Boho Camper Vans
DEAL
EPISODE SUMMARY
🕓 Air Date: March 20, 2020
Asking For:
$300,000 for 10%
Investor:
Barbara Corcoran
Deal:
$300,000 for 10%
PRODUCT SUMMARY
Boho Camper Vans offers affordable and photogenic camper vans for rent or purchase, equipped with comfortable beds, kitchenettes, solar-powered electricity, and more, providing a mobile living experience.
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Background Story
Brett Ellenson and David Sodemann, based in Tempe, Arizona, founded Boho Camper Vans inspired by a trip to Maui, where they explored the island in a camper van. Recognizing the lack of such services in Phoenix, a popular tourism destination, they decided to venture into the camper van business. Brett, with a background in machining and fabrication, and David, with education in design and marketing, combined their skills to create camper vans tailored for short-term adventures or full-time living.
Their passion project quickly turned into a successful business, with a fleet of five rental vans and 12 sold vans. The demand was so high that they had to build additional vans to meet customer requests. Boho Camper Vans aims to provide a unique and affordable mobile living experience, catering to a broad demographic.
The Product
Boho Camper Vans offers a unique mobile living experience with vans equipped with comfortable beds, kitchenettes, solar-powered electricity, pull-out countertops, and more. The vans are designed to be affordable, easy to drive, and aesthetically pleasing.
They cater to a diverse demographic, making the concept of mobile living accessible to many. The vans are available for both short-term adventures and full-time living on the road. The key features include a functioning kitchenette with running water, solar-powered electricity, and a unique design that resembles a tiny home on wheels.
The vans are available for rent at just under $200 per night, with a three-night minimum. For those interested in purchasing, the build-out cost for the vans is around $29,000, and they aim to keep the cost low by sourcing used vans and using a pre-fab process that takes just under three weeks.
How It Went
The company’s position before Shark Tank
Boho Camper Vans has demonstrated impressive financial performance, with $493,000 in sales in the current calendar year and a net income of $195,500 in the last eight months. The founders highlight a quick payback period of eight months for each van. The company is debt-free, and they’ve identified their vans as a form of “mobile real estate,” positioning themselves for the next level of living.
Boho Camper Vans has attracted significant interest, with numerous people reaching out to be on the list for van builds. They have successfully sold 12 vans for people to live in, further emphasizing the appeal of their product. The founders attribute their success to factors such as affordability, uniqueness in the market, and the increasing trend toward minimalist and mobile living.
The Negotiations:
The negotiation process involved offers from multiple sharks. Mark Cuban expressed interest but did not make a formal offer. Rohan Oza suggested a $300,000 investment for 25% equity, emphasizing his marketing expertise. Other sharks made offers involving a mix of debt and equity, with Kevin O’Leary proposing a $300,000 loan at 9% interest for two years with 7% equity.
Barbara Corcoran ultimately secured a deal with a $300,000 investment for 15% equity. She offered a unique structure, providing $150,000 in cash upfront and an additional $150,000 in the form of a credit line. This aligns with Boho Camper Vans’ preference for staying debt-free while providing the necessary capital for expansion.
In the end, the founders accepted Barbara Corcoran’s offer, appreciating her understanding of their desire to remain debt-free and her vision for the business’s growth. The negotiation showcased the founders’ commitment to their principles and their ability to secure a deal that aligned with their strategic goals.
