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An Seo Insights Agency
  • Home
  • About Us
  • Services
    • Featured
      • SEO
      • Social Media
      • Pay Per Click
      • Website Design
      • Reputation Management
    • Extras
      • Graphic Design
      • Email Marketing
      • Advertise By Mail
      • Call Center
    • Glossary
  • Blog
  • Contact Us
MuvezShark Tank

Muvez: Shark Tank Updates in 2020

by Kate Sparks July 10, 2020
written by Kate Sparks

THE BASICS: 

  • Company: Muvez
  • Product: Convertible indoor-outdoor slippers with removable soles
  • Owners: Ryan and Eric Cruz; Kevin Zamora
  • Asking Price: $200,000 for 15% equity
  • Final Deal: $200,000 for 25% equity
  • Shark Who Took the Bait: Daymond John
  • Season/Episode: Season 11, Episode 18

Muvez Like Jagger 

Ryan, Eric and Kevin are out to revolutionize the shoe game with their innovative footwear brand, Muvez. They’ve come to Shark Tank this season to pitch a 2-in-1 shoe that functions as a comfortable athletic shoe outdoors and a cozy slipper indoors. The shoe features a removable rubber sole and an assortment of sleek, visually appealing designs.

Inspired by New Jersey mob wives who insist that everyone take their shoes off while they’re in the house, Muvez aims to tap into a massive market and make their convertible slipper a household name.

Muvez on Shark Tank: Episode Recap

The trio enters the tank with what can only be described as understated swagger, wearing complimentary blazers and launching right into their pitch without a moment’s hesitation or any visible signs of fear. Eric and Ryan are brothers, but the Muvez team also includes their best friend Kevin. They’re seeking a $200,000 investment in exchange for a 15% stake in their company.

Their product was born as a solution to a common household frustration with shoe rules. Going barefoot or shuffling around in stocking feet is great for keeping household dirt at bay, and you can avoid tracking dirt all over the home. But it gets annoying when you have to put your shoes back on and lace up your boots every time you want to go outside for even just a quick trip to the corner store or to the curb to take out the trash. So to solve this problem in a creative way, they created Muvez shoes with a lightweight rubber sole that is fully removable and re-attachable, that you can take on and off with ease.

Muvez footwear is the only footwear on the market with dual sole technology. The innovative slippers are engineered to grip the foot through a range of standard movements, including walking, running, and jumping.

muvez slippers on shark tank 1024x512 - Muvez: Shark Tank Updates in 2020

Running The Numbers 

The guys hand out samples to the sharks and discuss the numbers, while Robert and Kevin demonstrate the ease of taking the shoe on and off.

  • Cost of production: $26 landed 
  • Retail price: $110, including shipping 
  • Sales To Date: $73,000 
  • Revenue streams: Online, E-commerce (no marketing spend yet)
  • Profit margin:

“This is cool as hell,” says Daymond, visibly impressed with the product as he fawns over a pair of Muvez with Kevin in a corner. They have a less than 2% return rate.

But success hasn’t come without setbacks. They traveled to China to visit their first factory, and were told their product was impossible to make after they’d already sunk three or four months of production into it. They ended up buying supplies from a hardware store in New Jersey and making a mold based on Kevin’s foot. It wasn’t glamorous, but it was strong enough as a proof-of-concept to garner early investment.

The team says they’re hoping to position themselves as post-game footwear, with a focus on the athleisure market. The sharks seem to take issue with this assessment, as they’re not sure if the practice of wearing slippers outside is an American-athletes thing, or just a New Jersey thing. Nonetheless, some of the sharks are showing a strong interest in the brand, and the bidding is sure to be interesting.

The Bidding 

Kevin is first to go out. “It’s not that the valuation is crazy, it’s that the risk is crazy.” He thinks the market is too tough and doesn’t have enough confidence in the marketability of the product.

Similarly, Robert takes issue not with the product or the design – which he loves – but with the branding. He suspects that branding and marketing are going to prove immensely difficult. Robert is next to duck out.

Mark Cuban chimes in third, saying that while he, too, loves the product and appreciates the originality of their pitch, he knows marketing is going to be a beast. He doesn’t see an angle to push the product without burning mountains of cash, and he wishes them the best.

Lori thinks the product is brilliant, but she’s uncertain and a little afraid of the risk involved. She meets the boys in the middle and says that if they can get another shark to go in on a deal with her, she’ll bite.

Daymond John, as the founder of Fubu,  is an expert in this field and knows how hard it can be. “You don’t want to do this yourselves,” he cautions. They’re going to need serious licensing help. He can give them the full $200,000 – but for 1/3 of the company, twice their original offer of 15% equity.

Lori isn’t comfortable making a counter-offer on her own, and given that Daymond just threw her under the bus, Lori bows out.

After a moment’s negotiation, the boys get Daymond to come down from 33% to 25%, and a final deal is reached.

Final Deal: $200,000 for 25% stake in Muvez.  

Where Are They Now? 

Since this episode aired just a few short months ago, Muvez has graced the pages of Inc Magazine, USA Today, Yahoo, and CNBC. They’ve acquired strategic partnerships with Instagram influencers, athletes and teams including basketball star Langston Galloway, NBA’s Detroit Pistons and Salvador Amezcua (aka Kickstradomis), who boasts nearly half a million followers on Instagram alone.

As expected, Muvez has experienced the coveted Shark Tank Bump – a significant boost in sales that all brands experience after their episode airs, regardless of whether or not they struck a deal. That retail bump has allowed them to expand their product line, with a new women’s line opening in August of 2020. The full Muvez product line currently includes:

  • Men’s Original Muvez Slipper – assorted colors ($99.95)
  • Muvez Slipper at Unlocked Shark Tank Price – assorted colors – ($79.95)
  • Women’s Muvez line – coming August of 2020

The future looks bright for Muvez, and the founders should be proud. They struck the deal of a lifetime with Daymond John, and that deal is already paying serious dividends, earning the otherwise-obscure brand tons of great press and skyrocketing sales.

For now, it would seem, the boys can take their shoes off and stay awhile. 

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Muvez, SharkTank, or any of its subsidiaries.

July 10, 2020 0 comment
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PDX Pet DesignShark Tank

PDX Pet Design: Shark Tank Updates in 2020

by Kate Sparks July 10, 2020
written by Kate Sparks

THE BASICS

  • Company: PDX Pet Design
  • Product: High-end grooming and pet products for cats
  • Owners: Tara and Jason O’Mara
  • Asking Price: $300,000 for 15% equity
  • Final Deal: No Deal
  • Sharks Who Took The Bait: None
  • Season/Episode: Season 8, Episode 12

If you saw the greatest hits episode from the most recent season of Shark Tank, you probably recall seeing a very bizarre, surreal product called the Licki Brush. Perhaps, like me, the image of Robert Herjavac holding a giant rubber brush in his mouth and attempting to groom a housecat with his own tongue is burned indelibly into your mind’s eye. Perhaps, like me, you became fascinated almost instantaneously by this archetypal moment of Shark Tank debauchery and knew you had to explore the company in more depth. One thing led to another, and soon you were watching Jimmy Kimmel’s viral tweet about the Licki Brush Kickstarter campaign and absentmindedly scrawling #lickibrush in lipstick on your bathroom mirror. If cats and cat products that bespeak a certain psychotic level of loneliness are your wheelhouse, you’re on the right blog. Read on to learn more about this kooky pet product brand, and where they are now.

Cat Ears Are Always A Great Sign

First into the tank on this episode – the 12th episode of Season 8 – the two owners of PDX Pet Design stride onto the stage dressed in adorable headsets with fluffy cat ears poking out from the headband. This is surely a sign of greatness to come.

Tara and Jason O’Mara are the founders of PDX Pet Design, and they’re seeking $300,000 for a 15% stake in their company.  “Jason and I are from the generation that was raised with computers,” says Tara, her innate nerdiness gleaming somehow from both her eyes and the fuzzy ears atop her head. “We met online, we got married, and you know what happens next.” They adopted more cats, of course.

Disappointed with the quality and longevity of most pet products on the market, Tara and Jason envisioned a pet product company that would make lasting products designed not only to entertain your cat but to improve your kitty’s lifestyle, improving your relationship with your cat in the process.

Their first product, Shru, is a smart toy that keeps kitty entertained at home while you’re out for the day. It’s an oddly comforting product, simple and sleek in its design: just a small white egg with a feather attached that mimics a small animal’s natural motion – thereby helping to ignite your kitty’s inner tiger.

So far, so good. Their next product, though, is where things start to go off the rails. 

“There’s evidence to suggest that your cat thinks you’re just a really big cat, not a human,” says Tara. (A fact which just happens to be one of this reporter’s favorite cat facts.) Grooming is very important to cats and strengthens their intimate bonds, so they see no reason why human owners should be left out of the process. Jason ducks behind the product display and scoops a black and white kitty for the purposes of demonstrating. The camera pans to the sharks, who have begun narrowing their eyes and giving the presenters quizzical looks. Nobody is quite willing to admit where this is headed.

“With the Licki brush, you can finally lick your cat like a mama cat licks her young,” says Tara. In a gesture that conveys both his own deep shame and a more global embarrassment for all humanity, Mark Cuban is seen closing his eyes and putting his face in his palm. 

“You’re not going to stick that in your mouth, are you?” says Kevin.

“Oh, yeah,” says Tara, before promptly doing so, and administering a few truly bizarre, disgusting licks to the kitty’s backside.

At this point, the sharks are heard groaning, screaming, and whimpering in mixed disgust and pain. “Oh, they’re freaks!” says Daymond John, as if a lightbulb has suddenly lit up above his head and made sense of the world.

The bidding, we can safely assume, is going to be a catastrophe. 

PDX Design On Shark tank licki brush - PDX Pet Design: Shark Tank Updates in 2020

Running the Numbers

While Jason passes out samples to the incredulous sharks, Robert explores new levels of his own self-loathing. “I hate myself so much right now,” he says, after a few licks of the Licki brush. Mark and Kevin, meanwhile, dig into the numbers.

  • Current valuation: $2 million
  • Total sales to-date: $250,000 of SHRU; and $52,000 worth of Licki Brush
  • Retail price: For SHRU – $119; for Licki – $19-24
  • Projected annual sales for current year: $180,000

The sharks are stunned at the retail price for the company’s seemingly budget-friendly cat toys. “It has a computer inside,” says Tara, playing solid defense. Plus, with five other product designs in the works, Jason and Tara have every intention of maintaining their brand’s buzzworthy, internet-happy virality. “We know how to talk to people on the internet about cats,” says Tara. Before starting PDX Pet Design, Jason was an electrical engineer and Tara was pursuing a PhD in neuroscience at the University of Waterloo, Kevin’s old alma mater.

“Are you a Canadian?” says Kevin.

“I sure am,” says Tara.

“I’m going to make sure they throw you out of the country.” 

The Bidding

Lori makes a valid point right off the bat, reminding people of the danger in seeing virality as more valuable than it really is. “Everybody wants to go viral. And you say you went viral. But you sold only $250K on the Shru, and $52K on the brush. If you’re really going viral, your sales should be higher.” And with that, Lori drops out.

Robert drops out next, agreeing with Lori. “Sales aren’t there. I’m out.”

Mark Cuban, as usual, has the most insightful take and the most helpful advice, doled out as he drops out with class. (In case you can’t tell, Mark Cuban, I love you.) “This is clearly more than a business for you – it’s part of your personality. You’ve had fun with it, you’ve owned it. You’re looking for a big break. But you didn’t price it as a big break.” The other sharks are seen nodding in agreement.

“If you had come in saying, believe in us, asking for 50 grand for 20% of the company, we all grow together – I think we’d all be in. But 300K? That’s too much. For those reasons, I’m out.”

Daymond is second-to-last to drop out, referencing the overvaluation and encouraging the pair to work it out for themselves.

Mr. Wonderful himself (Kevin) is last to drop out, saying that he worries about the valuation and what people will think of his sanity. 

Final Deal: No Deal

Where Are They Now?

PDX Pet Design has come a long way from its laughingstock origins and its humble Kickstarter campaign. Amazingly, they are still open and fully operational, as of July 2020.

The brand maintains a lively social media presence, amplified by legions of buzzing fans and lots of engagement – just take a look at their  Instagram, Twitter and Facebook pages to see recent updates, cat facts, and cute, Instagram-approved shots of snoozing kitties.

Jason and Tara still attend CatCon each year – yes, that’s a real thing, and apparently it’s where “cat culture and pop culture converge.”

The PDX Pet Design full product line now includes:

    • SHRU Intelligent Cat Companion ($119)
    • Licki Brush ($25)
    • SHRU feather and tail attachments ($6 each)

While the Licki Brush may have been one of the strangest pitches in the history of Shark Tank, it’s definitely not a failure. The brand is still going strong, and for now, at least, PDX remains a serious contender in the niche market of boutique pet grooming products. All products are currently available to purchase online directly through the PDX Pet Design website.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with PDX Pet Design, SharkTank, or any of its subsidiaries.

July 10, 2020 0 comment
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TikTok

Will TikTok Be Banned In The United States?

by Kate Sparks July 8, 2020
written by Kate Sparks

Revenge is a dish best served room-temperature, with dance moves. As part of a larger plan for coronavirus payback, Secretary of State Mike Pompeo announced Monday night that the United States is “looking at” banning viral video app TikTok, a huge move that – if it comes to pass – would prove absolutely devastating to the app’s bottom line. The app currently boasts more than 800 million users and is broadly recognized as the most popular video-sharing app in the world – but all that would change if the app were to lose its American user base. 

In an interview with Fox News’ Laura Ingraham on The Ingraham Angle, Pompeo was careful not to step on any toes or get out too far ahead of fellow administration officials, while maintaining a strict line on the app and on Chinese social media apps in general. The Secretary of State made several allusions to a possible ban and added that “we’re taking this very seriously.”

Americans should only download the app, Pompeo said, “if you want your private information in the hands of the Chinese Communist Party.” 

After Pompeo’s interview on Monday, Americans around the country started wondering about all this sudden animosity toward TikTok. Why now? Why TikTok? And – most importantly – is TikTok Communist? 

The president was swift to answer on Tuesday, in an interview with Bloomberg news: banning TikTok is just “one of many” actions taken as retribution and punishment for spreading Coronavirus. 

TikTok scrambled to counter the publicity damage done by Pompeo’s and Trump’s interviews, releasing a statement on Monday night. “We have never provided user data to the Chinese government, nor would we do so if asked,” said the company. 

Pompeo’s statements have only served to exacerbate pre-existing uneasy tension between the United States and China, which has seeped into geopolitical relations and affected other areas of international business, including technology, trade, and national security.

TikTok’s parent company is Beijing-based startup ByteDance.  Because of that Beijing connection, US politicians have repeatedly accused the video platform of being a national security threat. Their main argument seems to be that TikTok is in cahoots with the Communist Party, and any information users put on the app might as well be spoon-fed directly to Mao Zedong. 

To its credit, and perhaps in vain, TikTok has repeatedly gone out of its way to ensure users and American civilians that it operates independently from ByteDance. According to TikTok, the app’s user data centers aren’t stationed anywhere inside China, and therefore, none of the app’s user data falls under Chinese jurisdiction. Meaning, far from being a Communist vacuum for personal data, the app is safe and secure.

User data for each country is kept in the country of its users’ citizenship, says the company, meaning that American data is stored in, well, America – with backup copies of data stored for safekeeping in Singapore, according to TikTok. (Keep in mind that Singapore is also not under Chinese jurisdiction, nor is it a Communist country. Though it has a history of communist rebellions, Singapore is a democratic republic with a parliamentary government.) 

Over the past several months, TikTok has boomed in popularity across the globe and throughout the United States, notable for being the first Chinese social media app to explode in popularity outside of China. In the first quarter of this year alone (January, February and March of 2020), TikTok was downloaded 315 million times. That’s enough for every American citizen to have downloaded the app at least once. According to Sensor Tower, a popular analytics platform, that’s the most quarterly downloads of any app in history.  

All this volatility and uncertainty with the United States comes on the heels of global tensions, notably with India. Last week, the Indian government banned TikTok entirely, stating that the viral video app poses a significant “threat to sovereignty and integrity.” 

It remains to be seen if Pomopeo’s and Trump’s threats will result in tangible, concrete action – or if they’re simply fighting words. If TikTok does receive a ban in the United States, it will be cataclysmic for the company, with far-reaching results around the world. It will signify America’s entrance into a new era of digital retribution and cyber-vengeance, as payback for perceived viral crimes – both the video and the biological kind. 

 

July 8, 2020 0 comment
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Just the CheeseShark Tank

Just the Cheese: Shark Tank Updates in 2020

by Kate Sparks July 2, 2020
written by Kate Sparks

THE BASICS: 

  • Company: Just the Cheese
  • Owner: David Scharfman
  • Product: Baked cheddar cheese snacks  (with no carbs, gluten, or sugar)
  • Asking Price: $500,000 for 5%
  • Final Deal: No Deal
  • Sharks Who Took the Bait: Lori, Kevin, Mark
  • Season/Episode: Season 11, Episode 19

Just the Cheese, Please 

David Scharfman grew up in a family of cheesemakers. As you can imagine, his childhood and adolescence were full of formative experiences involving cheese and cheese-related psychology. He understands the insatiable American appetite for cheese, and he aims to fill that appetite with a simple, wholesome, and delicious baked product, helped along by some great marketing and, as you’ll see in this episode, some really excellent cheese-themed apparel.

He’s here on Shark Tank, at top of Season 11, Episode 19, to pitch his family’s new product. With over a million dollars of his family already invested and hundreds of jobs on the line, David has the world to gain on this pitch – and everything to lose.

Just the Cheese on Shark Tank: A Quick Recap

David Scharfman makes one of the most memorable entrances in shark tank history by strolling casually on stage wearing a red suit, a yellow cheese-tie (replete with Swiss holes), and a yellow top hat made out of what appears to be – you guessed it – cheese.

But more astounding than the cheese-themed costume is David’s asking price: he’s seeking $500,000 for just 5% equity.

That’s a lot of cheddar, but surely there’s a reason for such a steep price tag. David goes on to pitch his product in all its brilliant, delicious-sounding detail. Essentially, his product is a snack bar made out of baked cheddar cheese. For those of you who’ve ever longed to eat the cheese out of a pan after making a grilled cheese sandwich, this product is for you.

“No rice, no fillers,” David says while demonstrating the pure Wisconsin milk and golden cheddar cheese that gets baked into each cheesy snack. Three bright and colorful bags of snacks decorate his display table: one for grilled cheese, one for spicy Jalapeno cheese, and one for aged cheddar, their top-seller. It’s the perfect grab-and-go snack, and a huge hit with fans of Keto and low-carb diets.

Lori admits she’s had the product before, a great sign which impresses the sharks. She bought her boxes of the delicious low-carb snack off Amazon. “We sell between 400 and 700 boxes a day on Amazon,” says David, confirming a promising online sales business. At just 75 calories per bar, 4 grams of protein, and a veritable smorgasbord of gluten-free, sugar-free health perks, this snack has market potential galore.

just the cheese buzz on shark tank 1024x1024 - Just the Cheese: Shark Tank Updates in 2020

Running The Numbers 

While the sharks munch away on the tasty cheesy snacks, David answers questions about retail sales, cost of production, and profit margins.

  • Annual sales, prior year: $3.5 million
  • Annual sales, year-to-date: $3.7 million, with four months left
  • Retail stores: 700, plus 1,300 convenience stores
  • Production cost: $0.95 per unit
  • Retail: $1.99
  • Profit margin: 17-20%, depending on SKU (stock-keeping-unit or barcode price)

Just the Cheese has two main competitors on the market – one of them puts quinoa, brown rice, and oat bran in their product, which makes their product cheaper to make, and more reminiscent of a traditional cracker.

The company is entirely self-funded and has raised no previous investment capital. So far, David estimates they’ve invested a total of $1 million of their own money.

The product is suffering from terrible margins, and Robert is eager to know what the long-term plan is for making more profit. David explains that if he sells 40,000 boxes a month, his production cost drops from 95 cents to 76 cents, substantially increasing his profit margin.

In essence, the more he grows, the more he profits.

The Bidding 

Just the Cheese will go down in history as one of the most fascinating bidding wars that ever transpired on Shark Tank. it involves multiple offers, counter-offers, a notepad for doing basic math, and plenty of merciless truth bombs from Mark Cuban.

Kevin is first out of the gate to express genuine interest. He doesn’t have a cheese maker in his portfolio, and he’s intrigued by the product’s potential with Keto dieters and low-carb conscious markets.

This is Kevin we’re talking about there, so you know he’s going to try to work royalties into the deal somehow, and Mark Cuban is going to emasculate him for trying to bilk this poor, unsuspecting cheesemaker out of every last penny he makes.

Kevin’s offer: $500,000 for a 20 cent royalty. In exchange, David gets the full range of Kevin’s formidable marketing and distribution skills.

Robert, meanwhile, congratulates David for being one of the fastest 0-to-1 million in sales companies they’ve ever seen on the show but confesses he just doesn’t like the taste of the product. It’s nothing to do with the business, just a matter of personal preference. Robert is first to drop out.

Guest shark Daniel Lubetzky (founder of Kind bars) is next to drop, saying that he thinks David has a superior brand but that the market is still emerging and there will be more and more competitive entrants to the field as time passes.

Lori has similar concerns and expresses her uncertainty about who will ultimately be the leader in the low-carb, Keto-friendly snack market. At half a million dollars for just 5%, Lori doesn’t feel solid enough to invest – and she’s the third to drop. (Or so it seems…for now.)

Mark Cuban, as usual, comes to the table with the smartest and most perceptive argument against investing. He’s obviously been doing math and running numbers of his own while Kevin was making his predatory pitch.

“At a $10 million evaluation, even if you sell the company for $50 million, and I get five times my money back, my total upside is still only $2.5 million over $500,000. That’s not enough for the risk that’s involved.”

Damn, Cuban. That’s some cold hard truth right there.

Surprisingly, Lori jumps back in at this point. She wants to undercut Kevin’s ridiculous royalty offer. She says she’ll give $500,000 for just 15 cents a bar, as opposed to Kevin’s 20 cent royalty fee.

David asks for a pen and paper so he can work out a reasonable deal, and puts Kevin squarely in his place. If he gave Kevin 20 cents a bar just based on his previous year’s sales, Kevin would make $360,000. “That seems, for lack of a better word, nuts.”

“I really like David,” says Mark.

David comes back with a revised offer of his own – he thinks a nickel is reasonable for each bar, but not in perpetuity as Kevin and Lori have proposed. Strictly for ten years. A nickel a bar, for ten years. That’s it.

Mark Cuban now jumps back into the mix, cutting out royalties entirely. “I’ll give you $500,000 for 15% equity.”

After a rollercoaster of bidding, and a moment to consider each deal with intelligence and clarity, David politely – and respectfully – declines all offers.

Final Deal: No Deal. 

Where Are They Now? 

It’s only been a few months since Shark Tank aired, but the business seems to be doing well, with a lively website and multiple online retail options, a thriving Instagram page, and tons of great press from The New York Times, Buzzfeed, and Greatist. 

All businesses receive a significant boost in sales after appearing on Shark Tank – it’s called the Shark Tank Bump – whether they make a deal or not.

The brand visibility and national notoriety that comes from appearing on NBC during primetime hours can’t really be overhyped or overemphasized. Just the Cheese did themselves a huge favor by appearing on the show, even though David Scharfman was shrewd and savvy enough to reject all three deals the sharks offered.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Just the Cheese, SharkTank, or any of its subsidiaries.

July 2, 2020 0 comment
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CinnaholicShark Tank

Cinnaholic: Shark Tank Updates in 2020

by Kate Sparks July 2, 2020
written by Kate Sparks

THE BASICS: 

  • Company: Cinnaholic
  • Owners: Shannon and Florian Radke
  • Product: Gourmet vegan cinnamon rolls
  • Asking Price: $200,000 for 20% equity
  • Final Deal: $200,000 for 40% equity
  • Sharks Who Took the Bait: Robert Herjavec
  • Season/Episode: Season 5, Episode 28

Cinnaholics Anonymous 

Shannon and Florian Radke knew two heads were better than one, so they pooled their collective talents and came up with a truly sweet idea: gourmet vegan cinnamon rolls, 100% free of dairy, lactose, and eggs. Florian’s background in branding and marketing, combined with Shannon’s background as a gourmet baker, made for a natural collaboration. The company offers a dazzling menu of delectable desserts, with scrumptious flavor combinations like almond-and-raspberry, banana cream pie, and strawberries with cream.

With dreams of franchise expansion on the horizon, they decided to try their luck on Shark Tank back in 2014.

Cinnaholic on Shark Tank: A Quick Recap

Robert’s face looks like a kid in a candy shop in this episode, thanks to Florian and Shannons’ mouth-watering display of custom cinnamon rolls and toppings laid out on display. “You can choose from over 30 different toppings,” says Florian. They’ve prepared a tray of cinnamon rolls for the sharks, each one customized to showcase the brand’s versatile menu. First up, they’ve chosen a caramel banana cream pie for Robert. For Barb Shark, it’s a mocha almond roll. Then Kevin, with a classic old-school roll and strawberries. A coffee cookie dough roll goes to Daymond, and last but not least, an almond raspberry roll goes to Mark.

“Shannon, it’s…incredible,” says Robert, before they can even finish handing out samples.

As you can imagine, these aren’t diet snacks. The typical old school roll contains a whopping 485-500 calories, depending on the size of the roll. But amazingly, Shannon says, that’s half the calories of their competitor. Mark is seen losing himself in a bite of his almond raspberry roll while Shannon and Florian continue pitching their delicious bakery brand.

“We’re here because we need your investment to open a second location and start our cinnamon roll empire,” says Florian.

Their current location, they clarify, is in Berkeley, California, in a cute little brick-and-mortar store that measures just 650 square feet.

Cinnaholic Shark Tank Success Story 1024x1024 - Cinnaholic: Shark Tank Updates in 2020

Running The Numbers 

As the sharks chow down, they question the Cinnaholic team and dig into the burgeoning business’s financial details.

  • Total sales at Berkeley location:  $260,000
  • Net sales: $45,000 or 17%
  • Cost of single roll: $5.50
  • Revenue streams: Berkeley location, plus a tiny online store to accommodate demand

The sharks can’t quite believe the cinnamon rolls are vegan. They’re too delicious, it seems, to be dairy-free, gluten-free, egg-free and 100% vegan. But somehow, miraculously, they are.

“There’s 50 million people in America with a dairy intolerance,” says Florian. “And another 5 million people with severe food allergies. Most of those people are kids. So we get a lot of moms coming in with special requests for their kids.”

Sharks are curious if they have a long-term plan for bigger sales that involves more than just brick-and-mortar locations, or if multiplying stores is their whole end-game.

“What do I get for $200,000?” Robert wants to know.

“For $200,000 you get another store in San Francisco, and from there we go into franchising.”

Robert notes that the team valued Cinnaholic at $1 million, but can only $45,000 in profit to an investor – which means they’re asking 22 times their pre-tax profit.

“For a cinnamon roll store,” he adds at the end, just to be mean.

The Bidding 

Barbara says she’s been spoiled rotten by the success of one of her other food investment ventures, a food truck business called Cousins Lobster that does over $800,000 a year in sales. “Because of that, I’m out,” she says.

Daymond John is up next, and he says that although he’d love to be in this space – and although he’s insanely jealous of Barb Shark’s food truck success – he just doesn’t feel comfortable with their numbers. He’s the second shark to drop out.

“This is so much like Wicked Good Cupcakes in Boston,” says Kevin, spying his opportunity.

“Here comes a bloodsucking offer,” says Daymond.

“A cupcake business very similar to yours decided to change their model from brick-and-mortar to shipping,” says Kevin. And what happened? Their sales skyrocketed from $15,000 to $300,000.

Kevin suggests a similar change to their business model which could allow them to ship packages of six rolls overnight.

Robert is skeptical of the numbers because a $200,000 investment gets poured directly into a second brick-and-mortar location, and then that money’s gone. If it succeeds and you need to expand, you still need to pour more money into the venture. It’s a very expensive proposition, especially with a $1 million valuation that he frankly doesn’t see coming to fruition.

He offers $200,000 but for twice their original equity offer – he wants 40% – and he doesn’t want to open a second location. Instead, he wants to box ’em up real nice and pretty-like, and ship ’em out to hungry cinnaholics all over the country.

Kevin then counter offers with a fairly impressive deal: he’ll give them $200,000 for no equity at all, but he wants $1.20 per unit in royalties, and then down to $0.60 cents after his investment is recouped. These royalties would be collected in perpetuity.

“In perpetuity means forever,” says Robert, eyes gleaming as if to say please don’t take Kevin’s horrible, awful, no-good, very-bad deal. 

After a moment to discuss in private, Shannon and Florian return to the stage and accept Robert’s deal.

Final Deal: $200,000 for 40% stake in Cinnaholics.  

Where Are They Now? 

For Cinnaholic in 2020, business is booming. Cinnaholic has expanded to dozens of locations across the entire United States, with an especially strong presence in the South and along the East Coast. Their headquarters have moved from Berkeley, CA to Atlanta, GA. 

The Cinnaholic website offers a dizzying array of frostings, toppings and sweet treat bakery options.

As their website proudly states:

In addition to our signature, fresh-baked cinnamon rolls, our menu features bite-sized Baby Buns, cookies, brownies and raw, edible cookie dough. We proudly serve locally sourced coffee (at most locations), and offer many customizable catering options.

In addition to the standard menu items, Cinnaholic now offers Party Trays, Cinnamon Roll 4-Packs, and Gift Cards. Their entire menu is available to purchase online or at any on of their franchise locations.

In the long and heartbreaking history of Shark Tank, Cinnaholic is one of those truly sweet delicacies – a success story.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Cinnaholics, SharkTank, or any of its subsidiaries.

July 2, 2020 0 comment
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TikTok

Is TikTok Reading and Copying Your User Data?

by Kate Sparks July 1, 2020
written by Kate Sparks

Beijing-based company ByteDance owns the app, but make no mistake: TikTok is a global phenomenon.

Over the past year, the viral video sharing platform has exploded in growth and come to infiltrate almost every area of culture, reshaping everything from daytime talk shows to the music industry to political activist movements. TikTok currently boasts over 800 million users, more people than belong to the Buddhist religion worldwide.

TikTok was huge even before the absolute hellscape of 2020 descended upon us, but in the age of coronavirus, TikTok has tapped into something deep and essential, something true about us. Though it shares a common ancestor with cult favorite (and now defunct) video-sharing platform Vine, it has managed to break into the upper echelon of cultural relevancy in a way that Vine never quite managed – and in the process, it’s become one of the most valuable marketing tools on earth. Part of TikTok’s success is attributable to the toughness of this current moment, the fact that we are starved for social interaction in an age of social distancing. Part of it has to do with its versatility, as the app can be used to share both silly videos and serious political messages.

But the core of it is the immersive and interactive user experience, the way the app almost flows around you and seems to cradle you while you scroll through it. It’s a masterclass in user-friendly, intuitive design. It’s a source of much-needed laughter and moments of joy, a way to see humanity at its delightful best. It’s a way to be inspired, rather than discouraged, by the activities of your fellow man. It’s a constant companion to us in our lonely leisure hours. Entire evenings can be whiled away just scrolling through the app’s endlessly refreshing, eternally entertaining feed of videos.

Instant TikTok fame is not uncommon, and teens with the right dance moves can become “TikTok famous,” garnering invites to popular daytime talk shows and showing off their TikTok routines with giddy hosts.

Everyone from celebrities to single dads to housecats has a chance to go viral.

tiktok screengrab - Is TikTok Reading and Copying Your User Data?

But there’s a dark side to TikTok, as we are coming to learn.

And that dark side has to do with the seriously shady practice of reading and copying user data, which the Telegraph reported back in March. TikTok was just one of many applications discovered to be reading users’ clipboards, usually without their knowledge. (Technically legal, but practically devious. After all, how many of us bother to actually read the terms and conditions when we install a new app on our phone?)

Other popular apps like AccuWeather, Overstock, Call of Duty Mobile, Patreon, and, of course, Google News were all found to be eavesdropping on both Android and iOS users. ByteDance told Forbes back in March that the sketchy reading-and-copying behavior was thanks to an outdated Google advertising SDK, and that the SDK was soon to be replaced.

TikTok assured us the spying would stop in a few weeks as new updates and changes took effect on the app.

But guess what? It’s now four months later, and the spying still hasn’t stopped.

Jeremy Burge, Emojipedia’s chief emoji officer – and yes, that’s his real job title – revealed on Twitter last week that TikTok was still reading and copying the contents of his clipboard every few keystrokes, as shown by iOS 14.

In its defense, TikTok now claims that this disturbing reading-and-copying feature is “triggered by a feature designed to identify repetitive, spammy behavior.” But just how much can we trust TikTok at this point? It’s difficult to parse out the truth from a vague statement about technically complex app features that sounds suspiciously like an excuse to buy time.

February was rough for TikTok, too: the TSA and US Navy banned the app, citing major security concerns. Then, just a few days later, Reddit CEO Steve Huffman called TikTok “spyware” and “fundamentally parasitic.”

And then, just a few days ago, TikTok suffered another major blow:

Amid escalating tensions between India and China, the Indian government banned TikTok on Monday night. For users in India, TikTok is no longer available through the App Store or Google Play. This does not bode well for TikTok.

So what can you do to keep your privacy safe while still enjoying the app? 

Forbes has a great list of security precautions you can take, and their suggestions are solid advice to keep in mind while using any app – not just TikTok.

Use common sense, and don’t be scared to read through the terms and conditions policy. Keep your profile private, review your security settings regularly, and make sure you’re in control of who can view and comment on your content.

Keep in mind that TikTok might no longer be scanning and digesting your iPhone’s clipboard, but the company has left its corrective actions deliberately unclear. Android users should take extreme caution with TikTok, as it’s not easy to tell if the “anti-spam filter” has actually been removed from its Android version.

In today’s age, digital literacy and security best-practices are absolutely critical for success, no matter your business.

And with the right dance moves, who knows? You could be the next global phenomenon.

July 1, 2020 0 comment
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FacebookFacebook Advertising

Will The Facebook Ad Boycott Have An Impact?

by Kate Sparks June 30, 2020
written by Kate Sparks

America has a grand tradition of boycotting businesses who’ve been naughty, and an even grander tradition of forcing corporations to grow a conscience by withholding cold, hard cash. Facebook, for the past several years, has been very naughty, indeed. The American thirst for retribution is perhaps even higher now than it was during the Cambridge Analytica scandal of 2018.

It makes sense, then, that the official boycott of Facebook is scheduled to take effect this week, beginning July 1st and lasting for the entire month of July. The boycott feverishly encourages advertisers to “Stop Hate for Profit” by removing their ads – and consequently, their sweet, sweet ad revenue – from Facebook-owned properties. As of today, June 30th, the boycott campaign has swelled to include an impressive 270 companies.

Needless to say, Mark Zuckerberg might need a change of pants soon. There’s nothing that should delight good, hardworking and patriotic Americans more than watching Facebook go down in flames. Consumed as we are with so much cultural anxiety, in the midst of an economic catastrophe and a global pandemic, we now face a blissful respite from our worries, in the form of revenge.

The boycott is a group effort that’s been years in the making. It’s organized largely by civil rights and human advocacy groups, including the NAACP and the Anti-Defamation League. It places the blame for our current political quagmire squarely and directly on the intensely hateable shoulders of tech goliath Facebook, for standing idly by while hate speech and misinformation spread like wildfire across the platform.

During the early stages of last month’s Black Lives Matter protests, President Trump’s “looting … shooting” post created an active incitement to violence, which of course, Facebook handled swiftly and righteously, removing the post immediately and showing support for marginalized Americans.

PSYCH! Facebook did nothing, which is what Facebook always does. 

According to the Stop Hate for Profit website, Facebook is guilty of failing to act but also of actively making things much, much worse.  Facebook called the notoriously unhinged right-wing circus known as Breitbart News a ‘trusted news source’ and labeled The Daily Caller a ‘fact-checker,’ which is like calling David Duke a concerned skeptic of civil rights advocacy. Both Breitbart News and The Daily Caller have long, cringy records of collaborating with white supremacists, spreading lies and misinformation, and advancing racist, bigoted, hurtful political ideologies that move American intellectual thought backward by leaps and bounds with every single article they publish.

facebook boycott protest 1024x576 - Will The Facebook Ad Boycott Have An Impact?

But back to Facebook, which has become merely our most current and buzzworthy iteration of right-wing propaganda writ large.

In addition to the boycott guidelines and mission statements, Stop Hate for Profit has published a laundry list of bright ideas for how to make things better when working within Facebooks’ parameters, including:

  • better content moderation across all media (posts, pages, groups, comments, etc)
  • moderation of private groups – groups that tend to be breeding grounds for extremist, hateful ideologies and generally terrible ideas (Flat Earth Society, anyone?)
  • giving advertisers a heads up when their ads appear on the same page as content that’s later deemed to be hateful or deliberately misleading

Given the nature of the boycott, you might be tempted to think this is purely a partisan issue. You’d be forgiven for thinking this boycott is only for businesses of a certain political affinity, left-leaning companies or liberal businesses that tend to lean Democratic, rather than Republican. But as it turns out, Facebook is universally loathed by people on both sides of the aisle. In a recent Harris poll, Facebook was more despised than Philip Morris, Dish Network, Wells Fargo, and the United States government.

So what companies are participating in the boycott? Oh, you know, just all of the biggest and most famous businesses on earth. Names of the heaviest hitters who have thrown their support behind the boycott include:

  • Starbucks
  • Adidas
  • Reebok
  • Best Buy
  • Clorox
  • Coca-Cola
  • Conagra
  • Diageo (the beverage company)
  • Ford
  • HP
  • Honda
  • Hershey’s
  • The North Face
  • Puma
  • REI
  • Unilever
  • Verizon
  • Levi’s
  • Patagonia
  • Pepsi
  • Pfizer

Notably, Microsoft has not yet joined the official boycott, but as seen in internal company documents obtained by Axios, that’s only because Microsoft has been conducting a de facto, under-the-radar Facebook boycott of its own for nearly two months already. Microsoft hasn’t run ads on Facebook or Instagram since May, already deeply concerned about the content that was running alongside their ads.

Bloodless, money-grubbing ghoul and Facebook CEO Mark Zuckerberg held a town hall last Friday where he did what he always does when he sees his company hemorrhaging money: he made a speech full of empty gestures and meaningless vows that came off as insincere (because they were), and that proved to everyone in attendance that Facebook cares far more about appearing to care than actually caring. 

His speech was recognized immediately for the absolute drivel it is.

“Unfortunately, the sum total of these exercises reveal that Facebook has been spending more time on their messaging rather than addressing the underlying problems on the platform,” Stop Hate for Profit stated.

mark zuckerberg facebook boycott loses billions 1024x576 - Will The Facebook Ad Boycott Have An Impact?

As deeply cathartic and healing as it would be to watch Facebook file for chapter 11 bankruptcy as a result of this boycott, such a result is highly unlikely. Facebook racked up over $70 billion in revenue last year, most of which was ad revenue collected from a vast field of more than 8 million different advertisers. (Promising early results, however, do show considerable losses, with Facebook’s market value taking a heavy hit on the stock market early this week, and more than $7 billion in ad revenue lost as of June 30th.)

But it’s worth noting one very important fact here: bankrupting Facebook isn’t the point. There’s a much larger, more important, and more consequential goal in mind. The outcome, in turn, is more likely. The boycott aims not so much to make Facebook bleed from its bottom line – although that is, of course, a lovely bonus – but to increase public awareness of the way hate speech, misinformation and blatant propaganda have become normalized, common weapons used by American corporations to make a quick buck. The boycott aims to shine a spotlight on the toxic, corrosive nature of corporate misinformation, and on the way that propaganda erodes not only our businesses but our society as a whole.

When our biggest businesses encourage misinformation and devalue honesty, our democracy grows weaker. When our corporations cheapen the value of the truth, our entire society is cheapened in the process. Corporations’ callous disregard for the impact that profiteering and propagandizing has on our social, political and cultural institutions – institutions which are, in today’s high-tech world, increasingly interdependent and tied together by digital forces – is a serious enough issue that it deserves a serious, considered, and collective response. A response built on group effort and genuine concern, not just four ourselves or our bottom lines, but for each other. With increased public awareness of this issue comes an increased demand for truth and justice, and a stronger resolve in our society to treat ourselves and each other better.

To examine the way we speak to each other, and to strive to communicate with honesty, dignity, and grace.

To set an example for younger generations and to undo some of the massive damage done by these fast-paced, digitally evolving platforms of misinformation and bigotry.

Or at the very least, if we can’t undo the damage – we can certainly learn from our mistakes and prevent it from happening again in the future.

With good digital practices and a renewed commitment to truth, corporate integrity, and factual information, we can slowly but surely heal the collective wounds of Facebook’s influence.  With diligence and sustained effort, we can become the kind of society where Facebook is contained to the realm of personal (rather than political) social media, connecting families and friends, and where it no longer has the power to spread conspiracy theories, elect corrupt politicians, or provide safe harbors for the world’s most poisonous people.

stop hate for profit logo facebook boycott 1024x576 - Will The Facebook Ad Boycott Have An Impact?

June 30, 2020 0 comment
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Milk SnobShark Tank

Milk Snob: Shark Tank Updates in 2020

by Kate Sparks June 26, 2020
written by Kate Sparks

The Basics

  • 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.”

 The Bidding

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; Seo Insights is not affiliated with Milk Snob, SharkTank, or any of its subsidiaries.

June 26, 2020 0 comment
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Combat Flip FlopsShark Tank

Combat Flip Flops: Shark Tank Updates in 2020

by Kate Sparks June 25, 2020
written by Kate Sparks

The Basics

  • Company: Combat Flip Flops
  • Product: Military-themed flipflops and footwear (for a good cause) 
  • Owners: Matthew Griffin and Donald Lee
  • Asking Price: $150,000 for 10% equity
  • Final Deal: $300,000 for 30% equity
  • Sharks Who Took The Bait: Mark Cuban, Kevin O’Leary, Lori Greiner
  • Season/Episode: Season 7, Episode 16

Business Over Bullets

Matthew Griffin and Donald Lee founded Combat Flip-Flops to support women, children, and other disadvantaged populations surviving in war-torn communities. Their mission is fantastic and their product is exciting. They’re seeking $150,000 for 10% equity. They make cool products in dangerous places – and the sharks know it. From the first few moments of Griffin and Lee’s pitch, it’s clear that this business has multi-million dollar potential.

The brand is spread across many products, and the products are spread across the globe. Their best-selling and most brand-central product, their footwear, is made in Bogota, Columbia. Belts, sarongs, scarves and cashmere products are made in Afghanistan – employing women and putting little girls through school who wouldn’t otherwise have a shot at a decent education. One branch of the business makes jewelry out of recovered landmines in Lao. Through the production of a commercial product using local resources, local employees, and respect for regional culture and customs, they produce peaceful, sustainable change in areas that need it the most.

In their words: “Businesses are more powerful than bullets.”

Samples from Colombia, Afghanistan, and Lao are passed around while the two founders discuss their inspiring backstories: they both served in the 2nd ranger battalion, 75th ranger regiment, completing two tours in Afghanistan and one tour in Iraq. No matter where they were stationed, they had always talked about starting a business together. It was their dream for years, and now – with the sharks’ help – that dream can finally become reality.

combat flipflops veterans afghanistan shark tank - Combat Flip Flops: Shark Tank Updates in 2020

Running the Numbers

The company’s most popular product is the original combat flip flop, aka The Floperator. But the brand also sells a popular men’s sandal called the AK-47 and several full lines of jewelry, accessories, and women’s apparel items. The Floperator is used as a baseline product to gauge financial health.

  • Cost of Production: $20 raw materials, plus $4.90 landed – $25 per pair (includes air shipping)
  • Retail price: $70
  • Revenue stream: 89% online
  • Total annual sales: $39,000
  • Projected sales: 5% net profitability

Daymond John understands the challenges of their industry. Will they be able to scale this accordingly? They’re upfront and honest about their company’s prospects: they don’t know how to scale, but they know guys who do.

“I’m a huge believer in business over bullets,” says Mark. “We need to exploit the American dream.”

Robert wants to know about scaling: how do they scale up their products to keep up with demand? “I’m going to tell you right now, you have too many products,” he says.

But Griff and Lee are confident in their ability to learn how to scale and to keep up with rising demand. They just signed a Canadian distributor that will be selling to 390 stores, and they have military distribution deals in the works for their footwear product line.

Combat Flip Flops shark tank - Combat Flip Flops: Shark Tank Updates in 2020

The Bidding

“I think what you’re doing is good,” says Kevin, “but the fundamentals of the business, the diversification of your model, adds a lot of operational and logistics risk.” He thinks they should refocus efforts strictly on footwear. The deal is just too diversified for comfort. He’s first to drop out.

In a great Shark Tank moment, the two founders then ‘mark’ Kevin with a neon orange marker. “It’s what we use to mark the dead,” they quip. The same goes for Robert, who drops out on Kevin’s heels.

Lori is next, and she commends them on the difficulty and the true nobility of what they’re doing. She agrees with other sharks that the brand needs to be focused on one product that is their main strength and then branching out. If another shark goes in with her, Lori would be willing to make an offer.

Mark and Daymond confer in a corner. “We’re both big believers, business over bullets every day. From a purely business perspective, focusing on the core product makes sense – but there’s a bigger picture here. Whatever you’re making in Afghanistan, we want to make more of it.”

Cuban offers $200k for 25% equity, a joint deal with Daymond and himself. Lorie wants in, but Cuban and Daymond balk.

“I think the business needs a feminine touch, guys,” says Griff. This seems to be enough to include Lorie, making it a three-partner investment.

“Then we need 30%,” says Cuban.

“Can you do $300k for 30%?”

After a tense moment, all three sharks agree and a deal is made.

Final Deal: $300,000 for 30% equity.

Where Are They Now?

While the brand’s primary focus is still predominantly footwear, the full product line now includes an impressive (and yes, slightly streamlined) array of footwear, apparel, and accessories, including:

  • The Original Coyote Floperator – $39.99
  • The Coyote Floperator Shadow – $39.99
  • Men’s AK-47 Flip Flop – $59.99
  • Women’s Flip Flops (two styles) – $39.99 – $59.99
  • Women’s Boots (one style) – $59.99
  • Apparel, scarves, patches, jewelry, and headwear – assorted prices

The Combat Flip Flop product line can be purchased directly online through their sleek, well-designed website or through Amazon. Their site also features a cute, customizable form for corporate partnerships.

Since the episode aired, Combat Flip Flops has experienced an uptick in sales and crested a wave of buzz-worthy press from major news outlets around the world, including Fox News, Gizmodo, ABC, TEDx, BBC and MSNBC. 

With such a unique and noble mission, undeniable heart, and unbeatable talent to spare, it’s thrilling to see a company like Combat Flip Flop thrive in today’s war-torn world.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Combat Flip Flops, SharkTank, or any of its subsidiaries.

June 25, 2020 0 comment
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GoumikidsShark Tank

Goumikids: Shark Tank Updates in 2020

by Kate Sparks June 25, 2020
written by Kate Sparks

The Basics

  • Company: Goumikids
  • Product: Boutique baby apparel
  • Owner: Linsey Fuller and Lili Yeo 
  • Asking Price: $1 million for 8% equity 
  • Final Deal: $1 million for 10% equity (see conditions) 
  • Shark Who Took The Bait: Kevin O’Leary 
  • Season/Episode: Season 11, Episode 17

Fearless Mamas With A Flawless Product

Linsey Fuller and Lili Yeo, the founders of high-end organic baby apparel line Goumikids, are anything but shy. When they take the stage to make their pitch toward the end of Season 11, they launch fearlessly into one of the gutsiest valuations in the show’s history. Less than a minute into their pitch, they’ve drawn gasps and looks of stunned shock from every single shark in the room. They’re seeking a whopping $1 million for a mere 8% equity in their Portland-based company. Did you do the math in your head just now? Us, too. Linsey and Lili are valuing their company at more than $12 million, asking for one of the biggest investments in Shark Tank history.

The founders are “obsessed with the power of small,” and they’ve created a product that addresses limited motor control and heat loss in the extremities of newborn infants. Their product line is comprised of “essential baby products” that are “functional, comfortable, breathable, sustainable and beautiful.” Their flagship product, goumi mitts, stays on and protects baby’s tiny hands through the use of an original 2-part snap closure. Their Goumi Boots do the same thing, using elastic to tighten and Velcro to secure, ensuring that baby’s feet stay snug and secure in their booties. Their patented Goumi Jams, meanwhile, go from pajamas to sleep sock in one snap.

It’s clear from the beautiful product display and crisp, professional presentation that this product is top-of-the-line and that these women came prepared. Their pitch is impressive and their business is bound to start a serious bidding war between the sharks. First, though, it’s time to hand out some super-soft, super-snuggleable samples.

goumi kids display shark tank 1024x768 - Goumikids: Shark Tank Updates in 2020

Running the Numbers

The pair hands out two sample sets: one, the “welcome home” set, is for newborns just arriving home from the hospital. The packaging is nearly as beautiful as the clothes themselves, and the sharks are quick to comment on the smartness of the brand. Lili’s background is in apparel and footwear – she spent the first seven years of her career climbing the corporate ladder at Nike – while Linsey’s background is supply-side, selling buttons and zippers to the apparel industry.
“Is that how y’all met?” jokes Cuban.

“No, no!” They laugh. “We met at the Chinese preschool where we sent our little bon-bons.”

“And I live in China, currently,” says Linsey, to the surprise of absolutely everyone on screen. She flew in from China to make the pitch.

  • Cost of production: Whole bundle: $17-18, landed; Booties: $2.20; Mittens: $4.50;
  • Retail price (whole bundle): Whole bundle: $102; Booties: $18; Mittens: $24;
  • Sales over eight years: 1 million units
  • Main revenue streams: direct-to-consumer online sales
  • Year-to-date total sales: $5.2 million
  • Projected annual sales: $2.5 million, with 15% profitability

Kevin is quick to point out that they’ve evaluated their company at a staggering $12.5 million. “That’s a little rich,” he says, to which Cuban adds, “That’s a lot rich.” The women counter, however, pointing out that they did their first fundraising round in early 2018, with $1 million in total sales – and they were at a $5 million valuation even back then.

They’re growing strong, though, and they have a clear line of sight to a $5 million sales year after the current one. Why aren’t they selling more? Because it’s a wholesale business, largely, and they’ve only recently gotten into direct sales, which are much more profitable.

The pair estimates that around 15-20% of their total sales are now direct-to-consumer sales.

Mark digs deeper. Is it their distribution? Is it their price point? Their sales should be much higher. 

“Therein lies the challenge in being small,” says Lili. “Our clients come back to us and say they want more sizes, they want more variety.”

“Clients always say that,” says Barbara, wise beyond her years. “Don’t listen to them.”

goumi kids on shark tank 1024x544 - Goumikids: Shark Tank Updates in 2020

The Bidding

The sharks seem to agree that their price point is too high, and is hampering their sales growth. They only tested their price point online, they say, Mark zeroes in another problem, though: their retail product display. Their display doesn’t include a quick, easily digestible description of the product. They’re not telling a story. It doesn’t pitch the uniqueness of the product or tell new parents really what their product’s purpose is: that their kid’s going to scratch themselves unless they wear these protective little mittens and booties.

“We’re under-telling our story,” they offer.

“No, you’re not telling your story at all. Your marketing sucks.”

Mark is sketched out by their atrocious branding strategy and drops out almost immediately.

Daymond John is next up, and he’s questioning their sky-high valuation. “Is it simply the need for that much capital? Or is that you think you’re going to be that good?” They’ve had a lot of time – eight years, to be exact – to figure themselves out. Lili explains that their original fundraising round coupled with their transition from wholesale to direct-to-consumer boutique products is what accounts for most of their valuation. It’s not a satisfactory answer for Barb Shark.

Barb Shark rightly points out that another sock business and Shark Tank venture of hers – Grace and Lace – has been in business for just five years but has three times the annual revenue. “I believe the problem that you have that they don’t have is that they have 70% returning customers. You’re in the new baby business. It’s very, very expensive for your customers to keep coming back to your product. And it’s grossly overpriced,” she concludes and drops out with classic, stone-cold Barb Shark ruthlessness. 

Lori thinks the product is beautiful, high-end, and premium. But she’s personally spent her career creating a high-quality product at an affordable price, ensuring that her products can be enjoyed by all. While she loves what Goumikids is doing, it’s not the right model for her. She’s the third shark to drop out.

Daymond also thinks the product is excellent, but the valuation is crazy-steep. 

“Well let’s talk about a proper valuation, then,” says Lili, opening the table for negotiation.

Almost immediately, Daymond makes an offer: $1 million for 30%. 

Kevin jumps next, offering $1 million as a line of credit at 9% interest, in exchange for 10% equity. 

“Remember, you can always counter these offers,” says Lori.

“Would you consider $1 million for 15%?”

Daymond rejects Lili’s counter-offer outright. It’s going to be a cold day in hell before Daymond John goes down to 15%. The pair ask Kevin to clarify his offer for them, saying they’re not really sure they need a line of credit. As it turns out, they already have one – a $250,000 credit line at 5% interest. Much better than Kevin’s proposed deal.

The sharks return fire by saying that when they grow, and if they reach Grace and Lace levels of revenue, they will eventually need to expand their credit line, and they will need help from investors on a Shark Tank level. If not now, then eventually.

At this point, the two founders of Goumikids turn away from the sharks for an on-the-spot, high-stakes, baby-clothes-decision-making-huddle. They whisper quickly to each other – in Chinese. (Easily the coolest, most international espionage plot point this reporter has ever seen on Shark Tank.)

After a moment’s hushed and intriguing deliberation, the two settle on a deal: they’re accepting Kevin’s deal.

Final Deal: $1 million as a line of credit at 9% interest, in exchange for 10% equity.

Where Are They Now?

If you take a gander at Goumi’s website, you’ll see a sleek, high-end boutique aesthetic full of clean white space, soft color palettes, symmetrical design, and bold block lettering. Their brand aesthetic is very much in the same category as other high-end boutique retail spaces such as Anthropologie and Stitch Fix.

Everything about their image is carefully curated and designed – from the cute, playful copy on their website to the photos on their social media – to capture and soothe the attention of a vast, profitable and notoriously picky market of new moms. Their entire brand screams “Hip Young Portland Mamas With Money,” overflowing with earthy, neutral tones and soft lines, displaying soothing product colors like “moss,” “soybean,” “many moons,” and “succulent.”

Their full product line has expanded since the show, and their site now lists a dizzying array of beautiful, boutique luxury items and collections, including:

  • Nursery linens: Fitted crib sheets, nursery blankets, and padded crib covers made from 100% organic cotton, muslin, and bamboo fabrics ($24-$68)
  • The original Goumikids Mitts: From sizes preemie to 0-3 months old, available in a staggering array of subdued colors ($14)
  • The original Goumikids Boots: Available for preemie and babies aged 6 to 12 months, with a special “gripper” bootie design for super mobile babies ($18)
  • Gowns: Organic sleepers and gowns for preemies and babies aged 3 to 6 months, with built-in mitts and one-snap foot pockets ($32)
  • Footies: Soft, cozy rompers with bum flaps and convertible foot pockets, for little ones aged 18-24 months ($36)
  • Loungewear: Top & bottom two-piece sets for toddlers and bigger kiddos, aged 2-5 years ($40)

Goumi’s Instagram page boasts nearly 100,000 followers.

This reporter is proud to report that Goumi is flourishing in the high-end baby apparel market, and shows no signs of slowing down any time soon.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Goumikids, SharkTank, or any of its subsidiaries.

June 25, 2020 0 comment
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Christopher Joseph
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14:44 20 Jul 18
This company has a different approach towards advertising and marketing than other agencies. They spent a good amount of time understanding our industry, clients, and competitors. I think that's why we had the success we did. They showed us their work and then implemented their process strategically. I can say they are a great advertising firm to work with.read more
Emily Pangilinan
Emily Pangilinan
16:59 19 Jul 18
So far, we’ve received assistance from Seo Insights with our mail marketing campaigns. The great thing about their service is that its full service. They’ve provided us with the lead data, worked on the creative for the mailer, and then mailed it on our behalf. We’ve seen results through the campaign and are about to send our 4th mailer with their assistance. Drip them one day at a time.read more
Jesse Jumper
Jesse Jumper
21:56 18 Jul 18
Love our website, its modern, clean, crisp. They where great from start to finish. This is the 2nd site we build with them.
Victor Sanchez
Victor Sanchez
22:56 17 Jul 18
We just got done with our website, and Seo Insights did a great job. We had to get the site up and running in 3 weeks and they worked really quick and got the site going in record time. We have a great looking website now and are thankful for their assistance.read more
Ben Tanner
Ben Tanner
19:24 17 Jul 18
Seo Insights is the first marketing agency we trust. They walked us through the technical process of marketing and then actually showed us results. We didn’t feel like we where getting played by another agency. They cared enough to send us reports every week and made sure we understood the service we’re getting. We couldn’t be happier with the results.read more
Steven E
Steven E
11:49 28 Jun 18
My wife and I have a party supplies company that has been operating for the last ten years. With all the new competition in our area, we agreed the company needed a makeover, starting with our logo, which looked outdated and old. She started looking for logo design companies, and Seo Insights was the first one to show. After filling out their contact form, we received a call within 10 minutes. I was impressed by their responsiveness and thought that was an excellent sign. I wasn't mistaken. After a quick survey to find out what we were looking for, they explained different options from where we could choose the design. I am very picky, so I wanted every detail to be perfect. Seo Insights provided as many revisions as we wished to (always explaining prices) until we got the result expected. The quality of their work is excellent, and the constant feedback on the process is a plus for sure. We are delighted with our final logo, and we will work with Seo Insights in any future website improvement we decide to make.read more
Jaimee Martin
Jaimee Martin
04:47 28 Jun 18
My sister and I recently opened a small business where we sell merchandise of different types online. For that, the main thing we needed was a great website with an easy interface and of course secured, where our clients would feel comfortable purchasing the goods. We started looking for web design companies in our area, and Seo Insights showed up several times for many of the terms we were seeking. Their website looked beautiful, responsive and well-designed, so we thought if they can do that for themselves they surely can do it for us, so we reached out for a quote. Their service was amazing. They gave us many options for our design, all of them excellent. We received feedback regularly, and their prices were affordable too. We ended up with a fantastic website, and we couldn't be any happier with Seo Insights services.read more
Lance Tiamagiagi
Lance Tiamagiagi
16:21 03 Jun 18
Highly recommend this company for starting up businesses. Looking for help to take that mile step with you and you business? Insights is the best place to be
Sarah Peah
Sarah Peah
20:16 30 May 18
This is a very unique company. I have seen web designer company website sits and nothing is in comparison to SEO. From the layout of the he website to the model you guys stand by. It makes you feel more like family then just another customer. You guys really believe in what you do and communicate that very well to your clients. The way you guys put your soul and mind into advertising your customers website it's unbelievable. I would highly recommend this company to all my family and friends. Great job!read more
Shannon McFarland
Shannon McFarland
20:21 26 Apr 18
Forward thinking Digital Marketing professionals that understand the needs of this internet driven world we live in today. Their marketing solutions are a cut above the rest because they listen to their customers and provide custom solutions to help meet the clients’ objectives. They understand how to get your business in front of the right audience at the right time and make sure your brand gets the recognition it needs. They are passionate about their clients’ success. They are passionate about what they do and want to help your business step up to the next level.read more
Micaelle Previl
Micaelle Previl
20:49 21 Apr 18
Seo Insights is a dynamic company which provides small to medium scale businesses the solutions to make their presence online noteworthy! They do this through various ways, not excluding Search Engine Optimization, Campaign Management, Website & Graphic Design, Branding Solutions, Website Research and SEO Analytics, Internet Marketing Strategies, Digital Marketing and Advertising, etc. They are certainly a jack of all trades, and should be your one stop for all of your business' needs online!read more
Jessica Rawen
Jessica Rawen
19:22 16 Mar 18
Searching for a digital marketing company online wasn't easy. Seriously... there were a lot of them. But once my friend told me about Seo Insights Company, I was relieved. My business needed dynamic web pages that were customer-friendly. They helped me create a full digital marketing plan for my biz and they were unbelievably good at it. They gave me the website design service I needed and implemented it with ease. I didn't know a company could do all this stuff... They had the whole package.read more
Ray Diaz
Ray Diaz
06:27 17 Feb 18
Great experience! An Austin Seo services provider that really knows how to deliver.
Amelia Lopez
Amelia Lopez
11:44 25 Nov 16
This company is really one of a kind. I say that because they are a SEO company like I've never seen before, in a good way! Their communication, understanding, and work that they do is incomparable. I have had many questions for them and they always answer back and explain to me in terms that I understand. That is really important to me and I can't thank them enough! I highly recommend them!!read more
Bess Clark
Bess Clark
08:21 11 Nov 16
We wanted to work with an Austin SEO company that could deliver on the services advertised and the Seo Insights consultants definitely delivered and exceeded expectations. We wanted our online store to sell at a higher rate and they helped us market and promote products effectively. We are up more than 100% vs prior year. Recommend their marketing services!read more
Alexandera Brown
Alexandera Brown
21:36 18 Oct 16
We love technology and the way it helps our business so we wanted to leverage technology to position us well in front of our clients. Seo Insights was instrumental to the visibility we now have. We couldn't be happier with their service. They were responsive and helpful in the acquisition of new clients using their tools and strategic advice.read more
Daniel Baker
Daniel Baker
19:19 27 Sep 16
Seo Insights has been instrumental to our companies’ visibility and success. We’ve worked with their team for about a year now and their staff has been responsive and helpful in walking us through the process and showing us the formula for 1st page positioning. We are getting more business now than ever and it’s thanks to their help. We used them for SEO, Social Media, and AdWords and they improved our conversions exponentially. What I can say is that Insights is organized in its process and follows an easy to follow method that really works for our marketing. I highly recommend them.read more
Ben Hebin
Ben Hebin
12:49 23 Sep 16
Having Seo Insights Company as my SEO marketing company changed my business. Not only have they helped me reach the first page, they have helped me in so many other ways. They showed me how I can reach more audience and customers through collecting emails and re-sending. This has helped me get extra sales! It's amazing when I think about this. I would have never guessed that hiring an SEO Company could change my business by so much. Truly I would say that they provide the best SEO Services.read more
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