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Resaurus was founded in 1993 by Doug Sapp, a former student at Columbus College of Art and Design, to manufacture and sell finely detailed toys, usually copies of characters in video games and cartoon shows.
Shortly after its founding, Resaurus was hired to make toy versions of dinosaurs that appeared in Lost World, the movie sequel to Jurassic Park. Several months ago, Resaurus was put up for sale.
|□||Doug Sapp, President of Ncom, also president of Resuarus
Ncom is an internet company providing business-to-consumer services. They do all the work and provide all the functionality associated with running a business-to-consumer Web site. Ncom covers its costs and will turn a profit by taking 34% of every sale.
Ncom's 34% take of each sale is all any customer will ever pay for the service. Sound like a lot? Consider the upside. The manufacturers keep 66% of the sale, a far higher cut than what they would get from retail. "This is a significantly better profit margin than in the brick-and-mortar world," says Joshua Greenbaum, principal of Enterprise Applications Consulting. The profit margin on a retail store is "about 15% to 20%. For the small manufacturer, there isn't really a downside here," he says.
Doug Sapp, CEO and chairman of Ncom, believes mid-market manufacturers will welcome the Ncom proposition because it speaks to their specific woes: namely, a lack of time, money, and technical skills. Sapp understands their situation, since he is also president of a mid-size toy manufacturer, ReSaurus Company Inc. (Columbus, OH). "One of the great things about the Ncom model is that it comes out of a real-world need. It was designed by manufacturers for manufacturers," Sapp says.
Sapp started Ncom because he had a lot of trouble handling all the aspects of ReSaurus's e-commerce operation. "We tried doing e-commerce ourselves and then just proceeded to fail to handle the customer service side of the business," he says. He guessed that other small manufacturers were having the same problems. He was right. Since launching Ncom in April 1999, the company has signed on 40 companies and expects to have at least 100 by July. The original goal was to have that many customers by November.
Sapp recognizes that Ncom has competitors in different parts of its business, such as Fingerhut Business Services Inc. (Minnetonka, MN), which offers fulfillment services, and Pandesic LLC (Sunnyvale, CA), which develops and hosts e-commerce operations. But Sapp and Mark Prevost, Ncom's cofounder, president, and chief operating officer, dismiss these companies because their services are too expensive for small manufacturers.
Part of Ncom's attraction is the breadth and depth of its services. Ncom effectively does it all: the storefront, fulfillment, customer service, marketing, and gathering of real-time customer data. "What every manufacturer wants to know is who's buying their product. We give that information back to them," Sapp says.
|□||GUITARIST FILES SUIT OVER KISS KNOCKOFFS TOY COMPANY NAMED IN SUIT
In a lawsuit filed last week in U.S. District Court in Columbus, Frehley of Ossining, N.Y., says Resaurus Co., 240 Outerbelt St., is manufacturing and selling miniature replicas of his guitar without his permission.
Frehley, 50, is one of the original members of the wildly costumed rock band, founded in 1973. Kiss last performed in central Ohio in May 2000; 18,000 fans turned out at Polaris Amphitheater during the band's national farewell tour.
The 10-page lawsuit says Frehley contracted with a national guitar-manufacturing company in 1996 to make limited-edition replicas of his guitar. Each is signed by Frehley and is "distinctively decorated . . . with a cherry sunburst finish,'' the suit says.
According to the lawsuit:
* The full-size copies have sold for "hundreds of thousands of dollars, depending upon the materials used.''
* Since last year, Resaurus has sold more than 28,000 miniature versions of Frehley's guitar for $7.50 to $9.99 each. Those copies are one-sixth the size of an actual guitar.
* In ads and other promotions, Resaurus has boasted that its miniature replicas "epitomize the heart and soul of popular music while retaining the authenticity of a legendary work of art.'' Packaging for each alleged knockoff promotes it as an "artist edition as used by Ace Frehley of Kiss.'' Such advertising misleads the public, the suit says.
Frehley is asking for triple damages of at least $400,000.
official website for Resaurus
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|The Action Figure Archive - Sunday, February 23, 2020|