The Best One Yet - 👶 “End the $1K Baby Tax” — Tariffs crush strollers. Star Wars’ epic re-release. UNC’s D1 ath-fluencer class.

Episode Date: April 29, 2025

The trade war inadvertently created a $1K Baby Tax… So we predict a “family exemption.”Star Wars re-released Ep 3, bringing in $42M this weekend… Re-releases can save theaters.UNC is teaching athletes how to become D1 Influencers… The key: “you don’t have to dance.”Plus, the untold origin story of… the Frappuccino (spoiler: Starbucks acquired it)$DIS $NFLX To make a donation to Daniel’s cause in honor of his son Jack, click here: ItHasBeenAPleasure.comWant more business storytelling from us? Check out the latest episode of our new weekly deepdive show: The untold origin story of… 🥤Frappuccino: The Billion-Dollar Brainfreeze Starbucks Nearly Killed.Subscribe to The Best Idea Yet: Wondery.fm/TheBestIdeaYetLinks to listen.“The Best Idea Yet”: The untold origin stories of the products you’re obsessed with — From the McDonald’s Happy Meal to Birkenstock’s sandal to Nintendo’s Susper Mario Brothers to Sriracha. New 45-minute episodes drop weekly.—-----------------------------------------------------Subscribe to our new (2nd) show… The Best Idea Yet: Wondery.fm/TheBestIdeaYetLinksEpisodes drop weekly. It’s The Best Idea Yet.GET ON THE POD: Submit a shoutout or fact: https://tboypod.com/shoutouts FOR MORE NICK & JACK: Newsletter: https://tboypod.com/newsletter Connect with Nick: https://www.linkedin.com/in/nicolas-martell/ Connect with Jack: https://www.linkedin.com/in/jack-crivici-kramer/ SOCIALS:Instagram: https://www.instagram.com/tboypod TikTok: https://www.tiktok.com/@tboypodYouTube: https://www.youtube.com/@tboypod Anything else: https://tboypod.com/ Subscribe to our new (2nd) show… The Best Idea Yet: Wondery.fm/TheBestIdeaYetLinksEpisodes drop weekly. It’s The Best Idea Yet. Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It is Tuesday, T-Boy, Tuesday, April 29th. And today's show is the best one yet. This is a T-boy. The top three pop business news stories you need to know today. Yeties, Bill Belichick may not know where he met his girlfriend. But Jack and I know that these are the three best business stories you are going to hear anywhere today.

Great call. We're not getting into that. We're not getting into that. We're not getting into that. But just trust us on it. Jack, three stories for today's show. What are we got in the pod? For our first story.

The biggest tariff in this trade war is on strollers. Yep, baby strollers. Goo Goo Gaga, it's a family tax, which is why if the tariffs don't end, the exemptions will begin. For our second story, Star Wars Episode 3, The Revenge of the Sith, just celebrated its 20-air anniversary by re-releasing in movie theaters, and it made $42 million at the box office. The Star Wars re-release may hold the solution to save movie theaters. Cop us re-release.

You're our only hope. And our third and final story. UNC Chapel Hill just launched a class for its varsity athletes. How to become an influencer. But to win on social media, you don't have to dance. And we will explain it. But yet is before we hit that wonderful mix of stories. Whoa, what a mix of stories for T-Boy Tuesday.

There is one coffee that disrupted the beans business model more than any other. And what is that coffee, Jack? The frappuccino. The chili milkshake of a coffee that turned drinks into a dessert. the Starbucks Frappuccino. 30 years ago, the world's first Frapuccino was blended. Got to correct ourselves, Jack,

because did you know the Starbucks Frappuccino wasn't exactly invented by Starbucks? That's right. The Frapuccino name and recipe was actually invented by an independent coffee shop in Boston.

That's right. Starbucks literally acquired the Frapachino IP all of the IP. Even fewer people, though, that Starbucks's famous CEO, Howard Shultz, hated the idea at first.

That's true. Howard actually thought that the Frappuccino was an insult to coffee culture. And yet today, without the Frappuccino, we wouldn't have iced lattes. Today, without the Frappuccino, Starbucks would still just be a regional coffee house. And today, without the Frappuccino, Zoolander would still have his three male model buddies. Orange Moka Prapuccino! Yeties, no matter how you take your coffee, this story. The true origin story of the Frappuccino is,

you. So check out the latest episode of our weekly show, The Best Idea Yet. Because this week we'll tell you the true beginnings of the Starbucks Rappuccino and how it wasn't Starbucks. Tap the link in the episode descriptions or search the best idea yet wherever you get your pods. But Jack, today's show, fantastic. Should we hit our three stories? Let's do it. 15 years before this song, two boys from the Northeast met in the dorm. They had an idea that caused a cultural storm. It's the best one yet, but the best is a norm. Jack Nick, that's it. I don't even think they need to crack. 50% that's a fat tip

Tea boy city on your at list If you know you know cause we're ready to go We can't wait no more So just start the show Start the show First a quick word from our sponsor Our first story Tariffs will hit one particular group

More than any other And it happens to be the cutest group in America Babies China tariffs have inadvertently created a baby tax But yet is to start by spring I'm sprinkling on some personal context here. Jack had a baby like six weeks ago. I know.

And Jack, did you consider one of the most popular strollers in the country, the legendary upa baby? Yeah, we got that with our first baby. Okay. Now it's having its third baby butt sitting inside of it. We actually have one of these two. My dad calls it the Cadillac for kids. Because this thing has four-wheel drive.

Full suspension. Leather interior, but it's pricey. Yeah. This is a $900 strolling. Oh, but wait, do you see the chassis on this thing? Although, Jack, $900 bucks, that's going to sound cheap compared to the price starting this week. The price of the Upababy Premier stroller is going up to $1,200, a $300 increase. Because one baby registry site spilled the beans on her price sheet for baby products for the next week.

Maybe you didn't get the Upab baby, and you're looking at the Tully Baby stroller? That's Swedish design, but it's made in China too. So it's going from $650 this week to $900. Now, Tully did buy extra inventory ahead of tariff, so there's a $1,000. price hike is effective in June, not May. But still, baby gear is getting a big price pop, isn't it, check? Yeah, and it's not just the big stuff that comes on wheels. Those scent-containing diaper trash cans, you know, those things that keep the stink inside? 40% higher prices right now. How about baby bottles, Nick? Those are growing up 50% and your baby's got a drink.

If you've got a baby in diapers, you're going to notice this price pop and virtually all the baby gear that you buy. In fact, add it up, and the CEO of Baby List estimates that these terrible The tariffs on China are going to add an extra $1,000 bucks across the board for new parents with babies. But the baby tax doesn't end after you go in for the six-month checkup for little Johnny. It grows up into a kid tax, too. By the way, we should point out, baby gear is like football equipment. You need it to step on the field.

The only person this is good for, this tariff, is the Facebook marketplace section for baby goods. Yeah, you're not playing the Pittsburgh Steelers unless you got a helmet, shoulder pads, and a jock strap on, and you're not raising a baby without diapers, a diaper pail, and a solid stroller. Now, like any war, trade wars have various fronts. And this story reveals that we're particularly vulnerable

on our young flank. Get this, Yeti's. 97% of strollers made in China. 91% of high chairs made in China. 87% of car seats, Jack, why don't you take the honors? Made in China. By the way, we've bought six car seats because we have two cars and we have three kids.

They add up, Nick. have point, you could probably buy a yacht, Jack. Oh, Nick, and it's digital, too. Nearly 100% of baby monitors are made in China. But it doesn't just stop at babies when it comes to this family tax, does it check? There's the toy tax, because 80% of toys bought in America are made in China, according to the New York Times. So four out of five teddy bears are stitched up in Beijing, and now their prices are probably going to get near doubled. Now, you might be thinking, isn't the whole point of this trade war to get stuff to be made in the USA?

Well, we were thinking it too. And as the CEO of Sippy Cup Company Munchkin said, they could do that, but the cost would go up by double to manufacture in the United States. Yeah, America decided decades ago that China would make our baby stuff because it's cheaper. To undo that, it would also take decades, and it would make things more expensive in the end. Now, in Trump's first trade war from like six years ago, farmers were the losers as China stopped buying U.S. grown crops. And during that first trade war, Trump compensated farmers. with tariff revenue. So? We expect something similar to happen this time, but for parents.

And the entire baby and children's industries are lobbying hard for it right now. In the meantime, Jack, let us know when you toss that up-a-baby stroller on Facebook marketplace. I will. It's got to go to a Yeti first. So, Jack, what's the takeaway for our buddies who are everyone facing the baby tax? If the trade war doesn't end, the family exemption will begin. Yeties, one trend we expect to see if the trade war continues, Is this word exemptions? Specific industries or products will be strategically excluded from tariffs.

If a product is important to a politically important demographic, it'll probably get an exemption. President Trump already made a carve-out for electronics like iPhones, because $2,000 iPhones would have been particularly angry for voters. Well, if these tariffs are made in place, we expect lots of exemptions, many more to come. But there's no more sympathetic demographic than new parents. And Trump, he says his administration's goal is to increase the birth rate. Well, the entire kid-baby economy is made in China, which currently has the highest tariffs of 145%. So if this trade war continues without a deal, it must continue with exemptions. And the exemption on the baby tariff or the family tax, we expect that will be the first.

Don't do it for the babies. Do it for the parents. For our second story. The Star Wars 20-year anniversary re-release was such a success this past weekend. It's a lesson to all of modern cinema. We think the re-release can save the movie theater. And we got the numbers to back it up. But Jack, first, allow me to read this long thing. Are you going to do the opening credits thing?

Jack, this past weekend, in a theater far, far away. The forest was strong in 2,800 movie theaters. across North America. Yet it is 20 years after premiering in the year 2005, the final prequel of Star Wars came back to theaters this past weekend. That's right, Star Wars Episode 3, Revenge of the Sith.

And it was the number two film at the box office this past weekend. Now, Jack, when you say number two film, can you please sprinkle on some numerical context for us what that means? $25 million of tickets sold domestically plus $17 million abroad is a $42 million dollar haul.

Ching, Ching, Ching, now Disney takes half of that, but the theater, they get to keep the rest. Translation, a 20-year-old Star Wars movie just made Disney $21 million of pure profit in just three days. Two and a half million Americans paid $10 each to see Star Wars in theaters. Even though you've been able to watch it for free on Disney Plus for like seven years. That tension made us realize there is something going on here. It shows that the demand for in-real-life collective fan experiences is more powerful.

than the greatest force in the galaxy. Basically, you'd rather watch Star Wars with a bunch of dudes dressed up as droids, plus one woman dressed up as... Yeah, dressing up as Chewbacca is like a lot more enjoyable if you're not the only one doing it. That yet is, if this weekend's re-release was Luke Skywalker, then 1997's re-release of the first Star Wars was Yoda.

That's right. Here's what Jack and I find fascinating. Back in 1997, the 20-year re-release of the original first Star Wars, Episode 4 brought in 50% more revenue in its reopening weekend. In fact, Jack and I just dove in even further and discovered that the re-release industry is really, really enormous. Titanic did a 15-year and 25-year re-release, and combined in those two events, they brought in $420 million of box office globally.

Jack, how about the Lion King? 2011, it returned to theaters, and that cartoon bought in $186 million. $1. Jurassic Park, Avatar, The Exorcist, they all put up giant numbers even though they were old films. Besties, what Jack and I are saying is the business model of the re-release is so smart, it deserves an Oscar. For theaters, the re-release is a reliable seat filler. Exactly. They selectively choose weekends when no other blockbusters are premiering or releasing. And for studios, the 50% cut of ticket sales, that's pure profit when it's a re-release.

The movie budget was already paid for, and there's no marketing needed because the the movie is already so well known. So it's a double dip for the studios. Yes, it is. Like Darth Mall's double-sided lightsaber. Profitable it is. So, Jack, what's the takeaway for our buddies doing the re-release? To save movie theaters, set their clocks back 20 years.

Follow us in this one, yeties. If you adjust for inflation, movie theaters are still half as lucrative as they were before the pandemic. That's brutal. It is. Basically, Netflix's gain is movie theaters pain. But there's one big one. that cinemas can adapt to the streaming era. Here's what Jack and I are thinking.

During slow weekends, fill the blockbuster gap with whatever happened 20 years ago. The success of the Star Wars re-release is more proof of our 20-year rule of nostalgia. The 20-year rule of nostalgia, that 20 years after an event is the optimal time when demand is all the way back up.

After 20 years, it's novel for young Star Wars fans who get to see it in theaters for the first time. And for those who did see it in theaters 20 years ago, now we're living the magic. It is nostalgic. And this formula can work for things beyond movies. Like the Red Sox, let's say they won the World Series 20 years ago, show Game 7 against the Yankees in its entirety in theaters.

Everyone in Boston will go. Because here's the key. Fans like being among other fans for a collective experience. And the re-release guarantees that. Wild idea to save the movie theater business. Set their clocks back 20 years. Now a quick word from our sponsor. For our third and final story, the University of North Carolina has added a new course to its athletic student orientation.

Influencer Academy. Colleges are training affluencers. And it's actually a business lesson for all of us. Now, yeties, Jack and I have no connection to the University of North Carolina, UNC. But we got to say, there is no college better at branding than the University of North Carolina, Carolina at Chapel Hill, UNC. Piper, no! Didn't she go to UNC?

Yeah, this is the only school to own part of the color spectrum, Chapel Hill Blue. 3% of the students at that university are varsity athletes. That means 850 student athletes across 28 sports. And the newest talk at their orientation, what was it, Jack? Becoming a D1 influencer. Social media is part of the curriculum. Because UNC partnered with a creator economy consulting firm called Article 4. It's led by a Tar Hill alum, and they're basically talent agents for Instagram influencers.

Their biggest client, Alex Earle. And what they've added to UNC is basically a customized course in orientation on how to make it on social media. How to convert your followers into income. We looked at this course, and basically, this is a form of financial literacy. Treat TikTok like a trade, at least for the fit co-eds who are kind of famous on campus. Now, yet he's the reason Jack and I were fascinated with this story is that UNC's D1 influencer program. is a case study to understand the NIL and the Athfluencer industry. Now, before the 2018 Supreme Court decision to let amateur athletes get paid,

college athletics was a different transaction. And what was that transaction, Jack? Scholarships. Athletes got a free education, which is like a $200,000 value, in exchange for their skills on the field, which helped market the university. But soon, since this Supreme Court decision, colleges will begin paying athletes directly for the first time ever. That's according to an NCAA settlement.

There's going to be a revenue share. A revenue share. And here's how it works. UNC makes $95 million every year in media, merch and ticket sales on all that bright blue athleticness. And they're going to share 22% of it starting this year with the athletes playing in those games. That's right.

In 2025, $21 million will be paid out to the athletes who play for UNC. But it's only for the revenue generating sports, we should point out. Good point. like football, baseball, basketball, they're going to get big checks. On the other hand, UNC's fencing team, they're not getting any revenue because their sport doesn't generate it. And that's the key here. That is one reason why UNC is pushing this new influencer course, this new influencer academy.

They're trying to help the non-stars make money, too. Now, we should point out, the school UNC isn't going to get any money from the social media earnings of their athletes. If a wrestler posts a promoted post for Kellogg, the wrestler keeps all the money. Or here's a good example. The UNC star basketball player on the women's team. She is 132,000 followers. And how much does she make in when she does promoted post, Jack?

15,000 per Instagram post. Now we should point out, Jack and I are both student athletes here. I played the full contact sport of lacrosse, and Jack played the partial contact sport of quarterback and football. So we know there are challenges for student athletes already. Well, for us, we had to be students and athletes. It's me not getting hit most of the time. But these guys have to be influencers running a business as well.

Plus, you've got to spend two hours every day getting taped up in the trainer's room because that's part of the job. I need more stim. More stim! No, not the ice bat. Not again. You know, Jack, we played the UNC men's lacrosse team once in college, and they just had the best calves I've ever seen. You say that about every team. It's a side note.

I just thought it'd share it publicly. So, Jack, what's the takeaway for our buddies who are anyone trying to grow something on social media. To win on TikTok, you don't have to dance. Yeties, Jack and I jumped in T-boy style to the training materials from the influencer consulting firm that they shared with UNC. We learned that the biggest reason athletes don't want to post on social media is what this consulting firm calls the cringe hump. Ah, the cringe hump. Athletes are worried that they'd have to do silly dances or cliche TikTok videos in order to win on social media. But there's actually other ways. The real way to win followers is through consistently

posting their special unique talents. For a D1 gymnast, it was simply showing the intensity of her daily training ritual. For a wrestler, it was simply showing us the proper way that he does a bench press. The insight is that what is basic to the athlete is actually hugely sought after by their followers. And that's a lesson to anyone trying to build a following for themselves or for a brand online. If you're worried about the cringe hump, just remember you don't have to dance. You simply have to show us the thing you're so good at. which might be dancing, but it doesn't have to be.

Jack, could you whip up the takeaways for us for T-Boy Tuesday? China's tariffs have inadvertently created a baby tax, as 97% of baby gear and 80% of toys are made in China. If tariffs remain, we need exemptions, and the very first should exempt the baby tax. For our second story, Star Wars Episode 3 brought in $42 million at the box office this weekend. Half went to theaters, half went to Disney. So to save theaters on slow weekends, they should turn their clocks back 20 years.

For our third and final story, UNC Chapel Hill is giving all student athletes an orientation class to make money as an influencer. D1 affluencers, because to win on TikTok, you don't have to dance. But Yeties, this pod's not over yet. Here's what else you need to know. I'm sorry, is there a typo here in our notes, Jack? I'm seeing that we have some deflation news. Is that correct? As in the opposite of inflation.

Plain tickets are actually getting cheaper. Domestic demand to travel in the air is dropping because of economic uncertainty. Now, the latest date we have is for March, where airfare fares fell 5% from last year. But airline CEO said in earning calls that it was worse in April, so prices are probably going down even more. Second, Washington commanders, the football team, just announced a $4 billion deal to move back across the river into the city of D.C. They're moving from Virginia. back to Washington. Yeah. The Washington football team is redeveloping where RFK Stadium currently is. That happens to be where the then Redskins football team won three Super Bowls in the 80s and 90s.

The city of Washington, D.C., by the way, is forking in $1.1 billion to support the new stadium, which opens in 2030. And finally, we just got the ultimate example of bring your kid to workday we have ever seen. A stock analyst at Jeffries brought their kid in to the office. for earnings season and put the kid on the phone. That's right. This kid then grilled the CEO of Pepsi during the Pepsi earnings call and asked like a pretty tough question of them. The 13-year-old girl, Molina, asked the CEO of Pepsi, what are you doing to stop Ozempic from hurting your snack sales? I'm just pointing out, Jack, Pepsi stock is down since that earnings call. So she's asking the tough questions over there.

Now time for the best fact yet, which is this specific statistic. Every day in the United States, 47 children, age zero to 19 years old, are diagnosed with cancer. Now, that fact, that shocking fact, was sent in by Yeti Daniel Paul, a long-time bestie listener whose son, Jack, passed away just this past February. So to honor his son, we both donated personally to a cancer research organization that Daniel is promoting in his son's memory. And because we think this is really important, we were also just really hit and surprised by this, and we just appreciate Daniel as such a long-time listener. We want to share more information

with you. It's called the Morgan Adams Foundation, but the website you can go to is It Has Been a Pleasure.com. And Jack, it's such a unique name for a website. Why is it called It Has Been a Pleasure.com? It has been a pleasure was Jack's catchphrase. Daniel, thank you for telling us the story about Jack and for sharing more information so that we can all participate if we want. And honestly, there's few better life sentiments I can think of Jack than the concept of it has been a pleasure. Yeties, you look fantastic today. And odds are, statistically speaking,

and I know Jack is right now holding a coffee in your right or left hand. And if you are, check out our episode of the best idea yet about the Frappuccino. It's a wild one. The Starbucks Frappuccino and the real dude behind it. So Jack and I will see you on the best idea yet. Enjoy the show. And before we go, a happy birthday to Yeti and Laura Bruskin down in Arlington, Virginia. And happy 18th birthday to Drew Cosmack in Chicago, Illinois.

And we got a birthday for Jay Farrick, who's celebrating a T-boy University, if you know, you know. And happy birthday to the prolific Andrew Zucker from New York City. No one writes better and deserves a headline better than the man, Andrew Z. Zucker. Happy 43 years together to Henry and Karen down in Texas. And Daniel Prado, refuse to not be polite to chat GPT. And Daniel, the robots love you. And to anyone else celebrate something today, make it a T-Boy. Celebrate the wins.

This is Jack. I own stock of Disney and Netflix.