All Roads Lead To Mr Wonderful With Vabroom | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank pitch, entrepreneurs Trevor Lambert and John Badness present the 'Broom,' a revolutionary cleaning tool that combines a broom and vacuum for quick, efficient cleanups. The device allows users to sweep dirt into a pile, then automatically activates a vacuum to suck up the mess. After showcasing the product's capabilities and the business's $3.1 million in sales, the duo seeks $350,000 for 2.5% equity. While several sharks express skepticism, Mr. Wonderful sees potential and offers a deal involving royalties and equity, ultimately sealing the deal with the entrepreneurs.

Takeaways

• 😀 The product, the Vroom, is an innovative cleaning tool combining a broom and a vacuum, designed to make cleaning easier without the need for a bulky vacuum or bending over with a dustpan.
• 😀 The creators, Trevor Lambert and John Badness, are seeking $350,000 for a 2.5% equity stake in their company.
• 😀 The Vroom is lightweight (just over 2 lbs), pressure-activated, and allows for quick, efficient cleaning with minimal effort.
• 😀 The product's design allows for cleaning up messes like pet litter or spilled snacks quickly and without the need for multiple tools.
• 😀 The Vroom has already achieved significant sales, with $3.1 million in revenue over the last year and projections of $5 million in the upcoming year.
• 😀 The product is sold directly to consumers and has also started retail sales, with a successful promotion at Bed, Bath and Beyond.
• 😀 The product costs around $17 to make, sells wholesale for $37, and retails for $59.99, providing a strong profit margin.
• 😀 The company holds international patents for the design and functionality of the Vroom, but still faces some competition from other cleaning products like dustbusters.
• 😀 Customers with mobility challenges, such as those with bad backs, have provided positive feedback, highlighting the Vroom as a lifesaver for people unable to bend over or handle heavy devices.
• 😀 Kevin O'Leary (Mr. Wonderful) makes an offer of $350,000 for 2.5% equity, plus a royalty of $3 per unit sold until he recoups $700,000, with the goal of helping the company grow and expand into future products.

Q & A

What is the main problem that the Broom product aims to solve?

The Broom product addresses the issue of cleaning up messes quickly and easily without needing a bulky vacuum or bending over with a dustpan. It's designed for quick cleanups, particularly for those who find traditional methods cumbersome or physically challenging.

How does the Broom work?

The Broom combines a broom and a vacuum. You sweep dirt into a pile, and the pressure-activated nozzle cleans up the mess with a vacuum function. It is lightweight (just over 2 lbs) and easy to maneuver, especially in hard-to-reach places.

What are the main selling points of the Broom product?

The Broom is lightweight, effective, and combines both sweeping and vacuuming functions. It's quick, easy to use, and doesn't require a dustpan or heavy vacuum, making it ideal for quick cleanups.

Who are the inventors of the Broom?

The Broom was created by Trevor Lambert from Champlin, Minnesota, and John Badness from Whitebear Lake, Minnesota. Trevor is a product designer, and John is a fourth-generation plumber who often solves problems with innovative product designs.

How much revenue has the Broom generated in the past year?

The Broom company has generated $3.1 million in sales over the last 12 months and is projecting $5 million in sales for the current year.

Where is the Broom being sold?

The Broom is sold both directly to consumers and in retail stores. They recently had a two-month promotion with Bed, Bath & Beyond, during which all their online stock was sold out in just two weeks.

What is the cost structure of the Broom product?

The landed cost of the Broom is just over $17, the wholesale price is $37, and it retails for $59.99.

What is the Broom's patent status?

The Broom has international patents pending and a design patent issued in the United States.

What were the main reasons some of the Sharks decided to pass on the Broom?

Some Sharks passed on the Broom because they felt the product might not be innovative enough to justify its market potential. Others were concerned about the complexity of the business structure, including the involvement of a design firm and the low 2.5% equity offer.

What deal did Mr. Wonderful (Kevin O'Leary) offer?

Mr. Wonderful offered $350,000 for 2.5% equity in the company, a $3 royalty on each Broom sold until he recoups $700,000, and 2.5% equity in the design firm. He saw the potential in the product and the ability to expand into future products with the inventors.