Crafting millions from beads, paper dolls

By: SHANNON WINGARD - For the North County Times | Saturday, March 3, 2007 12:08 AM PST ∞

SAN MARCOS -- The owners of Crafty Productions say they never imagined that their business -- designing and selling craft kits to retailers nationwide -- would become a multimillion-dollar success.

However, that's just what happened.

The 17-year-old company designs and distributes such items as wooden craft kits, iron-on transfers or appliques, wooden buttons, frames and necklaces -- just to name a few -- to nationwide retail craft stores. Ý

The owners are Paula Mello and Mary Hetz, who are sisters, and Alice Beas, who has been friends with Mello since they were students at Our Lady of Peace High School in San Diego. The company is based in a 10,000-square-foot facility in San Marcos.

Items are designed there, made in China, and then distributed from a warehouse in San Diego. ÝÝ

Before teaming up for the business, Hetz designed beaded jewelry for more than 20 years and sold it at such high-end retailers as Neiman Marcus and Barneys of New York.

When Mello, company president, realized how popular the jewelry was, she had the idea to sell beaded jewelry-making kits, allowing buyers to make their own jewelry at an affordable price.

Although the business started with annual sales of $50,000, the owners said that it has grown to a projected $6 million in gross sales this year. A quarter of the company's business comes from children's crafts, Mello said. ÝÝ

Mello said the average item is sold for $1, and she expects the company to sell approximately 6 million products in the wood departments of approximately 4,000 retail stores, including Wal-Mart, Michaels, Jo-Ann Fabrics and Crafts, Dollar Tree and Hobby Lobby.

Beas, vice president for marketing and sales, said that the company products have been ranked in the top five at Michaels, including two years as the best-selling, and have also been in the top 10 at Jo-Ann Fabrics.

"We are a really small company in the scheme of things, but we do well," Mello said. In fact, the business only has nine employees, including the owners.

Apparently, the Greater San Diego Chamber of Commerce agreed, awarding the owners the Women-Owned Business Small Business of the Year award in 1993.

So, what is their secret? Mello attributes it to their creativity and ability to keep up to date on trends.

"We look for the latest trends in the craft industry and outside of it," she said, adding that inspiration can come from a variety of places, including advertisements and gift-trade shows. Ý Ý

For example, Mello said, a line of baby clothing inspired her to give people a way to dress their infants in a similar style for less. So Hetz, who is vice president of design, created a fabric iron-on applique, which can be bought for $1.95 and added to any baby's "onesie."

Another idea came from a print advertisement that featured paper dolls. Hetz fine-tuned the idea, designing the company's "All Dolled Up" wooden dolls with line drawings that make them easy to decorate.

In 18 months, Beas said, the company has sold approximately 2 million dolls.

"It's an everyday item that has hit a home run," she said, adding that the company is now distributing dolls that can wear different outfits, as well as a line for boys that feature race cars, emergency vehicles and military themes.

Beas said the company keeps the prices reasonable because crafters are "dollar-conscious."

-- Contact freelance writer Shannon Wingard at scwing711@gmail.com.

AT A GLANCE:

Name: Crafty Productions

Owners: Paula Mello, Mary Hetz and Alice Beas

Address: 1697 La Costa Meadows Drive, San Marcos

Phone: (760) 736-8130

Established: 1990ÝÝÝÝÝÝÝÝ

Services: Creates and distributes crafts and craft-making kits to nationwide retailers

Number of employees: Nine

Estimated sales for 2007: $6 million

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