Elephant Chat – Relationship Communication Tool
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 25, 2013
Asking For:
$50,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Elephant Chat is a product designed to facilitate difficult conversations between partners by visually indicating the need for communication using a stuffed elephant as a cue.
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Background Story
Jason and Amanda, founders of Elephant Chat, hail from an undisclosed location, where they embarked on a mission to improve communication in relationships. Drawing from their own experiences, the couple noticed a common challenge faced by many couples: initiating difficult conversations without causing tension or conflict. Both Jason and Amanda lacked a background in therapy or counseling but found themselves compelled to address this issue due to personal necessity. Their journey began when they realized the need for a non-intrusive method to signal when one partner wanted to discuss something important.
Inspired by their own struggles and the desire to enhance communication in their relationship, they conceived the idea of Elephant Chat. The concept was simple yet innovative: a visual cue in the form of a stuffed elephant that could be placed in a prominent location to indicate the need for a conversation. Jason and Amanda’s background in product design and marketing played a pivotal role in shaping Elephant Chat. Leveraging their skills and creativity, they developed a product that not only addressed a common problem but also offered a lighthearted approach to serious discussions.
Despite facing skepticism from others, the couple remained confident in the potential of their idea to transform communication dynamics in relationships. Their personal journey, combined with their entrepreneurial spirit, led them to create Elephant Chat, a product designed to foster open and honest dialogue between partners. Through their dedication and determination, Jason and Amanda aimed to share their solution with couples worldwide, hoping to make a meaningful impact on the way people communicate in their relationships.
The Product
Elephant Chat is a unique product designed to facilitate communication and conflict resolution in relationships. At its core, Elephant Chat consists of a stuffed elephant, which serves as a visual cue for initiating important conversations between partners. When one partner wishes to discuss a matter, they simply place the stuffed elephant in a noticeable location, signaling to the other partner that there is an issue to address.
The key feature of Elephant Chat is its playful yet effective approach to tackling sensitive topics. By using a stuffed animal as a communication tool, the product offers a non-threatening way for partners to express their thoughts and feelings without fear of judgment or conflict. Additionally, the rule that discussions can only occur when both partners are holding the elephant encourages mutual participation and active listening.
Elephant Chat provides several benefits to couples, including improved communication, increased understanding, and strengthened relationships. By encouraging open dialogue and addressing issues in a timely manner, the product helps prevent misunderstandings and resentment from festering over time.
Elephant Chat can be purchased online through the company’s website or through select retail channels. Priced at $59 per unit, the product offers an affordable yet impactful solution for couples seeking to enhance their communication and resolve conflicts in a positive and constructive manner.
How It Went
The company’s position before Shark Tank
Elephant Chat entered the Shark Tank seeking a $50,000 investment for a 20% stake in the company, indicating a relatively modest valuation and a need for additional capital to fuel growth. Despite their innovative product concept, the company faced challenges in securing a deal due to concerns raised by the Sharks about their pricing strategy and market viability. At the time of their pitch, Elephant Chat had already raised $100,000 from local friends to start the business, demonstrating early support and investment in their idea.
The company had invested in three injection molds and produced the first 500 units of their product, indicating progress in manufacturing and production capabilities. However, the high cost of production, with each unit priced at $59, raised eyebrows among the Sharks, who questioned the feasibility of selling a stuffed elephant at such a premium price point. Elephant Chat’s primary focus was on building relationships with marriage counseling and other counseling industries to market their product. However, the Sharks expressed skepticism about the company’s ability to penetrate the market effectively, given the availability of cheaper alternatives online.
The Negotiations:
During the negotiations, Jason and Amanda faced skepticism from the Sharks regarding their pricing strategy and market positioning. Despite their pitch for a $50,000 investment in exchange for a 20% stake in the company, no deal was made. Lori Greiner and Kevin O’Leary expressed concerns about the high production cost of the product, with each unit priced at $59. They questioned the feasibility of selling a stuffed elephant at such a premium price point, especially when cheaper alternatives were available online.
Daymond John briefly entertained the idea but ultimately decided to pass on the opportunity. Mark Cuban saw potential in the conflict-resolution aspect of the product but felt that Elephant Chat was not yet in the right position for investment. He advised the founders to focus on marketing their product to marriage counselors and other counseling industries.
Ultimately, Elephant Chat left the tank without securing an investment. However, Jason and Amanda remained optimistic about the future of their product and their ability to reach their target market through alternative channels. Despite the challenges they faced in the negotiations, they were determined to continue growing their business and making a meaningful impact on relationships worldwide.
