First of all, welcome to the forum.
Second of all, what I'm about to say may come off as harsh - and it's meant to - but it's largely the truth and will do you a lot of good to hear now before you get started and invest a lot of time and possibly money.
Not to dismiss your idea out of hand - but there is a message like this posted on a puppetry message board at least once per week. Just
Google the term "Christian Ministry Puppet" and you can find links to hundreds, if not thousands of ministry puppets, many of which sell for under for well under $100.
Your competition won't be limited to Christian Puppetry companies either. Commercial toy makers like Manhattan Toy and Folkmanis offer puppets that are really good - and better than post Ministry puppets - for as little as $20 US.
I don't know the extent of your experience as a puppet builder, but it's good you've started with David's kits because they're the best around. It also means you can't use his patterns as per the agreement you entered in to by purchasing his kits.
Most of the builders that I know who are really good have been at it for 5, 10, 15 years. Everyone has to start somewhere, but making puppets for your church or a local Christian group is one thing but to have a successful business selling puppets - especially quality ones - is an entirely different animal.
How many years have you been building puppets? Because if it's less than three - unless you have a lot of experience in a related field - you're probably not ready to start a company doing this. Because if you do you're doing a disservice to your customers because you'll be simultaneously providing an inferior product (yours) while denying them a superior one (the puppets already on the market).
Almost anyone can buy a pattern, make a few lousy puppets and sell them on ebay, but they won't necessarily have much luck or even break. To really succeed you'll have to focus on four things:
1. Have a vision
2. Build a better (not necessarily cheaper) puppet
3. Think (and design) different
4. Focus on quality, not price
1. Have a vision
Ask yourself what's your vision? What's your goal? Why do you want to do this? Making cheap puppets for ministry is fine and noble but people already to that. How about making better puppets? Empowering Christian puppeteers by raising the standards of the market and encouraging them to do something new and different? That's a vision worth pursuing.
2. Build a Better Puppet
Let's say you have lots of experience and are confident, really confident that you can make a superior puppet. Run to your local bookstore and pick up a copy of "Rules For Revolutionaries" by Guy Kawasaski. Guy was one of the guys behind the launch of the original Mac and he knows a thing or two about producing superior products. It's a great book for anyone selling anything.
The sad truth as Io pointed out is that 90% of what's produced for the Christian Puppetry Ministry is absolute and complete crap. I'm not going to name names, but most (not all) of these companies produce 3rd rate Muppet look-a-likes that only sell because the standards of the Christian puppetry market are unbelievably low and most buyers in that market don't know the difference. Whether they realize it or not - and many of them do - they're essentially profiting from their buyer's ignorance which strikes me as fairly unChristian.
And therein lies the potential for what I've always thought would be a killer business if you could pull it off. Figure out how to smash the mold these companies use and sell really original, really high quality puppets at good prices (not the lowest) and you'll clean up. The Christian Puppetry market is begging for someone really smart and talented to come in and take over.
3. Think (and design) Different
A good business model to study would be Steve Axtell's (note I said to study Steve's business, not rip him off). Steve's company Axtell Expressions produces Ventriloquist dummies that are nothing like the conventional dolls that have dominated the vent market since the 1800s. He's probably the #1 company for these in the world because he produces a product that's nothing like anyone else's.
Steve Axtell is probably one of the savviest guys, business-wise, in the puppet building business. He's constantly innovating and designing new products. If some hack decides to rip off one of Steve's products this year he'll be back with something better next year (and probably send lawyers after the person who infringed on his work).
You can check out Steve's site at
www.axtell.com
Being different is why this site is called MuppetCentral.com and not Kukla-Fran-Ollie.com. Burr Tillstrom was a great puppeteer and I love his 1950s TV series Kukla Fran and Ollie (ask your parents or Grandparents) but Jim Henson was revolutionary. He took the existing mold for puppetry, smashed it and made something newer, better and different.
Not many people can be as innovative as Jim Henson, but the world would be a better place if we all tried to be. There's a great book on the best seller lists right now that explores this idea - Jim Collin's "Good to Great". Pick it up if you can.
4. Focus on quality, not price
Don't compete on price, compete on quality. Businesses that compete on price always,
always fail. I'm serious and I know firsthand of what I speak; bad (low) pricing did in my old puppet building business and it happens in every industry. Offering the lowest price only works if you have massive economies of scale. What's that? Think of it this way, Wal-Mart has massive economies of scale and you don't.
Rick Lyon - another of my favourite builders - has a great website at
www.lyonpuppets.com. He also sells puppets for film and television that often cost around $5,000 US. He does this while competing against builders that produce puppets that look somewhat similar (believe me, they only
look similar) and cost about 1/50th of what his do. How does he do that? By offering a vastly superior product - check out
this page where he explains the difference between his work and the competition's. He charges more and justifies it. Clients like Nickelodeon, Avenue Q and Comedy Central seem to agree.
I'll say it again - price fairly and competitively but don't compete based on having the lowest price. It's a loser's game. There's always another guy (or couple) who can do the same thing only cheaper. Do something different, do it better and you'll succeed.
Good luck and please post here often!