Trust me, they've had their share of dogs. Back then, she says, "they were creative, wide-eyed, a bit throw-caution-to-the-wind." And Teed-Murch is encouraged by what she saw on her most recent visit to L.A. "They always have their eye on the next latest and greatest before we even know it's coming," says Teed-Murch, who has known "the boys" since joining Toys "R" Us as an assistant buyer 18 years ago. Yet, Spin has launched some of the most popular toys of the past two decades. With estimated revenue of somewhere between $750 million and $1 billion a year, according to BMO Capital Markets analyst Gerrick Johnson, the privately held company is still a baby compared to the Big Three-Mattel, Lego and Hasbro. Spin Master's founders-co-CEOs Anton Rabie and Ronnen Harary, and chief creative officer Ben Varadi-have a knack for doing just that. And, of course, they need to keep finding the next big thing. For toy companies, the trick is to make better products using cheaper materials and more efficient manufacturing processes so they can hold the line on prices, or even reduce them. A good year sees that number rise by 1% to 3% a bad year sees it decline by about the same. In fact, the North American toy industry has been stuck at roughly $22 billion in sales since Spin Master launched in 1994. The guests she's referring to are, broadly speaking, cost-conscious moms whose toy budgets vary little from year to year. "Yes," replies O'Neal with the slightest hesitation. It's an unspoken rule in the toy business, however, that only the most fantastical items warrant a price tag over $100. Spin Master's suggested retail price for Yoda is $179.99. And the toy maker is convinced that Yoda will be a must-have for both newer fans and sci-fi nerds who grew up with George Lucas's original masterwork. Spin Master expects to ride a frenzy of fandom following the release of Star Wars: The Force Awakens, the seventh instalment in the film franchise, due out in December, 2015. If he seems a bit defensive, perhaps it's because Spin has spent months working on Yoda, and the Toronto-based company has invested hundreds of thousands of dollars in developing it. "We're still working on the face," admits Johnny O'Neal, director of marketing for Spin Master's global boys-and-wheels unit. In hands-free mode, Jedis-in-training can harness the power of the Force to propel Yoda backward.
Thanks to tens of thousands of lines of code embedded in his processing chips and his itty-bitty light sabre, Yoda will be able to teach young Padawans how to fight Jedi-style and dispense Yoda-isms like Patience, you must have. (Just to set foot in the showroom, I had to sign a non-disclosure agreement.) By the time Yoda lands at Toys "R" Us in fall 2015, Teed-Murch will have seen him several times, at toy fairs in Hong Kong and New York, and at retailer "walk-throughs" like this one hosted by Spin Master in mid-October and attended by buyers from around the world.
The object of her scrutiny is a two-foot-high, voice-activated Yoda whose development has been shrouded in so much secrecy that she and her colleagues at Toys "R" Us have a code name for it, which they refuse to divulge. Melanie Teed-Murch, vice-president and general merchandising manager for Toys "R" Us Canada, is standing in Spin Master's Star Wars showroom in L.A.