Rinseroo's Entrepreneurs Are PERFECT For Lori | Shark Tank US | Shark Tank Global

Summary

Lisa and Jake from New Jersey pitch their innovative product, Rinseroo, to the Sharks. Rinseroo is a slip-on hose that makes rinsing and bathing chores easier, eliminating the need for buckets and reducing back strain. Their idea was born from Lisa's frustration of cleaning dogs and the shower at their Jersey Shore beach house. The product has become a success, generating millions in sales with a high profit margin. The Sharks are impressed with their growth, and Lori offers them a deal with a golden ticket, ultimately supporting them in exchange for a 5% stake.

Takeaways

• 😀 The entrepreneurs, Lisa and Jake from New Jersey, are seeking $343,000 for 5% equity in their business, Rinseroo.
• 😀 Rinseroo is a slip-on hose that makes rinsing chores easier, eliminating the need for buckets and reducing back pain.
• 😀 The product works on various water sources in the house, including sinks, showerheads, and tub faucets, offering versatility.
• 😀 Rinseroo has multiple uses, including rinsing boots, bathing pets, acting as a bidet, and more.
• 😀 The idea for Rinseroo came from Lisa's frustration with cleaning showers and washing dogs at their beach house with a traditional bucket.
• 😀 They quickly went from creating a successful prototype to launching the product and made over $1 million in sales in their first year.
• 😀 By 2025, the company expects to make close to $5 million in revenue.
• 😀 The product's production cost ranges from $2.50 to $4.50, and retail prices range from $15.95 to $29.95, leading to an 85% profit margin.
• 😀 The business primarily operates online, with a strong customer acquisition cost of just $2.50 and a 10-to-1 return on ad spend on Amazon.
• 😀 Lisa and Jake have managed to protect their brand from knockoffs with a protection service, and they hold a patent for their product.
• 😀 They received multiple offers from Sharks but ultimately accepted Lori's offer of $343,000 for 5% equity, with a golden ticket from Lori as a gesture of trust.

Q & A

What is Rinseroo and what problem does it solve?

Rinseroo is a slip-on hose designed to make rinsing and bathing chores easier and more efficient. It eliminates the need for buckets and awkward rinsing positions, making tasks like cleaning showers or bathing pets more manageable.

How did the idea for Rinseroo come about?

The idea for Rinseroo was conceived in the shower at a beach house in New Jersey. Lisa, the creator, was cleaning dogs and shower walls while spending time with family and realized there had to be a better way to handle such chores.

What is the unique feature of Rinseroo?

The unique feature of Rinseroo is its versatility. It can be slipped onto various water sources around the house, including sinks, showerheads, and tub faucets, to make rinsing tasks more convenient.

How did the creators validate their idea before launching it?

The creators, Lisa and Jake, used the book by Lori Greiner, which helped them assess whether their product idea was viable. They realized their product could solve multiple problems and had mass market potential.

What is the valuation of the business and why is it set at $6.8 million?

The business is valued at $6.8 million based on its successful sales figures. Since its launch in 2019, Rinseroo achieved over a million dollars in sales in its first year and has consistently seen growth, projecting nearly $5 million in sales for the current year.

What is Rinseroo's sales model and how are they currently selling the product?

Rinseroo is primarily sold online, with 99% of their sales coming from online channels. Their products are marketed and sold directly to consumers through e-commerce platforms.

What is Rinseroo's profit margin?

Rinseroo has an impressive profit margin of around 85%. Their landed cost for the products ranges from $2.50 to $4.50, and they sell the products for retail prices between $15.95 and $29.95.

What is Rinseroo's customer acquisition cost?

Rinseroo's customer acquisition cost is $2.50, which is quite efficient considering their return on ad spend is 10 to 1 on Amazon.

What was the offer made by the sharks and which one did the creators choose?

The sharks made several offers, including one for $343,000 in exchange for 20% equity and others for 15%. However, the creators chose an offer with Lori Greiner, who offered the exact amount they requested, $343,000 for 5% equity, along with her support in growing the business.

How did Lori Greiner's involvement in the business help the creators?

Lori Greiner's involvement helped the creators by validating their product's market potential through her book. Her experience and guidance also led them to make crucial business decisions, such as seeking investment and determining the right valuation.