RokBlok – Wireless Vinyl Record Player
DEAL
EPISODE SUMMARY
🕓 Air Date: December 3, 2017
Asking For:
$300,000 for 15%
Investor:
Robert Herjavec
Deal:
$500,000 for 100% + $5 royalty in perpetuity
PRODUCT SUMMARY
RokBlok is the world's first infinitely portable, wireless record player that allows users to listen to vinyl records anywhere.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Logan Riley, the founder of Pink Donut, hails from San Francisco, California. As a vinyl enthusiast, he faced the challenge of sharing his passion with friends in his tiny 300-square-foot studio apartment. Traditional record players were bulky and required extensive equipment, limiting the ability to enjoy vinyl outside the designated setup. Inspired by the desire to make vinyl more accessible, Logan conceived the idea of RokBlok.
His background includes experience in audio engineering, running a recording studio at 19, working at Apple on education technologies, and contributing to Pandora Internet Radio. With a strong belief in creating great products, Logan self-taught electrical engineering through online resources, embarking on his first hardware project.
The Product
RokBlok is a revolutionary wireless record player designed for vinyl enthusiasts seeking portability. The compact device eliminates the need for traditional turntables, speakers, and pre-amps, offering an on-the-go solution for enjoying vinyl records.
Operating RokBlok is simple—turn it on, place it on a record, and lift the lever to start playing. The device features a built-in rechargeable speaker, allowing users to enjoy hours of music on a single charge. Additionally, RokBlok can wirelessly transmit music to other speakers or headphones using Bluetooth technology, enhancing its versatility.
While the device is recommended to be placed on a surface like a slip mat for optimal performance, it can technically be used on any surface. RokBlok is compatible with 33s and 45s but does not support 78s due to their faster speed.
The retail price for RokBlok is $99, with a production cost of $23. The initial sales included a Kickstarter campaign in 2016, generating $350,000 in total sales. Logan also secured $60,000 in pre-sales. As of the pitch, RokBlok was in production, with Logan emphasizing the dedication to delivering a high-quality product.
How It Went
The company’s position before Shark Tank
Pink Donut’s performance, as presented in the pitch, showcased a successful Kickstarter campaign with $350,000 in sales. Beyond Kickstarter, Logan secured an additional $60,000 in pre-sales. The production was in progress at the time of the pitch, indicating a commitment to delivering the product to customers. Logan invested $2,000 of his own money to build the prototype, showcasing his dedication to the project.
However, the company had not raised any external funding beyond the Kickstarter campaign, and Logan mentioned living in China for two months to cut costs during pre-production. The focus was on creating a great product, with Logan’s background in audio engineering contributing to the development of RokBlok.
Partnerships, wholesalers, and current funding sources were not explicitly mentioned in the pitch, leaving some gaps in understanding the broader business ecosystem. The company structure and available capital weren’t detailed either. Pink Donut’s performance appeared to hinge on the success of RokBlok, and the pitch aimed to secure additional funding for production and market entry.
The Negotiations:
Logan entered the Tank seeking $300,000 for a 15% equity stake in Pink Donut. While the Sharks expressed admiration for the innovation, several concerns were raised regarding market size, the potential boredom of the inventor, and the early stage of the product. Mark Cuban and Barbara Corcoran opted out, citing the unproven nature of the product and the challenges associated with working with perpetual inventors.
Kevin O’Leary offered $300,000 for a 50% stake, expressing interest in the niche market for vinyl but acknowledging the uncertainty surrounding the product’s success. However, Robert Herjavec made a unique offer, proposing $500,000 for 100% of RokBlok. In addition to full ownership, Robert extended a two-year contract to Logan, ensuring employment and offering a royalty of $5 per unit sold going forward.
Logan, appreciating the offer’s comprehensive nature, accepted Robert’s deal on the spot, securing a half-million-dollar investment for Pink Donut. The negotiation showcased Robert’s understanding of Logan’s desire to continue inventing, providing him with an opportunity to explore more ideas while maintaining a stake in RokBlok’s success. The deal marked a unique partnership, turning Logan into a well-compensated employee with the chance to contribute to future projects.
