SneakErasers Instant Sneaker Cleaner
DEAL
EPISODE SUMMARY
🕓 Air Date: May 7, 2021
Asking For:
$200,000 for 8%
Investor:
Lori Greiner, Alex Rodriguez (50/50)
Deal:
$200,000 for 20%
PRODUCT SUMMARY
SneakErasers are dual-sided sponges designed to clean and maintain the appearance of shoes, especially white midsoles, without the need for water.
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Background Story
Chris Pavlica and Kevin Consolo, hailing from Ohio, created SneakErasers out of a common frustration – keeping shoes with white midsoles clean. They recognized the challenge people faced in maintaining their shoes’ pristine appearance and decided to find a solution. The result was SneakErasers, a unique sponge with a white side to remove scuff marks and an orange side to wipe the shoe clean, all without needing water.
Despite having no prior entrepreneurial experience, Chris and Kevin were determined to make their product a success. They learned about manufacturing, distribution, and packaging through online resources and hard work. To fund their venture, Chris put his house on the line, using a home equity line of credit worth $300,000. This bold move allowed them to finance their orders and grow the business.
The Product
SneakErasers are a game-changing solution for anyone who wants to keep their shoes looking clean and new. The dual-sided sponge is designed for convenience and effectiveness.
To use it, you simply tear open the pouch, pull out the sponge, and start cleaning your shoes. The white side is used to remove scuff marks and dirt effortlessly, while the orange side, made of super-soft chamois, wipes the shoe clean without leaving any residue.
How It Went
The company’s position before Shark Tank
SneakErasers have seen remarkable growth since their inception. In 2019, they achieved $202,000 in sales. In the current year, they were on track to reach $1.8 million, with year-to-date sales exceeding $1.1 million. Their product is sold in major retailers, including Walmart, with a successful rollout in 2,800 stores following a successful 100-store test.
The company’s funding primarily came from Chris Pavlica, who used a $300,000 home-equity line of credit to finance orders and drive the business forward. Remarkably, they became debt-free recently, allowing them to reinvest in the company and have some capital in the bank.
SneakErasers has a diversified customer base, appealing to shoe enthusiasts, athletes, and anyone looking to keep their footwear clean. Their partnerships and wholesale agreements have allowed them to expand their reach and grow their business. The company is structured as a partnership between the founders, Chris Pavlica and Kevin Consolo, who have learned the ropes of entrepreneurship through their journey of creating and scaling SneakErasers.
The Negotiations:
During the Shark Tank pitch, Chris and Kevin received multiple offers from the Sharks. Lori Greiner and Alex Rodriguez made a joint offer of $200,000 for 20%, while Mark Cuban offered $200,000 for 12.5%. Initially, the founders were hesitant about giving up more equity than they had initially planned. They counteroffered to Mark Cuban if he could consider $300,000 for 10%, but Mark got out.
Ultimately, after considering the various offers on the table, Chris and Kevin decided to accept the joint offer from Lori Greiner and Alex Rodriguez for $200,000 for 20%. This decision was influenced by the potential for visibility and credibility that the partnership with Lori and Alex could bring, along with their plans to expand into new markets like Golf Erasers and Auto Erasers. While they had to give up more equity than initially desired, they believed that the expertise and connections of their new partners would help them take SneakErasers to the next level.
