Episode #176: How To Prepare For Your Next Specialty Toy Trade Show
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If you want to get your toy or game product into toy stores, have you considered starting with specialty stores first? In this episode of Making It In The Toy Industry, learn how you can start selling your toys in specialty retailers. If you don’t know what a specialty toy retailer is, don’t worry! This episode has got you covered. You’ll learn what specialty toy retailers are, how to connect with owners of specialty toy stores, and why you might want to start your journey as a toy entrepreneur in the specialty market.
This episode provides insight into the upcoming toy trade show, the ASTRA Marketplace, and addresses the costs involved in setting up a booth, as well as pre-show preparations which can range from DIY solutions to professional setups. Discover what is most important to the retailers attending this show, find out what other manufacturers are attending, and learn how this opportunity can be a worthwhile investment for your toy business.
EPISODE CLIFF NOTES
Learn about the specialty toy market and its potential benefits for your business [00:02:05]
Find out the costs of setting up a booth at a trade show [00:16:22]
Discover the importance of connecting with retailers prior to the trade show [00:17:35]
Get insights into effective marketing strategies for the trade show [00:18:15]
Uncover how market research and pricing affect your trade show success [00:19:00]
Who can benefit the most from participating in the Astra Marketplace and Academy? [00:20:00]
Utilize the 2023 show floor plan to gauge if the event is right for you [00:20:24]
Find out about payment terms and the importance of cash liquidity in the trade show context [00:26:58]
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This episode is brought to you by www.thetoycoach.com
Join ASTRA here.
View the 2023 ASTRA Marketplace and Academy Floorplan here.
Register to attend the show here.
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EP 176-raw
[00:00:00] Azhelle Wade: You are listening to Making It in The Toy Industry, episode number 176.
[00:00:05] Hey there, toy people, Azhelle Wade here and welcome back to another episode of the Toy Coach Podcast, making it in the Toy Industry. This is a weekly podcast brought to you by the toy coach.com. Now if you've got an idea that you wanna see in stores, You might be thinking, where should you go to make that happen?
[00:00:35] Well, if that's you, I want you to listen up because today's episode is for you, my friend. Today we're gonna dive into this specialty toy trade show that you need to add to your calendar for next year and why in this episode we'll explore the upcoming Astra Marketplace and Academy. What it is, how to get involved, and why doing so might be the right move for your budding toy or game company.
[00:00:59] Now by [00:01:00] the end of this episode, you're gonna know how to start selling your toys in specialty retailers, what specialty retailers are, and why you might wanna start with them. The last part of this episode will answer their question of, is this show right for you by taking a look at some of the big and small companies that will be there?
[00:01:16] You ready? Well, let's dive in. To start, we are gonna start with something we haven't done in a while, and that is my definitions. So let's start by defining what a specialty retailer is. Now, specialty retailers are independently owned stores that focus on specific niches or product categories.
[00:01:34] Now specialty toy retailers focus on specific niches of toy and game product categories, and the goal of the owners of specialty toy stores is to create this curated selection of products that's tailored to the people in their local neighborhood, and they want to create. A high quality and more personalized shopping experience for those customers.
[00:01:57] So specialty toy retailers take pride [00:02:00] in bringing in the highest quality products to their people. So that means they're very strategic about the products that they fill their shelves. With most, really enjoy getting to know the creators behind the brands and products that they bring into their stores because they themselves are small business owners and thus they have a deeper appreciation for that hard work that toy manufacturers put into their products.
[00:02:23] Now if you want a starter list of specialty retailers that you can sell your toy or game products to, I've got one for you. So I want you to head over to the toy coach.com/ 1 76 where you'll find the show notes for this episode. Scroll down to mentioned in this episode, and look for that starter list of 30 plus stores across the us.
[00:02:45] Now before you can sell your toys into specialty retailers, it's important that you become familiar with the market. So I always recommend beginning with that focused market research trip first, by identifying the specialty retailers the. [00:03:00] Stores that align with your toy or games target audience, visit those stores, study the product they have in the store, the price point, the theme, the category, and use that research to gain an understanding of the store's target demographic and their store identity, and even their store aesthetic.
[00:03:17] Now is that store gamer focused? Is it education focused? Is it collector focused, gift focused? Other questions to consider are what is the store's median price point? What is their opening price point, meaning their lowest price point? This type of research is gonna help you tailor your product pitch, and even position your product to match their customer's needs and fit their current assortment.
[00:03:46] Now market research is the most important step before you head into a trade show. Why? Because if you skip this step, you could end up with a trade show with a product that is simply too expensive or not the right [00:04:00] size for a specialty toy retailer to put in their store on their shelves or sell to a consumer.
[00:04:05] Or you simply might have a product that just simply doesn't line with a retailer's product assortment or target market. Now all of this importance in market research is why I hyper focus on market research in module one of Toy Creators Academy. If you're one of my students, you know this. Now, if, if you want to access that training right now and you are interested in, have been considering a Toy Creators Academy, you can actually get started today.
[00:04:34] Head over to toy creators academy.com for more details. Now at this point you might be thinking, oh, great, Elle, now that I have your starter list of specialty toy retailers from visiting the toy coach.com/ 1 76, and I have this guide from module one of TCA Toy Creators Academy. I think I got everything I need and I'm gonna go pitch now, but [00:05:00] hold on.
[00:05:00] You do still need to go to in-person shows like the one we're going to talk about today. Why is that? You've got to build relationships now. You can build and borrow relationships. Doing one or the other is key to success. If you are trying to get into the specialty toy retailing market, what is the difference between building and borrowing?
[00:05:23] Let's get into it in order to build. Or borrow relationships you're gonna need to attend in-person trade shows like the Astra Marketplace and Academy, or to borrow relationships. You can work with sales reps who will help promote your brand and product to those specialty toy retailers that they have existing relationships with.
[00:05:44] Now you might be wondering, why should you even start with specialty retailers? Well, as I said earlier, specialty retailers do cater to this targeted customer base, and that base often appreciates really unique. [00:06:00] Higher quality products, and because of that higher quality, that unique focus, there's often more room in specialty toy stores for higher price products, which means that there can be more room for profit margin for you, the creator, which is normally helpful because men, new manufacturers often start with really low MOQs, AKA minimum order quantities.
[00:06:26] They normally order smaller quantities to start out, and that smaller quantity usually comes at a higher price. So having an opportunity to sell at a higher retail price gives you more room for your wholesale price and thus gives you more room for profit. If I've lost you at all here, uh, just head over to toy creators academy.com.
[00:06:49] You can learn all of this in depth. In that program, you can start today. Now, additionally, the lower volume of orders that you will get from a specialty retailer [00:07:00] in comparison to like a big mass retailer is actually a good introduction for someone just starting out in the industry. So set your shipping product yourself, or you're using a third party logistics service at three PL to ship your orders, starting with a lower volume of orders that you'll start to get in the specialty retail.
[00:07:19] Space when you're just starting out. Is a great gentle introduction to wholesale so you can start estimating your costs and the time investment of shipping out your own product or the cost investment of using a three PL and warehousing product there and all of that. Now further, this low volume. Allows you to order lower MOQs.
[00:07:41] So yes, you are technically spending more when you order those lower MOQs, but you're giving yourself the flexibility to update and alter your product as needed because you don't have this mass amount of. Inventory that you're sitting on. And yes, you can be earning less when you first start out, [00:08:00] um, with small orders from specialty stores, but again, that's lowering your risk.
[00:08:05] You don't have to buy deep on inventory to start even to start with multiple stores. Right? By aligning your toys or games with specialty retailers, you tap into a passionate audience who actively seek out specialty stores for their shopping needs. That association can enhance your brand's image, elevating it to be more luxe, be more high-end fit in with that specialty toy market.
[00:08:31] Especially if prior to being in specialty stores, your brand was focused on direct to consumer, right? Delivering only from your website to its customers, that will increase the special, um, exclusive nature and feeling of your brand. Further becoming a part of the specialty world gives you a chance to build that loyal customer base of retailers who are more likely to be repeat customers than your [00:09:00] individual consumer customers.
[00:09:01] Right? So we know our consumers aren't gonna buy the same thing over and over again, but retailers who have multiple customers coming into their store, Are likely to replenish on a specific item if it's selling well. This gives you the potential for a higher customer lifetime value, the potential for a long-term growth and expansion of your brand by establishing that strong presence in this overall specialty retail market.
[00:09:27] And remember, there's thousands of stores right in this market across the us, more across the globe. Now example, stores to consider that aren't toy stores are gift shops, grocery stores with a toy section, convenience stores, all these things. I'm gonna give the link one more time if you wanna check out the.
[00:09:45] A free specialty store list available@thetoycoach.com slash 1 76. It's just a starter list to get you going.
[00:09:53] I'm interrupting this episode to answer a [00:10:00] pick my Brain form submission. What is Pick My Brain Azhelle. You might be wondering, well, I started a new thing on the toy coach.com. If you head over to the website right now, in the menu bar, you'll see something that says, pick. My brain. It's a place where you can send in a question for me so I can answer it on my next podcast or YouTube episode.
[00:10:20] And we've got a question today. So today's questions from Jessica. says, I'm a soft toy designer and I've been offered a job at a specific toy company. It's based in America, so I wanna make sure that I ask for the right salary. What would you recommend? I normally freelance, but this would be full-time as head of product.
[00:10:40] I also have 13 years of experience behind me. I would really appreciate it as I'm based in the uk, so not used to the toy industry in the us. Thanks so much. Jessica, congratulations. First of all, that is amazing. So it depends on a few things, Jessica. It's gonna depend [00:11:00] on the, how much money the company is generating, but also the cost of living in the area in which the job is located. So, head of product, that name is a, a little vague for me. I'm not sure if that's director level or VP level. So I would do research. I always used Glassdoor as my, research tool for, comparing different salaries, making sure you find a similar title at a similar sized company. also look at the job boards on women and toys. Other resources to look at our LinkedIn, because you can see jobs salaries. Now for most of the jobs posted in the us. Another great resource to look at is the website toy jobs.com. The recruiter that runs this website actually features toy jobs that he has placed people at in the past. And you can see there, the salaries. So you want to look for something similar note, the size of the company and adjust [00:12:00] your range accordingly. I'm thinking this head of product role could probably put you in the range of 90. To maybe 1 20 us. This is just a ballpark. I'm not a hundred percent sure of the company size, and even that position had a product. Can be at varying levels, it could be director level. It could be VP level. I'm not sure what level that title really falls on during that is going to have a huge impact on the number I just gave you. Good luck. I'm sure you're gonna do great things.
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[00:12:37] Azhelle Wade: So now that you have a clear understanding of the specialty market, let's talk about how you can break into it, right? How you can start selling your product there. One of the first things that I recommend for those wanting to sell, product into specialty is to join the organization known as Astra, and take part in the Astra Marketplace and [00:13:00] Academy.
[00:13:00] If you've also been following along with me for some time, And you're on my socials. You might have seen the Astra recently held a toy boat earlier this year, which was also a great opportunity to break into the specialty market. But today we're gonna focus on the Astra Marketplace and Academy because it's coming up in less than a month. It's almost here now. The Astra marketed place and Academy happens in June at different locations across the US every year. This year it's taking place from June 11th to June 14th at the Greater Columbus Convention Center in Columbus, Ohio. This is a toy trade show and an educational event where you can connect with and grow relationships with specialty retailers. The Astra Marketplace and Academy spans over four days offering an array of networking and learning opportunities, workshops, panel discussions, and it will provide insights into industry trends, marketing strategies, retail best practices [00:14:00] through their educational sessions. Now this year the full conference badge includes various educational sessions where you can learn from various toy industry experts, from buyers, product developers, and designers like myself to those working in sales.
[00:14:15] This show also features a kit and game event where buyers attend to test and play with new game products. There's always an opening night party, a toy sink battle. Yep. Toy sink. Think Tom Holland's performance of umbrella on lip sync. Yeah. It's kind of that level of entertainment and prizes and raffles to end the overall show.
[00:14:38] Now, the main event of this trade show, Is of course the trade show itself, which features over 300 toy manufacturers with booths ranging from tabletops to elaborate large 20 by 40 foot experiential booth displays. but let's talk about cost. If you are seriously considering attending the show, you might wonder how much [00:15:00] is it gonna cost me. Your cost will vary depending on your Astra membership level. So a 10 by 10 booth starts at $2,000, but again, it can be higher depending on what tier of membership you have. Astras membership is offered in tier, depending on your business and membership needs. Now, if it's your first time exhibiting at Astra and you have a limited amount of products, In your catalog, they do have this new creator section. They are sold out now, but it includes a table carpet and a one year membership to ASTRA. Great introductory option to those just starting out. Now you have to remember, aside from the cost to rent the exhibit space, you've gotta factor in your cost to display the product, right? So if you're getting a table, it's easier to keep those costs low cuz you can focus your resources on investing in a custom tablecloth.
[00:15:54] Some may be battery powered lighting, a small get simple shelving unit, some signage, [00:16:00] and those are really the key things you'll need to professionally display your product as affordably as possible. Once you move into building out the booth with walls additional things like more shelving and wanting electricity in your booth and custom carpeting, flooring, or additional decor, that's where you start hitting the higher price point of the trade show booth designs.
[00:16:22] So a simple booth design with a back wall structure can easily cost an extra $2,500 to DIY it with like pop-up banners and things. But if you wanna get it, Professionally built out into something that is easily collapsible and shippable. Estimate around $10,000 to do something like that. Estimate another one to $2,000 to ship your materials back and forth. You do have to ship things to a holding warehouse prior to the show, and there is a cost that is given by weight of the product that you're going to ship that you'll have to pay for.[00:17:00]
[00:17:00] There are drayage fees and all these other fees. Now, with all that said, you might be wondering, whoa, Azhelle, is this show worth it? Well, yes it can be. The entire, Astra membership of buyers is invited to attend this show, right?
[00:17:14] So you'll need to do the work to make the show. Worth it for you. And that goes beyond the exhibit planning itself. It means connecting with retailers as much as you can ahead of the in-person show, getting to know them personally, building that rapport, learning about their lines, visiting their stores, telling them about the product you'll be bringing to the show.
[00:17:35] In my experience, Astra buyers do like to roam the show as free agents. Don't love being tied down by official meeting slots, but we always do our best to get them to commit to coming to our booth. It's great if you can get them to mark down on their personal itinerary to come to your booth. At a specific day of the show, a good way to make that happen is with limited time show specials, special giveaways during the show, or even [00:18:00] marketing activations that you put on in your booth. And if you're wondering how you connect with buyers, it all becomes a lot easier once you are an Astra member. Once you get into their membership system, it's gonna be a lot easier for you to connect with those buyers.
[00:18:15] As we lead up to toy trade shows, if you on any promotional email list of toy companies, you will notice there are a lot of promotional emails that go out related to the upcoming trade show. Those emails might be focused on shows specials, they might be just sharing the booth number and, and an opportunity to book meetings with companies. So that is also something to consider as you are preparing for the show. Are you going to be sending out email communication to remind buyers that you'll be there? Make it easy for them to know what specials and product you'll be offering and to connect with you and communicate with you if it's via email or to set up a meeting to meet you in person.
[00:18:59] Now, [00:19:00] earlier I talked about market research. In your market research pricing is king. When you get a buyer to come to your booth, make sure you have product that fits that market research that fits what they're actually looking to price product at their store. We don't wanna do all this work for nothing. We don't wanna get them into our booth and have our lowest price point item.
[00:19:23] Be a hundred dollars, retail, unless it's an electric scooter or something of that effect, right? If we have a simple Toyer game, we wanna keep it to the mid $50 retail price point and lower, so just pay attention to the market research that you do before you attend the show, even before you finish developing your product for the show.
[00:19:45] Now the last thing I wanna talk about today is , who this show is for, right? Because you still might be on the fence. You still might be wondering, Azhelle, I just don't know. Is this show for me? I got a cool idea. I'm planning to develop it. By [00:20:00] this time next year, should I really be attending this show?
[00:20:04] Well, at the time of airing this episode, you can still go and check out the Astra Show floor plan online to give you some visibility of what this whole show looks like, and you can actually click around and see the different vendors that are attending the show. So you can see if you are fitting in, if you are like some of these vendors, right?
[00:20:24] So I'm gonna put the link, at the toy coach.com/ 1 76. Scroll down to the mention in this episode section where you can find that link. And right now I'm gonna just talk through some of the manufacturers that will be at the show that you will be able to find when you check out this floor plan link.
[00:20:40] Right? Now manufacturers that will be at the Astra Marketplace and Academy include larger brands that you likely already know, like Melissa and Doug Jeko, who offers craft kits, games and toys. , spin Master, play Monster, Tony's. Toki [00:21:00] dokey, but it also includes startup toy brands, right? Like the soothing snuggler, which will be at Booth 1841, which is a brand that is a teaching talking bed teddy bear that focuses on mesh skills and Little Rebels, which will be in Booth 1 52 under Brands for change and EAP toys and games at Booth.
[00:21:22] 1618, which is a woman owned and operated company with board games and party games. Also, honey Lambs, Joey Dolls, Darda Cats now all of the startup brands I just mentioned are Toy Creators Academy alumni, and I want you to think of this, none of those brands, none of the creators of those brands started their careers.
[00:21:47] In the toy industry, right? That wasn't the first thing that they set out to do, but they have created impactful brands nonetheless, right? Some of them are actually debuting [00:22:00] at this show for the very first time now.
[00:22:03] With such a diverse range of attendees, from established companies, manufacturers to startup manufacturers, not to mention the vast hundreds of specialty retailers that are part of the Astra membership and invited to this show, the sales reps that are there.
[00:22:23] This is a perfect platform to showcase your toys and games, connect with potential retailers, but also if you're not feeling all this sales stuff by yourself, a great place to maybe find your next sales rep, your next sales partner. Now, if you're attending the show, I would love for you to stop by, the Toy Coach Showcase happening at Booth 1, 5, 3, 9. Take a picture on the pink carpet. We're gonna have a lot of fun together at the show.
[00:22:51] Before I jump into my summary of today's episode, I would like to take a quick break and give a shout out of appreciation to [00:23:00] all of the. To all of the alumni of toy creator's academy who are exhibiting at the Astro marketplace and academy this year. I am so proud and excited to see your product at the show. For those of you participating in the showcase. Thank you for your focus and dedication. And for those of you who are going in on your own in your own spaces, I am just impressed, inspired and motivated by you to keep doing everything that I'm doing every day. So, congratulations. And i can't wait to see how the astro marketplace does for you.
[00:23:36] Azhelle Wade: If you are a toy store owner or a buyer and you are interested in knowing more about products created by Toy Creators Academy alumni, or knowing where they'll be at the show, Head over to the Toy coach.com/buyers and join our exclusive buyer only. Email list. We're gonna start sending out monthly emails to that list to keep you updated on the newest products [00:24:00] released by alumni, including special show specific deals like for the Astra marketplace and where you can connect with our alumni.
[00:24:10] Okay, let's dive into our recap of what we discussed today. Today we talked about the specialty toy market, what it is and why you might wanna be a part of it, what the benefits are. Then we talked about the organization that I would recommend that you join, Astra, and then the event that you really wanna take part in next year, the Astra Marketplace and Academy, if you'll already be there this year, see you there.
[00:24:36] Can't wait. I know that so many people that develop new to and game products, their first thought is, I wanna be in a store like Target. I want to be in Walmart. I want this to go big, and it can get there. But starting in specialty is such a beautiful place to start. The camaraderie at this show and the support of people that want to share their knowledge [00:25:00] that are members of the Astra community. I mean, I've never seen anything like it, and I really love that about this organization. So I would implore you to think deeply about your price point and the product that you're developing, and consider that maybe you wanna start actually launching your product there first. Now for all of the links to get you started, signed up with Astra, attending the next Astra Marketplace and Academy, head over to the toy coach.com/ 1 76. In the mention in this episode section, look for the links. I would love for you to be a part of this organization and let them know the toy coach sent you. You know from today's episode that the Astro show features mostly mom and pop toy stores from across the globe, that are looking for high end quality product to fill their stores.
[00:25:47] But I do wanna just highlight buyers are walking this show looking for new products for their shelves, right? And it's your job to engage them as they walk by if you haven't already connected with them prior to this show. Now at this show, this [00:26:00] shows in June. A lot of these buyers are gonna be looking for their Q4 items. Q4 is the last quarter, quarter four of the year. The biggest time for sales in the toy industry. Something like 70% of business is done in the toy industry in this time of the year. So they're looking for their hit items for that time of the year. Typically items ordered for this time of the year, stores are gonna want them in by mid-August so they have time to plan and get them on shelves. There is a chance that at this store, buyers might like an item they see and say, ah, you know what? We love that. Ship. That right away we can put it in our store right away for the summer. Summertime does tend to be a lower price point focused time of the year for, , toy sales. So depending on your items and your different assortments, you might have an opportunity to sell something immediately. Something important to remember at these shows, when you sell an item, there's something called payment terms, if you haven't heard that before. So you've gotta think about your cash liquidity.
[00:26:58] You've gotta be able to [00:27:00] deliver and ship product prior to getting paid. It's not like a typical consumer transaction where they say, I want one doll, and they pay you for $1 and you ship one doll. No, they're going to request an order of a case pack of dolls, let's say, which could be. Four dolls or six dolls, right?
[00:27:17] And you're gonna have to ship that case back. And depending on your payment terms, 30 days, 60 days, 90 days is when you will get paid after receipt of those goods.
[00:27:27] Now again, you wanna co, you wanna communicate with buyers as much as you possibly can ahead of the show, but I know as a small manufacturer, you have a ton of things on your plate, and that's why we mentioned in this episode the possibility of working with sales reps to get some of that sales responsibility off your plate.
[00:27:43] So let's get into your action item to do for next week. Well, before I wrap up, I would love you to mark your calendar. Well, let's get, okay. That's all we have. No, so is the, So is the [00:28:00] Astra marketplace and academy right for you? Well, if you're passionate about selling your toys and specialty retailers and looking to expand your network, the answer is yes.
[00:28:08] This event provides a conducive environment to meeting professionals, gaining exposure from your brand, and learning from people who have already found success in this industry. So what's your action item to do for next week? Well, I want you to open up your calendar right now, and if you haven't already, Just mark your calendar for Astra 2024, right in June, and I dare say mark your calendar a few months before that to remind yourself you need to be planning for this show.
[00:28:40] Your planning should really start six months out. So set a reminder for yourself to remember. Start planning for this show. Plan for the display plan to save your spot. Plan to contact buyers. Okay, I want you to be ready for next year. If you do decide to attend now, I would love for you to [00:29:00] message me on Instagram and let me know that you got it done.
[00:29:02] You can even tag me in a story showing you can get showing that you've got it done and I will respond to cheer you on. As always, thank you so much for spending this time with me today. I know there are a ton of podcasts out there, so it truly means the world to me that you tune into this one. Until next week, I'll see you later.
[00:29:22] Toy people.
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