Please allow me to begin by thanking each and everyone of you that has supported the Scarefactory over the past 14 years. 90% of you have been happy with our products, their function and their time of delivery. The problem is, that every year the challenge of making each and every one of you happy... gets that much harder because every year there are more and more of you, and we now find it necessary to change how we do business.

We are appreciative of the volume of work, our community of clients and especially for the unique ability to design, create and build fantastic creatures from own imaginations. The business has changed significantly over the past 14 years… our products have become more complex and our customer list grows exponentially each and every year. Further, what worked in the beginning obviously doesn’t come close to getting the job done today. What has not changed is that we hand build each every one of the products that we produce… from the steel and mechanics to the sculpting, molding and styling… every piece is hand crafted by as many as 30 different hands, and none of this work is done off shore or farmed out, it all happens right here. This is how it has always been and this is how we always want it to be.

To date we have developed our new product over the winter, displayed it and taken orders at the TransWorld Halloween Show in March, gone into production in April and delivered the product from June thru September. This strategy worked well in the beginning, allowing us to build only what people wanted with minimal overruns. The problem with this strategy is it only gives us 60 days in which to begin shipping our first orders and another 60 days to finish building, testing, packaging and ship the remaining, that is a total of 120 days to hand build, test, package and ship nearly 400 orders or a little better than 3 a day, every day. Add into this equation suppliers and vendors that drop the ball, orders that get changed, great employees that get sick, married or fed up with the impossible deadlines and we find ourselves with the near impossible task of keeping all of our customers happy and delivering their product on time. 14 years of 14 hour days and this kind of pressure has taken its toll on all of us. Our original objectives of creating new ideas and wonderful products for our industry has not changed, but the quantity of the goods that we can produce and the way that we produce them has to change.

Therefore the following changes have been made to how we do business:

1. For previously existing products, Production for the full model line begins November 1st not April 15th, this gives us another 100 days to create the product or nearly double what we have had in the past. Unfortunately, because these items are not preordered we will be forced to take our best guess at extremely limited quantities. These quantities of existing products will be sold on a first come, first serve basis beginning on November 1st.

2. New products will continue to be developed between November and March and unveiled at the TransWorld Show, but unlike in the past, production levels will be already set and scheduled by the time they are displayed at the TransWorld show. Therefore there will be a predetermined and limited number of new items available for order at the show and these units will also be sold on a first come, first serve basis.

The overriding objective of both of these strategies is for our company to build vastly fewer items in approximately twice the time, thereby reducing stress and cost overruns, improving quality control, neutralizing supplier screw ups, and ultimately assuring our clients that they will get the quality products they want, on time or even earlier. Further, by enacting self imposed limits on the quantities of the products that we will produce within a given year, we create market exclusivity for our clients which has become
an increasing problem for many markets.

I have included a copy of our Revised Production and Discount Schedule (Vew Jpeg or Download PDF) to further clarify this new strategy. We appreciate your continued patronage and we look forward to this enhanced Schedule which should go a long way at improving virtually every aspect of our business.

Thank you again and Best Regards,
David A. Fachman
President
The Scarefactory, Inc.