Can The Sharks Smell A Deal With BoomBoom? | Shark Tank US | Shark Tank Global

Summary

In this episode of Shark Tank, John and Chelsea Pinto pitch their company, Boom Boom, seeking $300,000 for 10% equity. They present their all-natural nasal inhalers made from essential oils, promoting intense refreshment and rejuvenation. With projected sales of $1.1 million, they face skepticism regarding their pricing strategy and margins. The Sharks appreciate the product but express concerns about valuation and sustainability. Despite interest, no deal is finalized as the founders stand firm on their equity offer. The couple remains optimistic about their product's potential in the market.

Takeaways

• 😀 Boom Boom is an all-natural nasal inhaler made from essential oils and menthol, designed for intense refreshment.
• 💰 The company is seeking $300,000 in exchange for 10% equity, valuing the business at $3 million.
• 📈 Last year's sales were $754,000, and they are projected to reach $1.1 million this year.
• 🌍 The product is primarily sold direct to consumers through their website (20%) and Amazon (30%), with the remaining 45% from wholesale and distributors.
• 💵 The cost to produce a single inhaler is 70 cents, sold for $7.95, yielding significant profit margins.
• 🧑‍⚕️ Co-founder John Pinto is a part-time dentist, contributing to the brand's unique perspective on wellness.
• 🏷️ The wholesale price is set at $1.50, but the sharks expressed concerns about low profit margins.
• 💬 Sharks appreciate the product's refreshing quality but raise issues regarding its sustainability and market position.
• 🤝 The negotiation highlighted disagreements on valuation and equity stakes, with sharks ultimately passing on the deal.
• 🌟 Despite not securing a deal, the founders remain optimistic about Boom Boom's potential in the market.

Q & A

What is Boom Boom?

Boom Boom is an all-natural nasal inhaler made from essential oils and menthol, designed to provide intense refreshment and rejuvenation for users.

How much funding are John and Chelsea Pinto seeking?

They are seeking $300,000 in exchange for 10% of their business.

What are the key ingredients in Boom Boom?

The key ingredients include essential oils, menthol, and other stimulating scents.

What were Boom Boom's sales figures for the previous year?

Last year, they reported sales of $754,000 and are projected to reach $1.1 million this year.

How is Boom Boom primarily sold?

It is primarily sold direct to consumers through their website, on Amazon, and via wholesale distributors.

What is the manufacturing cost of each inhaler?

The manufacturing cost is 70 cents per unit.

What price do they sell Boom Boom inhalers for on their website?

They sell the inhalers for $7.95 on their website.

What concerns did the Sharks express regarding the business?

The Sharks expressed concerns about the high valuation, low profit margins, and whether the product would sustain consumer interest over time.

Why do John and Chelsea prefer to manufacture in the US?

They prefer US manufacturing to ensure high-quality ingredients since the product is inhaled.

What was the final outcome of the pitch?

The Pints did not secure a deal with any of the Sharks, primarily due to disagreements over valuation and margin concerns.