Pop It Pal Pimple Popping Toy
DEAL
EPISODE SUMMARY
🕓 Air Date: December 9, 2018
Asking For:
$250,000 for 10%
Investor:
Kevin O'Leary
Deal:
$250,000 for 5% + $1.50/unit royalty until $750,000 is paid back
PRODUCT SUMMARY
Pop It Pal is the world's first pimple-popping simulator, allowing users to experience the satisfaction of popping pimples without the drawbacks.
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Background Story
Pop It Pal, the brainchild of Bill Pierce, his wife Summer, and cousin Kayla, emerged from an unlikely intersection of interests and entrepreneurial spirit. Bill, with a background in the automotive industry, and Summer, a nurse by profession, found themselves seeking a new venture due to Summer’s health issue—a shattered heel that rendered her unable to continue nursing. This unexpected turn of events prompted the couple to explore opportunities that would allow Summer to work from home and contribute to their family.
The idea for Pop It Pal was conceived during a casual conversation while driving. Bill and Summer were brainstorming potential businesses when the topic shifted to their shared fascination with online pimple-popping videos. The viral trend of watching such videos led them to recognize a unique market niche—one that combined stress relief with the satisfying experience of popping pimples. Embracing Summer’s love for gross things and Bill’s manufacturing expertise, they embarked on the journey to create the world’s first pimple-popping simulator.
Kayla, with a background in marketing and advertising, joined the team and played a pivotal role in launching the product. Their collaboration resulted in Pop It Pal, a silicone-based product that replicates the sensation of popping pimples without the undesirable consequences like scars or infections. The decision to make it refillable and environmentally friendly added an extra layer to the product’s appeal.
The Product
Pop It Pal is a revolutionary stress-relief product, offering a unique and satisfying experience akin to popping pimples without the drawbacks. The silicone-based device comes with 16 ready-made pimples, each designed to be squeezed for an authentic and stress-relieving sensation. Users can enjoy the satisfaction of popping pimples without the risk of germs, scars, or additional skin issues.
The product’s design ensures a reusable and environmentally friendly experience. It is refillable, eliminating the need for users to resort to picking at their faces or their partners’. Made from all-natural oils and beeswax, Pop It Pal is a safe alternative to the real pimple-popping experience.
Priced at $19.99, the product is available for purchase primarily through online retail channels. The founders have plans to optimize production costs by collaborating with an overseas supplier, with the goal of reducing the unit cost to $5. This move aims to meet the growing demand for Pop It Pal and enhance its accessibility to a wider audience. The unique and attention-grabbing nature of the product has contributed to its popularity, with over $315,000 in sales within the last four months, driven by successful online marketing and a strong social media presence.
How It Went
The company’s position before Shark Tank
Pop It Pal has demonstrated a robust performance in the last four months, achieving sales totaling $315,000. The company’s health and position in the market have been marked by a rapid rise in popularity, fueled by the founders’ innovative approach to stress relief through the unique experience of simulated pimple popping. The product has gained significant traction online, with over 30 million views on videos showcasing its use within the first three weeks.
The founders have actively managed the production and marketing aspects of the company, with Bill and Summer handling production, and Kayla contributing to marketing and advertising efforts. The business is structured around these key roles, allowing each founder to leverage their skills effectively. In terms of partnerships, Pop It Pal has attracted attention from potential distributors in various countries, including Germany, Taiwan, the U.K., and Australia. This interest indicates the global appeal of the product and its potential for international expansion.
The founders have emphasized their efforts to optimize production costs by working with an overseas supplier to reduce the unit cost to $5, a move that aligns with their goal of meeting the growing demand. With sales totaling $315,000 in four months and a plan to reach $940,000 in the current year, the company is positioned for substantial growth. Overall, Pop It Pal has established a strong foothold in the market, appealing to a niche yet enthusiastic consumer base. The founders’ background diversity, coupled with effective marketing strategies, has propelled the company to a position of recognition and potential global expansion.
The Negotiations:
The negotiations for Pop It Pal on Shark Tank were dynamic and featured two compelling offers from the Sharks. Kevin O’Leary made a unique proposition, offering $250,000 for a royalty deal, demanding $1.50 per unit until he recouped $750,000, and securing a 5% equity stake in the company. This offer emphasized a straightforward royalty structure, providing an alternative to a direct equity investment. Kevin’s creative and strategic thinking aligned with his vision of capitalizing on the product’s uniqueness.
On the other hand, Mark Cuban entered the negotiation with a $250,000 offer, but in exchange for a larger 25% equity stake in the company. Mark highlighted his expertise in distribution and media as value-adds, expressing a keen interest in the potential success of the product. Despite offering a higher equity share, Mark’s deal was overshadowed by Kevin’s innovative royalty proposal.
Ultimately, the founders, Bill, Summer, and Kayla, opted for Kevin’s offer. They were swayed by his understanding of the product’s niche market and potential for international expansion. The founders acknowledged Kevin’s appreciation for the uniqueness of their product and believed that his deal, combining a royalty structure with a small equity stake, offered a more fitting partnership for Pop It Pal’s current trajectory. The negotiations showcased the founders’ strategic decision-making and their recognition of Kevin O’Leary’s alignment with their business goals. The deal with Kevin secured funding for Pop It Pal while maintaining a balance between financial return and equity distribution.
