You're listening to gift biz on rapt episode 114.
Speaker:I can't seem to create products without putting a storyline with
Speaker:them. John Lee,
Speaker:Dumas of entrepreneur on fire,
Speaker:and you're listening to gift to biz unwrapped,
Speaker:and now it's time to light it.
Speaker:Welcome the gift bears,
Speaker:unwrapped your source for industry specific insights and advice to develop
Speaker:and grow your business.
Speaker:And now here's your host,
Speaker:Sue Mona height.
Speaker:Hi there.
Speaker:It's Sue and welcome to the gift biz unwrapped podcast.
Speaker:Whether you own a brick and mortar shop sell online or
Speaker:are just getting started,
Speaker:you'll discover new insight to gain traction and to grow your
Speaker:business. And today I have the pleasure of introducing you to
Speaker:Carmi. Carmi has years of experience designing gift and home decor
Speaker:for a retailer big box and global distributors worldwide.
Speaker:He is the co-founder and creative director of smash up studio,
Speaker:a cutting edge design studio.
Speaker:They specialize in marketing original repurpose gift and home accessories,
Speaker:and are involved in all aspects of design,
Speaker:startup, manufacturing,
Speaker:and marketing Carmine's newest venture is taking recycled motherboards and turning
Speaker:them into home decor and art sculptures.
Speaker:He calls them cuter mugs to love.
Speaker:Welcome to the show.
Speaker:Carmi thanks.
Speaker:Glad to be here.
Speaker:I'd like to start off,
Speaker:as you already know,
Speaker:by having you describe a motivational candle,
Speaker:because we're all creatives here,
Speaker:it gives us a little bit of a different insight into
Speaker:what you're all about.
Speaker:So if you were to tell us about your candle,
Speaker:what color would it be and what would be the quote?
Speaker:I would say that my candle is definitely not your usual
Speaker:shape, which is a reflection of,
Speaker:you know,
Speaker:where I've been in my career as far as designed.
Speaker:But I would say it's a sculptural shape,
Speaker:much like a human figure.
Speaker:And also the colors would probably be heading towards the very
Speaker:bright colors,
Speaker:multiple colors,
Speaker:not rainbow necessarily,
Speaker:but certainly eye catching colors that are very contemporary,
Speaker:but most important.
Speaker:I would say that the light that shines from the candle
Speaker:would be extremely bright.
Speaker:It's not a reflection of who I am,
Speaker:but I would say that the brightness is really a reflection
Speaker:of kind of creating a sense of happiness when you look
Speaker:upon the light.
Speaker:So that it's really a feeling of warmth and inspiration as
Speaker:far as a quote,
Speaker:that would go with it.
Speaker:One of my favorite quotes,
Speaker:because I started my educational career in college and studying English
Speaker:and literature,
Speaker:I was a big fan of Shakespeare.
Speaker:I always love the quote.
Speaker:We are such stuff as dreams are made of or made
Speaker:on, which really talks about being a dreamer and a creator
Speaker:and aspiring to not just dream,
Speaker:but to take your dreams and turn them into something really
Speaker:wonderful, Beautiful.
Speaker:And I think as creators,
Speaker:we have no choice,
Speaker:but to be somewhat of dreamers or else,
Speaker:how are we going to create things that are different and
Speaker:unique and totally ours.
Speaker:We have to envision it all first,
Speaker:you know,
Speaker:in some type of a dream state.
Speaker:And then we bring it back to reality,
Speaker:Right? And sometimes the dream state is not a dream state,
Speaker:but it's really a conversation and a pen and a napkin
Speaker:good Point.
Speaker:Yep. I agree with you there.
Speaker:Well, and I have to say,
Speaker:Carmi no surprise that your candle has all these elements,
Speaker:you know,
Speaker:like human and it shines and it's multiple colors because your
Speaker:creative director after all,
Speaker:I should have expected that.
Speaker:Right. I really want to talk a lot about your new
Speaker:project and the new product,
Speaker:because I think that our listeners will find a lot of
Speaker:value with that,
Speaker:but you have such a big backstory.
Speaker:Will you go through and tell us a little bit about
Speaker:your history,
Speaker:your involvement in the gifting industry overall,
Speaker:and then we'll dive into your current product after that?
Speaker:Super. Okay.
Speaker:So my career is long and very deep,
Speaker:but you know,
Speaker:really twists and turns,
Speaker:but really an amazing adventure for me.
Speaker:I started in the mid eighties and I was actually signed
Speaker:on to get into sales management in the hotel industry and
Speaker:worked for it.
Speaker:And T and I had a six month break.
Speaker:And before I started my training after having been a little
Speaker:bit in the corporate world,
Speaker:and I took my backpack and went overseas and Asia travel
Speaker:was just beginning back then and for backpackers.
Speaker:And after a month through Thailand and roaming around,
Speaker:I actually met some Filipinos who became very,
Speaker:very close with and travel with them.
Speaker:And anyway,
Speaker:fast forward,
Speaker:I ended up in the Philippines six months later and was
Speaker:introduced to my good friend's sister-in-law,
Speaker:who was silver Smith.
Speaker:And that was my first factory in that town.
Speaker:I found a little tree of bells for sale at the
Speaker:market and my friends who I'd met in Thailand and travel
Speaker:with through the pilot,
Speaker:taught me the art of buying and selling.
Speaker:And we bought a together a lot of different things from
Speaker:jewelry to rugs,
Speaker:the sculptures,
Speaker:and they brought them back to the Philippines.
Speaker:I brought them back to actually Chicago,
Speaker:where I live now and sold a bunch of my wares
Speaker:to the field museum,
Speaker:which was really my first sale.
Speaker:And anyway,
Speaker:one of the things that I bought was a little tree
Speaker:of bells.
Speaker:I bought about 50 of these things.
Speaker:I was really buying and selling just to pay for my
Speaker:trip back then.
Speaker:And once I started my big corporate job,
Speaker:I kinda put all this in the background,
Speaker:but all of a sudden I was getting reorders and I
Speaker:was in this big corporate job and nine to five and
Speaker:working weekends for no money and decided that this really wasn't
Speaker:who I was.
Speaker:So I borrowed $10,000
Speaker:from my mom and invested in a design of my own
Speaker:making, which was a little tree of bells with soap flowers
Speaker:and Jade on it.
Speaker:And I created this crazy story that said,
Speaker:if you ring the bells of the tree,
Speaker:what I call the prosperity tree,
Speaker:you will receive good fortune and health and happiness.
Speaker:Well, I borrowed this $10,000
Speaker:from my mom import it about 5,000
Speaker:of these little trees,
Speaker:which we couldn't get into the door of my apartment.
Speaker:I lived in Los Angeles back then and they sat out
Speaker:in the garage for a couple of days and I quit
Speaker:my corporate job and started selling it to the hotel gift
Speaker:store as the people,
Speaker:some of the people I knew throughout Los Angeles.
Speaker:And next thing I knew I was on the streets,
Speaker:so on these things and all of a sudden,
Speaker:boom, something clicked.
Speaker:And I was in hotel gift stores and hospitals,
Speaker:and really selling the product all over the place.
Speaker:But it was a struggle.
Speaker:I was still having to work the street fairs.
Speaker:And I went to my first Atlanta gift show before they
Speaker:built these new glorious buildings that they have there and was
Speaker:stuck up in some showroom with a few other exhibitors.
Speaker:And my first show really wasn't much going on.
Speaker:And I see this buyer come walking down the aisle who
Speaker:had just,
Speaker:I thought gone bankrupt and had owed me a couple thousand
Speaker:dollars, which is a lot then a lot now.
Speaker:And I confronted him and said,
Speaker:Hey, you went bankrupt.
Speaker:You ordered from me.
Speaker:You didn't pay for me,
Speaker:et cetera,
Speaker:et cetera.
Speaker:He said,
Speaker:he had made it up to me and I looked down
Speaker:at his badge and it said home shopping network,
Speaker:Oh, No.
Speaker:Home Shopping network was only about a year old at that
Speaker:point. And I went to clear water,
Speaker:sat down with him and we did variations of my existing
Speaker:product. And next thing I know he gave me a PO
Speaker:for five containers and we were on home shopping network.
Speaker:But the best thing he did was introduced me to the
Speaker:jewelry buyer.
Speaker:In those days,
Speaker:there was only a couple of them and she sat me
Speaker:down and wrote me a quarter of a million dollar order
Speaker:for what was really one small box of silver jewelry in
Speaker:the factory that was making my little decorative trees was actually
Speaker:a silver Smith by trade.
Speaker:And that's really was my first launch into the industry.
Speaker:Of course,
Speaker:home shopping that worked,
Speaker:tried to cancel the order three days before it was delivered.
Speaker:And I had the beg and plead,
Speaker:and eventually I took it,
Speaker:but I took those funds and use that to invest in
Speaker:the infrastructure,
Speaker:my company,
Speaker:which went for 23 years,
Speaker:it was called prosperity tree international.
Speaker:And we had quite a long run.
Speaker:We were really a company that dealt mostly in gift items.
Speaker:And then about five or six years into our existence,
Speaker:we saw the writing on the wall.
Speaker:We really went into home decor and tableware in a big
Speaker:way. And luckily for us,
Speaker:the timing was perfect because China was relatively inexpensive back then
Speaker:packaging was a little bit of a challenge,
Speaker:but the thing that they were still able to do that
Speaker:they're really not able to do now is to offer good
Speaker:handcraft. In our case,
Speaker:it was hand painted ceramics at a very,
Speaker:very affordable price and really high quality.
Speaker:And we hit a little niche that we really became a
Speaker:kind of a little cutting edge company,
Speaker:sewing tableware,
Speaker:and gift products,
Speaker:heavy focus on what we call functional art.
Speaker:That's kind of what prosperity tree was.
Speaker:You know,
Speaker:we were relatively a middle to small sized company,
Speaker:pretty well known in the gift industry for many years.
Speaker:And I decided as the factories were having a harder,
Speaker:harder time of manufacturing,
Speaker:what we were doing,
Speaker:I decided to make a shift in my own career and
Speaker:have a family and went into the design side of the
Speaker:industry instead.
Speaker:Okay. So I'm going to stop you here because I do
Speaker:have a couple of questions for you about what you've just
Speaker:talked about.
Speaker:Let's go back to the very first product,
Speaker:that prosperity tree that had the story connected to it.
Speaker:Did you find that that helped you sell the product?
Speaker:Now? I know you were in your startup mode,
Speaker:so, you know,
Speaker:you were getting sales on the streets or,
Speaker:you know,
Speaker:at the shows wherever,
Speaker:but did you find,
Speaker:or what your comment on having,
Speaker:first of all,
Speaker:naming the product cause prosperity tree is so opportunistic.
Speaker:I mean,
Speaker:it's a word that people want.
Speaker:I mean,
Speaker:people all want prosperity,
Speaker:right? But you had a story connected to your product.
Speaker:Did you find that that added value and helped you sell?
Speaker:Oh 100%.
Speaker:My perspective on creating product in general is the storyline.
Speaker:It's such a crucial side of marketing.
Speaker:I think I've always been a storyteller.
Speaker:My teenage daughter will attest to this,
Speaker:that I can't stop telling her stories to this day.
Speaker:I think it's a huge part of why people bought our
Speaker:products. It was a unique design.
Speaker:It was unique concept,
Speaker:but I think we took that same concept of creating the
Speaker:legend or the story and a little tongue in cheek,
Speaker:but we called it a legend that was created in the
Speaker:far East,
Speaker:which really was,
Speaker:and it was created in my head.
Speaker:We took that concept.
Speaker:We really,
Speaker:we made it happen on a lot of different types of
Speaker:product. I'll give you another example.
Speaker:We worked with a project with Disney world many years ago,
Speaker:creating a product called wish upon a star.
Speaker:And it was simply a gold star with a Swarovski crystal
Speaker:in the middle when the nice velvet pouch.
Speaker:And the idea is that you take the star and you
Speaker:make a wish,
Speaker:but an interesting thing that we did with the product,
Speaker:not only did it fit into their theme,
Speaker:nicely with wish upon a star theme,
Speaker:we hooked up with a Make-A-Wish foundation back then,
Speaker:and we gave a certain percentage of proceeds to make a
Speaker:wish. And it was a really nice back type of situation.
Speaker:They appreciate it.
Speaker:We appreciate it.
Speaker:And it helps sell the product similar type of thing.
Speaker:We really love the golfing industry and gift products around the
Speaker:golfing industry.
Speaker:We took a real golf ball and we basically painted it
Speaker:gold or brass looking,
Speaker:and we put a little hanger on it and we put
Speaker:a little hang tag that called it the good luck golf
Speaker:ball. If you get one,
Speaker:you'll never shoot over par.
Speaker:Again, we saw thousands and thousands of those.
Speaker:I'll give you one more example.
Speaker:We were really trying to do some interesting stuff back then,
Speaker:we were taking real pine cones and we were covering them
Speaker:with real silver,
Speaker:which was really a challenge because a pine cone.
Speaker:And again,
Speaker:we weren't picking them off the trees they were falling,
Speaker:and this was in the Philippines and we spent almost a
Speaker:year to figure out how to put silver over a pine
Speaker:cone. Anyway,
Speaker:we turned into a Christmas ornament and same idea,
Speaker:created a storyline about the silver pine.
Speaker:And it was a huge,
Speaker:huge success for us.
Speaker:Unfortunately, I was a purist back then and I refuse to
Speaker:knock myself off,
Speaker:you know,
Speaker:there was make it out of resin and I let some
Speaker:of the bigger companies like department 56 and Kurt Adler do
Speaker:it for us instead.
Speaker:And we just kept going on with the real pine cone
Speaker:version of it.
Speaker:Give his listeners.
Speaker:I think this is a big,
Speaker:big topic and idea in terms of your product as well
Speaker:and how you can separate yourself from other people who are
Speaker:making something similar to you is create a story.
Speaker:Carmine's talking about the fact that these stories didn't already exist.
Speaker:He had to create a story behind the product,
Speaker:but it's perfect because then it gives you number one,
Speaker:something to talk about how your product is different and unique.
Speaker:Number two,
Speaker:great source for ad copy.
Speaker:As you're talking and promoting online or wherever you are sharing
Speaker:the stories of your product and getting visibility on your product.
Speaker:So think about this and Carmi just gave us a number
Speaker:of examples of what he's done.
Speaker:The other thing that is doing that I think is super
Speaker:important is if you go back to the beginning of his
Speaker:story, his journey took twists and turns because he met and
Speaker:was exposed and was out there and saw other people.
Speaker:And so by connecting with other people,
Speaker:the product to the little twist and then doing something else,
Speaker:being at the Atlanta show,
Speaker:maybe it's not too bad that sometimes the people owe you
Speaker:money. Carmi,
Speaker:I'm not sure,
Speaker:but you know,
Speaker:just those little interactions,
Speaker:but you have to be face to face.
Speaker:So part of all of this is you have to get
Speaker:out in public and be face-to-face,
Speaker:whether it's shows or networking or meeting other people where you
Speaker:can collaborate such as make a wish,
Speaker:that type of thing.
Speaker:I definitely say that as a very valid point,
Speaker:keep going,
Speaker:bouncing off of walls.
Speaker:I mean,
Speaker:it's a lot of things don't work.
Speaker:Well, tell us one that didn't give us a horror story
Speaker:here. So we know we're all the same,
Speaker:right? We all have trouble.
Speaker:Sometimes. I want your best Carmi I want the best ones.
Speaker:You want a horror story.
Speaker:Once upon a time,
Speaker:there was a company called Marshall fields,
Speaker:which I know,
Speaker:you know,
Speaker:well, Oh dear.
Speaker:To my heart.
Speaker:Yes. And we were,
Speaker:we had a container of a really,
Speaker:really neat filigree,
Speaker:silver angels and wire angels that we had created for them.
Speaker:And the shipment was late.
Speaker:It was really late.
Speaker:And Thanksgiving was coming up.
Speaker:We sold to instill due to big box,
Speaker:but mostly specialty stores.
Speaker:And we had 5,000
Speaker:accounts that at one point,
Speaker:anyway, the container comes in late.
Speaker:Then we pop open the back of the container.
Speaker:And there's not one single ornament in the back of the
Speaker:container, but there's probably 15 foot Christmas trees that kind of
Speaker:look like cousin it from the Adams,
Speaker:I guess.
Speaker:So what happened?
Speaker:They switched up the order.
Speaker:Yeah. Well they sent our container to Rotterdam.
Speaker:Oh no.
Speaker:And we got the German companies,
Speaker:Christmas trees,
Speaker:and we had the scrambled and trying to convince a Filipino
Speaker:factory to air freight.
Speaker:A 20 foot container to Los Angeles was quite a challenge.
Speaker:And of course we would have been charged back and we,
Speaker:you know,
Speaker:stuck with all these goods and it was all pre-packed and
Speaker:Marshall's field's name was over it.
Speaker:So we were desperate and we actually got it there.
Speaker:We got charged back a ton,
Speaker:but I think part of the challenge,
Speaker:wasn't just getting the product there and staying calm about it,
Speaker:but how to resolve our relationship with the factory after the
Speaker:fact who we had a pretty good relationship for many years,
Speaker:and we actually went to Manila,
Speaker:sat in the Western hotel,
Speaker:had a big mediation,
Speaker:you know,
Speaker:who's going to pay for what to this day I look
Speaker:back at and I laugh to this day.
Speaker:I'm still working with that same factory,
Speaker:which is almost 30 years.
Speaker:And I'm kind of old school in the sense that I
Speaker:really like relationships.
Speaker:Once I find a good factory to work with,
Speaker:it's much more than business to me.
Speaker:It's really friendship and trying to find like-minds where we can
Speaker:sit down and create.
Speaker:So we all win and make a profit of it.
Speaker:The venture,
Speaker:Even though clearly it was,
Speaker:it sounds like a hundred percent their fault.
Speaker:You wanted to make sure that however you're going to resolve
Speaker:it. Each of you stayed whole so that you could continue
Speaker:with the relationship.
Speaker:Right. It was a very big challenge because I mean,
Speaker:we were really talking about a lot of money I'm sure.
Speaker:So yeah.
Speaker:And to this day I still would deal with that same
Speaker:factory in my latest project.
Speaker:And actually this week we got a shipment that was damaged
Speaker:And we went through the similar conversation last night.
Speaker:It's a challenge,
Speaker:but you know,
Speaker:we're a little more experienced.
Speaker:So any advice for someone else encountering the same type of
Speaker:thing, maybe even on a smaller level,
Speaker:but where you end up having an issue with a vendor,
Speaker:whether it's someone who's manufacturing apart for you manufacturing the whole
Speaker:piece, any words of wisdom here?
Speaker:Yeah. I think there's a lot of curve balls all the
Speaker:time being thrown at you,
Speaker:one of the worst ones.
Speaker:And I know that there's a big paranoia around this issue
Speaker:is, is being knocked off or copied.
Speaker:You know,
Speaker:how to deal with those issues is very difficult because as
Speaker:a creative,
Speaker:we all take this very,
Speaker:very personally,
Speaker:it is still business,
Speaker:but you know,
Speaker:my advice when somebody copies your product,
Speaker:unless it's really some technology product or something,
Speaker:that's very unique that you clear,
Speaker:you should get some kind of patent or trademark on the
Speaker:product if that's the case.
Speaker:But I tend to kind of pass over and move on
Speaker:as much as it hurts even to this date.
Speaker:So I think putting things in perspective and looking at the
Speaker:bigger view is really important.
Speaker:Sometimes not easy,
Speaker:particularly when it's affecting your pocket book,
Speaker:but we all take a lot of twists and turns in
Speaker:research development and production and bad production and prototyping.
Speaker:I think as you grow with this business or the creative
Speaker:side of it and the design side,
Speaker:we learned to put it in perspective a little more.
Speaker:I would agree with you.
Speaker:I have to share with you that when I was at
Speaker:a trade show and I'm going to be very general here,
Speaker:cause I don't know what kind of trouble I could get
Speaker:into, but I ran into somebody who was intentionally walking the
Speaker:show to find interesting products that they could then turn around
Speaker:and make in China,
Speaker:their turnaround time was seriously less than a week.
Speaker:They could switch up and get things out on shelves in
Speaker:the U S almost in a week.
Speaker:Now having said that,
Speaker:so I think your point is,
Speaker:you know,
Speaker:at some point there are some battles,
Speaker:I guess you just can't fight what I would say though,
Speaker:for gift biz listeners who are smaller businesses,
Speaker:where you're the jewelry maker and your love and your hands,
Speaker:and everything goes into the designs of your jewelry.
Speaker:This is where as Carmie was talking about earlier,
Speaker:stories are so important because people can not duplicate you.
Speaker:The stories you provide,
Speaker:the personality that you bring to your product,
Speaker:how you present yourself in your business,
Speaker:if you're online.
Speaker:So these are ways that you can somewhat shelter yourself from
Speaker:competitors because yes,
Speaker:they could probably make the exact same product,
Speaker:cheaper material,
Speaker:but they can't be you.
Speaker:So something to think about as you move on and don't
Speaker:let this fear that you're going to get knocked off,
Speaker:stop you from doing what you're doing.
Speaker:Definitely, you know,
Speaker:I think moving it forward and you almost have to confide
Speaker:and trust in people across the board.
Speaker:Like a lot of people I don't like dealing with lawyers.
Speaker:And so I think depending on what you're doing,
Speaker:the circumstances and the product,
Speaker:you have to put everything into perspective again,
Speaker:on how much investment of time you're going to take into
Speaker:protecting your product,
Speaker:which is very costly.
Speaker:I think that,
Speaker:you know,
Speaker:I've been knocked off so many times in copying in my
Speaker:merchandise, in my products and to this day it's still going
Speaker:on, but I try to keep it pretty low keyed as
Speaker:far as dealing with the whole legal side of things.
Speaker:Yeah. Because then you're also then sitting in a place of
Speaker:really bad energy,
Speaker:you know,
Speaker:when you're having to do things like that 100%.
Speaker:All right.
Speaker:Well, I know we could sit here and talk about all
Speaker:of this for a really long time,
Speaker:but I want to get into your newest product because now
Speaker:you're doing something fresh and new.
Speaker:And for people who are just thinking about starting to create
Speaker:something for themselves,
Speaker:I think this will be really interesting.
Speaker:So to refresh everyone's memory Carmi is turning motherboards into decor
Speaker:and art sculptures,
Speaker:and he's calling them computer bugs to love.
Speaker:So let's talk about how this started.
Speaker:I shut down my prosperity DRI company about nine years ago.
Speaker:So I could have a life and ended up designing for
Speaker:bigger gift companies,
Speaker:some of my designs and let got into the world of
Speaker:licensing. And I love the idea of upcycling,
Speaker:which upcycling is a term that's really didn't exist a few
Speaker:years ago.
Speaker:It's taking recycled items and turning them into something that is
Speaker:really a treasured product.
Speaker:I love the concept of upcycling myself,
Speaker:and we've actually been doing upcycling for years,
Speaker:years, and years.
Speaker:Why with packaging in particular,
Speaker:you know,
Speaker:we would take,
Speaker:particularly we're working in the Philippines cardboard boxes that we would
Speaker:get from the local Texas instrument factory and recycle those into
Speaker:our packaging,
Speaker:mostly because it was affordable.
Speaker:Now there's a big problem going on with computer motherboards,
Speaker:which is the inside circuitry of computers where it's really becoming
Speaker:landfill. And as everybody knows,
Speaker:the amount of PCs and desktops and all the electronics is
Speaker:just overwhelming how much they're producing.
Speaker:And so there's clearly a problem what to do with this
Speaker:product. We're doing something in a very small way.
Speaker:So thinking out of the boxes,
Speaker:I usually do in product design,
Speaker:this concept of taking a motherboard,
Speaker:you know,
Speaker:the term,
Speaker:that's really a computer circuit board.
Speaker:And we say,
Speaker:by the way,
Speaker:hug your motherboard.
Speaker:We're cutting them up.
Speaker:And we are turning them into bugs and then we're putting
Speaker:them on a post or hanging them on a wall.
Speaker:So they sit on the desk and they're art sculptures.
Speaker:But going back to the story,
Speaker:I can't seem to create products without putting a storyline with
Speaker:them. In this case,
Speaker:we're calling each individual bug,
Speaker:which kind of looks like a real bug,
Speaker:but not really.
Speaker:It's really bugs of our own creations.
Speaker:We're calling them kill a by gigabytes spam,
Speaker:a lot Iris virus terabyte.
Speaker:And we tell the story of what we're really doing with
Speaker:these motherboards.
Speaker:And in this case,
Speaker:we took it a little bit further and romance the story
Speaker:and said that these computer bugs,
Speaker:if you place them near your computer will act as a
Speaker:antivirus type of product,
Speaker:which will hopefully keep the spam and keep your computer as
Speaker:healthy as can be.
Speaker:But the main focus that we've got here is green on
Speaker:recycling, but the bugs are really cool looking.
Speaker:They don't do anything.
Speaker:They sit there and they're sculptural.
Speaker:Although we've talked about maybe in the future,
Speaker:having them do something,
Speaker:it's quite a challenge.
Speaker:I have to tell you in many,
Speaker:many years of doing production,
Speaker:this is one of the more difficult things we've worked on,
Speaker:just because one sourcing the right type of computer board,
Speaker:making sure there's no lead in it,
Speaker:cutting it up,
Speaker:putting it all together with the,
Speaker:you know,
Speaker:the metal acetate wings and the beads and the legs.
Speaker:It's a very involved project.
Speaker:And we're really just starting to grow the product and scale
Speaker:it a little bit.
Speaker:Then, you know,
Speaker:we're in a bunch of catalogs and hundreds of stores and
Speaker:really hit a focus because there's a real awareness right now
Speaker:in the whole green eco category,
Speaker:which we love being in that being said,
Speaker:my design eye is really on a whole bunch of other
Speaker:things going on that is really focused more around trying to
Speaker:make some products in the USA.
Speaker:Got it.
Speaker:Okay. Question that comes to mind for me here.
Speaker:Are you worried or is there any concern about suggesting a
Speaker:promise that someone might not think is just a story?
Speaker:You know,
Speaker:like how you're saying the bug is going to help you
Speaker:not have viruses or,
Speaker:you know,
Speaker:that kind of thing.
Speaker:I just want to be careful.
Speaker:Cause we're talking a lot about stories here that we don't
Speaker:have anybody get into a problem that they make a claim
Speaker:that their product can do something that it,
Speaker:can We frame it in such a way where it's kind
Speaker:of like legend says,
Speaker:or this can be a gift of,
Speaker:we really try to romance it a little more like a
Speaker:storyline, then it's something that's factual.
Speaker:I mean,
Speaker:it's pretty obvious in this case that that can't happen.
Speaker:I was just wondering the idea was coming up as you
Speaker:were talking about it.
Speaker:Yeah. That's a valid point.
Speaker:I don't generally speak in most people don't bring it up.
Speaker:I think where these products,
Speaker:land and galleries,
Speaker:and we were selling a lot of museum gift stores.
Speaker:I think people,
Speaker:when they come into those type of gift environments,
Speaker:they see a lot of that type of storyline going on.
Speaker:So yeah,
Speaker:but valid point.
Speaker:Okay. So can you give some advice?
Speaker:Cause you created so many products.
Speaker:If someone has an idea,
Speaker:but they have no clue how to get started.
Speaker:What are the first steps,
Speaker:maybe three to five steps of what someone should do.
Speaker:They've never done this before to bring a concept that they
Speaker:have into reality as a real live tangible product.
Speaker:That's a tough one,
Speaker:but I think the first thing,
Speaker:clearly we all have these notions in our heads on how
Speaker:do we get those onto paper and get some prototype in
Speaker:and get pricing and manufacturers first and foremost,
Speaker:putting it on paper.
Speaker:The second thing I try to do is to any which
Speaker:way I can prototype it sometimes depending on what the medium
Speaker:is, whether it's metal ceramic,
Speaker:if it's technology product,
Speaker:it's clearly going to be much more involved,
Speaker:but lately I haven't been like this all the time lately.
Speaker:I liked the prototype in the U S if I can,
Speaker:but there's a lot,
Speaker:it becomes so much easier as far as trying to source
Speaker:new ideas overseas.
Speaker:I love the vehicle of Ali-Baba.
Speaker:You know,
Speaker:it's a Chinese manufacturing site,
Speaker:which the manufacturer and thousands of manufacturers are available where you
Speaker:can really communicate very quickly with manufacturers.
Speaker:Of course,
Speaker:then there's the element that everybody's worried about them stealing your
Speaker:idea. So the thing I don't like about Alibaba,
Speaker:because I'm a little old school is I like relationships.
Speaker:I really like creating relationships with my manufacturers who I can
Speaker:trust. That doesn't mean you can trust every one of your
Speaker:manufacturers, Some legal protection first before you would share that piece
Speaker:of paper or napkin or whatever.
Speaker:You know,
Speaker:it's funny.
Speaker:I met with a toy manufacturer from China recently.
Speaker:I flew to Las Vegas to a toy fair and showed
Speaker:them some prototypes they had.
Speaker:And I just brought them with,
Speaker:because I figured to have somebody sign a nondisclosure,
Speaker:it's very difficult to enforce it.
Speaker:Do you think it gets more of though a kind of
Speaker:a psychological barrier at least?
Speaker:Yes, certainly.
Speaker:I think it's in a very,
Speaker:very good thing to consider.
Speaker:However, what I find is that most people are not as
Speaker:passionate about your product as you are.
Speaker:Also, I find that most people will not really try to
Speaker:copy a product until they see this as some kind of
Speaker:success surrounding it.
Speaker:So I think that's where the scalability and being prepared to
Speaker:scale it is important.
Speaker:But I think initially,
Speaker:unless they've really got a keen eye,
Speaker:I don't think most people are going to deal with your
Speaker:ideas. Again,
Speaker:it depends on the medium,
Speaker:what it is,
Speaker:where your market is,
Speaker:but I think Alibaba is a good starting point or Ali
Speaker:express for the China side of things lately.
Speaker:I've been working in designing some toy products and play houses
Speaker:out of wood.
Speaker:It's kind of interesting.
Speaker:Last October,
Speaker:I started by contacting somebody who I met on Alibaba initially
Speaker:had them do prototypes,
Speaker:which I didn't like,
Speaker:took those prototypes to Milwaukee,
Speaker:had a laser cutting factory,
Speaker:make me some prototypes.
Speaker:Didn't like their version or prices.
Speaker:And I ended up in the South of Chicago where today
Speaker:I just got a quote,
Speaker:which looks pretty healthy to me and we'll take it to
Speaker:the next step.
Speaker:It's kind of been a little bit of a journey we're
Speaker:into it for about six or seven months right now,
Speaker:just a prototype and pricing.
Speaker:My latest obsession again is trying to make something in the
Speaker:USA, which is certainly a challenge when you're used to pricing
Speaker:that you get overseas.
Speaker:Okay. So first you have your concept on paper.
Speaker:Then you get a prototype done either where you live,
Speaker:because since we have international listeners,
Speaker:it could be wherever you live locally,
Speaker:if you can,
Speaker:you actually have your product and you buy in some type
Speaker:of bulk,
Speaker:whatever the agreement is with that manufacturer,
Speaker:then what do you do Again?
Speaker:Usually the prototyping cost money.
Speaker:Also, most people don't prototype you for free.
Speaker:So you have to have a little bit of budget there.
Speaker:And there's a lot of back and forth around that.
Speaker:One of the things I would highly recommend,
Speaker:which is kind of an interesting insight when your prototype in,
Speaker:particularly if you're doing it overseas versus here,
Speaker:you can get some of these folks in the factories in
Speaker:China, do some of your design work for you.
Speaker:It takes a little bit of talking to work together,
Speaker:but it's a collaborative process,
Speaker:which is pretty neat,
Speaker:and it can help save you some time to use them
Speaker:as an art source,
Speaker:really for drawing out items.
Speaker:So what do you do then?
Speaker:Our world right now,
Speaker:as far as bringing product to market is pretty focused on
Speaker:the online world.
Speaker:You know,
Speaker:my roots really were in brick and mortar and wholesale into
Speaker:the brick and mortar world.
Speaker:Not really involved with retail until recently.
Speaker:So I tend to encourage a lot of people who I
Speaker:mentor in the maker community here in Chicago to really take
Speaker:a hard look at some more traditional venues like trade shows,
Speaker:advertising, certainly door to door sales.
Speaker:I mean,
Speaker:I can't tell you,
Speaker:this is oddest story.
Speaker:You know,
Speaker:Thanksgiving, I was in San Francisco walking through the airport and
Speaker:Kim crest,
Speaker:beautiful gallery walked in,
Speaker:grabbed the business card and many way long story.
Speaker:I ended up in five different airport stores just from grabbing
Speaker:one business card and contacting them later on.
Speaker:Similar story happened to me in the airport in Chicago.
Speaker:So I think cold calling is a tough way to go,
Speaker:but I think it's a good way to go.
Speaker:I think that email communication is really,
Speaker:really good too.
Speaker:As far as online sales direct to the consumer,
Speaker:big challenges,
Speaker:big costs there,
Speaker:those are strategic decisions you have to make based on your
Speaker:product, retail versus wholesale.
Speaker:Another big decision.
Speaker:I think that these days,
Speaker:from my perspective,
Speaker:staying focused on one or the other,
Speaker:rather than both at the same time,
Speaker:as much to my advantage,
Speaker:I tend to focus a little more on the wholesale for
Speaker:myself, but I'm not ignoring the retail.
Speaker:Okay. But especially if you're starting out and if you're a
Speaker:smaller, don't have a lot of resources.
Speaker:You're just getting,
Speaker:going focus on one versus both at the same time.
Speaker:I think one of the very important key points was I
Speaker:missed when you first get your ideas and you're going forward
Speaker:and you're just not sure.
Speaker:Talk it up with people,
Speaker:you know,
Speaker:show it to as many people as you can.
Speaker:I am constantly constantly doing that,
Speaker:whether it's with my daughter or my wife or my relatives
Speaker:or my friends,
Speaker:you know,
Speaker:and they,
Speaker:a lot of times shoot down my glorious ideas,
Speaker:which never feels good,
Speaker:but it's just a huge amount of help because all my
Speaker:experience after all these years,
Speaker:I still don't quite particularly when you're coming up with a
Speaker:brand new concept,
Speaker:like a computer button who knows whether something like that it's
Speaker:going to sell and you don't really know.
Speaker:I didn't have proof of concept really until I went to
Speaker:a local trade show and walked away with a bunch of
Speaker:orders, We're talking it up right.
Speaker:As the idea was being conceptualized,
Speaker:if you will.
Speaker:And then probably also when you had the prototype,
Speaker:correct. So all the way along the way,
Speaker:you don't want to figure this out after you spent all
Speaker:that money,
Speaker:at least you want as much of the advantage on your
Speaker:side as possible by people saying yes,
Speaker:they think it's a good idea and not people who are
Speaker:just going to make you feel good and say yes,
Speaker:people who will really challenge you.
Speaker:Yeah. I mean,
Speaker:one of the things that I had a bad habit of
Speaker:doing early in my career and I've fallen back into it
Speaker:is, you know,
Speaker:sometimes we create products and we bring them to market and
Speaker:we don't back it up with inventory.
Speaker:And just to see if people will bite on it,
Speaker:it's less risky.
Speaker:But you know,
Speaker:there's a little bit of peace of mind where you haven't
Speaker:invested all this inventory or time into a project that you
Speaker:don't think is going to fly.
Speaker:It's a judgment call though,
Speaker:too, because part of it is how long is the production
Speaker:cycle. Right?
Speaker:Right. But you've got that certain point there that we were
Speaker:just talking about that,
Speaker:right? When something comes on to market,
Speaker:if it's a big hit,
Speaker:that's when you can get knocked off.
Speaker:So it's probably very dependent on what the product is,
Speaker:how long the cycle is to determine,
Speaker:you know,
Speaker:how much should you make at first to see if it's
Speaker:going to work.
Speaker:And if it does really work and your production cycle,
Speaker:isn't too long,
Speaker:then you could reorder right away just because you want to
Speaker:try and not have somebody knock you off.
Speaker:Right. But one of the things,
Speaker:what happens as you grow,
Speaker:I think that is different when you're small,
Speaker:is that once you get your channels of distribution set,
Speaker:you can be guaranteed almost that your existing customer base is
Speaker:always going to buy X percent.
Speaker:So that there's much less risk in the old days when
Speaker:we were bringing in container after container,
Speaker:and we weren't able to sell this particular pattern or this
Speaker:particular style,
Speaker:we had access to sell off to liquidators or a TJ
Speaker:max or something like that.
Speaker:So we had a cycle created that would allow us to
Speaker:constantly turn the merchandise and continue to bring out newer and
Speaker:newer, which I don't know if that's still the case with
Speaker:some products.
Speaker:It's a little stressful,
Speaker:frankly going that route.
Speaker:So it's challenging.
Speaker:A lot of it is based on again,
Speaker:as you said,
Speaker:is production time sales time,
Speaker:this project I'm working on right now with the computer bugs
Speaker:and huge amount of time to make them use your amount
Speaker:of time to receive the goods.
Speaker:So I guess in summary,
Speaker:what I think you would agree with you,
Speaker:correct me if I'm wrong.
Speaker:Carmi is that once you're in production,
Speaker:then get your plan together,
Speaker:know what you're doing with these and get working on it.
Speaker:Don't wait until the product gets there.
Speaker:Right? So part is the idea.
Speaker:Then you've got the production,
Speaker:then you've got the marketing and sales,
Speaker:Right? And two other major points taking the risk.
Speaker:At some point you have to take the risk and it
Speaker:never feels right,
Speaker:but typically with new products,
Speaker:but the other big,
Speaker:big risk that nobody in,
Speaker:I find particularly people I mentor is they don't really want
Speaker:to invest money in marketing or traditional ways of going to
Speaker:trade shows if,
Speaker:unless they can really help it.
Speaker:And I agree with that a hundred percent,
Speaker:but I don't agree with it at all.
Speaker:I think that it really takes some capital investment to move
Speaker:forward. And when I say move forward,
Speaker:move forward more than a snail's pace because some of these
Speaker:projects, you know,
Speaker:people sit on projects and ideas for years.
Speaker:And how do you move things forward?
Speaker:A lot of times you move things forward with money,
Speaker:Very good point,
Speaker:and a great place for us to close this up because
Speaker:we're going to have to carry on a little bit.
Speaker:I want to move into our reflection section and Carmi,
Speaker:we're going to do this really kind of quick because I
Speaker:wanted you to keep talking about your story because you're just
Speaker:a wealth of experience and learning for us.
Speaker:But I want to talk through just a little bit about
Speaker:you and what you found to help you succeed along the
Speaker:way. Is there a natural trait that you have that you
Speaker:feel like you've been calling upon this whole time in the
Speaker:gift industry,
Speaker:that's helped you to take those risks and to build all
Speaker:these products and be successful?
Speaker:One thing that I cherish is my relationships with customers and
Speaker:manufacturers. I think really creating that relationship is really an important
Speaker:for me moving forward.
Speaker:I love collaboration,
Speaker:whether it's with my manufacturer,
Speaker:with my customers.
Speaker:For example,
Speaker:I have a customer in Kansas city recently who was looking
Speaker:at one of our computer angels they're angels that are created
Speaker:out of the motherboards.
Speaker:And he really came up with this concept,
Speaker:Oh, this is great.
Speaker:Not only as an ornament,
Speaker:but you know,
Speaker:maybe this is even better idea for the idea of some
Speaker:kind of protection type of,
Speaker:or guardian angel concept,
Speaker:you know,
Speaker:surrounding the computer,
Speaker:his idea,
Speaker:you know,
Speaker:we collaborated really quickly.
Speaker:And next thing I knew I was bringing the product to
Speaker:market when he was buying it.
Speaker:So it's kind of an interesting scenario of customers working with
Speaker:us to work together.
Speaker:So that we're kind of a team,
Speaker:although we're really on separate sides.
Speaker:I like to give back side of things too.
Speaker:I really think that assigning some kind of giving back to
Speaker:charity or fair trade,
Speaker:one of the two,
Speaker:where you're really helping others with the sale of the product
Speaker:or with the creation of the product.
Speaker:And I'll just give you a very,
Speaker:very quick example.
Speaker:My mom suffered with breast cancer for many years,
Speaker:and I always wanted to give something back to some breast
Speaker:cancer organization or research organization.
Speaker:And we came up with a product like a woman of
Speaker:Valor, which is based on a biblical Psalm,
Speaker:which talked about women and,
Speaker:you know,
Speaker:and their role in all the positive attributes of being a
Speaker:woman. And we put that in our hang tag again,
Speaker:and we create a really cool,
Speaker:beautiful design.
Speaker:And we gave a certain percentage of the sale to national
Speaker:breast cancer research and national breast cancer foundation.
Speaker:And I,
Speaker:without thinking about the marketing side of things,
Speaker:because we really were talking about,
Speaker:mostly about the give back,
Speaker:all of a sudden we just hit a big home run
Speaker:with people buying the product,
Speaker:just because of the association from the woman theme to the
Speaker:breast cancer giving side of things.
Speaker:I think there's something very,
Speaker:very wonderful about that.
Speaker:Give back side of creation and sales and helping people that
Speaker:really makes doing what I do even more gratifying.
Speaker:Beautiful. Yeah,
Speaker:totally agree with you there.
Speaker:Okay. So Carmi what tool do you use regularly that helps
Speaker:you stay productive or to create some balance between all of
Speaker:these products that you're doing and a personal life?
Speaker:If there is such a thing,
Speaker:right. Unfortunately having the computer in my phone at my access
Speaker:all the time is really just a disaster.
Speaker:First of all,
Speaker:when you're dealing with China or Philippines or Europe or wherever
Speaker:you're dealing with the time zones,
Speaker:always a difference.
Speaker:So you're always,
Speaker:you know,
Speaker:at three o'clock in the morning is prime time to talk
Speaker:to people.
Speaker:So trying to wean yourself off of the clock and the
Speaker:devices is certainly a big challenge Just by nature of your
Speaker:business. You have no choice almost.
Speaker:I mean,
Speaker:you have your phone and your computer going.
Speaker:Yeah. And I think,
Speaker:you know,
Speaker:being an entrepreneur,
Speaker:I stop,
Speaker:you know,
Speaker:I'm always talking it up.
Speaker:I'm always exploring.
Speaker:I'm always coming up with ideas in the most bizarre places.
Speaker:And I think it's part of who you are and I've
Speaker:kind of embraced it and keeping it away from the family
Speaker:is a little bit of a challenge.
Speaker:But I think it's kind of goes the other way around.
Speaker:They stay away from me.
Speaker:So when you say,
Speaker:when your time with your family,
Speaker:you really have focused on time with your family though.
Speaker:I mean,
Speaker:you find the little bites of time that can just be
Speaker:personal time with family.
Speaker:I think the one thing I've learned over the years,
Speaker:the quality of life is an important side of your work
Speaker:and it can take over your life and it does at
Speaker:times, but how to engage it back is certainly a challenge.
Speaker:Right? Well,
Speaker:and you know,
Speaker:you have to be able to do some type of balance
Speaker:or you couldn't be in it for the long haul.
Speaker:Like you're doing Carmi.
Speaker:Is there a book that you've read lately that you think
Speaker:our listeners could find some value in?
Speaker:I've been reading
you know,
Speaker:which is Herman has book about Buddha in the world of
Speaker:meditation. I don't really meditate,
Speaker:but I find that it gives me a little bit better
Speaker:perspective on life.
Speaker:As I get older,
Speaker:to calm things down a little bit.
Speaker:I think that again,
Speaker:taking a step back about not just treating businesses business,
Speaker:it's an important feature to how I work these days.
Speaker:I really like to have a win-win type of environment.
Speaker:And I love,
Speaker:love working with people who I really like.
Speaker:And so,
Speaker:which is not always the case.
Speaker:You know,
Speaker:sometimes we have to work with people and,
Speaker:you know,
Speaker:work these difficult relationships and,
Speaker:you know,
Speaker:it's all life,
Speaker:but it certainly happens a lot with manufacturing and sales and
Speaker:customer service and customer service is certainly an ongoing challenge for
Speaker:everybody. Well,
Speaker:and sometimes you do need to meditate and just calm yourself
Speaker:down and,
Speaker:you know,
Speaker:meditation, I think in the whole entree,
Speaker:you know,
Speaker:everyone talks about entrepreneurialship these days.
Speaker:Meditation is,
Speaker:you know,
Speaker:and being grateful and all of that are big topics these
Speaker:days and give biz listeners just as you're listening to this
Speaker:podcast today,
Speaker:you can also listen to audio books with ease possibly also
Speaker:Herman Hesse's book is on audio.
Speaker:I don't know.
Speaker:I've teamed up with audible for you to be able to
Speaker:get an audio book like this for free on me.
Speaker:All you need to do is go to gift biz,
Speaker:book.com and make a selection that is gift biz,
Speaker:book.com. Okay.
Speaker:Carmi with your creative mind,
Speaker:I am really interested to see what happens when I invite
Speaker:you to dare to dream.
Speaker:I'd like to present you with a virtual gift.
Speaker:It's a magical box containing unlimited possibilities for your future.
Speaker:So this is your dream or your goal of almost unreachable
Speaker:Heights that you would wish to obtain.
Speaker:Please accept this gift and open it in our presence.
Speaker:What is inside your box?
Speaker:I'm going to speak for the moment,
Speaker:my obsession,
Speaker:as of latest to work with artists and work with factories
Speaker:in the U S which is a very big challenge,
Speaker:but a really wonderful experience for me.
Speaker:So I that domestic and USA based manufacturing and design to
Speaker:me just a magical moment to see happen,
Speaker:particularly after a career where I'm really dealing with mostly international
Speaker:manufacturing. On the other hand,
Speaker:the idea that I can help people in a fair trade
Speaker:environment overseas,
Speaker:which has really been the case,
Speaker:mostly in the Philippines,
Speaker:rather than China.
Speaker:We're really working with people who are super creative,
Speaker:don't have the ways and means,
Speaker:and really helping them move forward to not only just create
Speaker:products, but really create some kind of community and life around
Speaker:some kind of manufacturing environment.
Speaker:So combination of fair trade concepts,
Speaker:that's really been going on for a long time and also
Speaker:domestic manufacturing.
Speaker:So that in both cases,
Speaker:helping people move forward in a creative spirit,
Speaker:I have to just say that.
Speaker:I don't know if I have another word in here,
Speaker:but I love this podcast.
Speaker:Oh, you're so sweet.
Speaker:Take as much time as you want.
Speaker:Carney. Yeah.
Speaker:I love that idea of just talking to the people who
Speaker:are out there about the different experiences that I've enlisted on
Speaker:this podcast.
Speaker:I think it's a huge service to help entrepreneur the makers,
Speaker:the creators,
Speaker:the developers,
Speaker:the factories.
Speaker:I think it's definitely addressing some of the harder issues on
Speaker:what's going on.
Speaker:Everybody has some very interesting journeys and listening to this podcast
Speaker:is just very,
Speaker:very, very wonderful.
Speaker:Oh, thank you.
Speaker:Carmi I so appreciate that.
Speaker:And give biz listeners,
Speaker:I will have the show notes page as I do with
Speaker:each episode.
Speaker:And if you want to connect up with karma,
Speaker:you want to see the bugs because they are absolutely so
Speaker:super cute and everything else he has going on.
Speaker:Then you'll just go over to his show notes page on
Speaker:gift biz on rapt.com
Speaker:Carmi relationships.
Speaker:Oh my gosh.
Speaker:You talk about it throughout the whole talk here.
Speaker:And honestly,
Speaker:in the end,
Speaker:whether it's relationships with your customers,
Speaker:your manufacturers,
Speaker:now we've created a relationship with everybody who's listening today,
Speaker:right? So it's all about people helping people.
Speaker:Thank you so much for all your comments about the show.
Speaker:I really do appreciate that.
Speaker:And I love your future vision in terms of fair trade.
Speaker:And then also getting some production back here in the U
Speaker:S which would absolutely be fabulous.
Speaker:And I know that's going to happen.
Speaker:I wish you much success.
Speaker:And since you're right around in my area,
Speaker:I know I'll be seeing you.
Speaker:So I'll be able to get updated on a regular basis.
Speaker:I'm sure,
Speaker:but we all wish you the very,
Speaker:very best and may your candle always burn bright.
Speaker:Thank You.
Speaker:Today's show is sponsored by the ribbon print company,
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Speaker:Customization is more popular now than ever granted your products of
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