A: Beanie Babies grasped that fads cease once the items become commonplace. Once supply is able to satisfy the entire market, the early adopters (i.e., the cool kids) find it is no longer cool or unique because everyone has it.
Ty understood this and attempted to perpetuate the fad by creating unique models of Beanie Babies. They would then retire them after a limited production run. So scarcity was maintained but they were able to continue selling new models to collectors.
Middle-aged women in Topeka still drop big $ on highly sought-after models.