It looks like one of the most unique books you’ll ever see. However, Lumio isn’t a book at all – it’s a light! In fact, Lumio is one of the most versatile lights available.
Lumio is shaped like a book and has the same familiar dimensions as a book, but each page generates a bit more light. You can open the book 360 degrees to get the most coverage, which will light up a room with a dim and calming vibe. For a bit less money, you can get the mini Lumio. Both are charged using a micro USB.
Max Gunawan is the founder of Lumio. His idea was to make functional and aesthetically-pleasing products. Max’s background in architecture made him very interested in design, and you can see that reflected in the Lumio product.
What is so amazing about the Lumio is that it takes such a simple idea and makes it so marketable simply based on its design and function. I mean, it is just a light after all. But, as Mark Cuban himself said, “It’s the coolest light I have ever seen.”
Max built a product (and a company) that is dedicated to quality. It is one of the reasons why people are willing to pay as much as they do for the light he invented. The standard, original light sells for $200. Perhaps the Sharks saw part of that potential when Max paid them a visit in the Tank.
Lumio on Shark Tank
Shark Tank Season 6 Episode 15
Max has a charismatic persona, which was immediately apparent when he walked out in front of the Sharks. He’s always got a smile on his face but addressed the potential investors in a straightforward way. He was seeking out a $250,000 investment for 8% of the company. The Sharks were interested in seeing what it is they would be investing in.
The reveal is very well done; Max had made this type of pitch before. He picks up the Lumio, which, to the Sharks at that moment, is just a book. As he opens it, somewhat dramatically, it is revealed that the book is a light. The Sharks are delighted. He holds the light near his chest, opened 360 degrees, so it lights up his face.
Max explains the different ways you can use the light. You can put it flat on the table to create some ambient light in a room, you can open it up to make it stand upright, you can use it for focused, directional lighting for tasks such as reading, or if you have multiple Lumio lights, you can put them together.
Max gives sample lights to each of the Sharks, all of them are impressed, and Robert seems the most excited about the product.
Right off the bat, Kevin says that he is interested, and he offers a unique deal. Basically, with Max looking for $250k for 8%, he is valuing his company around $3 million. Kevin’s deal values the company at double that, $6 million.
What proceeds is a Shark fight, in which something remarkable happens: every single Shark on the panel makes an offer to Max. All of the investors are certain that this product is going to be a success. Mark even mentions that, once the episode airs, he’s going to receive a considerable boost in orders and asks if Max and the company are going to be prepared for that boom. There is no doubt that they have a successful product before them.
Each offer has its own merits. Kevin’s offer values the company the highest by far. Mark offers double the initial request; he wants to contribute $500k for 16% of the company. Daymond makes one of the most exciting pitches, offering $750k for 20% in the company. The bonus of Daymond’s deal is that it includes $10 million of credit. Indeed, it seems as though Daymond is the front runner, although Mark’s deal is competitive, and his specialty is e-commerce.
Things are up in the air until the very end, when Robert augments his offer. Initially, Robert offered the $250k requested, but for 2% more equity than Max had anticipated. After some consideration, and hearing what the other Sharks had to say, Robert adds $100k to his deal, requesting no additional equity. He’s offering $350k for a 10% stake.
After some careful thought, Max decides to partner up with Robert. The two of them both seem thrilled by the deal. The two of them embrace, and Robert proceeds to sit down and play with the light like he is a little kid.
Lumio After Shark Tank
Max revealed after receiving the investment that he was even more satisfied since Robert had been his top choice to work with. Amazingly, and it seems Mark Cuban was quite right, in the immediate aftermath of the show airing, 3,000 orders were placed for Lumio lights. ‘Immediate aftermath’ meaning about 15 minutes after airing. Sales have increased dramatically from there.
Lumio has found itself in numerous publications since the Shark Tank appearance. Places like the Wall Street Journal and GQ. The product has become international, not limited to just the United States, and the show undoubtedly assisted in creating more broad appeal.
Max took an interesting approach to marketing and distribution. He knew that the interest in his product would continue to grow, and he decided that it would be better for the image and perception of the product if he avoided significant distributors. Perhaps this is one of the reasons he has managed to keep the price at $200 and to be still able to sell massive amounts of inventory.
In terms of the pitch itself, Max says he didn’t rehearse; he didn’t need to. He knew his product well and knew exactly what the Sharks needed to know. It worked, and Lumio remains successful to this day.
Disclaimer: The information provided in this article is strictly informational; INSIGNIA SEO is not affiliated with Lumio, SharkTank, or any of its subsidiaries.