EZPZ Toddler Meal Mats
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 8, 2016
Asking For:
$1,000,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
EZPZ offers the Happy Mat, an all-in-one silicone placemat and plate designed to make mealtime for toddlers less messy.
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Background Story
Lindsey Laurain, the founder of EZPZ, hails from Parker, Colorado. Frustrated with the chaos of mealtime with three toddlers, Lindsey and her husband sought a solution, leading to the creation of the Happy Mat—an innovative silicone placemat and plate that suctions to surfaces, preventing spills and tipping during meals. The company was born out of a desire for a better feeding experience for toddlers and their parents.
The Product
The Happy Mat is a game-changer in the feeding industry, offering a smiley-face design to create a positive feeding experience. The silicone mat suctions to surfaces, eliminating the hassle of tipped bowls and plates during meals.
Priced at $24.99 retail with a wholesale cost of $12.50, the product has a 50% margin. The mat is not only functional but also aesthetically pleasing, with a cute smiley-face design in various colors. EZPZ has filed for utility and design patents, signaling a commitment to protecting their innovative product.
How It Went
The company’s position before Shark Tank
EZPZ claims $1.2 million in gross sales from 85,000 units sold in the current year. They have a strong presence in the baby market, with products available in retailers like Nordstrom, Amazon, Buy Buy Baby, and Babies “R” Us. The company is also in 200 boutiques across the country. While optimistic about future sales, the valuation of $20 million is based on projections rather than current financial data.
The founder mentions international interest, having met with 400 international distributors in Germany. However, the negotiations reveal concerns about the lack of data to support the high valuation.
The Negotiations:
The Sharks express skepticism about the $20 million valuation, given the current financials and the speculative nature of future projections. Multiple offers are made, including Kevin’s $1 million for 5%, with a catch—if sales don’t reach $10 million the next year, Kevin gets 20%. Barbara offers $1 million, but she wants to pay it over four years at $250,000 per year. Mark expresses concerns about the business’s early stage and the risk associated with the optimistic projections.
Lindsey eventually turns down all offers, feeling that the fit isn’t right and wanting to build a company that aligns culturally. The Sharks express their concerns about Lindsey’s optimism and advise her to embrace a healthy level of self-doubt in entrepreneurship. Despite not securing a deal, Lindsey is glad she didn’t compromise on the valuation, believing it to be the right decision for the company’s future.
