HiccAway Hiccup Straw
DEAL
EPISODE SUMMARY
🕓 Air Date: January 21, 2022
Asking For:
$250,000 for 10%
Investor:
Mark Cuban
Deal:
$250,000 for 20%
PRODUCT SUMMARY
HiccAway is a hiccup-stopping device designed by a neurointensivist that uses pressure to halt spasms in the diaphragm, offering relief from hiccups.
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Background Story
HiccAway was introduced to the Sharks by a trio comprising Dr. Ali, Amanda, and Victor. Dr. Ali, a neurointensivist specializing in brain-related critical care, brought his medical expertise to the table. His experiences in treating patients with various neurological conditions drove him to seek a solution for the persistent and discomforting issue of hiccups, often overlooked in the medical world.
Amanda, the marketing head, was instrumental in shaping the brand’s image and promoting its efficacy. Her understanding of consumer preferences and market dynamics helped position HiccAway as a practical and effective remedy. Victor, the other co-founder, complemented the team with his business acumen and shared the vision of making HiccAway a household name.
Although the specific location of the company was not explicitly mentioned in the pitch, it was evident that the team had set their sights on a global market. Their combined passion for addressing common health concerns led them to conceptualize HiccAway, a device designed to alleviate hiccups by leveraging scientific principles. Their collective expertise in medical science and marketing facilitated the development of HiccAway, filling a gap in the market for a reliable and accessible hiccup remedy.
The Product
HiccAway is a remarkable and innovative solution for a common, yet often vexing problem: hiccups. This simple but effective device is designed to quickly and efficiently stop hiccups by applying scientific principles. The device’s operation is straightforward. It works by generating pressure when you drink water through it, which, in turn, stops the spasms in the diaphragm responsible for hiccups. The pressure created by HiccAway acts as a reset button for the hiccup cycle, providing relief in as little as 5 to 10 seconds.
HiccAway’s benefits are twofold. First, it provides fast and effective relief from hiccups, which can be both annoying and, at times, even painful. Secondly, it eliminates the need for often futile and awkward hiccup remedies, such as holding your breath, drinking water in specific ways, or being startled.
This hiccup-stopping device can be conveniently purchased through their official website, on Amazon, and is also available in a major retail store in Texas. The retail price for HiccAway is $14, while the wholesale price is just $6, making it accessible to a wide range of consumers. With its user-friendly design and impressive success rate, HiccAway offers a practical and affordable solution to an age-old problem.
How It Went
The company’s position before Shark Tank
HiccAway has demonstrated promising growth and success since its inception. With $300,000 in sales and 21,000 units sold within the first year of its launch, the company has proven its appeal in the market. The product has gained traction through its online presence, primarily on their official website and the popular e-commerce platform, Amazon. Additionally, HiccAway has secured a partnership with a prominent big box retailer in Texas, further expanding its reach to a wider customer base.
The company’s strong position can be attributed to its effective marketing strategies, with Amanda spearheading the efforts and earning a commission on sales. While the specific location of the company headquarters was not disclosed, the company’s operations seem to be well-distributed, with a focus on both online and retail distribution channels. HiccAway’s financial stability is bolstered by its impressive profit margins, with a production cost of only 70 cents per unit, significantly lower than the retail price of $14. Such healthy margins suggest a strong potential for future growth and sustainability.
While the exact details of the company’s funding sources were not explicitly mentioned, the successful sales figures indicate that the company is self-sustaining and has not relied heavily on external funding sources. In terms of structure, HiccAway is co-owned by Dr. Ali and Victor, each holding a 50% share of the company. Amanda, despite not having equity, plays a crucial role in marketing and has a vested interest in the company’s success. With a solid customer base built through online and retail sales, coupled with efficient marketing and a profitable business model, HiccAway is well-positioned to continue its upward trajectory in the market for hiccup remedies.
The Negotiations:
During the negotiations, the Sharks showed varying levels of interest and skepticism towards HiccAway’s market potential. While the innovative nature of the product was acknowledged, some concerns were raised regarding its necessity and the challenges associated with establishing widespread consumer adoption. Barbara Corcoran, initially expressing doubt about the product’s accessibility, ultimately opted out of the deal due to concerns about its practical availability.
Kevin O’Leary and Daymond John also expressed reservations, with O’Leary highlighting potential skepticism at the point of purchase and John emphasizing the necessity of the product. Mark Cuban, however, recognized the significance of HiccAway’s potential to address a common health issue. Making the initial offer of $250,000 for 20%, he showed enthusiasm for the product’s potential long-term growth. Eventually, Cuban’s offer was negotiated down to 15%, with the deal being finalized at $250,000 for the specified equity stake.
While the negotiation process witnessed a range of doubts and questions from the Sharks, the eventual agreement with Cuban demonstrated their recognition of the product’s value and its potential to become a staple item in households. Despite initial concerns, the negotiation concluded with a successful deal, highlighting the trust in the product’s efficacy and its ability to cater to a widespread consumer base.
