Tales of the 'Cat--The Inside Perspective
Posted: Wed Feb 08, 2006 12:41 pm
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.
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.
I figured it was low but not THAT low.
