Grease Monkey Wipes
DEAL
EPISODE SUMMARY
🕓 Air Date: January 15, 2010
Asking For:
$40,000 for 40%
Investor:
Robert Herjavec, Barbara Corcoran (50/50)
Deal:
$40,000 for 40%
PRODUCT SUMMARY
Grease Monkey Wipes are individually packaged degreasing cleaning wipes that utilize a natural, nontoxic citrus-based cleaner to handle heavy-duty cleaning.
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Background Story
Grease Monkey Wipes was founded by Tim Stansbury and Erin Whalen, both passionate recreational cyclists, who bonded over their shared love for cycling and their frustration with on-the-road maintenance issues. Based on their experience and expertise in product management, product marketing, and business, Tim and Erin identified a gap in the market for portable cleaning solutions. The duo embarked on extensive research to develop a product that would address the need for convenient, effective cleaning options for cyclists and beyond.
Their journey began during one of their 100-mile bike rides, where Tim encountered a flat tire and struggled to clean his hands covered in grease afterward. This experience sparked the idea for a portable cleaning product that could easily remove grease, grime, and dirt while on the go. Leveraging their backgrounds in marketing and business, Tim and Erin delved into product development, conducting thorough testing to ensure the effectiveness and safety of their solution.
Driven by their passion for cycling and a shared entrepreneurial spirit, Tim and Erin meticulously crafted Grease Monkey Wipes, a unique cleaning wipe infused with a natural citrus-based cleaner derived from leftover orange oils. Their vision was to create a product that not only catered to the needs of cyclists but also offered practical cleaning solutions for a broader audience, including automotive enthusiasts, boaters, and households. With their combined expertise and determination, Tim and Erin brought Grease Monkey Wipes to fruition, aiming to revolutionize the way people tackle grease and grime challenges in their everyday lives.
The Product
Grease Monkey Wipes revolutionize cleaning with their innovative design and natural citrus-based formula. Individually packaged for convenience, each wipe is infused with a powerful cleaner derived from leftover orange oils, making it effective for removing tough grease, grime, and dirt.
Designed for versatility, Grease Monkey Wipes cater to various cleaning needs beyond cycling, including automotive maintenance, boating, and household cleaning tasks. The wipes offer a practical solution for on-the-go cleaning, allowing users to effortlessly tackle messes wherever they may occur.
The wipes’ natural citrus scent provides a pleasant cleaning experience without the use of harsh chemicals, making them safe for both users and the environment. Their compact packaging makes them ideal for storage in glove compartments, toolboxes, or backpacks, ensuring they’re always within reach when needed.
Grease Monkey Wipes are available for purchase individually or in multipacks, providing flexibility for different consumer preferences and needs. Priced affordably at $1 per package, they offer excellent value for their cleaning power and convenience. Customers can easily purchase Grease Monkey Wipes online through the company’s website or at select retailers nationwide, ensuring accessibility for a wide range of users seeking effective and convenient cleaning solutions for their daily tasks.
How It Went
The company’s position before Shark Tank
Grease Monkey Wipes has demonstrated promising early performance since its inception. With sales of 7,600 wipes and gross revenue of $7,400 within a few months of launching, the company has shown initial traction in the market. While their current market penetration is limited, Grease Monkey Wipes has achieved a 75% success rate in pitching their product to stores, with approximately 40% of shops reordering. However, the company acknowledges challenges related to brand recognition and resources for extensive marketing efforts.
Partnerships with cycling shops and niche markets have been crucial for initial sales, indicating a strategic approach to distribution. The company primarily relies on its own investment and revenue generated from product sales for funding. With a startup structure, Grease Monkey Wipes is led by passionate founders Tim Stansbury and Erin Whalen, who bring expertise in product management, marketing, and business to the company.
As for profits and losses, the company’s gross revenue of $7,400 suggests positive cash flow from sales, although net profit figures are not provided. Despite facing initial skepticism from investors due to the lack of proprietary content, Grease Monkey Wipes secured funding from sharks, indicating investor confidence in the company’s potential and vision. As they aim to build a global brand presence and expand their product line, Grease Monkey Wipes is poised to capitalize on its early success and drive further growth in the cleaning product market.
The Negotiations:
During the negotiations on Shark Tank,”Tim Stansbury and Erin Whalen presented their company, Grease Monkey Wipes, seeking $40,000 in exchange for 40% equity. They effectively demonstrated the product’s unique features, highlighting its natural citrus-based formula and versatility for cleaning grease, grime, and dirt. Despite their compelling pitch, the Sharks had concerns about the lack of proprietary protection and the product’s potential to be easily replicated. Daymond John was the first to exit, appreciating the branding and founders but feeling the business was not a fit for him.
Barbara Corcoran also passed, feeling that despite the founders’ compelling story and strong business presentation, the lack of proprietary content made the investment less appealing. Kevin O’Leary and Kevin Harrington echoed these concerns, citing the product’s easily replicable nature and lack of unique selling points as their reasons for not investing. The negotiations took a positive turn when Robert Herjavec expressed interest in the potential of Grease Monkey Wipes. He acknowledged the product’s market fit and the founders’ passion and business expertise.
Although initially hesitant, Erin’s determination and heartfelt pitch swayed Robert. Eventually, he offered $40,000 for 40% equity, aligning with the original ask but wanting a substantial stake to justify his investment and involvement. In a surprising and supportive move, Barbara Corcoran, impressed by Erin’s persistent and passionate appeal, decided to join Robert in the investment. Together, they offered $40,000 for 40% equity, with each taking a 20% stake. Tim and Erin accepted this combined offer, securing the funding and partnership needed to drive Grease Monkey Wipes toward their vision of becoming a national and international brand.
