Toys by the Handful

Problem: Sweets are the easiest small treats for children. Candy is available at every retailer and comes in convenient bulk packages.

Solution: Toys should be the easiest small treat for children. Small toys can be found in the bottom of breakfast cereal and Crackerjacks boxes or from coin operated machines at the front of grocery stores. There is a market for jars of 25 or 100 individually wrapped small toys.

There are a lot of times where we want a supply of toys for small children: party treats, Halloween treats, rewards for good behavior, and a wide variety of bribes. The only substitute good I have found are stickers, which are a poor substitute. Having a recognizable yet unique treat would be worth about $0.50 per toy. I believe the toys could be manufactured and distributed for well under $0.25 per toy.

These small toys could include bouncing balls, small cars, little bendable dolls, brain-teasers, plastics parts that click together, and more. To be effective, one would need about forty different toys per line, and have different lines for ages under 3, 3-5, 5-8, and 8+. As the line expanded, the toys could also target small niches: educational toys (Brain Toys), religious toys for various markets, outdoor toys, restaurant toys, gender specific toys, and various level of super toys (at a small additional cost).

The packaging should be cheap. While one could go with the standard egg found in coin operated dispensers or KinderEggs, one could also go with the cheaper paper blister packing of M&Ms. I expect that batches of either 25 for consumer sales or 100 for point of resale displays would be about right.

The business model would be to buy about forty different toys per line from Chineese manufacturers, have them packaged in China, then sell them through wholesalers (if you can get them), toy catalog sales, party stores, and more.

What’s the catch? There is no barrier to entry: the idea isn’t patentable; branding probably won’t keep out competitors; there are many suppliers; packaging isn’t unique; there are many channels and outlets with unique requirements; and lots of niche markets to encourage micro-competitors. On the plus side, consumers really don’t need expensive advertising or education about the product. There should be pent-up demand.

A great one or two person job for someone with low expenses or appropriate experience. I would like to buy some.