Cap Hat's High Manufacturing Costs Shock The Sharks | Shark Tank AUS | Shark Tank Global

Summary

In a recent episode of 'Shark Tank,' Bernie from South Australia introduced the Cap Hat, an innovative product designed to protect users from harmful UV rays and prevent skin cancer. Seeking $120,000 for a 25% stake, Bernie shared his personal motivation stemming from his family's experiences with skin cancer. Despite selling over 1,800 units, investors emphasized the need to reduce production costs for broader market appeal. The sharks offered various deals, showcasing both interest in the product and concerns about its pricing strategy, ultimately highlighting Bernie's passion and potential for significant impact in skin cancer prevention.

Takeaways

• 😀 Bernie, an inventor from South Australia, presents his product, Cap Hat, aimed at reducing skin cancer risk.
• 🌞 Cap Hat provides complete sun protection by covering ears and neck, attaching easily to existing hats.
• 💔 Bernie's personal motivation stems from his wife's experience with skin cancer, highlighting the product's significance.
• 💸 Despite selling over 1,800 units, Bernie faces financial struggles, having invested $100,000 of his own funds.
• 📈 The product has received recognition, including awards and approval from the Melanoma International Foundation.
• 🤝 Investors express interest, with Steve offering a cash loan and Andrew proposing a joint venture with equity.
• 💡 Bernie emphasizes the importance of lowering production costs to enter the US market effectively.
• 🌍 The goal is to disrupt global skin cancer statistics, making the product widely accessible.
• 👨‍👩‍👧‍👦 Bernie balances family pressures and business challenges, illustrating the emotional stakes involved.
• 🎉 Ultimately, Bernie accepts the investors' offers, marking a significant step forward for his business and mission.

Q & A

What motivated Bernie to create the Cap Hat?

Bernie was motivated to create the Cap Hat after experiencing sunburn despite wearing a hat and due to a personal scare with skin cancer involving his wife.

What is the primary purpose of the Cap Hat?

The Cap Hat is designed to provide additional sun protection by attaching to existing caps or hats, covering areas typically exposed to UV rays.

How did Bernie initially develop the Cap Hat?

Bernie initially developed the Cap Hat using simple materials like blue paper towel, duct tape, and a knife, creating a makeshift solution to his sunburn problem.

What recognition has the Cap Hat received?

The Cap Hat was awarded Best New Clothing Accessory at the Australian Fishing Trade Association and received a seal of approval from the Melanoma International Foundation.

What are the pricing details for the Cap Hat?

Bernie's selling price for the Cap Hat is $20 when sold online and $10 in retail outlets, while the production cost is approximately $7.40.

What financial assistance is Bernie seeking from the investors?

Bernie is seeking $120,000 in exchange for a 25% equity stake in his company to help grow his business.

What were the key concerns raised by the investors?

Investors expressed concerns about the production costs being too high for the U.S. market and the need for Bernie to find ways to lower costs to increase competitiveness.

What types of offers did the investors present to Bernie?

Steve offered a $120,000 loan at a 10% interest rate without equity, while Andrew proposed a similar deal with the option to convert part of the loan into equity later.

What is the potential impact of the Cap Hat on public health?

The Cap Hat aims to reduce skin cancer rates by providing better sun protection, which is especially crucial in regions with high UV exposure.

How did Bernie react to the offers made by the investors?

Bernie was overwhelmed by the offers and ultimately decided to accept a combination of offers from both Steve and Andrew, valuing their mentorship and support.