Buzzy – Takes The Sting Out Of Shots
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 28, 2014
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Buzzy is a medical device created by Dr. Amy Baxter to alleviate needle pain by combining cold and vibration.
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Background Story
Buzzy, founded by Dr. Amy Baxter, is headquartered in Atlanta, Georgia. Dr. Baxter, a pediatrician by profession, was inspired to create Buzzy after a personal experience with her son’s needle phobia. Witnessing her son’s distress following a painful shot, Dr. Baxter, determined to find a solution, delved into researching methods to alleviate needle pain. Her background in pediatric medicine provided her with a deep understanding of the emotional and physical challenges children face during medical procedures. This insight, coupled with her entrepreneurial spirit, led her to innovate a solution to address this widespread issue.
The pivotal moment came during a drive home from an overnight emergency shift when Dr. Baxter’s hands became numb from the vibration of her unbalanced tires. This experience sparked the idea of combining cold and vibration to numb needle pain effectively. Driven by her passion to help others, Dr. Baxter embarked on a journey to develop Buzzy, a groundbreaking medical device. Through rigorous research and development, she refined the product to ensure its efficacy and safety.
Despite facing challenges in production, including initial manufacturing setbacks in China, Dr. Baxter’s perseverance and dedication to her mission propelled Buzzy to success. Her vision to provide a simple yet effective solution to alleviate needle pain has earned Buzzy recognition and adoption in medical facilities worldwide. Overall, Dr. Baxter’s background in pediatric medicine, coupled with her innovative spirit and personal experience, fueled the creation of Buzzy, demonstrating her commitment to improving the healthcare experience for patients of all ages.
The Product
Buzzy is an innovative medical device designed to alleviate needle pain through a unique combination of cold and vibration therapy. The device features a compact, handheld design that is easy to use and transport, making it suitable for both clinical and home settings.
To use Buzzy, simply place the device on the skin near the injection site for approximately 15-30 seconds before administering the needle procedure. The combination of cold and vibration works synergistically to desensitize nerve endings and reduce pain perception significantly, with clinical trials demonstrating pain reduction ranging from 50% to 80%.
The benefits of Buzzy extend beyond pain relief, as its non-invasive nature makes it suitable for patients of all ages, including children and adults. Additionally, Buzzy can help alleviate needle anxiety and phobia, improving the overall healthcare experience for patients and healthcare providers alike.
Buzzy is available for purchase online through the company’s website and can also be found in select medical facilities and clinics. The device is priced at $39.95 for the home version, making it an affordable and accessible solution for individuals seeking relief from needle pain.
With its innovative design, proven efficacy, and ease of use, Buzzy has become a trusted tool for healthcare professionals and patients worldwide, revolutionizing the way needle procedures are experienced and performed.
How It Went
The company’s position before Shark Tank
Buzzy, under the leadership of Dr. Amy Baxter, has demonstrated strong performance and growth in the medical device industry. With headquarters in Atlanta, Georgia, the company has established itself as a leading provider of innovative solutions for needle pain management. Currently, Buzzy has partnerships with over 1,200 hospitals and clinics worldwide, showcasing its widespread adoption within the healthcare community. While the company does not rely on wholesalers for distribution, it has a direct-to-consumer model through its online platform, catering to individuals seeking pain relief solutions.
The primary customers of Buzzy include healthcare facilities, medical professionals, and individuals seeking pain management solutions for needle procedures. The device’s versatility and effectiveness appeal to a broad range of users, including pediatric patients, adults, and healthcare providers. In terms of funding, Buzzy has secured initial capital through various means, including personal investments from Dr. Baxter and external investors. The company’s financial health is robust, with significant profits generated from sales. With a gross profit of $660,000 and a net profit of $270,000, Buzzy maintains a healthy profit margin of 70%.
Currently, Buzzy operates with a lean team, consisting of six part-time employees, primarily mothers working between 20 and 30 hours per week. This structure allows for flexibility and efficiency in operations while ensuring that the company continues to grow and meet demand effectively. Overall, Buzzy’s strong performance, strategic partnerships, and innovative product offerings position it as a key player in the medical device industry. With a focus on expanding its reach and product offerings, Buzzy is poised for continued success and growth in the years to come.
The Negotiations:
During the negotiations on Shark Tank, Dr. Amy Baxter sought $500,000 for a 5% stake in Buzzy. While the sharks were impressed with the product’s innovation and potential, they raised concerns about the company’s valuation and distribution strategy. Kevin O’Leary and Mark Cuban offered $500,000 for a 20% stake, valuing the company at $2.5 million, which they believed was more realistic.
However, Dr. Baxter was firm on her valuation of $10 million, citing potential future contracts that could increase sales. Barbara Corcoran expressed concerns about the distribution strategy, advising against pursuing big-box retailers, while Robert Herjavec highlighted the importance of executing the plan effectively. Lori Greiner also emphasized the need to focus on the medical market rather than personal devices.
Ultimately, the negotiations reached an impasse as Dr. Baxter refused to compromise on the valuation, leading to no deal. Despite multiple sharks offering the same valuation, Dr. Baxter remained steadfast in her belief in the company’s worth. The negotiation showcased the challenges of balancing valuation expectations with market realities and the importance of strategic alignment between entrepreneurs and investors.
