Enso Rings – Silicone Rings
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 8, 2017
Asking For:
$500,000 for 7,50%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Enso Rings offers a safer alternative to traditional metal rings and wedding bands, made of a proprietary silicone that's designed to break away in order to prevent finger injuries.
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Background Story
Enso Rings founders, Brighton Jones and Aaron Dalley, lifelong friends from Salt Lake City, Utah, embarked on their entrepreneurial journey to address a safety concern that arose from personal experience. The inspiration came when Aaron had a rock-climbing accident, and his traditional wedding ring got caught on a rock.
This incident led them to realize the potential dangers of wearing metal rings during various activities. They recognized the need for a safer alternative and founded Enso Rings, disrupting the jewelry industry with their innovative silicone rings.
The Product
Enso Rings are crafted from a proprietary silicone that’s not only stylish but also engineered to endure an active lifestyle. The rings are designed to break away when caught on something, preventing potential injuries such as ring avulsion.
The founders demonstrated the strength and safety of their rings by showcasing a professional bodybuilder pulling on an Enso Ring compared to a standard metal band. The silicone rings are available in various styles and colors, catering to different preferences.
Priced between $11.99 and $39.99, the rings are affordable and offer a stylish alternative for those with active lifestyles or professions where traditional metal rings may pose a risk.
The cost of production ranges from 70 cents to $4, with special attention given to creating high-quality designs, including using actual gold elements in certain models. Enso Rings primarily sells through their website and online marketplaces, leveraging a successful social media push to reach a wide audience.
Their market includes not only individuals concerned about finger safety but also professionals like firefighters, electricians, physicians, and members of the military who cannot wear metal rings during their work. In the past 18 months, Enso Rings has achieved impressive sales, reaching $3.8 million, with a projection to exceed $5 million in the current year.
How It Went
The company’s position before Shark Tank
Enso Rings has experienced rapid growth, achieving $3.8 million in sales over the past 18 months. With a projected revenue of over $5 million in the current year, the company’s financial performance is robust. The rings are sold online through their website and various marketplaces, with a significant portion of sales attributed to a successful social media marketing strategy. The founders mentioned a focus on customer acquisition, with marketing expenses averaging around 40% of sales.
The fear-based marketing strategy, emphasizing the risk of ring avulsion, has proven effective in capturing the attention of potential customers. Enso Rings has successfully tapped into niche markets, including healthcare professionals and those with active lifestyles. As for the company structure, Enso Rings operates as an online-based business, allowing them to reach a global audience. Their product has found popularity not only as a safety solution but also as a fashion trend, expanding their market beyond initial safety concerns.
The Negotiations:
The negotiation phase saw multiple sharks expressing concerns and skepticism about the long-term viability of Enso Rings, given the fear-based marketing approach. Lori Greiner and Barbara Corcoran both opted out early, citing confusion in messaging and the mixed emphasis on safety and fashion. Robert Herjavec, recognizing the potential despite his reservations, made an offer of $500,000 for 20%.
Kevin O’Leary proposed a unique loan offer, suggesting $500,000 as a loan with a $2 fee per order until he recoups $1.5 million, taking 5% equity as compensation. Robert, appreciating the company’s success but expressing concerns about the competition, countered $500,000 for 15%. Ultimately, Enso Rings accepted Robert Herjavec’s offer of $500,000 for 15%, citing his passion and understanding of the business.
The negotiation showcased the sharks’ varying perspectives on the company’s potential, with concerns about the fear-based marketing strategy and the level of competition in the market. In the end, Enso Rings chose Robert Herjavec’s offer, valuing his passion and belief in their product.
