Flip It Cap Empties Bottles Upside Down
NO DEAL
EPISODE SUMMARY
đź•“ Air Date: April 14, 2019
Asking For:
$500,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Flip-It! Cap is a bottle-emptying device designed to eliminate waste by allowing users to easily access the last bit of thick liquids in standard screw-top bottles.
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Background Story
Steve Epstein, hailing from Tenafly, New Jersey, is the entrepreneurial mind behind Flip-It! Cap. Despite his lighthearted acknowledgment of resembling Kevin from the show, Steve brings a wealth of experience to the table. He runs a contract packaging company, where his in-depth knowledge of bottle threads became a key asset in the creation of Flip-It! Cap. The genesis of the product stems from a universal problem—people worldwide struggling to access the last remnants of thick liquids in bottles, resulting in both time wastage and environmental pollution.
Steve’s frustration with this common issue, combined with his desire to provide a straightforward solution for consumers, led to the development of Flip-It! Cap. The product’s concept is elegantly simple: an ingenious device that attaches to standard screw-top bottles, allowing users to invert them effortlessly. Gravity takes care of the rest, enabling users to access every drop without the need for vigorous shaking or pounding. Steve’s background in the packaging industry uniquely positioned him to understand bottle threads, a crucial aspect of the Flip-It! Cap design.
With a humorous nod to his side gig on “Shark Tank,” Steve’s commitment to Flip-It! Cap goes beyond a mere appearance on a TV show. His background story intertwines expertise in packaging, a passion for addressing common consumer woes, and a determination to create a practical solution. As the founder, Steve Epstein embodies the entrepreneurial spirit, leveraging experience to tackle everyday problems and introduce innovative solutions like Flip-It! Cap to the market.
The Product
Flip-It! Cap is a revolutionary bottle-emptying device designed to eliminate waste and simplify the use of thick liquids in standard screw-top bottles. The device consists of a reusable cap with a valve and squeeze mechanism. Here’s how it works: To use Flip-It! Cap, users attach the device to the top of a standard screw-top bottle, and then invert the bottle, turning it upside down.
Gravity takes over, allowing the remaining contents to flow towards the cap. The user can then pull the valve and squeeze to dispense the desired amount of liquid without the need for vigorous shaking or pounding. The product’s versatility is highlighted by its applicability to various thick liquids, including condiments, syrup, sauce, beauty products, and more. Flip-It! Cap comes in different packages tailored for specific products, such as bath-inspired or beauty-inspired packages.
Purchasing Flip-It! Cap is straightforward. The product is available for $5.99 and can be purchased through the company’s official website. The reusable nature of the cap adds value for consumers, as it can be washed and reused on different bottles, contributing to both cost savings and environmental sustainability. The benefits of Flip-It! Cap are twofold—it offers a practical solution to the common problem of accessing the last bits of thick liquids, and it promotes environmental responsibility through its reusable design
How It Went
The company’s position before Shark Tank
Flip-It! Cap has had a varied performance since its inception, with both successes and challenges shaping its current position. The company’s health, however, shows signs of resilience amid market fluctuations. With over $2.5 million in total sales in just over four years, the company has demonstrated its ability to generate revenue. The initial half-year sales of $177,000 set the foundation, followed by a substantial increase to $650,000 in the second year and a peak at $740,000 in the third year.
However, the most recent year saw a slight decline to $655,000, with the current year-to-date sales standing at $305,000. This fluctuation is attributed in part to customer concentration at QVC, prompting a strategic shift to HSN for exposure to a different demographic. Flip-It! Cap’s distribution strategy includes engagement with major retailers, as indicated by the interest from 53 potential buyers at a conference. However, the company has faced challenges in converting this interest into concrete orders. The decision to attend the conference reflects an effort to expand the company’s reach beyond existing channels.
Funding for Flip-It! Cap has primarily come from the founder, Steve Epstein, who has both withdrawn profits and reinvested in the company. The company’s profitability is evident from its ability to distribute profits to the founder. The $500,000 sought from the Sharks is intended for strategic purposes, particularly the expansion of production capacity through the creation of higher-cavitation molds, aiming to reduce production costs and enhance competitiveness. The company’s current structure revolves around Steve Epstein’s leadership, with the founder actively involved in the day-to-day operations despite Flip-It! Cap being a side business. The company’s inventory is valued at $500,000, indicating a significant investment in the product.
The Negotiations:
The negotiations for Flip-It! Cap on “Shark Tank” did not result in a deal, as all the sharks opted out. The pitch began optimistically, with Steve Epstein seeking $500,000 in exchange for 10% equity. However, concerns quickly surfaced during the questioning. Mark Cuban questioned the need for such a substantial investment given the declining revenue trend. Kevin O’Leary expressed skepticism about seeking investment during a downturn, emphasizing the importance of timing. Lori Greiner and Robert Herjavec also declined to invest, citing challenges Flip-It! Cap faced in a market saturated with similar products.
The primary concerns revolved around the company’s declining revenue, the timing of seeking investment during a sales downturn, and the saturation of similar products in the market. Despite Steve’s attempts to address these concerns and highlight the product’s potential, the sharks were not convinced. As a result, each shark individually bowed out of the deal. Mark Cuban, citing the need for a business plan, was the first to decline.
Kevin O’Leary followed suit, emphasizing the problematic timing of seeking investment during a downward trend. Lori Greiner and Robert Herjavec expressed concerns about the market saturation and challenges in gaining shelf space. While Steve Epstein remained confident in Flip-It! Cap’s potential success, the sharks collectively opted not to invest in the product. The negotiation outcome serves as a reminder of the challenges entrepreneurs face when seeking investment, especially in a competitive market with evolving consumer preferences.
