Ozark company grows on track

Trains for Anthony

Anthony Modrell, the train-enthusiast son of the Modrells, became fascinated with trains after receiving a Thomas the Tank Engine set before his first birthday. His mother found a quality train store in Kansas City and was impressed by the educational and play value of the trains. But she wasn’t prepared for the price tags on the train sets. “They were $30 to $40 each and I was disappointed I couldn’t give my son the train set,” she said.

A visit to eBay in search of lower prices led to the beginning of Trains4Tots. “I came across some people who were selling a similar set for $50 instead of $300. I saw they were selling a lot of them, so I researched on eBay to find out where they were getting them. I found a catalog where they were $28 a set and decided I’d buy one for my son and get another one to sell to help pay for his,” she said.

In the beginning, it was more of a hobby, with Modrell selling sets for $50 to $60 apiece.

“I’d sell 30 to 50 a month. I just replicated that over and over and built my reputation on eBay. People started asking for other products, so I added more after I contacted the manufacturer directly and began buying from them,” Modrell added. She got her business licensed and registered and Trains4Tots was off and running.

More room

As she continued to add products, Modrell chose Maxim toys, and started carving out a niche for her small business. The business grew and begin taking up much of the family’s living space at home.

“As Maxim began expanding their product line and my sales were going up, my computer room wasn’t enough. My husband built shelves and that wasn’t enough. Basically, my house became full. The spare bedroom, the garage and the hallway were getting full, and we were running out of room as we realized the business was taking over the house. We contemplated retail, but at the time our only source of revenue was the Internet,” she said.

In 1998, the Modrells decided to rent 1,000 square feet of space near their home – they were living in Republic then – so there would be room for their growing inventory. By the fall of 2000, Laura Modrell felt like the business was steady enough that she could quit working evenings at MCI, which she did so that she could be home during the day with Anthony.

“I was a little hesitant to jump in at first and I have to credit my husband for supporting me to do that. I worried about failure and overhead and employees and I thought I might ruin a good thing. He told me if I never took a chance, I’d never know. He gave me the support and confidence to take that step. I rented month-to-month and didn’t commit myself to a long lease. It provided a place to work with or without the local traffic,” Modrell said. Trains4Tots was getting some local traffic, but nearly all of its business was through mail-order.

“I started adding other lines like Brio, one of the most well known toys,” she said.

It didn’t take long to fill the Republic store. “I basically made do with it. We also had to rent a storage unit to accommodate the products.”

In the summer of 2001, the business had even outgrown Laura. “I hired my first full-time employee, Erica McNell, who stayed with me for a long time, and by the fall of 2001, I realized I needed more space.”

The couple moved to Springfield and decided to move the business to Ozark.

“We rented more like a warehouse, out by the old Wal-Mart,” Modrell said. “We added more new product, infant toys and continued to expand our Thomas line. I hired Pat McCormick, another full-time employee as well. My dad, Gary Collier, also started working there. We stayed there one and a half years and started outgrowing it. Then we found this place.”

In the fall of 2003, Phillip Modrell sold his siding company equipment and joined his wife at Trains4Tots.

Trains4Tots’ newest location is in a building that used to house a flea market. “It’s 7,000 square feet with tons of room and a place we can stay long-term,” she said. “My husband, dad and others helped me renovate it and made it a useful place for us.”

Phillip Modrell said that working with Trains4Tots is less physically demanding than his work with siding.

“Also in my business, labor was a big issue. I couldn’t find people I could depend on. Now I’ve gone from working all the time on lots of things to one thing,” he said.

Laura Modrell said the arrangement works well. “He has a lot of talent. He’s very motivated and organized,” she said. “He’s our data, inventory control manager and I’m the new product buyer, and I do billing and accounting. It works well for us. Not that we aren’t partners, but he still allows me to be the boss. He respects that and lets me make the decisions.”

Taking stock

Laura chooses higher end, educational toys for her store shelves. She attends the New York Toy Fair and searches for the best value and price. “I market to mid- to upper-class in my toy lines. I start with a small sample of the line and try a few best-selling products. If they do well, we’ll expand. We try to have classic toys that will last,” she said.

The new location has brought new customers. Julie Atchison shops at Trains4Tots for her 4-year-old son Freddie. “We’re Thomas the train collectors,” Atchison said.

Freddie Atchison has more than 50 trains in his collection and the family is in the process of building a train table. “Their service center is excellent,” Julie Atchison said. “His 87-year-old grandmother will come into the store and they will help her pick out toys. They know what Freddie already has and he has a wish list at the store that helps his grandmother shop for him. Their customer service is great. They are helping us with plans on how to set up the train table.” She also shops there for educational toys for 9-month-old Noah. Atchison, also a business owner with South Fork Shelving, said she appreciates the Modrells’ service and professionalism. “If they know you’re wanting a certain train and it comes into the store, they’ll hold it for you.”

Because 98 percent of the business still comes to Trains4Tots via its Web site, www.trains4tots.com, Laura Modrell said she has customers from all over the United States and overseas.

No joke

Year by year, Trains4Tots has grown. “In 2002, I sold $1 million for the first time,” she said. “I told my husband early on, just joking, that I was going to sell a million dollars worth of trains.”

In 2003, the revenue hit $1.5 million and was down last year slightly after the expense of moving to the new location. “I hope we can do $2 million this year,” she said.

Future expansion could include a franchise. Phillip Modrell is developing plans for a franchise just in case they decide to expand in that way. They also recently purchased a small train that will hold 18 riders and can be set up at parties and festivals.

Laura believes a little luck and a lot of persistence grew Trains4Tots. “I know that there are no limits to what we can do with time, energy and money,” she said. “I could’ve stayed home. It’s taken a lot of vision and allowing myself to grow and do what it takes. If I’d started out too big I would have failed and gone under. … I have a little bit of confidence now. If I had to do it all over I wouldn’t change anything. I’m glad for the journey.”

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