Shark Tank US | Pick Up Bricks' Entrepreneurs STEP ON LEGOS

Summary

Aurora and Steven from Los Angeles pitch their innovative product, Pickup Bricks, on Shark Tank. This kid-friendly toy vacuum is designed to help parents by encouraging children to clean up their toys in a fun, interactive way. They seek $200,000 for 10% of the company, but face tough negotiations with the sharks regarding margins and equity. Despite challenges in manufacturing and pricing, the duo is determined to expand, targeting international markets. After a tense back-and-forth, they strike a deal with two sharks for $200,000 at 16% equity, validating their hard work and dedication.

Takeaways

• 😀 Pickup Bricks is a toy vacuum designed to help kids clean up toys while making it fun for them.
• 😀 The product separates dirt and dust from toys, ensuring both a cleaner floor and cleaner toys.
• 😀 The main selling point is that Pickup Bricks empowers kids to clean up after themselves, turning cleaning into a game.
• 😀 The founders, Aurora and Steven, are seeking $200,000 for a 10% equity stake in their company.
• 😀 The product is currently sold direct-to-consumer, priced at $99, with a manufacturing cost of $32.64 per unit.
• 😀 Since launching, the founders have sold 348,000 units, mostly during the holiday season.
• 😀 The company has invested $495,000 into developing the product so far.
• 😀 The company is aiming to expand internationally, starting with the UK and Germany, in the coming year.
• 😀 The founders are focused on reducing manufacturing costs to improve margins, particularly if they want to enter retail distribution.
• 😀 Despite tight margins, the company has proven demand, with the product resonating strongly with its target market of parents with young children.
• 😀 After negotiating offers from several Sharks, the deal was closed with $200,000 for 16% equity, split between Damon John and Mark Cuban.

Q & A

What problem does Pickup Bricks aim to solve?

Pickup Bricks addresses the challenge parents face in getting their children to clean up their toys. It turns the act of cleaning into a fun activity by using a toy vacuum that picks up bricks and other small toys.

How does Pickup Bricks differentiate itself from a regular vacuum?

Unlike regular vacuums, Pickup Bricks has a patented design that separates dirt and dust from toys, leaving both the toys and the floor cleaner. It is also cordless, durable, and easy to use, specifically designed for kids.

What are the key features of the Pickup Bricks toy vacuum?

The key features of Pickup Bricks include being cordless, durable, easy to use, and empowering kids by teaching them to clean up after themselves in a fun way. It also separates dirt and dust from toys to keep the toy bin clean.

What is the retail price of Pickup Bricks, and what does it cost to manufacture?

The retail price of Pickup Bricks is $99, while the manufacturing cost is around $32.64 per unit, including landed costs.

How much profit does the company make per unit sold?

The company makes about $57 profit per unit sold, as they sell the product directly to consumers.

How much did the company invest in developing Pickup Bricks?

The company has invested $495,000 to date in developing the product.

What is the company's cost per acquisition (CPA), and what are their goals regarding it?

The company started with a CPA of $26, but they have reduced it to $11. They aim to lower it further, ideally bringing it under $10.

What are the sales figures for Pickup Bricks so far?

The company has sold 348,000 units of Pickup Bricks, most of which occurred during the Christmas season.

What are the company's plans for the future?

The company plans to expand internationally, starting with the UK and Germany, and they aim to reduce manufacturing costs to increase margins and eventually enter retail distribution.

What were the offers made by the sharks, and how did the company respond?

Four offers were made by the sharks. Two sharks offered $200,000 for 20% equity, while another shark offered $400,000 in a credit line for 20% equity. After some negotiation, the company accepted an offer from two sharks for $200,000 for 16% equity, splitting the investment.