GoodHangups – Magnetic Poster Hanging System
DEAL
EPISODE SUMMARY
đź•“ Air Date: September 30, 2016
Asking For:
$100,000 for 10%
Investor:
Lori Greiner
Deal:
$100,000 for 10% or if the loan wasn't repaid in the first year 20%
PRODUCT SUMMARY
GoodHangups is a product that turns walls into magnet boards, providing a solution for hanging artwork without damaging walls. It uses magnetic-receptive stickers and magnets to make art easily removable and reusable on various surfaces.
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Background Story
GoodHangups, hailing from the vibrant city of Seattle, Washington, was brought to life by the creative mind of Leslie Pierson. Leslie, the founder of GoodHangups, embarked on this entrepreneurial journey fueled by a common predicament faced by many—decorating commitment issues. Her desire to freely adorn her walls clashed with the reluctance to puncture them with holes. Leslie, a resident of Seattle, possesses a background that uniquely blends creativity with problem-solving. The inception of GoodHangups was inspired by her 5-year-old child, an enthusiastic young artist flooding their home with a myriad of artwork.
The family fridge, a customary gallery for such creations, reached full capacity, prompting Leslie to seek a better solution. Frustrated by the limitations of traditional hanging methods such as putties, tacks, and tape, Leslie envisioned a revolutionary product that would overcome these “hangups.” Thus, GoodHangups was born—a magnetic solution turning walls into versatile magnet boards. This innovative product offered a remedy for hanging artwork without inflicting damage on walls.
The adhesive used in GoodHangups stands apart from conventional methods, ensuring easy removal and reusability without leaving stains or marks, even after extended periods. Leslie’s dedication to solving her personal problem evolved into a comprehensive product that addressed a widespread challenge faced by art enthusiasts and homeowners. Leslie Pierson’s journey with GoodHangups reflects her commitment to practical solutions and her capacity to transform personal dilemmas into innovative ventures.
The Product
GoodHangups, the brainchild of Leslie Pierson, introduces a groundbreaking solution to the perennial challenge of decorating walls without the fear of damage. This innovative product transforms any wall into a versatile magnet board, offering a hassle-free and damage-free way to display artwork, photos, and more.
The functionality of GoodHangups is elegantly simple yet highly effective. Users apply the magnetic-receptive stickers to their walls, which act as a base for the desired items. Artwork or photos can then be easily placed on these stickers, with the addition of magnets for secure adhesion. The process is not only straightforward but also completely removable and reusable, ensuring flexibility in rearranging displays without causing harm to walls.
GoodHangups caters to a variety of surfaces, including concrete, brick, tile, wood, and even textured walls. Its adhesive is designed to be different from traditional methods, preventing stains and damage over time. Available in packs of 8, 16, 40, and 100, with the 8-pack priced at $14.99, the product offers users a cost-effective solution for transforming their living spaces.
This versatile and user-friendly product addresses the perennial struggle of decorating commitment and offers individuals a means to curate their spaces with ease and creativity. Whether purchased directly, through retail partners like Paper Source, or seen on QVC, GoodHangups provides a practical and aesthetically pleasing solution for art enthusiasts and homeowners alike.
How It Went
The company’s position before Shark Tank
GoodHangups has demonstrated robust performance since its inception, marking a successful foray into the market of innovative wall solutions. With over $450,000 in sales within its first year, the company has established a solid foundation for growth and expansion. The founder, Leslie Pierson, strategically positioned the product in various sales channels to maximize its reach and impact. One key partner in GoodHangups’ success story is QVC, where over 50% of the product’s sales have taken place.
This partnership not only indicates a successful marketing strategy but also attests to the product’s appeal to a wide consumer base. Additionally, GoodHangups has secured placement in over 110 Paper Source stores, expanding its retail presence and making the product accessible to a diverse demographic. In terms of funding, the company has demonstrated financial resilience, achieving considerable sales without compromising product quality or innovation.
The strategic decision to maintain U.S.-based manufacturing, utilizing both U.S. and imported parts, aligns with GoodHangups’ commitment to quality and contributes to the company’s position as a reputable player in the market. The company’s structure is reflective of its founder’s vision and commitment to solving a common problem. Leslie’s approach involves seeking strategic partnerships to fuel the next phase of growth. In terms of profits and losses, GoodHangups’ financial health is promising, with a clear understanding of its customer base and effective utilization of diverse sales channels.
The Negotiations:
The negotiations for GoodHangups on “Shark Tank” showcased a dynamic interplay of offers and counteroffers, ultimately resulting in a successful deal for the founder, Leslie Pierson. Leslie entered the tank seeking a $100,000 investment for a 10% equity stake in her wall-hanging solution company. The Sharks responded enthusiastically to Leslie’s pitch, with Lori Greiner, Kevin O’Leary, and Mark Cuban expressing interest. Lori, recognizing the potential of GoodHangups, offered $100,000 for a 20% equity stake. Kevin and Mark quickly followed suit with competing offers, Kevin proposing $100,000 for 15%, and Mark offering the desired $100,000 for just 10%, reflecting confidence in the product’s potential.
In a surprising twist, Leslie opted for a counteroffer that showcased her strategic thinking. Instead of accepting any of the equity-based offers, she proposed a $100,000 loan for 10%, with the condition that if not repaid in the first year, it would convert to a 20% equity deal. This strategic move aimed to balance the immediate capital infusion with a flexible equity structure. Lori, impressed by Leslie’s negotiation skills and recognizing her determination, accepted the loan offer, sealing the deal at $100,000 for a 10% equity stake or a 20% equity stake if the loan wasn’t repaid in the first year.
This negotiation highlighted Leslie’s shrewd approach to securing both funding and a strategic partnership, and it showcased the Sharks’ willingness to adapt to unique deal structures when presented with a compelling business opportunity. The episode concluded with excitement and optimism as Leslie secured a partnership with Mark Cuban and the resources needed to propel GoodHangups to new heights.
