Bug Bite Thing – Insect Bite Relief
DEAL
EPISODE SUMMARY
🕓 Air Date: October 20, 2019
Asking For:
$150,000 for 10%
Investor:
Lori Greiner
Deal:
$150,000 for 10%
PRODUCT SUMMARY
Bug Bite Thing is a tool designed to remove insect saliva or venom from bites or stings, providing relief from itching and swelling caused by mosquito bites and other insects.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Kelley and Ellen, founders of Bug Bite Thing, moved from California to South Florida and were unprepared for the severe mosquito problem. One day, after complaining about mosquito bites, a customer suggested a tool that could remove irritants to stop itching and swelling.
The founders tracked down the manufacturer, teamed up with him, and secured an exclusive deal for Bug Bite Thing in the entire United States. Although there’s no patent, the product, manufactured in Denmark, underwent clinical trials. Kelley’s frustration with mosquitoes led to the creation of Bug Bite Thing, providing relief for insect bites and stings.
The Product
Bug Bite Thing is a simple yet effective tool. Users place it over a bite or sting, apply pressure, slowly pull up on the handles, and hold for 10 to 30 seconds. This action draws the irritant into a removable cap. After releasing the suction, users wash out the cap, making the tool ready for the next use.
The product works on insects that leave saliva or venom under the skin, including mosquitoes, bees, wasps, and red ants. The founders showcased before-and-after pictures, demonstrating its effectiveness, especially for children experiencing swelling.
Bug Bite Thing is priced at $9.95, and it boasts the title of the number-one best-seller in insect bite relief on Amazon. With an 80% margin online, the cost to make one unit is around $2, imported from Denmark. The founders secured a deal with a large pharmacy chain, placing Bug Bite Thing in over 7,000 stores.
How It Went
The company’s position before Shark Tank
In the past year, Bug Bite Thing achieved impressive sales, reaching $500,000, with projections to surpass $2 million by September. With an 80% profit margin online, the product’s affordability and effectiveness contributed to its success. The founders shared their success on Amazon, being the best-seller in insect bite relief. Additionally, Bug Bite Thing expanded into over 7,000 stores through a deal with a large pharmacy chain.
The import cost per unit is $2, including manufacturing and packaging expenses. The founders emphasized their need for funding to manage cash flow and ensure product availability. Currently structured as a family-owned company, Bug Bite Thing is on a growth trajectory, establishing itself as a leading solution for insect bites.
The Negotiations:
The negotiations saw multiple offers from the Sharks. Rohan Oza and Lori Greiner both offered $150,000 for 10%, while Barbara Corcoran offered $200,000 for the same equity. Lori’s expertise in retail and Rohan’s product distribution capabilities were highlighted. Lori playfully presented a “Golden Ticket” expressing confidence in their partnership.
In the end, the founders chose Lori Greiner’s offer of $150,000 for 10%. The negotiation showcased the Sharks’ recognition of Bug Bite Thing’s potential and the founders’ need for strategic partnerships to expand the product’s reach.
