Frameri – Interchangeable Eyeglass Frames
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 1, 2015
Asking For:
$150,000 for 3.50%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Frameri offers customizable glasses that allow users to easily change frames and lenses, creating a versatile eyewear experience.
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Background Story
Frameri, founded by Konrad Billetz and Kevin Habich, emerged from the duo’s shared frustration with the lack of variety in eyewear compared to their extensive clothing options. The founders, Konrad and Kevin, bring a compelling mix of creativity and determination to the eyewear industry. Konrad Billetz and Kevin Habich present Frameri on Shark Tank with a background rooted in addressing a common consumer dilemma. Konrad Billetz, presumably the spokesperson for the pitch, highlights a personal wardrobe disparity—he owns 20 pairs of shoes, 10 suits, 15 pairs of pants, and 15 shirts, yet only possesses one pair of glasses.
This incongruity sparked the idea for Frameri, a solution that allows users to change their glasses as easily as they change their outfits. The founders’ journey took a significant step with the creation of Frameri, a company seeking to revolutionize the eyewear industry. Their innovation lies in the design of frames and lenses that offer interchangeable options, allowing users to customize their eyewear according to their style and preferences.
It’s evident that the founders are driven by a passion for providing consumers with a more versatile and customizable eyewear experience. The background story reflects a combination of personal frustration, innovative thinking, and a desire to address a gap in the market. Frameri, as presented by Konrad Billetz and Kevin Habich, not only introduces a unique product but also embodies the founders’ vision to change how people perceive and engage with eyewear.
The Product
Frameri’s product is a revolutionary eyewear solution that enables users to effortlessly customize their glasses, providing a versatile and stylish eyewear experience. The key features of Frameri’s product are its interchangeable frames and lenses, allowing users to easily snap lenses in and out of different high-quality frames. This innovative design enables users to have multiple pairs of glasses with just one set of prescription lenses.
The product works by offering frames and lenses that are specifically designed to be interchangeable. Users can purchase prescription lenses tailored to their needs and then snap them into the frames of their choice. Additionally, Frameri provides sun lenses, allowing users to convert their eyeglasses into sunglasses. The packaging includes three frames and two sets of lenses, providing customers with six different combinations in one box.
Frameri also offers a unique online customization experience, allowing customers to choose frames and visualize how they will look using an augmented reality plug-in on their website. The product caters to those seeking both functionality and style in eyewear, offering a cost-effective and convenient solution for individuals with varying fashion preferences and vision needs.
How It Went
The company’s position before Shark Tank
Frameri is in the startup stage, having opened for preorders in October and successfully running a crowdfunding campaign that exceeded their initial goal. The founders, Konrad Billetz and Kevin Habich, reveal that they have sold $70,000 worth of product through preorders, showcasing early traction in the market. Frameri’s funding has primarily come from crowdfunding, where they raised $64,000 against a $30,000 goal. Their current monthly burn rate is approximately $38,000, with the majority allocated to salaries.
The founders emphasize their need for strategic investors who can contribute to brand building, indicating a focus on securing additional funding to fuel the company’s growth. The founders mention working with a fashion P.R. agency and an e-commerce P.R. agency in New York to prepare for their product launch. This suggests a strategic approach to building awareness and establishing a presence in the competitive eyewear market. Customer acquisition and market positioning are crucial for Frameri’s success. They target a diverse customer base interested in customizable eyewear with both functional and aesthetic appeal.
The founders highlight a go-to-market strategy based on building awareness through P.R. efforts and leveraging an augmented reality plug-in on their website for an enhanced online shopping experience. The founders stress that their frames are handmade, deviating from the injection-molded norm, reinforcing the commitment to quality and innovation. Frameri shows promising early traction with a successful crowdfunding campaign, strategic partnerships in place for their product launch, and a clear emphasis on innovation and differentiation in the competitive eyewear market. Their funding needs and burn rate suggest a company in the early stages of growth, eager to secure investments for further development and market expansion.
The Negotiations:
The negotiation process for Frameri on Shark Tank unfolds with an initial ask of $150,000 for a 3.5% equity stake. However, the sharks express skepticism about the company’s valuation, which is over $4 million, especially given Frameri’s limited sales experience and unproven track record. Mark Cuban questions the valuation, highlighting the uncertainty surrounding the product’s success. Kevin O’Leary steps in with a unique offer, proposing a $150,000 loan with a $25 repayment for each box set sold until $450,000 is recouped.
In addition, O’Leary demands a 3.5% equity stake. While O’Leary sees this as a way to reduce customer acquisition costs, the founders decline the offer, indicating that they are not ready for royalty-based deals at this stage. The negotiation takes an unexpected turn as the other sharks express their concerns. Mark Cuban emphasizes the importance of proving the concept and building a business before seeking substantial investments. Daymond John and Robert Herjavec echo similar sentiments, emphasizing the need for more experience and proof of concept.
Despite Kevin O’Leary’s attempt to structure a deal, the founders ultimately reject his offer, leading to a unanimous decision by all sharks to decline an investment in Frameri. The rejection is based on concerns about the company’s valuation, limited sales experience, and uncertainties surrounding the business model. The founders, while expressing disappointment, maintain their resolve to continue pursuing their dream and turning Frameri into a reality, despite the setback of not securing a deal on Shark Tank.
