Business Spotlight: Ted E. Bear's Toy Factory

Five-year-old Josh Miller of Ozark had been looking forward to coming to Ted E. Bear's Toy Factory in Springfield. Now, he faced a tough decision. What kind of stuffed animal should he make?

The walls and shelves were lined with an assortment of stuffed animals, including a teddy bear dressed like a policeman, a frog in a prince's outfit and a duck in a baseball umpire's uniform. Then he saw a tiger dressed in camouflage. His eyes lit up.

"I want to make a tiger," Josh announced.

With the help of Jessica Stern, one of the store's 10 part-time employees, Josh began constructing his own stuffed tiger, which he named Stripe.

Owners Paul and Sheryl Jones have been helping children make stuffed toys since opening Ted E. Bear's Toy Factory in Eureka Springs, Ark., in 1999. Sheryl Jones came up with the concept after visiting a similar entertainment retail store in San Francisco, Calif.

"I remember Sheryl called me that evening and told me all about this store she had visited," said Paul Jones. "I just couldn't get excited about the idea, though. Springfield doesn't have the shopping base San Francisco does, and I wondered if a stuff-your-own-toy store could make it here."

The Jones' shelved the idea for almost four years. Then in 1997, things began to change for them both.

The food brokerage firm Paul Jones worked for was bought out, and he feared he might lose his job as an account executive. Sheryl Jones, meanwhile, had grown tired of working as a paralegal, and she was ready to embark on a less stressful career.

Eventually, both of the Joneses quit their jobs, and in 1999, they opened Ted E. Bear's Toy Factory. From the very beginning, the two worked hard to make their business stand out.

Rather than mimic other entertainment retail stores that sell stuff-your-own toys, the Jones developed their own retail concept, which incorporates the seven steps used by commercial toy factories, according to Sheryl Jones.

Customers are involved in each stage of the production process from picking out an unstuffed animal shell to choosing the animal's eyes to stitching up the new toy and grooming it.

"We've really personalized the process and made it educational," she said.

Not only is the process personalized and educational, it's downright fun. During step three, customers are asked to grab a handful of fluffy white stuffing from a bin and hold it out while they make a wish. Glitter and sparkles from a "Hopes and Dreams" jar are added to the stuffing, which is then put inside their toy animal's head "so he can think about your wish."

Paul Jones has added a few personal touches of his own.

He constructed the clear plastic tube that sends stuffing to the "Stuf-Fun Machine." Once the stuffing is sent, several colorful "magic balls" in a clear tub on top of the machine bounce wildly, which signals customers the Stuf-Fun Machine is ready to go.

He also invented the "animal bath," which customers use to vacuum off and clean their stuffed toy. Several flowers on the top of the machine twirl "if, and only if, you do a good job."

Most of the toys at Ted E. Bear's Toy Factory cost about $18. In addition, the store contains a full line of clothing and accessories, which helps customers give their toys a distinctive look.

The Joneses said they've learned a lot since going into business for themselves. Originally, they opened Ted E. Bear's Toy Factory in Eureka Springs because they believed their business would have a better chance of succeeding in the popular tourist destination.

In August 2001, however, they decided to move their store to Springfield. After a short search, they rented retail space in the James River Towne Center.

"We were tired of commuting back and forth, and the market in Eureka Springs wasn't what we thought it would be," said Paul Jones. "When I was a kid growing up in Arkansas, Eureka Springs was a family destination. Now it's more of a getaway destination for couples who'd like to spend a weekend away from the kids."

Since relocating Ted E. Bear's Toy Factory to Springfield, the Joneses have worked hard to attract children and preteen customers by advertising on MTV, the Cartoon Network and Nickelodeon. The store's proximity to the Wal-Mart Supercenter and Kohl's also generates a great deal of walk-in business. In addition, they own a mobile stuffing machine that allows them to go onsite for special events.

The Joneses are spearheading a community-service project.

During the past few months, they have offered a 10 percent discount to customers who bring in used stuffed toys. To date, they've collected more than 1,700 stuffed toys.

After the toys are cleaned, they will be given to the Springfield Council of Churches, which will distribute them to low-income families and nursing home patients in the area during the holiday season.