Razor's Crazy Cart, the Scooter That's All the Rage

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Dec. 10 (Bloomberg) -- Razor USA President Carlton Calvin discusses the company's crazy cart and how the economy is impacting the toy business with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

I have to start by asking you to tell the story about how this product came about, this scooter that is all the rage now.

It was one of my employees who came to me and said, this could be the greatest thing.

It was seven years ago.

I sent him to business school and that you silly a -- ucla, he used that as his thesis.

How do you improve on a scooter?

It seems like it has been around forever.

This is motorized.

It is like a bumper car but when you raise the magic bar on it -- [laughter] the overall business climate in the toymaking industry has -- industry.

Has the sluggish economy has affected your bottom line?

I know that in general, the toy business is somewhat tougher than it has been.

That is because?

I think that there is many theories.

A lot of people think that kids are being drawn to technology, ipads and phones basically.

Consumers have been very particular about how they use and how they spend their discretionary income.

What might that mean for toy sales?

We have seen that when the deals are sharp, the consumers come out in droves.

They are very sensitive.

Sensitive in terms of the price?

That is right.

When they perceive a really great deal, they will come out.

What do your company's profits look like during non- peak sales periods?

I would say two thirds of our profits come at the end of the year.

Really?

This is the big season for us.

What has this done in terms of your workforce?

Has it enabled you to hire more workers because of the demand?

I am hiring a whole team for social media.

The social media on this product -- it has had to viral videos -- two viral videos.

Was that something that before may have been in the background but then you realized when the word got out -- we saw some of that video just a moment ago, that it is just taking off?

I could not have imagined the power of social media.

The same guy made these amazing viral videos.

That made -- changed the whole dynamic of the product.

Your target customer is young people.

Give us a sense.

What have they been saying?

You are checking out social media to see what they are saying about your product?

It is not just young people.

All they say is, shut up and take my money.

That is one of my favorite comments.

That is somebody's father right there who is having a good time on the scooter.

The toy sales, are they indicative of americans' comfort with the direction of the economy or our sales just a holiday trend?

People always put their children first.

We tend to see toy sales as being very resilient even import economies.

Is that surprising to you?

I always want to put my kids first too.

It is not so surprising to me.

Would have been -- would have parents been telling you?

We see parents kicking their children off and using it for themselves.

Your stiffest conversation, where is that coming from?

We find competition from the xbox and ps4. this is an expensive item, so those would be the type of big purchases that would compete with our product.

Did you see something there that other people didn't see when you mentioned social media and xbox, when you mention folks who are staying at home and staying inside and they are on their couch and they are doing this all day.

Did you see this -- i got something here because this is a good alternative?

At the very least, we are getting people outside.

They are not tethered to a phone or xbox.

Excellent point.

What we see there, the big advantage for the wheels business is that there is no substitute for motion.

You can simulate a toy car.

You can simulate a lot of things on a videogame.

You cannot simulate that rush of speed.

What is next for you?

We are just trying to keep up right now.

Social media is our big focus in the future, to help people understand.

Is this just a u.s. phenomenon?

All over the world, people know about the crazy kart.

Germany is like the home of motorsports.

This appeals to people in germany -- it is a star in germany.

This is such a good story.

Mr.

calvin, it is a pleasure.

This text has been automatically generated. It may not be 100% accurate.

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