'Supermix Studio Can Either Be A Massive Hit Or A Real Problem' | Shark Tank US | Shark Tank Global

Summary

Jennifer Stein Bishoff presents Supermix Studio, an innovative platform allowing kids to design their own clothing, fostering self-expression and creativity. Seeking $250,000 for 10% equity, Jennifer showcases customizable jackets, sweatshirts, and accessories made from sustainable materials. With over 500 patches to choose from, children can personalize their apparel, making it uniquely theirs. While the Sharks express concerns about the business model and retail kiosks, Jennifer counters with an offer of $250,000 for 20% equity and a 3.5% royalty. Lori Greiner ultimately agrees to the deal, providing Jennifer with a partnership to expand her brand.

Takeaways

• 😀 Jennifer Stein Bishoff, the founder of Supermix Studio, is seeking $250,000 in exchange for 10% equity in her company.
• 😀 Supermix Studio is an interactive custom kids' clothing brand that allows kids to design their own clothes and accessories, promoting individuality and self-expression.
• 😀 The platform offers over 500 premium patches that kids can drag and drop onto their chosen clothing style, such as sweats, jackets, and backpacks.
• 😀 The brand emphasizes sustainable materials and quality, with the base price of a denim jacket being $69 and additional costs for custom patches.
• 😀 Jennifer has extensive experience in the fashion industry, having worked with major brands like Gloria Vanderbilt and Tommy Hilfiger.
• 😀 The idea for Supermix Studio originated during the pandemic when Jennifer was looking for creative ways to keep her kids entertained, leading to the concept of personalized clothing with patches.
• 😀 Supermix Studio is expanding into physical retail through kiosks, with Claire's as an initial partner, as well as potential locations like kids' clubs, resorts, and department stores.
• 😀 Despite having low sales so far ($170K lifetime), Jennifer believes in the potential for the concept to become the next major children's brand, similar to Build-A-Bear.
• 😀 Several Sharks express concerns about the kiosk model, citing high risks due to customer acquisition costs and potential challenges with in-store fulfillment.
• 😀 Lori Greiner ultimately makes an offer of $250,000 for 20% equity and a 3.5% royalty, which Jennifer accepts after some negotiation.

Q & A

What is Supermix Studio, and how does it work?

Supermix Studio is an interactive custom kids' clothing brand that allows children to design their own clothes and accessories. Users can personalize their items by choosing from over 500 premium patches, which they can place anywhere on the clothing or accessories. The final design is then produced and delivered to the customer.

How does Supermix Studio empower kids to express themselves?

Supermix Studio allows kids to personalize their clothing and accessories, making it a reflection of their individual interests and personalities. This creative process boosts their self-esteem, as they can design and wear something unique to them.

What are the main types of products offered by Supermix Studio?

Supermix Studio offers a variety of products, including sweats, denim jackets, backpacks, and other accessories. All these items are made from sustainable materials.

What are the costs associated with Supermix Studio products?

The base price for a denim jacket is $69, while a sweatshirt costs $55. The cost of manufacturing the denim jacket is $13.75, and there are additional costs for custom patches, which can add $15-$20 to the price.

What is the business model behind Supermix Studio?

Supermix Studio operates primarily online, allowing customers to design and order custom clothing. In addition, the company is expanding by introducing kiosks in physical retail locations like Claire's, resorts, cruise ships, and department stores. Retailers receive 30% of the revenue generated from these kiosks.

How successful has Supermix Studio been in terms of sales?

Supermix Studio launched in October 2022 and had a holiday season sales of $60,000. As of the current year, it has generated $110,000 in sales, totaling $170,000 in lifetime sales.

What challenges is Supermix Studio facing with its kiosk expansion?

The kiosk expansion poses risks, as the products are not immediately available at the point of sale. This could lead to customer cancellations and difficulties in customer acquisition due to rising costs. There is concern that the kiosks may not generate immediate revenue as expected.

What is the unique aspect of Supermix Studio's product offerings?

Supermix Studio stands out because of its interactive design experience, allowing kids to choose from hundreds of patches and personalize their clothes. The customization process is engaging and offers a high degree of personalization, which sets it apart from traditional clothing brands.

Why did Jennifer Stein Bishoff leave the corporate world to start Supermix Studio?

Jennifer left the corporate world after the pandemic, when she was looking for activities to keep her children busy at home. She found that creating custom clothing by tie-dying and adding patches was fun and fulfilling. This led her to pursue Supermix Studio, as she saw a gap in the market for a creative kids' clothing brand.

What offer did Jennifer receive from the Sharks, and what were the terms?

Jennifer received an offer from Lori Greiner for $250,000 in exchange for 20% equity and a 3.5% royalty until the initial $250,000 investment is recouped. Lori believed in the concept and saw potential in the brand, despite concerns about retail expansion.