Bibbitec Bib
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 1, 2013
Asking For:
$40,000 for 14%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Bibbitec offers a patented, American-made bib designed to comfortably cover a child's entire body, made from non-toxic fabric that doesn't stain or hold odor.
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Background Story
Susie and Steve Taylor, founders of Bibbitec, were driven by frustration with traditional bibs’ ineffectiveness and expense. As parents of two messy boys, they found themselves constantly dealing with bibs that failed to contain spills and stains, leading Susie to spend a significant amount of money on bibs that didn’t meet their needs.
Frustrated by the lack of satisfactory solutions, Susie decided to take matters into her own hands and create a better bib. The idea for Bibbitec was born out of their own experiences and the desire to provide parents with a durable, effective, and affordable alternative to traditional bibs.
The Product
Bibbitec’s innovative bib features a unique design that fits over a child’s arm and slips over their head, providing full coverage and protection from spills and stains. Made from a patented poly-nylon blend, the bib is non-toxic, odor-resistant, and stain-proof, ensuring long-lasting durability and ease of cleaning.
Unlike traditional bibs that need frequent replacement due to staining and odor retention, Bibbitec bibs are designed to last for years, saving parents both time and money in the long run. The bib is currently sold direct-to-consumer through their website at a retail price of $24.99, with a production cost of $15 per bib.
While the cost may seem high compared to traditional bibs, Bibbitec emphasizes the superior quality and durability of their product, which justifies the higher price point. The company also highlights that similar bibs are selling for as much as $48 in catalogs online, indicating a willingness among consumers to pay a premium for a superior product.
To further penetrate the market, Bibbitec is exploring options to lower production costs and potentially offer the bib at a lower retail price point, aiming for $19.99 for a basic version and $24.99 or $29.99 for a larger size. The company believes there is a large market for their product, especially among parents who prioritize quality and durability over lower prices.
How It Went
The company’s position before Shark Tank
Bibbitec has seen modest success since its inception, selling approximately 2,000 bibs over the course of four years, with sales totaling around $17,000 in the last 12 months. However, the company faces challenges in scaling its business due to the high production costs associated with their premium-quality bibs. Currently, Bibbitec primarily sells its products online through its website, targeting direct-to-consumer sales. However, the founders have struggled to secure retail partnerships, citing resistance from large-box retailers who prefer lower-priced, mass-produced alternatives from overseas.
Despite efforts to educate consumers about the benefits of their product, Bibbitec acknowledges that there is still a significant barrier to adoption due to the perception of high cost. The company’s financial situation is precarious, with Susie and Steve Taylor having invested over $75,000 of their own money into the business without seeing a return on investment.
They are at a tipping point and recognize the need for external investment to continue operating and scaling their business. Bibbitec’s current structure revolves around direct-to-consumer sales, with limited distribution channels and retail partnerships. The founders are actively seeking investment to expand their marketing efforts, lower production costs, and increase their presence in the market.
The Negotiations:
The negotiation process on Shark Tank revealed the challenges facing Bibbitec, with all sharks ultimately declining to invest in the company. Despite expressing interest in the product’s quality and potential market, the sharks raised concerns about Bibbitec’s high production costs, limited sales, and the founders’ lack of experience in scaling a business.
While several sharks offered advice on alternative strategies, such as licensing the product or outsourcing marketing to college students, none were willing to invest in the company. Mark Cuban suggested finding a college student to handle internet marketing, while Lori Greiner proposed leveraging a network of moms as a sales force. Ultimately, the sharks felt that Bibbitec’s business model was not viable in its current form, citing the high production costs and limited sales as major barriers to success.
Despite Susie and Steve’s passion for their product and dedication to improving it, they were unable to secure the investment needed to take their business to the next level. In the end, the negotiation ended without a deal, leaving Susie and Steve to continue their journey to make Bibbitec a success on their own.
