Fridge Fronts
DEAL
EPISODE SUMMARY
🕓 Air Date: April 15, 2011
Asking For:
$100,000 for 30%
Investor:
Barbara Corcoran, Kevin Harrington
Deal:
$100,000 for 50%
PRODUCT SUMMARY
FridgeFronts offers magnetic skins that serve as decorative finishes for appliances, easily customizable to fit any design preference.
WATCH HERE
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Background Story
Jan Augenstein, the founder of FridgeFronts, hails from Yellow Springs, Ohio. Her journey began in 1999 while living on a military base as an Air Force wife. Frustrated by the unattractive appearance of her base housing refrigerator, Jan sought a solution to enhance her home without the expense of replacing appliances. This dissatisfaction sparked the idea for FridgeFronts, magnetic skins that could transform the look of any appliance with ease.
Driven by her entrepreneurial spirit and a desire to innovate, Jan embarked on a journey to bring her product idea to life. Despite facing initial challenges, including sourcing suppliers and securing investments, Jan persisted, fueled by her belief in the potential of FridgeFronts to revolutionize home decor. Drawing from her personal experiences and resourcefulness, Jan leveraged her background in marketing and creativity to develop FridgeFronts into a viable product.
Her dedication and determination led to partnerships with retailers like SkyMall and media exposure through Rachael Ray’s endorsement, demonstrating the product’s appeal to a wider audience. Through perseverance and resilience, Jan overcame obstacles and continued to refine her product, ultimately attracting the attention of investors on Shark Tank. Her journey from a military base in Ohio to the national stage exemplifies the entrepreneurial spirit and ingenuity that drives innovation in the business world.
The Product
FridgeFronts offers a versatile solution to update the appearance of kitchen appliances with its magnetic skins. These skins are designed to adhere easily to any metal surface, such as refrigerators, dishwashers, microwaves, and more. With simple application, customers can transform their appliances to match their decor preferences effortlessly.
The product’s appeal lies in its customizable designs, offering customers a wide range of options to suit their individual tastes. From stainless steel finishes to decorative patterns, FridgeFronts provide a cost-effective way to refresh the look of appliances without the need for expensive replacements.
Each FridgeFronts package includes the magnetic skin and can be easily trimmed with scissors to fit any appliance size or shape. This flexibility allows for seamless integration into various kitchen layouts. FridgeFronts can be purchased online through the company’s website, providing customers with convenient access to the product from the comfort of their homes. Pricing typically ranges under $100, making it an affordable alternative to traditional appliance upgrades.
Beyond its aesthetic benefits, FridgeFronts also offer practical advantages, such as easy maintenance and the ability to change designs as desired. Whether customers seek a modern stainless steel look or a vibrant pop of color, FridgeFronts deliver versatility and style to enhance any kitchen environment.
How It Went
The company’s position before Shark Tank
FridgeFronts has demonstrated resilience and potential in the market despite facing challenges in its early stages. The company’s health and position are reflective of its ability to adapt and overcome obstacles, with a focus on growth and expansion. Partnerships with retailers like SkyMall and media exposure through Rachael Ray’s endorsement have provided FridgeFronts with valuable opportunities for visibility and sales. These partnerships have enabled the company to reach a broader audience and establish credibility in the home decor industry.
FridgeFronts likely collaborates with various distribution channels to reach consumers through both online and brick-and-mortar outlets. Additionally, the company may explore partnerships with interior design firms or appliance retailers to expand its market presence. FridgeFronts’ customer base primarily consists of homeowners seeking affordable and customizable solutions to update their kitchen aesthetics. The product’s appeal spans across demographics, appealing to individuals looking to personalize their living spaces without the expense of full-scale renovations.
In terms of funding, FridgeFronts has relied on a combination of personal investments, possibly from founder Jan Augenstein and her brother, as well as external investments, such as the deal secured with Barbara and Kevin Harrington on Shark Tank. This injection of capital will provide FridgeFronts with the resources needed to scale operations, increase marketing efforts, and enhance product offerings. The company’s current structure likely revolves around a small team led by founder Jan Augenstein, with roles encompassing product development, marketing, sales, and operations.
The Negotiations:
During the negotiation process on Shark Tank, Jan Augenstein, the founder of FridgeFronts, initially faced skepticism from several Sharks due to concerns about the scalability of the business and its custom-oriented nature. However, Barbara Corcoran and Kevin Harrington saw potential in the product and offered $100,000 for 25% equity, with the condition that Jan focuses on selling existing designs rather than developing new ones. This offer represented a compromise, as Jan had initially sought $100,000 for 30% equity. Despite the slight difference in equity, Jan accepted the offer, expressing gratitude for the opportunity to continue growing her business with the support of experienced investors.
Barbara and Kevin’s offer was strategic, as it aligned with their goal of focusing on selling existing designs to generate revenue and expand market reach. By leveraging their expertise and connections, Barbara and Kevin could help FridgeFronts capitalize on its existing product offerings and navigate challenges in the competitive home decor market. Jan’s acceptance of the offer signaled her willingness to collaborate and adapt her business strategy to achieve growth and success with the backing of seasoned investors. Overall, the negotiations resulted in a mutually beneficial agreement that positioned FridgeFronts for continued growth and success in the industry.
