Human Bobber Life Jackets
DEAL
EPISODE SUMMARY
🕓 Air Date: October 22, 2017
Asking For:
$120,000 for 15%
Investor:
Kevin O'Leary, Mark Cuban (33.3/10)
Deal:
$120,000 for 33.3% + 10% to Mark
PRODUCT SUMMARY
Human Bobber offers multifunctional personal flotation devices, including the Bottoms Up dual-purpose vest and the Scuttlebutt triple-purpose line, designed for various water activities and relaxation.
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Background Story
Doug Schultz and Justin Rietema, based in Florida, share a passion for outdoor water activities. Frustrated with traditional floatation devices, they came up with the idea for the Bottoms Up dual-purpose vest, a Coast Guard-approved, all-in-one personal flotation device.
The development process took three years, involving collaboration with manufacturers and navigating through patent and Coast Guard approval. Facing challenges with big-box retailers due to the lack of Coast Guard approval initially, they decided to focus on online sales.
The Product
The Human Bobber product line includes the Bottoms Up dual-purpose vest and the Scuttlebutt triple-purpose line. The Bottoms Up vest serves as a Coast Guard-approved boating vest, specialty watersports vest, and a replacement for traditional rafts and inflatables.
Priced at $90, it offers convenience and comfort. The Scuttlebutt, priced at $65, provides versatile recreational flotation, usable for floating, sitting, and more.
The products aim to eliminate the hassle of traditional water floats and provide an all-inclusive solution for water enthusiasts. The Bottoms Up vest is designed for easy use and storage, ensuring a comfortable and enjoyable experience for users.
How It Went
The company’s position before Shark Tank
Over three years, Human Bobber generated $63,000 in sales. The slow initial sales were attributed to the time-consuming processes of product development, patenting, and Coast Guard approval. The founders revealed that they struggled to secure big-box retail deals initially due to the lack of Coast Guard approval.
However, they emphasized the potential of online sales and expressed interest in strategic partnerships. The products have a current manufacturing cost of $27.80 for the Bottoms Up vest and $22.80 for the Scuttlebutt. The founders acknowledged the need for online marketing and distribution to reach a broader audience.
The Negotiations:
The Sharks raised concerns about the limited market for the product and the challenges of retail distribution. While Kevin O’Leary made an initial offer of $120,000 for 33.3%, Mark Cuban expressed concerns about the company’s accounting and operational aspects. Lori Greiner and Robert Herjavec opted out, citing the limited market potential.
Mark Cuban also decided to pass, considering the product a feature rather than a standalone business. Kevin O’Leary then modified his offer, bringing Mark Cuban on board for 10% equity, funded by the founders, resulting in a total of 43.3% equity for $120,000. The founders accepted the offer, believing that having two Sharks on board would contribute to the company’s success.
