BrilliantPad – Self-Cleaning Dog Potty
DEAL
EPISODE SUMMARY
🕓 Air Date: November 5, 2017
Asking For:
$500,000 for 5%
Investor:
Lori Greiner
Deal:
$500,000 for 5% + $2.50/unit royalty until $500,000 is paid back
PRODUCT SUMMARY
Brilliant Pad is a self-cleaning pet pad system that automatically replaces soiled pads with clean ones, eliminating the need for pet owners to handle dirty pads.
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Background Story
Alan Cook, the founder of Brilliant Pad, entered the pet industry over 15 years ago when he created a scoop-free, automatic, self-cleaning litter box inspired by his dislike of handling a stinky litter box. With a successful background in pet products, Alan aimed to address the inconvenience of handling soiled pet pads with Brilliant Pad.
The idea originated from the common issue faced by owners of small dogs (under 25 pounds) with small bladders, leading to billions of soiled potty pads. Brilliant Pad was designed to automatically replace dirty pads with fresh ones, wrapping and sealing waste to maintain a clean and odor-free environment. Alan’s experience in the pet industry, particularly with a successful innovation like the self-cleaning litter box, gave him credibility in the market.
The Product
Brilliant Pad operates on an adjustable timer, automatically advancing the pad one, two, or three times a day or at the touch of a button. It effectively handles both urine and solid waste, wrapping and sealing the waste securely, preventing odor and mess.
Each roll is equivalent to 27 traditional pads, allowing for extended use before replacement. The system ensures that users never have to handle soiled pads, promoting a cleaner and more convenient solution for pet owners.
The machine’s design and functionality were demonstrated on the show, showcasing its ability to handle waste effectively while keeping the surroundings clean and dry. Alan emphasized the convenience of leaving the system unattended for days or even weeks, reducing the frequency of pad replacement.
Brilliant Pad is positioned as a solution for small dog owners, tapping into the significant and fast-growing segment of the dog population. The initial sales were generated through an Indiegogo campaign, where approximately $100,000 was raised in 30 days with an average price point of $125 per unit.
How It Went
The company’s position before Shark Tank
At the time of the pitch, Brilliant Pad had just started production and expected shipments to customers within six weeks. The cost of goods for the machine was $54, and the retail price was set at $149. Additionally, subscription-based rolls were priced as low as $19.99, providing a cost-effective option for customers.
The company’s performance was showcased through the successful Indiegogo campaign, indicating market interest and potential demand. The pitch did not provide detailed information on current partners, wholesalers, or specific customer demographics. However, the founder’s previous experience in the pet industry, coupled with the success of the self-cleaning litter box, suggested a foundation for Brilliant Pad’s potential success.
The Negotiations:
Alan initially sought $500,000 for a 5% equity stake. Kevin O’Leary made an offer, proposing a debt deal with 10% equity at an 11% interest rate. Lori also made an offer of $500,000 as a royalty-based loan, taking $5 per unit until the initial investment was recouped, and an additional 8% equity. The negotiation continued as Lori and Kevin presented their offers, with Kevin suggesting a debt deal structure and Lori emphasizing her experience in marketing and sales through QVC and infomercials.
Lori eventually modified her offer, lowering the royalty to $2.50 per unit until the initial investment was recouped and retaining 5% equity thereafter. Ultimately, Alan accepted Lori’s offer, citing her Chicago connection and expertise in marketing. Lori highlighted her intention to promote the product on QVC and infomercials, leveraging her successful track record with other products.
