# Melissa & Doug: Melissa And Doug Bernstein

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2016-12-19
- Length: 36m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein

## Summary

Melissa and Doug Bernstein, founders of Melissa & Doug, recount building a $350 million toy company by rejecting digital trends in favor of analog wooden toys. They detail their early struggles, including a failed interactive VHS video series and a costly 'Puzzle World' product line that retailers rejected due to poor sell-through. The episode highlights their pivot to tactile puzzles like the 'fuzzy puzzle,' their strategy of direct retail relationships, and their eventual decision to bring in outside investors after 20 years of bootstrapping.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein#t=0) Introduction: Melissa and Doug Bernstein
- [4:41](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein#t=281) The First Product: Interactive VHS Videos
- [8:34](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein#t=514) Early Sales Lessons and Company Naming
- [14:10](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein#t=850) The Pivot to Puzzles and the Fuzzy Puzzle
- [16:39](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein#t=999) Betrayal by a Manufacturer's Agent
- [21:16](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein#t=1276) Expanding into Wooden Toys and Anti-Digital Mission
- [25:07](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein#t=1507) The 'Puzzle World' Failure and Retailer Education
- [28:32](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-12-19-melissa-doug-melissa-and-doug-bernstein#t=1712) Long-term Strategy, Family Dynamics, and Growth

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)

## Most relevant to

founders before launch, companies scaling up

## Mentioned

- Melissa & Doug (company)
- Morgan Stanley (company)
- Lights Camera Interaction (company)
- Puzzle World (product)
- Fuzzy Puzzle (product)
- Thomas the Tank Engine (product)
- Brio (product)
- U.S. Bank (company)
- Crooked Branch Studio (company)

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## Citing this page

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