Wallet Buckle
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 5, 2017
Asking For:
$500,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Wallet Buckle is a unique belt buckle that doubles as a secure and stylish way to carry up to five cards, providing quick access for payments at events and festivals.
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Background Story
Wallet Buckle, a revolutionary fashion accessory, emerged from the creative minds of brothers Trevor and Justin Johnston, who hail from Northern California. Best friends as well as siblings, the duo conceived the Wallet Buckle out of a need they identified during a visit to a country music festival. The inconvenience of fumbling for payment cards in the midst of a lively event inspired them to create a stylish yet functional solution. The brothers, both originating from Northern California, brought diverse skills to the table.
Trevor and Justin, driven by their entrepreneurial spirit, embarked on the journey to turn their innovative idea into a reality. Their unique blend of creativity and business acumen laid the foundation for Wallet Buckle’s success. The journey began around 18 months ago, with the inaugural event at Stagecoach, a prominent music festival in Southern California. The Wallet Buckle quickly gained traction, resonating with consumers attending festivals, concerts, and rodeos. The brothers’ commitment to their product is evident in their extensive travel and promotional efforts.
With Trevor relocating to Nashville to strategically position their first kiosk in a mall in front of Buckle, one of the largest denim retailers in the country. Wallet Buckle’s success story is not just about a unique product; it’s a testament to the brothers’ dedication, entrepreneurial spirit, and ability to spot a niche in the market. As they continue to expand their reach and explore new partnerships, the Wallet Buckle founders remain passionate about providing a convenient and stylish solution for individuals navigating crowded events.
The Product
Wallet Buckle, a cutting-edge accessory, redefines the way individuals carry their essentials with a unique fusion of style and functionality. The product, designed as a belt buckle, doubles as a secure wallet, offering a convenient solution for quick access to payment cards in bustling event settings.
The Wallet Buckle easily attaches to any snap-on belt, providing users with the flexibility to mix and match their buckles with various belt straps. The ingenious design allows users to securely carry up to five cards, ensuring they stay in place with tension-held slots, preventing any accidental slips.
The product’s practicality shines in live event scenarios, such as festivals, concerts, and rodeos, where fumbling for payment cards can be a common hassle. Its quick-access design enables users to make purchases swiftly without holding up lines, making it an ideal accessory for those who frequent social gatherings.
Wallet Buckle offers a range of options, with colored buckles priced between $40 and $95, catering to different preferences and styles. The product’s versatility extends to its compatibility with most snap-on belts, allowing users to personalize their look. Purchasing options include live events, where Wallet Buckle has seen substantial success, as well as strategically placed kiosks in malls.
The tension-held card slots ensure the security of the cards, addressing concerns about accidental falls. With its blend of fashion and functionality, Wallet Buckle not only streamlines the payment process but also makes a bold statement as a distinctive and practical accessory for those who appreciate style and convenience.
How It Went
The company’s position before Shark Tank
Wallet Buckle has demonstrated robust growth and a promising market position since its inception. The company’s health is reflected in its impressive sales figures, witnessing a substantial increase from $250,000 in the previous year to a projected $800,000 by the end of the current year. The product’s success is notably attributed to its popularity at live events, where Wallet Buckle has sold over 15,000 units. One significant milestone in the company’s journey is its partnership with Buckle, one of the largest denim retailers in the country. This collaboration opens up new avenues for distribution and exposure, as Buckle holds a prominent position in the retail landscape.
The strategic placement of Wallet Buckle kiosks in malls, including one in front of Buckle, showcases the company’s proactive approach to expanding its reach and attracting diverse customers. The majority of Wallet Buckle’s sales, approximately 80%, are generated from live events, such as festivals, concerts, and rodeos. The company has successfully capitalized on the demand for its product in these dynamic settings. With a focus on further expansion, Wallet Buckle is eyeing a presence in at least 40 mall locations by June. In terms of funding, the company has showcased a resourceful approach. Wallet Buckle has invested in a tour bus, allowing them to tour the entire country and participate in major events consistently.
The $1 million inventory signifies a commitment to meeting demand and scaling operations. Profits and losses have been dynamic, with a considerable jump in sales from the previous year and a positive trajectory expected for the current fiscal period. The valuation of the company at $5 million during the Shark Tank pitch reflects the founders’ optimism about its future growth potential. Wallet Buckle is structured to adapt to market demands, with the founders actively involved in sales efforts, event participation, and strategic partnerships. The company’s current performance suggests a promising trajectory, fueled by innovative design, strategic partnerships, and a proactive market approach.
The Negotiations:
The negotiations for Wallet Buckle in the Shark Tank took an unexpected turn as the energetic pitch faced skepticism over the company’s valuation. The Johnston brothers entered the tank seeking $500,000 for a 10% equity stake, valuing the company at $5 million. While the Sharks appreciated the product’s innovation and the brothers’ enthusiastic presentation, concerns were raised about the aggressive valuation for a belt buckle. Kevin O’Leary, known for his shrewd investment decisions, expressed reservations about the fairness of the equity offer and chose to bow out.
Robert Herjavec appreciated the product’s uniqueness but questioned the size of the credit card compartment on the buckle, citing potential limitations in its market appeal. Mark Cuban, Lori Greiner, and Daymond John, while acknowledging the brothers’ success and potential, ultimately decided not to invest due to doubts about the market size and scalability. As the offers dwindled, the negotiations took a surprising turn when Kevin O’Leary, recognizing the product’s potential, humorously suggested a $15 million valuation, far higher than the initial ask. However, he quickly clarified that he didn’t want to take advantage of the brothers with a 10% equity offer for $500,000. Despite the lighthearted banter, O’Leary ultimately bowed out.
With no Sharks willing to bite, the brothers left the tank without a deal but remained optimistic about the Wallet Buckle’s future success. The negotiations highlighted the challenges of valuing a product perceived by some as niche, despite its current success. The Johnston brothers, undeterred, expressed confidence that their product would go big and viral, emphasizing the missed opportunity for the Sharks who didn’t see the immense potential in their unique and practical accessory.
