AquaVault Lockbox Safe
DEAL
EPISODE SUMMARY
đź•“ Air Date: March 13, 2015
Asking For:
$75,000 for 12%
Investor:
Daymond John
Deal:
$75,000 for 25%
PRODUCT SUMMARY
AquaVault is a portable vault designed for beachgoers and pool enthusiasts, providing a secure way to store valuables while enjoying outdoor activities.
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Background Story
AquaVault, a revolutionary portable vault for beach and pool enthusiasts, originated from the shared frustrations of its founders – Rob, Jonathan, and Avin. Based in the vibrant city of Miami, the trio embarked on a journey to address a universal concern: the insecurity of personal belongings while enjoying outdoor activities. The founders bring diverse professional backgrounds to the table, each leaving established careers to pursue their entrepreneurial vision. Rob, Jonathan, and Avin’s collective experience encompasses a blend of business acumen, innovation, and a shared passion for solving real-world problems.
Their decision to venture into the niche market of portable security solutions was fueled by their own experiences and observations of beachgoers and pool attendees grappling with the dilemma of where to secure their valuables during water-related activities. Motivated by the desire to offer a simple yet effective solution, AquaVault was born. The founders recognized the need for a product that seamlessly integrates into the beach and pool experience, providing a worry-free environment for individuals to enjoy the sun without the constant concern of their belongings.
Their innovative approach led them to design a stylish and user-friendly portable vault, allowing users to set a personal code, secure their valuables, and clamp the device onto any fixed object. In just six months since their inception, AquaVault had already secured a substantial order of 5,000 units, with a focus on targeting hotels, cruise ships, and theme parks. Their proactive strategy and swift market entry underscore the founders’ dedication to addressing a genuine need, positioning AquaVault as a promising player in the world of portable security solutions.
The Product
AquaVault stands out as a game-changing portable vault designed for individuals seeking a worry-free beach or pool experience. The device, retailing at $39.95 and wholesaling for $22.95, offers a stylish and secure solution to the perennial problem of safeguarding valuables in outdoor environments.
Functionality is key to AquaVault’s appeal. Users can easily set a personal code on the device, providing a customized layer of security. Once the valuables are placed inside, the vault can be securely clamped onto any fixed object, such as beach chairs, poolside furniture, or even a stroller, ensuring peace of mind while enjoying outdoor activities.
This portable vault brings a myriad of benefits to its users. The sleek design and user-friendly operation make it an indispensable companion for beachgoers and pool enthusiasts. The AquaVault is not just a standalone product; it integrates seamlessly into the user’s surroundings, allowing them to focus on enjoying the sun and water without the constant concern of theft.
The product is available for purchase online through AquaVault’s official website, where customers can explore additional features and learn about the various models catering to different use cases. With a cost of production at $10.86, AquaVault offers an affordable and reliable solution to the age-old problem of securing valuables in outdoor recreational spaces.
How It Went
The company’s position before Shark Tank
AquaVault has demonstrated a robust performance in its initial six months of operation, showcasing promising signs of growth and market penetration. With year-to-date sales reaching $87,000, the company has rapidly established itself as a key player in the portable security solutions market. The founders’ strategic approach has led to a notable contract with hotels on South Beach and a pending order for an additional 1,000 units by year-end, positioning AquaVault to break the $100,000 sales mark within its first year.
The company’s partners include hotels, cruise ships, and theme parks, with a specific focus on the hospitality sector. AquaVault’s presence in numerous hotels on South Beach underscores its successful partnership strategy, providing valuable visibility and accessibility to its target customer base. Wholesale distribution plays a pivotal role in AquaVault’s business model, with a competitive wholesale price of $22.95. The founders have secured contracts with hotels, selling units at the wholesale price and allowing the establishments to rent them out to guests at a daily rate, creating a revenue stream for both parties.
Customers of AquaVault span beachgoers, pool enthusiasts, and individuals frequenting water parks and resorts. The product’s versatility allows it to cater to a wide audience seeking a convenient and secure solution for safeguarding their valuables during outdoor activities. Currently, AquaVault’s funding comes from sales revenue, emphasizing a self-sustaining business model. The founders’ decision to focus on commercial partnerships and hotel contracts aligns with their revenue generation strategy. The profits and losses for the company indicate a positive trajectory, with the founders highlighting $33,000 in sales from hotel contracts, showcasing the effectiveness of their targeted approach.
The Negotiations:
The negotiations for AquaVault unfolded with a pitch seeking a $75,000 investment for 12% equity. The founders—Rob, Jonathan, and Avin—captured the Sharks’ attention by presenting a compelling solution to the perennial problem of securing valuables at beaches and pools. Daymond John was the first to express interest, offering $75,000 for a higher equity stake of 25%. This raised initial concerns for the AquaVault team, prompting them to inquire about the possibility of considering other offers.
While Kevin O’Leary proposed a revenue-sharing model, Daymond John was resolute on his offer. The negotiation took a turn when Lori Greiner entered the scene, making a similar offer of $75,000 for 25%. Facing a decisive moment, the founders expressed gratitude for the offers but hesitated due to the relatively higher equity stake. In a surprising twist, Robert Herjavec, after initially expressing concerns about the business model, made a late offer of $75,000 for 25%, echoing Daymond John’s terms.
Feeling the pressure and recognizing the value of having a Shark onboard, the AquaVault founders decided to accept Daymond John’s offer, securing a deal with the renowned entrepreneur. The negotiation highlighted the Sharks’ apprehensions about AquaVault’s business model, particularly its heavy reliance on hotel contracts. However, Daymond John’s expertise and decisive offer ultimately swayed the founders, providing AquaVault with a valuable partnership that they believed would propel the company to new heights. The deal was sealed, marking a successful outcome for AquaVault in the Shark Tank.
