Questions for Self-Analysis
Before you spend money on a prototype and approach a possible licensee, be sure you’ve asked yourself some questions. Toy companies do not license ideas or figments of your imagination; they license original, well-developed products that meet certain criteria. Asking yourself these questions—and answering honestly—will save everyone time:
Is your idea original? Talk to seasoned toy store managers. Attend the New York Toy Fair. Read trade magazines. Conduct a patent search (see Part 4). You’ll find the answer. All too often, inventors with no memory for a product reinvent something that’s been done before. This wastes everyone’s time and does nothing to forward your position. David Berko counsels, “Becoming an expert in a category will equalize your position with the people to whom you are presenting.”
Does your idea fit the company? Be sure you understand the company’s direction and its brands. Companies are eager to see new products that complement their brands. An executive’s time is limited. Some companies publish “wish lists” for inventors to keep them focused on the most current needs. (See Part 3 for how to find prospective licensees, get through the door, and make the pitch.)
Does your idea have visual appeal? Hire an industrial designer if you don’t possess the skills to design your concept. Toy executives are accustomed to a high level of professionalism. It not only must look good, but it also must have perceived value. (See Part 2 for how to get prototypes built.)
Fast Facts
Slinky was first introduced in 1946 at Gimbel’s department store in Philadelphia by its inventor, Richard James. Since then, it has sold more than 300 million units. In 1960, Richard’s wife Bettie took over the management of the company when he joined a religious cult and moved to Bolivia. He died there in 1974.
Does your item have play and repeat play value? Child-test a breadboard or mock-up of the item. Be sure it works and can sustain interest. In the case of games, it could take dozens of play sessions to fine-tune a concept.
Does your concept have wide market appeal? Major companies have no interest in small market segments. A small business to a major toy company could be $15 million or $20 million. For a product to make the cut at larger manufacturers, it must have very broad appeal. In other words, it must sell to Toys R Us, Walmart, K-Mart, Target, and other mass-market outlets. If the company cannot sell hundreds of thousands of units the first year and then expand and build the item, it will not license the submission.
Is your product safe? All products selected for manufacture by U.S. or foreign toy makers must meet one or more safety standards. Go to the Safety tab at www.toyassociation.org to see them.
There’s also a battery of functional abuse exercises that, depending on the product, can include transit test, aging test, humidity test, drop test, torque and tension test, compression test, abrasion test, adhesion test, and life test.
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Don’t miss the award-winning website www.drtoy.com, an invaluable resource on playthings and the toy industry. The site, founded in 1995, is designed and hosted by Stevanne Auerbach, Ph.D., director of the Institute of Childhood Resources. You’ll learn a great deal from the smorgasbord of information she offers.
Can your product be manufactured, and at what cost? You may have to build it or hire someone to figure this out and see if anything would render the concept infeasible. Play value and technical elegance mean little if your concept cannot be made—or made for the right price. No matter how terrific your concept may be, the manufacturer must be sure the product can be manufactured and sold at the right price. It’s one thing to make a piece of something, and it’s another to make 2.5 million of them. That kind of development work is often just as creative as the idea itself.
Have you come up with a cost guesstimate? In costing toys, we use this rule-of-thumb to reach the whole sale price: hard cost × 4 for nonpromoted items; hard cost × 5 for TV-promoted items.
What competitive products are on the market? Be able to tell your target licensee the category in which you envision your item, as well as the competitive atmosphere. Buy competitive products and tear them apart. Know what makes them tick.
What “wow factors” make your concept unique? Demonstrate to yourself what makes your item unique compared to other products in its category.
Once you have satisfied these issues, then and only then should you embark on building a looks-like, works-like prototype.
Bright Ideas
Barbie, the world’s best-selling and most widely recognized fashion doll in history, celebrated her fiftieth birthday in 2009. Since she was introduced in 1959, Barbie has had 108 careers, represented 50 different nationalities, and collaborated with more than 70 different fashion designers. One Barbie doll is sold every three seconds somewhere in the world. To date, over 700 million Barbies and members of the Barbie clan have been sold in 140 countries throughout the world. Mattel has produced 1 billion (estimated) fashions for Barbie and her friends since 1959. The 105 million yards of fabric used to make these fashions makes Mattel one of the largest apparel manufacturers in the world. Barbie is named after the daughter of the doll’s inventor, Ruth Handler. Ken is Barbie’s real-life brother.
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