Momtrepreneur Proves That Binkies Are the Necessity for Invention

Sometimes a product stands out so much that I just have to talk to the visionary behind it. Such is the case with Monica Williams’ creation, Pacimals, a combination pacifier/plush toy that she created after noticing that daughter Mackenzie kept dropping her pacifier, something that drives most tots to tears. That small observation has morphed into a new product that begs to be noticed in an already-saturated baby-product market.

In this week’s Ask Lynda, I break from the regular letter format to speak directly with the radiologist-turned-entrepreneur, who never expected that her email asking for business advice would prompt a response – much less an hour-long phone call from the author of the book she’d just read. “Holy cow – you replied!” Yes, Monica. Your product was just too cute and inventive to pass up!

(This interview has been edited for clarity and length.)

Lynda Resnick: Pacimals. Okay, so here are my thoughts. I think the product is wonderful. Where is it manufactured?

The line of Pacimals, "the huggable pacifier"

Monica Williams: The silicone is made in Anaheim at a surgical supply house, and the toy is made in China.

LR: I think it’s important in your advertising that you stress the fact that the nipple is made in America. People have a fear of putting anything from China in their mouths because of all the dangerous products coming out of China, like toys and milk.

MW: This is something that I wanted to go in depth with you about, because you’re so familiar with research and what you did with POM. I’d like to promote really healthy plush toys, because 99.9% of plush toys are made in China. The ones made in the U.S. cost 500% more. There are chemicals that they’ve found in Europe that they don’t talk about as much here – PVCs and other chemicals to dye fabrics – that you aren’t required to test for here – yet. A significant sample of all the toys I make are tested in-house, here in the U.S., so I can guarantee that they’re safer than any other toy you can buy.

LR: So you have tested your toys?

MW: Yes, they’ve been tested for the minimum requirements. They’re safe, but there’s more that I’d like to do.

LR: And how would you go about doing that?

MW: This is where it gets really tricky. It’s a UV-spectrum technique where you take the cloth, for example, and put it in a saline solution that approximates the pH of sweat or saliva. It’s a chemical test. You have to buy the machine, because to do it out of house is $500-$1,500 per test, and if I wanted to test every batch, or a certain percentage of every batch, it would just be exorbitant.

LR: Right. How much does a machine cost?

MW: I think you can get one for about $7,000. Is that’s something that’s worth it?

LR: It is beyond worth it. That was one of my first questions when I saw the Pacimals. Being involved with consumer products, the first thing you think about with China is potential dangers. So if you can make that investment to buy that machine, I think it would be fabulous for the long-term health of your business.

Monica Williams and daughter Mackenzie, the inspiration behind Pacimals

Now, I’m here to talk to you about what you can do next. Tell me how you’re doing right now. How are your sales?

MW: Sales are good. My sales are limited by where I am – I still work out of my home. I just put a proposal out on a lease, but I cannot sell anymore. I don’t have the capacity. I’m kind of trapped packing orders. I have friends and family that come in, but you can’t just hire anybody to come into your home. I’m unable to do the sort of PR that I need to do, as well as other business and product development. Sales are great. But I can’t grow anymore.

LR: You’re really at a crossroads in your business. There are a few things that you can do. Number one, you can sell the idea, which would be the easiest thing to do, and retain a royalty. Sell it to someone who is big in the baby-toy arena.

MW: I’m not really ready to sell the idea.

LR: How are you going to go to the next step then? You need money.

MW: I do need some money, and I think the biggest way to get to the next step is for me to get out of this space. I have enough capital just from sales to get out of the space and to hire people. It may not be the next step, but it’s a step ahead of where I am now.

LR: And then you can start to work on growing at a healthy pace. So, let’s then assume you can hire the people, you know where to find them, and that your only problem is to create more business. What is your mark-up?

MW: For wholesale, it’s five times; for retail, it’s ten times.

LR: Okay, good girl. That’s the only way to do it. Most people are so naïve about that. They don’t realize you have to have a seven-time mark-up – minimum – for direct response. I found that in the direct-response business, I couldn’t send an empty box for $19.95. It didn’t make enough money. Is the average order one product, or do customers buy more?

MW: That’s actually another question I have for you with this business model. Right now, I don’t sell a lot online. The main way I make money is selling these to stores.

LR: It’s so easy for you to start to get orders online. There’s a special way to write [code] your website, called SEO (search engine optimization), so that Google and the other search engines will pick it up automatically. In other words, if you type in “infant pacifiers,” you want to be number one there. Now you can buy number one, or you can do it the way I’m explaining, which is SEO.

MW: Organically.

LR: Yes. Exactly. So, next let’s assume people start coming to your site. You would also start to contact all the bloggers in your area, the people who are talking about healthy baby toys, anything about parenting. You can find them on Technorati and Google, but you have to have a person working on this full-time, somebody who’s doing your website. And this person would engage in conversation with the bloggers, send free samples to all the bloggers in that space, have them start writing about it – this is the way you build a business. It doesn’t happen overnight. It’s slow. But it’s steady and it works.

MW: We decided not to go with direct marketing initially because we wanted it in front of more eyes.

LR: I don’t think you have to make a choice now. I’m worried about where the retailers are going in this economy. I would need to hear the feedback from these retailers: What are they saying to you? How do they feel about the price? Do they think it’s fair? Are the things selling? Are they buying one or two? You need to know what’s going on in the retail space. Do they come packaged with a display?

Two potential clients take Pacimals for a test drive.

MW: There is a display that’s basically a three-step riser. Then there’s a heavier acrylic cylinder that the sample can sit in that sits by the register so people can feel it and buy it right away.

LR: You get it, darling. You’re very close to where you need to be. I’m very impressed with this business that you’ve built. But let me tell you what the problem is with direct response – you can’t have one item. Once you get that name, that name is worth a fortune to you. You need a back-end strategy – what to do with that name once you get it. What other items will you sell them? Then we’ll get into licensing. That’s next.

MW: That’s funny, because I just started looking into the licensing world.

LR: You should go in February, go to the licensing show. This is a natural for Disney. That’s the obvious. Wouldn’t a little baby like to hold Pooh Bear?

MW: And younger people now are having children, and they just graduated from Auburn or USC. Who would not buy a Trojan pacifier?

LR: I love it. And believe me, those licenses will be cheap, because nobody else is doing it in your space. I love licensing for this product. It’s just a natural.

MW: I looked at the next step and, sports teams, like for the NCAA, are actually based here in Atlanta. I went through the application – it’s a whole job unto itself.

LR: Oh, yeah. You hire a freelance licensing agent to work with you.

MW: Really?!

LR: Of course!

MW: I didn’t even know they existed. See, this is the sort of stuff I just don’t know.

LR: It’s a whole field, that’s why you should go to New York in February to the licensing show and just walk the aisles. You’ll find people. You know, I wish somebody would invest in your business. I don’t do silent investments, but I wish somebody would give you some working capital, so you could really get started, you know?

MW: Yeah, that would be great. (laughs)

LR: All right, so tell me your questions.

MW: How do I maintain the integrity of my brand while moving into the big-box stores?

Pacimals founder and momtrepreneur Monica Williams

LR: First of all, that’s the least of your problems. Michael Graves, Mizrahi, and all those famous designers are willing to sell at Target. There is nothing wrong with you selling at Target. But they do like to private-label everything.

For instance, I do a huge business with Wal-Mart, Costco, and Target. I’m the largest producer of pistachios in the world. So, when I sell at Costco, they put their brand on my brand. They like to private-label. But you’re not ready to go there, honey, because you don’t have the ability to produce enough. They have a certain minimum range that you have to get within a month or a week, and if you don’t pass that hurdle, they don’t keep you.

MW: Okay, so Target.com, I’ve already started negotiating with them. They want to start on Target.com to test it and then move to Target, because as you said, the price point will have to come down and the packaging will have to change. So, do you think I’m not ready for Target.com either?

LR: Just make sure you have inventory on hand. The worst thing you can do in your whole life is have too many sales and not deliver. Then you’ve lost them, forever.

MW: Another question I had was growing the buzz on my product. I’m familiar with blogging and search engine optimization techniques. Magazines, radio, TV – I’d like to be able to work on all those levels at an affordable rate. It really comes down to me figuring out what I need in my infrastructure. Who to hire…

LR: You do not need to hire this. You’re smart enough to do it yourself, to type the release and send the product to the magazines and your local newspaper. You should start in your own community by giving it to everybody. I would find out if there are any events going on; create a $5 coupon that could go with the gift bags. Hire a kid to go to the park and give out coupons on a sunny day to mommies. It’s grassroots. Go to the journalism school and hire some bright young person to work with you. Nobody’s working today, honey. They’d be thrilled to do freelance. Do not add to your overhead, unless it’s people to make more product. Everything else you can outsource.

MW: The blogging world is humongous for new moms. 85% of moms look up everything online before they buy it.

LR: I love the product. Believe me, for you to get an hour of my time…

MW: I really appreciate it. When I sent you the email and you responded, I was blown away.

LR: This work is important to me, and I want to help people. And when I see somebody who’s worthy of the help, I get excited.

What are you going to do with that kid after he or she is over 18 months old? I don’t want them to leave you.

MW: [The Pacimals product] is built for weaning, so when they get teeth, you can remove the pacifier and they can teethe on that ring. And when you’re really ready to wean them, you snip off the base altogether, and they have this toy, this lovey, that they’ve known literally all their lives.

LR: Right. They can take it to dinner parties when they grow up.

MW: From there, I think it’s natural to go to clothing and bedroom accessories.

LR: No clothing. Returns and – ugh! No. Clothing is horrible. You want something that’s one size fits all.

MW: Good to know.

LR: All right, so you have to send us an email and tell us how you’re doing in a few months. And let us know if you’ve tried any of these things. I hope I’ve helped you.

MW: You’ve been very helpful. Thank you very much.

LR: I know it’s overwhelming, but I have faith in you. I think your business is going to be a big success. You are a natural.