Just before the holidays I had the opportunity to interview the owners and founders of one of the most focal vinyl toy distributors on the planet, DKE Toys/Disburst. I enjoyed talking to both Dov Kelemer (DKE) and Scott Kuenzli (Disburst) as the companies recently announced a merger of the two. I had to know what it was like running such a large company in this growing industry. Here is what they had to say.
Congrats on being a part of the industry for 22 years -- that is a long time. What is it like owning the largest independent (designer) toy wholesale company in the world?
DKE: Thank you. While I have been selling toys for over 20 years, I think the "scene" you are referring to is the designer toy scene and that started around 2005. Still a long time but designer toys were not really around in their current form 20 years ago.
As for owning the company, it’s like most things. You look back and you are proud of your accomplishments but you still have to wake up every morning and go to work. So it’s a job. I guess from the outside it looks "cool” but in actuality I run a warehouse and I manage personalities and I make sure products get from point A to point B. It’s not as exciting as you think. There are hundreds of artists and companies and several thousand stores that we have sold to in the past that depend on us, so it’s a lot of pressure.
Of course, all good business begets the hard work. I bet you are super excited about this merger. What are the future plans for DKE now that Disburst is a part of the family?
DKE is not going away. It’s still the umbrella for all of Sarah and my activities. In addition to handling the vendor relations and product development for Disburst, DKE will still exhibit at San Diego Comic Con and Designer Con. We will still produce some toys here and there, run some Kickstarter campaigns, publish some books, and will still buy and sell collections of vintage sci-fi toys.
How did DKE get started in the world of toys?
I think the story is the same as for most people in the toy world. You start out collecting, you sell some extra pieces off to offset the cost of what you are buying for yourself. Maybe it starts to pay for itself and you think, “Hey, maybe I can make a living at this..." But the foundation for what I am doing today all started with Star Wars toys. I sold my vintage carded collection in the late 90s and put a down payment on a house. Star Wars even laid the foundation for the distribution company. You would need a lot of capital to start a distribution company from scratch because the margins are so low. It would take years to get to where you need to be to pay your bills but the Star Wars toys basically paid for the infrastructure and employees so that we could even consider taking on more products at such a tiny margin.
What's it like being a young entrepreneur in OH?
Disburst: From Kent's point of view, exciting. He started at age 23 in the early 80s on his kitchen table. Had a full time job at the time and after hours began a direct mail company before the winter holidays doing solicitation for a custom engraved solar powered calendar, engraved using an engraving machine he learned to run in Germany. Thus began his career in the direct mail industry.
As for me, I assisted Rivet's owner, Laura, in starting her first internet retail business in '01, when I was 26, in Florida. Later, I assisted her with the launch of Rivet in '07, in Columbus, Ohio, and have helped with its growth from that time on until today. Having started businesses in two states, now a third with Disburst's North Hollywood location, Ohio is certainly the easiest state of the three to do business in, so I do recommend it for that.
What made Disburst want to buy DKE?
It is a unique opportunity for Kent and I to apply our complementary skill sets we've sharpened at other companies and ventures.
What made you and your partner want to be in the toy business?
No one ever gets mad at you for selling them toys. To quote Kent, "It's way better selling someone something they want to buy, like toys, than gravesites." I can't disagree with that sentiment except to add, the bigger question was always, "Why not?". We did spend a couple months looking at the opportunity and trying to work out a reason not to do it, but couldn't find one.
What advice would you give someone trying to start there own online shop etc.
We’d say never to forget the following rules:
· Research the market.
· Develop a business plan.
· Secure financing.
· Go for it!
It was awesome to be able to get a little info on running a successful toy company. I appreciate Dov, Kevin, and Scott for taking time to chat with me. Until next time: Go Hard! Go Fast! Go Figure!
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