SoapSox – Bath Sponge for Kids
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 3, 2014
Asking For:
$260,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
SoapSox introduces a line of plush toys that transform from playtime companions to bath aids, featuring an antimicrobial sponge inside and terry cloth exterior.
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Background Story
SoapSox, headquartered in Eagle Rock, California, was founded by Ray Phillips and Alvin Uy, driven by a passion to redefine children’s bath time. Ray’s professional background adds a unique dimension to the SoapSox journey, as he spent several years working at a residential treatment facility for abused children. It was during this time that he encountered a common struggle – convincing kids to take a bath without the distress of leaving their beloved stuffed animals behind. Ray’s innovative solution emerged from this challenge. He conceptualized a plush toy that could seamlessly transition from playtime to bath time.
The breakthrough came when he envisioned replacing the inner stuffing of these toys with an antimicrobial sponge and covering the exterior with soft terry cloth. This ingenious combination not only maintained the cuddliness of the plush toys but also turned them into practical bath aids. To bring his vision to life, Ray teamed up with Alvin Uy, who brought his expertise in design and product design to the partnership. Alvin’s background played a crucial role in shaping the aesthetics and functionality of SoapSox. Together, they transformed a common hurdle faced in children’s hygiene routines into a playful and innovative solution.
Located in the vibrant community of Eagle Rock, SoapSox is more than a business for Ray and Alvin; it’s a manifestation of their dedication to making a positive impact on the daily lives of children and parents. Their commitment to providing a unique, enjoyable, and functional bath time experience has driven SoapSox to become a promising player in the children’s product market.
The Product
SoapSox, the brainchild of Ray Phillips and Alvin Uy, is a revolutionary children’s bath toy designed to turn the often-dreaded bath time into an enjoyable and interactive experience. Each SoapSox plush toy undergoes a transformation from a cuddly playmate to an effective bath aid. The key to its functionality lies in the integration of an antimicrobial sponge inside the plush exterior, replacing traditional stuffing.
To use SoapSox, parents simply place soap inside the designated compartment, such as the mouth of Tank the Shark or under the shell of Taylor the Turtle. Adding water activates the soap, and the uniquely designed finger pockets make it easy for kids to handle and create a lather during bath time. The plush exterior remains soft and gentle, ensuring a comfortable experience for children.
SoapSox offers a range of characters, each with its own charm, including a dragon, hippo, and alligator. These innovative bath toys can be purchased through major retailers like Nordstrom, providing accessibility to a wide audience. The product’s design patent pending status ensures its uniqueness in the market, and SoapSox aims to continue delighting both children and parents with its playful approach to hygiene.
How It Went
The company’s position before Shark Tank
SoapSox has exhibited a robust performance in its relatively short tenure, establishing itself as a promising player in the children’s product market. The company’s health and position are characterized by a successful market entry, achieving $300,000 in sales within six months of launching. This early success has set a positive trajectory, with projections indicating a sales target of $576,000 by the end of the current year and an ambitious estimate of $2.4 million for the following year. Major retailers such as Nordstrom have recognized SoapSox’s innovative approach to children’s bath toys and have partnered with the company for nationwide distribution.
This strategic partnership with a renowned retailer aligns with SoapSox’s goal of making its products widely accessible to a diverse customer base. SoapSox’s primary funding source has been generated through sales revenue. The founders have successfully secured partnerships and retail deals, contributing to the company’s financial health. In terms of structure, SoapSox is likely organized as a privately held company, with Ray Phillips and Alvin Uy at the helm as founders and key decision-makers.
The company’s ability to secure design and utility patents underscores its commitment to protecting its intellectual property, a critical aspect of long-term success in the competitive retail landscape. While SoapSox’s financial details were not extensively disclosed, the company’s performance and strategic partnerships indicate a positive trajectory. The successful collaboration with Nordstrom and early market traction position SoapSox well for continued growth and expansion in the dynamic children’s product market.
The Negotiations:
The negotiation process for SoapSox on Shark Tank unfolded as a dynamic and impactful exchange between the founders, Ray Phillips and Alvin Uy, and the Sharks. The founders entered the tank seeking a $260,000 investment for a 10% equity stake in their children’s bath toy company. Initially, the Sharks expressed concern over the premium pricing of SoapSox at $19.95, emphasizing the need to explore options for lowering manufacturing costs.
Daymond John made the first offer, proposing $260,000 for a significant 33% equity share. However, the founders found this equity percentage too high, prompting them to decline the offer. Lori Greiner and Robert Herjavec, recognizing the potential in SoapSox, deviated from the traditional equity-for-investment approach. They proposed a unique $1 million buyout offer, presenting an alternative path for the founders. Ray and Alvin, however, declined this substantial buyout, reiterating their commitment to pursuing the American dream independently and building SoapSox into a successful venture.
Despite the Sharks’ efforts to secure a deal, the founders ultimately chose not to accept any offers, emphasizing their desire for a partnership rather than a buyout. The negotiation showcased the founders’ dedication to maintaining control of their venture and their willingness to navigate the challenges of entrepreneurship on their terms. This decision reflected their confidence in the future success of SoapSox and their vision for the brand as they continue to chase the American dream on their entrepreneurial journey.
