"It Only Holds Three Cans?" The Sharks Question Chill Systems | Shark Tank US | Shark Tank Global
Summary
TLDRChill Systems introduces the Chiller, a portable beverage cooler with a built-in freezing gel that eliminates the need for ice. The founders, both ex-employees of Google and Apple, aim to reduce waste from single-use plastics and support clean water projects. Despite facing skepticism from the sharks about its sustainability and market potential, they seek $150,000 for 15% equity. The sharks critique the high costs, market competition, and the founders' business focus, leading to a unanimous decision to pass on investment.
Takeaways
- 🧊 The Chiller is a portable beverage cooler designed to keep drinks cold without the need for ice.
- 🌐 The product is marketed as a sustainable alternative to traditional ice methods, aiming to reduce waste from clean water and single-use plastics.
- 💸 Chill Systems, the company behind the Chiller, is seeking $150,000 for 15% equity to expand their business.
- 🔄 The Chiller is versatile, capable of holding cans and bottles, including larger bottles like champagne.
- 📈 The company has achieved $111,000 in sales over the last two years, starting with a Kickstarter campaign.
- 💼 The founders, Chase and Brian, left their jobs at Google and Apple to pursue this venture, working full-time on the Chiller without taking a salary.
- 💰 The initial cost to produce the Chiller was $37, but it has been reduced to $18, and it is currently being sold at retail for $30.
- 🗣️ The Sharks expressed skepticism about the product's market potential, sustainability claims, and the founders' business strategy.
- 🚫 None of the Sharks offered a deal, citing concerns about the product's practicality, competition, and the founders' presentation.
- 🔄 The founders emphasized their commitment to sustainability and personal growth, despite the Sharks' doubts about the business model.
Q & A
What is the Chiller and what does it do?
-The Chiller is a portable beverage cooler designed with a freezing gel built-in to keep drinks cold without the need for ice.
What is the main selling point of the Chiller according to the pitch?
-The Chiller's main selling point is its sustainability, as it aims to reduce waste from clean water and single-use plastics, and it donates a portion of each purchase to support clean water projects.
How does the Chiller differ from traditional ice-based cooling methods?
-The Chiller eliminates the need for ice, which can be inconvenient and time-consuming to manage, and it can chill various types of cans and bottles, including larger ones like champagne.
What is the capacity of the Chiller in terms of the number of cans or bottles it can hold?
-The Chiller can hold three cans at a time, and it is designed to be versatile enough to accommodate cans or bottles.
How long can the Chiller keep drinks cold?
-The Chiller can keep drinks cold for up to six hours.
What was the initial cost structure for producing the Chiller, and has it changed?
-The initial cost to produce the Chiller was $37 per unit, including manufacturing, import, and sleeve costs. However, the cost has since been reduced to $18 per unit.
What was the initial funding goal for Chill Systems on the show, and what were they offering in return?
-Chill Systems was seeking $150,000 for 15% equity in their company.
What was the reaction of the sharks to the Chiller's sustainability claim?
-Some of the sharks were skeptical about the Chiller's sustainability claim, pointing out the plastic components of the product and questioning its environmental impact.
What was the sharks' main concern regarding the Chiller's business model?
-The sharks expressed concerns about the high production cost, the sustainability claims, and the marketability of the product, leading most of them to decline investment.
What was the total sales amount that Chill Systems had achieved prior to the pitch?
-Chill Systems had achieved $111,000 in sales over the last two years, starting with a Kickstarter campaign that raised $51,000.
Why did the founders, who previously worked at Google and Apple, decide to start Chill Systems?
-The founders decided to start Chill Systems because they wanted to make a difference in the world and felt they were not learning enough in their previous jobs, despite the financial security and potential for early wealth.
Outlines
🍺 Introduction to the Chiller Beverage Cooler
Chase introduces the Chiller, a portable beverage cooler designed by his company, Chill Systems. The Chiller is unique for its built-in freezing gel, eliminating the need for ice. Brian, another presenter, highlights the inconvenience of traditional ice methods. The Chiller's capability to cool various cans and bottles, including large ones like champagne, is emphasized. Despite its size and weight, the Chiller is positioned as a future-oriented, sustainable solution, reducing waste from clean water and single-use plastics. A portion of each sale is donated to clean water projects globally. The Sharks are offered samples with chilled drinks to experience the product firsthand. The Chiller's versatility is showcased, with the ability to switch between cans and bottles, although it can only hold three cans at a time. The sales pitch includes a discussion on the product's sustainability and the founders' passion for making a difference, even if it means taking a pay cut from their previous high-paying jobs at Google and Apple.
🗣️ Shark Tank Pitch and Feedback on the Chiller Cooler
The second paragraph delves into the Sharks' critique and the founders' defense of their Chiller product. One Shark, seeking to be more amicable, expresses frustration with the presentation and the perceived lack of practicality in using the Chiller, especially when traditional ice is readily available. The high valuation request of $1 million for 60,000 is met with skepticism. The Sharks question the sustainability claims, pointing out the plastic components of the Chiller. The founders counter by emphasizing their commitment to making a difference and learning beyond their previous roles at Google and Apple. They clarify that the Chiller is designed to be long-lasting and recyclable, aiming to reduce plastic waste. Despite the Sharks' concerns about the product's market viability and the founders' business strategy, one Shark offers words of encouragement, acknowledging the potential of the product and the founders' dreams.
Mindmap
Keywords
💡Chiller
💡Sustainability
💡Recyclable
💡
💡Kickstarter
💡Plastic
💡Equity
💡Retail Partnerships
💡Cost
💡Investment
💡Shark Tank
Highlights
Introduction of 'chiller', a portable beverage cooler with built-in freezing gel.
Chiller's ability to cool drinks without the need for ice.
Chiller's compatibility with various can and bottle sizes, including large bottles like champagne.
Critique on the chiller's size and weight, suggesting it's heavy.
Chiller's sustainability pitch, reducing waste of clean water and single-use plastics.
Chiller's social mission, donating a portion of each purchase to support clean water projects.
Fundraising goal of $150,000 for 15% equity in the company.
Chiller's versatility, able to hold cans or bottles.
Discussion on the chiller's capacity, which is limited to three cans at a time.
Chiller's duration of keeping drinks cold, up to six hours.
Sales figures to date, with $111,000 made over the last two years.
Cost breakdown of the chiller, from production to retail price.
Current retail strategy, selling at a loss to prove market viability.
Challenges to the chiller's sustainability claims due to its plastic components.
Founders' background, previously working at Google and Apple.
Reasoning behind leaving high-paying jobs to pursue the chiller project.
Critique on the presentation quality and advice for future pitches.
Sharks' skepticism about the product's sustainability and market potential.
Sharks' decisions, with some choosing to opt out due to various concerns.
Final remarks from the founders, emphasizing their commitment to the product and mission.
Transcripts
[Applause]
next up is a product designed to keep
your cool
[Music]
hey sharks i'm chase our company is
chill systems and this is the chiller
it's a portable beverage cooler with
freezing gel built in
and
hey sharks this is brian sorry i'm late
i had to buy ice ooh the chiller doesn't
need ice man i had to stop at the
inconvenience store now i got to break
this up
i put
[Music]
[Music]
huh
i put the chiller in my freezer last
night loaded my favorite drinks before i
left and now the ice cold
these drinks will be cold in
a while
this chills many types of cans and
bottles even big bottles like champagne
this cooler can hold all that well sure
look at the size of it yeah
it's super heavy too
the chiller is the future of portable
beverage cooling enjoy hours of ice cold
drinks anywhere save time money and the
environment
boy
yeah that's bad
good thing we at chill systems are
offering a more sustainable solution
choosing a chiller reduces waste of
clean water and single-use plastics
and we proudly donate a portion of every
purchase to support clean water projects
around the world and you can too partner
with us we're seeking 150 000 for 15
equity and together we can change
chilling forever
sharks you each have samples complete
with chilled drinks
chill so this doubles
you can either do cans yep or you take
the cans out like i just did and then
it's for a bottle that's right it's
incredibly versatile it only holds three
cans i mean
i don't know about you but i'll get
through this in about 45 minutes sure
and you know kevin we've heard that
feedback before from macho men on the
internet only three beers the chili
cools the three beers
at a time as soon as you have a cold one
you take a cold one out you put another
one in for cooling
how long does this stay cold so six
hours six hours what were the sales
we've done 111 000 to date that's over
the last two years we started with a
kickstarter campaign we did 51 000 on
kickstarter um what's the cost okay uh
the chiller you have in front of you uh
it's our product cost is awful
never ever start i
let me get there that was about 18 a
unit to build now then we had to import
the units 3.50 a unit so we hire up to
22 bucks we added those sleeves at 11
another 11
okay now you're up to thirty two dollars
to all the way up to thirty seven for
that one that you have in front of you
make it to make it the cost
thirty seven dollars let me let me get
there that was our first round of
inventory okay and since then we've been
able to bring that cost down to eighteen
dollars the one you have in front of you
we're actually selling those currently
into retail at a loss at 30 dollars to
prove out the market this is the first
sustainable portable beverage chiller
when you say this is the only
sustainable cooler
i'm not so sure let's try that like i
get i'm saving the plastic bag but look
at the amount of plastic that's in there
that is built to design to last forever
all the materials are also recyclable
they are all products so it's the
plastic isn't it only nine percent of
thrown away plastic is recycled give me
the reason why you decided to go in this
space because you sound like fun guys
great energy
of all the things you could have done in
the world why did you choose you wanted
to make the
umpteenth cooler so chase and i have had
good jobs out of school he went to work
at google and i went to work at apple
and two years into did you do for google
now i was in sales i was in finance and
so we were there for about two years
before we came up with this idea and so
for the first two years of this we were
building this on the side on the nights
on the weekends are you still working at
your job we quit them two years ago
we've been doing this whole time after
two years and are you making money to
sustain yourselves no no not profitable
yet we have not taken a salary since we
left our jobs two years ago do you want
me to make a call to get your jobs back
no
you probably got stock options you're
making great money you both have
fantastic jobs we're passionate growth
companies and then you know that story
of the sirens singing on the rocks
it's a cooler you leave felt the need
for ourselves it's a cooler pulling you
in from your fantastic jobs and stock
options
who is your number one competitor ice
ice
i want you to know for this season 12 of
shark tank i actually went to get some
some anger management therapy
because i didn't want to be mean i
wanted to be the new mr wonderful and
i'm working very hard right now to be a
nice mr wonderful i look at this and i
say to myself okay
i'm gonna take this and put this
thing in my freezer for extended period
of time i guess i'll take out the roast
and the chicken that's there and i'll
put this in here and then and then i'm
going to take three cans of beer just
three not more at a time at a time
and i'm going to i'm going to go
somewhere with this thing right 160 000
for your 60 000
a million dollars
plus more even
are you out of your
we're not out of our minds
you like to talk about the values why
would you do this i mean this stuff is
tchotchke they give it away at beer
companies there's a million coolers
it stops up
oh
it's the same
so i want to rip you to pieces i'm
trying to rip you to pieces i just this
for you to do kevin
you must stop this
there is no hope this is a really bad
idea
coolers
why
i don't even buy the sustainability
thing there's all kinds of plastic in
this thing i hate it i'm out
guys look first of all your presentation
sucked
the next time you sell it
sell it don't make it worse just stick
to your features and what sets you apart
so people truly understand it quickly so
well i think you got a shot it does
everything is advertised but for those
reasons about
you are clinically insane giving these
guys reason to go on i do not doubt that
you care about the environment about
that stuff but your product has to be
your protagonist your product has to be
your hero and it has to stand on its own
merits the social mission can never be
your crutch the social mission can never
be what you go to
for a lifetime not a crutch it's our
mission it truly is our mission it's the
reason we're committed to doing this
we knew this we had done the math we
could have been millionaires in our
early thirties
that's not what we wanted to do we
wanted to make a difference in the world
and this is our way to do it good yeah
no one question but brian it doesn't
make any sense yeah it does
it doesn't the reason it's not just
because we want to make a difference
it's also because we want to learn and
we're in google we're at google and
apple we had great jobs and we're
thinking to ourselves every night when
we come home
we're not learning enough we're here at
the office and we're doing the tasks
that are being sent our way but but
we're not learning enough so it wasn't
just about making differences
you might be the nicest guy in the world
but your story has so many
lapses of credibility for me
who's your competitor it's ice
like coming up seriously we know there's
a lot of competition in the cooler
market we're not you don't you
then
we're trying to solve then the story
pivots the sustainability and your
product is made of plastic and
plastic that's much last forever and
it's fully recycled come on i throw this
in this product and then buy the bag of
ice and then like well that's not really
the story it's about learning something
i wasn't learning enough but apple and
google look putting all that aside it
was a bad presentation it was a bad
presentation
i'm out
appreciate that thank you evan
i think it's gonna be really important
for you to get the cost down
people when it's affordable enough
they're gonna buy in
and i think that you have a shot
what for me to invest it's not what i'm
interested in investing in
so i'm sorry i'm out appreciate that
thank you then there's daniel
i'm not 100 confident this is a huge
business
but i'm very confident that if you
continue pursuing your dreams you're
going to figure it out so i wish you the
best i personally am out
congrats on what you've accomplished
good luck appreciate it
being on shark tank great experience but
they don't know everything we already
have retail partnerships in place we're
going to put our products on shelves so
customers can see them and love them and
the sharks are gonna wish that they
invested why would you encourage them to
go on with this i think it's a good
looking product it really is good
so how long was your anger management
classes i listen i really worked on it
and look it's i've been great
you
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