- Company: Milk Snob
- Product: 5-in-1 car seat cover/breastfeeding bib
- Owner: Melanie Disbrow
- Asking Price: $125,000 for 5%
- Final Deal: $150,000 for 10%
- Shark Who Took The Bait: Lori Greiner
- Season/Episode: Season 8, Episode 8
A New Mom With A Genius Invention
Melanie Disbow hails from Allen, Texas. Her company, Milk Snob, is the kind of brilliantly inventive, multipurpose magic that only a new mom who hasn’t slept in six months could dream up.
She’s seeking $125,000 in exchange for 5% equity in Milk Snob. Milk Snob is a fantastic accessory for new moms. She noticed a hole in the market while nursing her first child – when she realized that most conventional blanket and canopy car seat covers didn’t stay put. Her kids would pull on them, or they would fly off and get lost. The Milk Snob cover fits on any infant car seat, it’s breathable, and you can lift it or remove it at any time to check in on your baby. The product’s real genius comes from its multipurpose functionality. It also serves as a breastfeeding sweater. The Milk Snob cover has become a must-have for new parents around the world.
The covers are beautiful, with bright floral patterns and cute, trendy striped designs.
Running the Numbers
While Melanie hands out samples of the covers, Kevin digs into the financial details of the company.
- Sales over 18 months: $1.2 million, $800,000 of which was in the last 5 months
- Advertising methods: Social Media/word-of-mouth only
- Retail price: $36 per unit
- Cost of Production: $7.60
- Profit margins: 78.89%
Given the product’s impressive success on social media, the sharks want to know if her background is media or digital marketing. In fact, as Melanie reveals, her background is in photography. She’s a military wife, and immigrated to the United States from Germany when she married her husband.
“This is one of the most successful businesses I’ve ever seen,” says guest-shark Chris. Given her success, he wants to know why she’s even here.
“I’m here because I look up to you guys,” she says, charmingly. “I’m horrible at public speaking and I had to push myself just to meet you. I’ve been approached by bigger retail stores and I need a great partner.”
All the sharks are impressed with Melanie’s sales numbers and infatuated with Melanie’s ingenious product. Chris is the first to make an offer: $125 for 8% equity – a few percentage points more than her original request.
“Say yes!” says Mark Cuban from across the room.
“My wife is my investing partner,” Chris explains. “We work from home while raising our three daughters together. My only contingency on this offer is that I get to take a couple of these home with me tonight. Because I need them now.”
At this point, Mark Cuban drops out. “I think that’s a great offer,” he says. He knows he’s not going to top it.
Lori is next to make an offer – $125,000 for 10% – and she explains that she’s asking for more equity because the value of her QVC marketing channels alone is worth an extra two percent, at least.
Kevin jumps in with a surprise offer and ups the bid: $150,000 for 10%.
Lori drops out and clears the deck, leaving Melanie with three excellent offers on the table.
After some vicious negotiations, Lori and Chris decide to join forces and make a collaborative deal to compete against Kevin’s offer – but Chris is turned off by Melanie’s lack of negotiating experience and drops out.
“You were actually my first pick, Lori,” she says. “I’d love to accept your offer.”
Final Deal: $150,000 for 10%
Where Are They Now?
Like most businesses that appear on Shark Tank, Milk Snob received a significant boost in sales and a bump in popularity shortly after the show’s airdate.
The Milk Snob website features a slick, high-end boutique design and lists a fully expanded product line of beautiful, functional products. Along with the insanely popular 5-in-1 original cover, the brand now offers:
- Milk Snob Nest – a baby lounge pad in a range of colors from Herringbone to French Floral ($28)
- Hats & Gowns – beautiful, boutique baby clothing in a range of styles and colors
- Modern Nursery – blankets, crib sheets, wraps, swaddles and covers
- Disney, Star Wars, and Sesame Street product themes
Milk Snob has been featured prominently across a broad range of digital and print press channels including BuzzFeed, Parents magazine, US Weekly, and USA Today, among dozens of others.
It seems that Milk Snob is thriving in today’s market. Melanie’s fearless risk-taking, entrepreneurial spirit and parental ingenuity paid off tenfold.
But don’t take Insignia’s word for it. In Melanie’s own words:
“Believe in yourself, and don’t be afraid to take risks! You may think you’re not good at something, but you’d be surprised if you put yourself out there and try something totally new.”
Disclaimer: The information provided in this article is strictly informational; INSIGNIA SEO is not affiliated with Milk Snob, SharkTank, or any of its subsidiaries.