CoolWraps Gift Wrap
DEAL
EPISODE SUMMARY
🕓 Air Date: March 29, 2013
Asking For:
$100,000 for 40%
Investor:
Mark Cuban
Deal:
$250,000 for 100% equity + 3% royalty
PRODUCT SUMMARY
CoolWraps is a shrink-wrap gift bag that simplifies the gift-wrapping process, making it easy and mess-free with just three steps: stuff it, seal it, and shrink it.
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Background Story
CoolWraps, pitched by Jeffrey Miller, aimed to revolutionize the gift-wrapping industry with a simple, efficient solution. Jeffrey recounted how the product had been introduced to the market a decade ago, gaining traction with appearances on QVC and successful sales in CVS. However, despite initial success, the company faced funding challenges when banks demanded collateralization of homes, leading to disagreements among partners.
Jeffrey’s steadfast belief in the product led him to acquire full ownership, but struggles persisted in getting the product noticed. Lacking resources for proper marketing, Jeffrey’s attempts to promote CoolWraps at trade shows fell short, limiting its exposure to potential customers.
The Product
CoolWraps presents a novel approach to gift wrapping, replacing traditional methods with a convenient, hassle-free solution. The product, a shrink-wrap gift bag, streamlines the wrapping process into three simple steps.
First, users place the gift inside the bag. Then, they remove the protective film from the adhesive strip and fold it over like an envelope, sealing the present securely. Finally, using a hairdryer, the user shrinks the bag to fit snugly around the gift, creating a professional-looking presentation without the need for tape, scissors, or excessive wrapping materials.
CoolWraps addresses common issues associated with gift wrapping, such as messy tape and uneven folds, offering a solution that is both efficient and aesthetically pleasing. With its patent-protected design and absence of competitors in the market, CoolWraps stands out as a unique and innovative product poised for success.
How It Went
The company’s position before Shark Tank
Despite initial success, CoolWraps faced challenges in securing funding for expansion, resulting in stagnation for over a decade. With Jeffrey Miller now holding full ownership, the company seeks to reinvigorate its presence in the market. While past sales demonstrated demand for the product, limited marketing efforts hindered its growth potential.
CoolWraps aims to leverage its patent and the evolving manufacturing landscape to reduce costs and increase profitability. With Mark Cuban’s investment and expertise, the company anticipates accelerated growth and broader market reach. As CoolWraps prepares to relaunch, strategic partnerships and distribution channels will be crucial in maximizing its impact and establishing a competitive edge in the industry.Â
The Negotiations:
Jeffrey Miller entered the Tank seeking $100,000 for a 40% equity stake in CoolWraps, emphasizing the product’s ease of use and market potential. While some sharks expressed skepticism about the product’s viability after years of dormancy, Mark Cuban saw an opportunity for revival. Mark’s offer of $250,000 for the entire company, coupled with a 3% royalty, presented a significant gamble but also a chance for Jeffrey to relinquish control and share the risk.
Despite the aggressive terms, Jeffrey accepted Mark’s offer, signaling a swift conclusion to the negotiation. Mark’s decisiveness and willingness to take on the product’s challenges resonated with Jeffrey, paving the way for a mutually beneficial partnership. With Mark’s backing, CoolWraps aims to capitalize on its patent-protected design and tap into new markets, marking a new chapter in the company’s journey toward success.
