Bean Brigade within the collector's market.
Question - Can one (manufacturer) do both…market to collectors and to mass…and do it well?
We've pondered that question for months and surveyed many within the industry, and concluded that there really isn't a company representing the ideal model for us. Most manufacturers in plush bean bag toys cater to just collectors. Their products may not have enough wide spread appeal, or may not be "unique" enough to stand alone outside of the collectors market. A few manufacturers market and sell the same product to everyone, without regard for the distinctions in different markets. They appear to be less concerned about the effect on "scarcity" and what may occur (or may not occur) on the secondary markets as they market their products into mass markets.
Our vision is this - and you are getting the scoop first…before anyone else…
We are developing a similar, distinctly different product called The Bean Platoon, for the mass retail marketplace. It will not be a collectable, will not have all the "bells and whistles" that our Bean Brigade products have. The Bean Platoon will not have Dog Tag hang tags, nor serial number sequencing, and it will not be embroidered. As a result, this product will have a slightly lower price point to accommodate the mass markets.
Additionally, The Bean Squad will be our premium version, smaller (about 4" to 5" tall) and will be the product we market to fast food chains and the like. Both The Bean Platoon and The Bean Squad are already in prototype.
No doubt that some of your collectors may have some concerns upon learning of this. However, in the same way that TY's teenie beenie premium style has actually enhanced interest and collectibility of their main line of products, we anticipate that the introduction of these lines shortly will increase awareness of our Bean Brigade line and their value in the secondary market. Keeping a pulse on the "scarcity" equation is…we believe…the secret.
Regarding retirements and new releases - you bet! There are rumors of a possible early retirement of a Bean Brigade member…but I won't say more than that. And, as I mentioned before, new releases are already planned, and will be launched when we think the timing is right. I think you will really like the "spin" we put on our first new release!
7. The bean bag market has been inundated with new product lines, what makes your product stand out from all the rest?
Great question. Another part of our marketing strategy…which everyone is trying to attain…is - Be CREATIVE and be different! We hope that our line will be a big hit with young boys, whom many say have largely been left out of the beanie collectable craze. Attracting this market segment could have a tremendous impact on collectibility of our line.
There are a number of ways we think we are doing this. During the recent Mary Beth's convention in Valley Forge we received many favorable comments from industry writers, from collectors, and even from other manufacturers, as "being different". Our look is very different, but yet has "time-tested" appeal we can all relate to, as in products like G.I Joe. Having Gunnery Sergeant Bowzer (our bull dog) appear in uniform (see photo enclosed) is another different angle. Bowzer talks, hands out his business cards, and even has his own web site for kids! Tell me who else does that?
In the months ahead Gunny Bowzer will appear in a variety of locations across the US, from Air Shows (where he may skydive out of planes…let's see TY do that!) to US Navy Bases, and even some local mall/retail appearances and children's hospitals. Additionally, coming real soon will be some "Club Bowzer" camouflage tee shirts and posters.
We are already getting some very interesting inquiries from schools (ROTC, Scouting, Little League) and alike to see if they can purchase the Bean Brigade for use in their local fundraising campaigns. Those are opportunities we had hoped for, and welcome with open arms. Dealers and retailers should not feel threatened by this, as we know how to balance our responsibilities to them, as well as making these "fundraisers" Win-Win opportunities for all.
8. Include a line into your site.
Please type link http://www.beanbrigade.com or coming soon, also visit http://www.sgtbowzer.com
9. Will your site be interactive? Explain
We are planning many new things for our web site and Sergeant Bowzer's web site too. For the Bean Brigade web site, next week we should have a listing of all retailers and E-commerce sites selling our products, so that interested customers can find the most convenient place to find The Brigade.
Within days Sergeant Bowzer's site should be up and running too. On this site, Sergeant Bowzer will have a Guest Book for our younger audience, and he will personally answer all emails from kids! Much more still to come too!
10. Please share any new and exciting information about your product line.
Well Ms. Janie, there really is a lot still on the drawing board, and some secrets which we want to keep to surprise you and all of our collectors. Some information we plan to leak out via industry writers and our key web colleagues like yourself. But that's all I can say for now. I hope you will afford Silver Star International and myself the opportunity to frequently update your visitors.
May Silver Star International continue to have great success with their Bean Brigade Line. Please be assured that Ms. Janie's Collector's Studio will keep you well informed of all new releases and special announcements.
