The story You are Special introduces us to the Wemmicks, wooden puppets made by Eli the Woodcarver. They live in Wemmicksville, not far from Eli's workshop, and they treat each other pretty much like humans treat each other. Punchinello is chipped and ugly, and thinks he's not worth much at all. But Eli helps him come to understand how special he is, marks and all, and how much Eli loves him.
In Best of All, a very famous Wemmick comes to town--Bess Stovall. She will only associate with Wemmicks made of maple--the "best" wood. Punchinello is left out, but Eli helps him see that he doesn't need to be made of the "right" wood to be special, he is special because Eli made him that way.