Tales of the 'Cat--The Inside Perspective

[BadCatMatt]

February is the time of year where we actually get a moment to take a breath, reflect on the past and plan for the future. I noticed that our name has been batted around few times during the past year and thought I'd take a few moments to clear up some facts and misconceptions that might exist.


What is Bad Cat?

Bad Cat is a California Corporation that employs–4 people. Rob (CEO), wife Maria (CFO), Matt (Customer Service Manager), an Ray (Packing and Graphic Arts). We also occasionally hire a teenager or two when things get really busy. Like most business owners, Maria and I have risked everything to make Bad Cat a success; our careers, our home, our children's education . . .Everything! Toys may be fun and games to most people, but to us its serious business. When a person does business with "Bad Cat", you are really dealing with me. "Bad Cat" is my creation and I take pride in its success, while also taking various daily issues quite personally. Compliments are accepted graciously and in all forms. Complaints are trouble shot and remedied with apologies given if warranted.


Rich?

Hardly. One could drive past our house 1000 times and never take notice of our modest middle-class neighborhood dwelling. As CEO, I make a little less than I did as a public high school teacher. Why? That's what the corporation can afford to pay me. Margins are razor thin and the average 1:18 aircraft yields a net profit of only $1-$3 or so. It is a misconception that we pay pennies for merchandise and sell at highly inflated prices with big profits. As one of the most successful Internet toy companies, it surprises me to find so many new entrants into the market. If things are tight and existence minimal with us, how do less successful firms survive, or do they? Do the people who start these new enterprises think they will become wealthy? Not in this business. The toy business is a tough sport.


Massive Bad Cat Facilities?

Bad Cat shares a new warehouse building with a tool and die shop in an industrial park–not glamourous but effective. What we show on our site is what actually have in stock with the exception of the (whirligigs, which are made on demand by a local craftsman). We use space as efficiently as possible and are able to fill most orders within a few minutes. Everyone employed here chips-in on packing duties. When my name is signed on the receipt, I processed the order and packed it.


Orders?

We process between 50 and 500 orders per day.


Returns, Defects, and Errors

We receive and process returned merchandise everyday. A smigeon of this merchandise comes back due to our error; we have shipped the wrong item, omitted an item, etc.. Of the 9000 orders we filled during the holiday season, we documented 11 errors cause by our personnel–we hope to improve on this statistic this year. Other merchandise is defective–an error caused by the manufacturer. Sometimes the manufacturer will give us a credit for the defective merchandise, sometimes not. In all cases, shipping charges and labor to service these defectives are not compensated. It's never fun paying for someone else's mistake. Sometimes the customer just doesn't want what was ordered. In all cases, we try within reason to produce a happy ending, even if the issue wasn't our fault.


About Forums

The various Internet forums are a great place for collectors of all ages to discuss their hobby. These forums do provide us with good, solid consumer information and enable us to encourage the manufacturers to produce what our customers want. However, we are aware that the wishes of forum posters frequently do not mimic the wants of the market as a whole. Eventually, we are able to read most of the posts made on this board. Our best data suggests that this forum contributes about 5% to our sales. A number significant enough to address collective issues but small enough as not to hold us hostage (occasionally evil doers will resort to posting extortion if we do not fully comply with their demands).


No soup for you?

This thread is kinda funny as I have two framed, autographed pictures of the real Soup Nazi here in my office and exchange emails with Larry Thomas (the actor who portrayed him) on an occasional basis. We also do business with a number of other celebrities, some of whom are big-time collectors (sorry, no names--confidentiality). We also supplied a number of pieces to the latest Mission Impossible movie coming out soon.


But Seriously, No Soup for You?

We must occasionally and unfortunately terminate our business relationship with certain individuals. During the past year, this has only occurred about ten times out of thousands of transactions recorded. Usually, one or more of the four events below has occurred:

1. Customer's account is consistently loses money. Returned merchandise costs us $25-75 per transaction. The costs associated with returns include the item (which some manufacturers will not issue a credit), postage for new merchandise, expensive labor to process the paperwork and handle the return, and credit charges. We understand that the occasional defect is made by our suppliers but some guys will ship back 50% or more of what they receive on a consistent basis. These "returners" will send back anything for even the slightest imperfection (like a fly speck on the bottom of pilot's seat). When the returns become excessive and the reasons minute and the account losses mount, we have to end the relationship.

2. Liars, cheats, and crooks. Everyday, at least on person tries to rip me off. Fraudulent credit cards (our security system catches 99.9% of these). Claims of non-delivery (actually happens but very, very rarely). Claims of merchandise missing from order (we photograph many orders for proof and documentation). Defect claims in order to receive additional free parts for dioramas (We caught one guy getting spare wings from us and new fuselages from a competitor). We usually get fooled only once.

3. Recurring customer service people. Some guys like to have an issue. It gives them something to do. We have customers that call us nearly everyday about something that isn't perfect. They may only order once a month, but there is a daily issue. One such customer, frustrated with the holiday break, found my number and called me at home–on Christmas Eve! This type of individual becomes very expensive from a labor and resource perspective with costs far stripping any revenues.

4. Troublemakers. Rude, mean, nasty, and threatening individuals are an unfortunate fact of life. We can take a little abuse but at a certain point we must bid these humans adieu. Likewise, writers who take their issues to the general public to vent are also sent on their way. What I find truly incredible is that this type of person almost always try to sneak in an order again in a few days, of course, they never post that. They drive away many potential good customers, which is unfortunate.

Virtually every customer who orders from us is valued and truly appreciated. It is the rare few listed above that are perfect . . . for our competition.


Bad Cat's Roll in Manufacturing

We are mistaken for a division of 21st or BBI on a daily basis. The fact is, as most of you know, we are related to neither. They are simply our two main suppliers. We draw from a number sources both these are our two biggies. We research new products and submit proposals to each of these suppliers but do not actually produce any product ourselves.


The Future

We will continue to offer exclusives for the upcoming new year. We have several projects in the works and will make announcements when the time is right. Coming soon is the line of Trumpeter/MRC models in 1:72.


Thanks again for your business and happy collecting

Rob CEO
Bad Cat Toys, Inc.

[tmanthegreat]

Thanks, Matt, for the very detailed description on the workings of your business. This should will clarify up a few concerns that have been expressed on this board and it also provides a very interesting perspective into the hidden world of the online retailers. What you say regarding the structure and mechanics of your business applies to the hundreds of other private retailers (large and small) that help make this collecting hobby what it is.

Thanks for the hard work and great customer service, and you can count on at least my future business

[Birddog]

Thanks for all your hard work and time. Bad Cat is truly a blessing to our hobby. Can't wait to see what you are working on for this year. Keep up the great work.

[Gunner]

All the best, Matt!

You've been MY favorite e-tailer for a long time...

[toyktdlgh]

Wow, now that really sheds some light on things. I have purchased many planes from you in the past with absolutely zero problems. Thanks for the info on how things work and keep up the good business.

[thetatau87]

Thanks for the great summary of your business Matt. I have been a loyal Bad Cat customer and will be even more so now. My parents are small business owners that employ a total of 2 people full time (themselves) and occasionally myself or one/both of my sisters. I plan to be a small business owner in the future so I will continue to support your business and promote it to others whenever I can.

I have one suggestion; add multiple pictures of the products you sell. I like to get a close look at all the details of the 1/18 scale aircraft I buy online so that I know I will not be disappointed when it arrives on my doorstep. For example, it was hard to tell how much better the BBI mustang was than the original 21c version. For this reason I held off ordering the BBI P-51 until I saw more detailed close ups of the details elsewhere online. This may cut down on returns a bit as well. If customers can better see what they are getting they may be less likely to order it and then decide if they want to keep it after it arrives.

[scbvideoboy]

I had bought many, almost all my 1/18 stuff from Walmart before limited availablity forced me to buy online.

My 1 main source online has worked well but lately they seem to be dropping orders and service is failing...

So I went shopping and found Bat Cat! They have been great, fast email support and quick delivery! If their site says it's in stock, count it!

I tend to spread the orders around till I find 2-3 great online shops and then stay with those.

I run a side business also, and I know what dealing with customers are like! Plus my 8-5 job involves problem solving with customers.

It's amazing how the toy collectors are in general as I have been involved with the Matchbox guys since August and they too express the same ideas.

One guy even mentioned publicly that he buys stuff and takes what he wants, does a switch and then returns it!

Those types need to showed the exit...

Dave

[vulgarvulture]

Our best data suggests that this forum contributes about 5% to our sales.

Wow. I figured it was low but not THAT low.

[der Vogelfänger]

Rob,

Simply EXCELLENT. Thanks, for BadCat!


derVogelfänter

[lsc1002]

I think it is a nice personal touch how someone signs the invoice. You guys do a great job.

[Jericoeagle1]

My thanks as well Rob,

After being so frustrated with the search to find things as Walmart I began to look for online dealers. I discovered your place sometime ago and never ordered from somewhere else since. I've consistantly gotten my orders on time and in great condition. I hope your business continues to prosper.

[CW4USARMY]

Rob/Matt,

I've been with you guys for years and appreciate your excellent service!
I was one of those few that was sent the wrong item but called and spoke with Maria and it was taken care of immediately. You guys are doing great and I will continue to order from you

VR,

AndyVW

[Aviatornut.com]

Thanks Rob for laying it out how difficult this Business is.
you guys are doing a great job and i only hear the best about you guys.
keep up the good work.

[immeww2]

Thanks for sharing your business operations with us. We sometimes forget how much work it takes to operate a business let alone try to make it a profitable one.

[Teamski]

Very well stated Matt! I am thrilled that you are around to absorb my paychecks! You know I have consistantly ordered from you, so make sure the F-86's you pack for me are specially selected for quality, hehehe. Watch, now that I said that, both will come with one wing!

Really, keep up the great work. I didn't know that your profit margin was that tight!

-Ski

[Quixote511]

As a fellow history teacher, I think I will stay with problem parents and summers off rather than try and walk in your shoes. My hat is off to you and your staff. I have nothing but nice things to say about you all.
Aaron

[JimBob55]

Thanks for the information and the inside look. I, for one, appreciate what you do. Most of my 1:18 aircraft have come through your shop. Keep up the good work!

JimBob

[DocTodd]

Rob, I appreciate the info as well as the work you all do. I also did not think the margin was that tight, although I knew the toy business was a tough one in general. Keep up the good work.
Thanks,
Todd

[pilotman]

Agree 100%.
As i have said earlier, badcat inspired me to start my own business because of their great service.
If I can attain 1/2 their success and quality I'll be a very happy camper.
Happy collecting everyone!
Adam.

[GooglyDoogly]

I feel your pain. I work in sales too and I find most people act like the "The customer is always right" saying is in the constitution!

They also demand perfections on the toys you sell and get mad at you if you send them a toy with a slight defect. I think they are confusing these mass-produced toys to the Tamiya Masterwork series. It's funny because I bet that if they see a plane they like at Walmart, they'll purchase it anyway even if it has a defect, because that's all Walmart has.

Geez, I could understand wanting a replacement part if the windshield cracked, or some other defects that is hard to fix, but come on! you should be able to handle a little bit of super glue and dab some paints, or you shouldn't be allowed to buy from the internet with a credit card.

[JoeS]

Hi

As most know that I'm based in the UK and 99.9% of all my planes have been provided by BadCat. I rely on them to supply me the latest offerings. Just wanted to say that they provide an excellent service and treat international customers like myself extremely well.

Case in point about two years ago I ordered my first aircraft which was an F-18 Marauder exclusive. As per Murphy's law it went missing in the post and I resigned myself at the time of not getting the plane after a month of waiting. Rob investigated but couldn't track the lost plane and to my surprise and delight sent me a replacement aircraft at no cost to myself!

Now that's what I call service! They didn't have to do that and incurred a loss on my behalf. Ever since that experience I have stuck with them, you can depend on these guys for both honesty and integrity.

Thanks, Rob, Maria, Matt (who has the pain of processing the international orders!) and Ray. Wishing you further success in the growth of your business.

- I'm still waiting for that missing Maruader to show up, if it does it's heading back to California to where it belongs.

Regards

JoeS.

[JohnLumley]

64 aircraft delivered........ Nuff' said.

[luftpanzer]

I feel your pain BadCat. I to have a small business, ECS MILITARIA but smaller. Im the CEO, CFO Web designer wharehouse manager janitor all in one. And I can back up bobcat's claim that we only make 2-3 dollars on an item. When you buy an item from Walmart like a FW190 in 1/18th scale for 34.95 that is pretty close to what us small fish pay in whole sale
21stC. I have a full time job and do this part time. Its really more like a hobby then a business for me. My Whare house is the clossets and bedroom. Witch my wife hates. Soon Ill be moving to a house with a detached garrage to make my operations center. Most of my business is done at military shows, alittle is actualy done online. Dont look for my web site its going into major changes now that I have my own web server set up. When it is finnished I will post a link.

[victory]

Thanks Rob, I appreicate the insight to the business side of our hobby. I do have a question though. What happen to the ability to e-mail questions to you guys? I notice you only list a phone number to use for contact.

[Cripesamighty]

I agree with everyone else here, BadCat is the best! I've only ordered two planes from them but the service was great. They were the only place I could find the Cripes-A-Mighty Mustang I was wanting. I also pre-ordered the P-38 Pudgy and was pleasantly surprised it arrived as fast as it did.

I will still try to find the stuff I want at Walmart, partly because they are cheaper(I'm on a budget) but mostly because I enjoy "the hunt". But when I decide to order online I will always order from BadCat. And since I know now that they are a small family business, I will definately try to throw more business their way....Thanks Rob!

John